Oil and gas are one of the world’s premier commodities. It is a primary energy source to help all the living world. For instance, in the form of automobiles, aircraft, heating, asphalt and electricity after converted into the petroleum.
Besides being an important source of energy, plastics, paints, cleaners, tape and so much more use petroleum. It is hard to imagine an oil-free world. According to Investopedia, here are the things you need to know.
Upstream, Midstream, and Downstream
Three segments in the oil industry are upstream, midstream, and downstream. First, upstream is an exploration and dig to locate and remove oil from the earth. Second, midstream operations consist of transport and storage. Third, after processing and selling, downstream deals with the final product.
Obviously it is the most critical upstream operation. Since all the rest will not work without the discovery and exploration of the oil.
The United States, Russia, and Saudi Arabia are the world’s largest oil producers. In 2019, those three countries produced around 33 million barrels of oil per day. That’s around 54 per cent of total world production.
How to Explore and Produce the Oil into a Petroleum
In 2019, gross revenues for the oil and gas exploration industry came to around $3.3 trillion, according to market analysis by IBISWorld, a global business intelligence company. The industry consists of companies exploring, cultivating and running fields for oil and gas. This is also named the oil and gas exploration and production industry, or simply E&P.
In addition, with global GDP estimated at $86 trillion in 2019, the oil and gas exploration industry alone accounts for around 3.8% of the global economy.
The industry includes companies specializing in crude petroleum production, shale or sand mining and oil extraction, and hydrocarbon liquids recovery. Many of the major players in oil and gas are active in oil exploration and development. To name only a number, Exxon, Chevron, and BP are three.
Both natural gas producers and those who extract sulfur from natural gas altogether in the field. It does not include companies that hold, process, or sell natural gas and oil. The exploration and manufacturing industry employs about 4 million people across 350,000 firms.
Overall, global oil production over the next few years is expected to exceed 100 million barrels per day, up from the current estimated figure of 85 million.