Article Title: A Research Guide in Oil & Gas Industry
Modern economies rely on oil and gas to provide the energy needed for homes, factories, and transportation. Since the first oil well was dug in 1859, the industry has advanced significantly. As the industry changes continuously, new chances for study arise. There are a variety of jobs in oil & gas production, from drilling and oilfield services to production management and engineering.
This research guide can be helpful for whom want to work in the oil and gas industry. Topics like oil and gas companies, exploration, production, refining, marketing, and pricing are covered in this research guide.
Oil and Gas Industry Overview
The history of the oil and gas sector is extensive and colorful. It began in the late 1800s when oil was first discovered in Pennsylvania. In the early days of the industry, oil was primarily used for lighting and lubrication. However, with the advent of the internal combustion engine, oil became an essential part of the automotive industry. Today, the oil and gas industry is a vital part of the global economy, and it is responsible for providing millions of jobs worldwide.
Oil and Gas Companies
Three segments—upstream, midstream, and downstream—are widely used to categorize the oil and gas sector. While there are several independent firms in each of these sectors, significant oil and gas companies are sometimes seen as integrated, indicating that their businesses combine upstream, midstream, and downstream activities.
Upstream: Exploration and Production
Upstream businesses concentrate on exploration and production, which are often known as “E& P.” In the upstream segment of the oil and gas industry, producers search for and extract crude oil and natural gas from the earth. This area of the business is often considered to be riskier than other parts of the oil and gas sector, as it involves the exploration and development of new reserves.
Exploration is the process of searching for new oil and gas deposits. This can be done through aerial surveys, seismic surveys, and drilling wells. The goal of oil and gas exploration is to find new sources of energy that can be developed into profitable oil and gas fields.
Oil and gas production is a process of extracting oil and gas from underground reservoirs. Plans for drilling are made once a business locates the oil or gas. Depending on the type of oil or gas and the local geology, different drilling techniques are used, such as onshore, offshore, and hydraulic fracturing. Numerous oil and gas businesses get into agreements with specialized drilling companies and pay for the crew’s labor and rig day rates.
Midstream enterprises are those with a focus on the transportation industry. The midstream segment operates between the exploration and production stages and the marketing and distribution stages. Midstream businesses specialize in pipelines, trucks, shipping, and raw material storage. This includes companies that transport, store, and process oil and gas. The midstream sector is vital to the oil and gas industry, but it is often overlooked by investors.
Downstream: Refining and Marketing
The downstream industry includes marketing and refining.
Refining is a complex and critical process that turns crude oil into usable products like gasoline, diesel, and jet fuel. The products are then distributed to consumers through pipelines, trucks, or ships. Downstream processing accounts for two-thirds of the oil and gas industry’s jobs and nearly half of its economic output.
Marketing is a process that begins after the production of oil and gas. It is the process of distributing refined petroleum products to businesses, industries, governments, and the general public at wholesale and retail prices.
Oil and Gas Pricing
Oil and gas pricing is a critical issue for both the industry and consumers. The price of oil and gas affects the cost of goods and services, as well as the economy as a whole. In the oil and gas industry, pricing is often determined by a benchmark. Several different benchmarks are used in the oil and gas industry. Some of the most common benchmarks are:
Brent Blend is a key global oil pricing benchmark and the underlying commodity for Brent crude futures contracts traded on the London-based ICE Futures Europe Exchange. The benchmark is used to price two-thirds of the world’s oil supplies.
The West Texas Intermediate (WTI)
In the United States, light and sweet oil, specifically crude oil from land-locked wells in Oklahoma, is referred to as West Texas Intermediate (WTI).
The Asian market uses Dubai/Oman to transport heavier oil with a greater sulfur content from the Persian Gulf.
Based on the Henry Hub natural gas pipeline in Louisiana, Henry Hub is the standard for North American and international liquefied natural gas (LNG) production.
The oil and gas industry is a complex and ever-changing field. The best way to stay up-to-date and make the most of your career opportunities is to research and learn about the latest industry trends. Stay connected with professionals in the field, attend industry conferences, and read trade journals. By doing so, you will be well-prepared to take advantage of any opportunities that come your way.