How Does Oil And Gas Industry Work?

Hi there! This video is about: 'How does Oil And Gas Industry Works?'

This overview is intended to help us gain a basic understanding of the oil and gas industry's fundamentals.

As the world's main fuel sources, oil and natural gas are major industries in the energy sector and have a significant impact on the global economy. Oil and gas production and distribution processes and systems are extremely complex, requires a large amount of investment, and involve cutting-edge technology.

Thousands of people work in the oil and gas sector around the world, and the industry produces billions of dollars per year.

The industry is divided into three main stages namely; Upstream, Midstream, and Downstream.

Upstream is the exploration and production phase. This involves the quest for underwater or potential underground natural gas or crude oil reserves, This also includes the drilling of exploration wells and drilling into existing wells to extract oil and gas.

The second level is known as Midstream. Midstream is concerned with the gathering and transportation of crude oil, natural gas, and refined fuels. This is normally done by pipeline, oil tanker, and trucking fleets.

The filtering of the raw materials collected during the upstream process is referred to as Downstream. This entails the refining of crude oil and the purification of natural gas. Some of the products that are produced in this process are kerosene, natural gas, diesel, gasoline, LPG, and many other.

As global economies continue to rely greatly on petroleum-based products, the world's reliance on oil and gas is increasing. The oil and gas industry continues to exert enormous effect on international economics especially when it comes to employment levels.

Another challenge to conventional oil and gas firms is the trend toward renewable and alternative energy. Solar power and offshore wind are becoming more and more cost-effective ways to produce electricity.

However, globally, still 30 billion barrels of oil are consumed per year, mainly by developing countries. Oil also accounts for a substantial portion of regional energy use, within Europe, Asia, North America, Africa, and Middle East.

Since the discovery of oil, the gas and oil industry has indeed been highly successful, and it will keep expanding in the years ahead.

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