Oil And Gas Industry Overview

2012 Words9 Pages
Industry Analysis
Oil & Gas Industry Overview What is the oil industry? The oil industry, made up of both oil and gas is also known as the energy industry. On a personal level, “oil and gas provides the world 's 7 billion people with 60 percent of their daily energy needs. The other 40 percent comes from coal, nuclear and hydroelectric power, solar and tidal power, and biomass products such as firewood (Petroleum Online, 2014).” “As fuels, they keep us warm in cold weather and cool in hot weather; they cook our food and heat our water; they generate our electricity and power our appliances; and they take us by car, bus, train, ship or plane to places near and distant (Petroleum Online, 2014).” There are many phases of the oil industry. One way of segmenting the industry is by looking at it as upstream and downstream. Upstream phases include oil extrapolation and refining services. Downstream events include the buying and selling of oil and gas at the retail level. This could mean gas stations or even electricity from which natural gas has been used. Each of these phases combined makes up a huge industry in which large profits are made. (Industry Handbook, Oil Services, 2014) Let’s break these phases down into groups that are easier to understand. Upstream events include oil drilling, oilfield services, and refining.
“Drilling companies physically drill and pump oil out of the ground. The drilling industry has always been classified as highly skilled. The
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