Oil and Gas – An Essential Element

oil and gas industry

The oil and gas industry also referred to as the petroleum industry or the oil and gas sector comprises the worldwide processes of extraction, processing, production, transport, and marketing of oil products. Among these, petroleum is the most important commodity worldwide. The oil and gas industry involves the exploration, development, and refinement of oil and gas. The largest volume materials of this industry are gasoline and fuel oil.

This global demand for oil, despite the current global economic recession, has resulted in a large number of oil and gas sectors around the world. These sectors provide employment to millions of people around the world. With the onset of these sectors, competition for new oil and gas jobs is intense among people who want to get involved in the oil and gas sector.

People with Both Technological and Analytical Skills

This industry requires people with both technological and analytical skills. Most of the people who are recruited into this sector are those who have obtained a bachelor’s degree in engineering. A master’s degree is also required by some oil and gas companies. Since these engineers have a great deal of experience in engineering and research, they are often placed in operational positions, but there are opportunities for people who have acquired skills other than engineering and research skills.

Two Major Business Units

Oil and gas companies usually have two major business units: one is the upstream or real-estate component which develops the resources belonging to the oil and gas sector, while the second is the downstream sector, responsible for the supply of crude oil and petroleum liquids to downstream activities. In addition, there are also small oil and gas refineries that produce gasoline and diesel for sale to the customers. These refineries are usually located on the company’s premises and constitute a small part of its business. The upstream sector also focuses on discovering, extracting, refining, and selling petroleum and hydrocarbons whereas the downstream sector handles commercial production, transportation, retail sales, marketing, and distribution.

It’s in Growth for the Next Several Years

The oil and gas industry is in growth for the next several years as the world’s oil supplies are predicted to diminish over the coming years due to the increase in consumption in Asia, Africa, Latin America, Russia, and the United States. There is also an increasing demand in Europe for oil and gas supplies. It is projected that by the end of the next decade, the demand for oil and gas will continue to increase substantially in the Western world. The uncertainty of the oil and gas sector has resulted in a variety of actions taken by companies in the oil and gas industry.

An increasing number of companies have diversified their investment portfolio to include alternative fuels and drilling for oil and gas in the Middle East. Some have taken advantage of new technologies like geothermal drilling to tap fossilized deposits without requiring large investments. Oil exploration is a key driver for companies in the oil and gas industry. As long as there is a global demand for oil and gas, there will be supply. The companies that provide services related to exploration, production, refinement, and transportation of oil and gas are the major drivers of the global economy.