Oil and gas industry overview


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Oil and gas industry overview

  1. 1. OIL AND GAS INDUSTRY OVERVIEW Petroleum Industry
  2. 2. Petroleum Industry Overview  The petroleum industry includes the global processes of exploration, extraction, refining, transporting (often by oil tankers and pipelines), and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum (oil) is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, a nd plastics. The industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations are usually included in the downstream category.
  3. 3. Oil Consumption across the world Petroleum is vital to many industries, a nd is of importance to the maintenance of industrialize d civilization itself, and thus is a critical concern for many nations.  Oil accounts for a large percentage of the world’s energy consumption, ranging from a low of  32% for Europe and Asia,  up to a high of 53% for the Middle East. Other geographic regions’ consumption patterns are as follows:  South and Central America (44%),  Africa (41%), and  North America (40%).  The United States consumed 25% of the oil produced in 2007  The world consumes 30 billion barrels (4.8 km³) of oil per year, with developed nations being the largest consumers.. The production, distribution, refining, and retailing of petroleum taken as a whole represents the world's largest industry in terms of dollar value.
  4. 4. Consumption by sector
  5. 5. Industry Structure  The American Petroleum Institute divides the petroleum industry into five sectors:[18]  upstream (exploration, development and production of crude oil or natural gas)  downstream (oil tankers, refiners, retailers and consumers)  pipeline  marine  service and supply  The oil and gas industry is usually divided into three major sectors: upstream, midstream and downstream.
  6. 6. Upstream  The upstream oil sector is also commonly known as the exploration and production (E&P) sector.[1][2][3]  The upstream sector includes the searching for potential underground or underwater crude oil and natural gas fields, drilling of exploratory wells, and subsequently drilling and operating the wells that recover and bring the crude oil and/or raw natural gas to the surface.  With the development of methods for extracting methane from coal seams,[4] there has been a significant shift toward including unconventional gas as a part of the upstream sector, and corresponding developments in liquified natural gas (LNG) processing and transport.  Most upstream work in the oil field or on an oil well is contracted out to drilling contractors and oil field service companies
  7. 7. Midstream Midstream operations and processes include the following:  Gathering: The gathering process employs narrow, low-pressure pipelines to connect oil- and gas-producing wells to larger, long-haul pipelines or processing facilities  Processing/refining: Processing and refining operations turn crude oil and gas into marketable products. In the case of crude oil, these products include heating oil, gasoline for use in vehicles, jet fuel, and diesel oil 1
  8. 8. continues  Transportation: Oil and gas are transported to processing facilities, and from there to end users, by pipeline, tanker/barge, truck, and rail.  Storage: Midstream service providers provide storage facilities at terminals throughout the oil and gas distribution systems  Technological applications: Midstream service providers apply technological solutions to improve efficiency during midstream processes. Technology can be used during compression of fuels to ease flow through pipelines; to better detect leaks in pipelines; and to automate communications for better pipeline and equipment monitoring 2
  9. 9. Downstream  The downstream sector commonly refers to the refining of petroleum crude oil and the processing and purifying of raw natural gas, as well as the marketing and distribution of products derived from crude oil and natural gas. The downstream sector touches consumers through products such as gasoline or petrol, kerosene, jet fuel, diesel oil, heating oil, fuel oils, lubricants, waxes, asphalt, natural gas, and liquified petroleum gas (LPG) as well as hundreds of petrochemicals.  Midstream operations are often included in the downstream category and considered to be a part of the downstream sector.
  10. 10. Pipeline  Pipeline transport is the transportation of goods through a pipe. Most commonly, liquids and gases are sent, but pneumatic tubes using compressed air can also transport solid capsules.  As for gases and liquids, any chemically stable substance can be sent through a pipeline. Therefore sewage, slurry, water, or even beer pipelines exist; but arguably the most valuable are those transporting crude petroleum and refined petroleum product including fuels: oil (oleoduct), natural gas (gas grid), and biofuels.
  11. 11. Difference between Brownfield and green field projects  Brown field is assimilated more to upstream oil & gas activities. It comes from the oil which is being produced from offshore facilities which is brown in color. As for other industries e.g. petrochemical, the existing plant which had existed for years will actually had tarnished in its color to brown or even black etc. Its product can be of any color or even colorless, but is not necessarily brown in color unlike the oil from the oil & gas sector. This is one difference.  Brown field projects have their unique complications in that they often have to be carried out in and around existing plant and operations, sometimes whilst operations continue.  Green field, it is also synonymous and applicable to the offshore upstream activities when dealing with the installation of new facilities. But there again, one would like to expect to be called "blue field" since it is mostly being constructed in the middle of the ocean. This is true to the offshore sector. But there are also the onshore sector where one can find new facilities being built onland, which is normally surrounded by greens, hence it is rightly called "green field". Onland facilities can exist in desert, arctic area which are not fully 'green'. Over here the color scheme is a bit mix-up.