The Oil & Gas Industry for Beginners

The Oil & Gas Industry for Beginners

The oil and gas industry is the largest in the world. It dominates many national economies, and nearly every government in the world keeps an eye on it to ensure that its people have energy. That means that anyone who wants to understand the world’s economy must study the basics of the oil and gas industry. Understanding the Importance of Oil and Gas The world consumes a massive amount of energy every day. People fuel to heat their homes, drive their cars, and power the industry that makes modern life possible. A huge amount of that energy comes from oil and natural gas, which also means that the industry generates a lot of revenue. Thousands of people earn a living from their work with oil and gas. Some nations rely on it as the foundation of their economy. The modern world simply wouldn’t exist without it. The Industry’s Three Parts The oil and gas industry is a broad grouping of many specialized businesses. Some of them extract raw materials, while others focus on refining them into useful products. Experts break those businesses up into three main groups. Some of them are upstream businesses. They form the first part of the production pipeline. Some workers focus on exploring the world to find new oil fields, while others work to extract oil and gas from the ground. Midstream organizations focus on storing and transporting raw oil and gas. They transport it from the point of extraction to a refinery, many of which are far away from the oil fields.  The downstream operations receive raw materials and turn them into useful products....
Sustainable Change Is Coming To Lundin Petroleum

Sustainable Change Is Coming To Lundin Petroleum

Sustainability is an increasingly important concept. It’s making waves in government, manufacturing, and now it’s come to the world of energy. Sweden’s Lundin Petroleum recently announced a potential name change. If shareholders approve the move in March, the company will be known as Lundin Energy going forward. They’ve also announced that they plan to be carbon neutral by the year 2030. This company has implemented measures designed to cut emissions, create carbon capture devices, and improve energy efficiency overall. This change is indicative of evolution throughout the energy industry. Companies like Lundin Petroleum made their fortunes thanks mostly to fossil fuels. However, as governments and populations become more aware of the role of carbon in climate change, there are plenty of incentives to evolve. For one thing, executives in the energy industry know that self-regulation may well prevent government interference. Secondly, they know that if carbon emissions are truly responsible for climate change, it behooves them to develop other, more carbon-neutral technologies. In addition to Lundin Petroleum, companies like Repsol, Shell, BP, and Total have announced plans to limit carbon emissions. In recent months, companies like BP have also announced new recycling initiatives. They’ve created a consortium with industrial giants like Unilever, Danone, and Alpla Group. BP Infinia is a new technology with great promise to recycle plastics that have been hard to process in prior years. In addition to handling plastic bottles and other containers, the goal is to find new ways to recycle fabrics like polyester. PET plastics are another form of petroleum product that the consortium is hoping to recycle. In focusing on closing the loop,...
What To Know About Oil & Gas So Far In 2020

What To Know About Oil & Gas So Far In 2020

As the new decade begins, the gas and oil industries are looking towards the future. Shifting economic, political, and environmental concerns are having a big impact on these fields. Knowing what to expect can help much better prepare for the upcoming months. Here are some of the biggest trends to look out for in 2020. Stabilized Prices Overall, pricing is looking very rewarding. The huge dip from 2014 seems to be in the past. The industry is beginning to recover, and there is no longer an expectation that it will decline. Though no huge spikes in pricing are expected, a slow yet positive increase is expected. Thanks to some new treaties and a lack of competition, companies are able to offer consumer-friendly rates while still making a solid profit. Natural gas is not having as favorable profits as oil lately, but it seems to be coming back slowly from the downturn. Increased Infrastructure There is a big focus on the infrastructure for the oil industry lately. Due to being in the public eye, companies are beginning to realize that their infrastructure greatly impacts people’s perception of them. The big trends seem to be underground pipelines and the production of larger processing and storage facilities. With all sorts of new technology being developed, companies are looking to install more advanced equipment in many areas. More Career Opportunities For those working in the oil and gas fields, the outlook is very promising. There have been a lot of business investments that are leading to new companies and more potential positions. Thanks to the economic boost, there are more opportunities for people...
Oil and Gas Trends to Look for in 2020

Oil and Gas Trends to Look for in 2020

With an average of over 15.3 million barrels of oil produced per day, the United States was the most dominant oil producer in 2018. The American oil industry was able to offer a supply that kept gas prices low for consumers. With new technologies constantly arising in the industry, America’s oil industry is expected to continue growing. Investors should be on the watch for these trends from the oil and gas industry in 2020. Backtracking to 2018 The American oil industry adapted well to the changes that occurred in 2018. After the downturn of the industry in 2014, American oil and gas companies continued to devise new plans and strategies to improve their services. There are several factors that play key roles in the 2018 growth of the American oil industry. Oil production from America’s competitors decreased while the demand for oil increased around the world. Additionally, a treaty between countries that belonged to OPEC and non-OPEC countries allowed America to dig deeper into its oil production. This Year, 2019 Deloitte, a member of the “Big Four” accounting organizations, expected that oil and gas companies would experience a full recovery during 2019. As a result, many investors began to place more money into companies in the oil and gas industry. Many oil and gas companies then responded by utilizing the additional funds to improve their operations. Looking Forward to 2020 There is a possibility for future disruption in the oil and gas industry. The gradually rising costs in external industries may affect the supply costs of oil and gas companies. However, based on the industry’s track record in 2018,...
How The Recent Saudi Oil Attack Can Affect Gas and Oil in the U.S.

How The Recent Saudi Oil Attack Can Affect Gas and Oil in the U.S.

Terrorist-controlled drones dropped explosives on several oil refineries in Saudi Arabia. This shut down oil production for some Saudi oil producers and disrupted oil supplies around the world. The damage will take months to repair, and oil production will be reduced for the foreseeable future. How Will This Affect Us? This has already translated into higher gasoline prices here at home. Some regions have seen a twenty to thirty cent rise in prices. While the Saudis struggle to repair the damage to their refineries, many fuel-related prices will remain higher than usual. Whenever oil prices rise, it directly affects transportation costs. This includes airfare, gasoline prices, and the cost of transporting goods throughout the world. Groceries, household items, and heating costs will probably rise to reflect the increase in transportation costs.  What Can I Do? It pays to tighten the belt, figuratively speaking. We can streamline our budgets to allow for higher gas prices. This may mean replacing some expenses with cheaper alternatives. We can rearrange other daily routines, as well. Travel plans may change for more local fare. Reserving airline tickets as early as possible will yield the highest savings on those. Buying local products will save on transportation expenses. Practice fuel-saving driving habits that save gas. These include observing slower speeds with a lighter foot on the brake pedal. Ridesharing can cut commuting costs in half. Turn down the heat by one or two degrees. Carry a sweater with you as the weather cools. Consider which items you can buy in bulk or on sale. Further Consideration Some Saudi oil production will be back online within two...