What Are The Different Gas And Oil Industries?

What Are The Different Gas And Oil Industries?

The oil and gas industry are coming into more focus as a result of recent changes, and it does not show a major sign of evening out soon. The gas and oil industry is broken up into three components, with each component counting for a major source of energy that helps to fuel the world that we live in today. The three components include the upstream industry, the midstream industry, and the downstream industry. While many know about the gas and oil industries, they may not understand how each component is used for fuel. With that in mind, let’s examine what the three components of the gas and oil industry. Upstream Industry To begin, the upstream industry is the component that searches for crude oil and natural gas through underground or underwater fields. Essentially, it is the component that uses different approaches to find the necessary oil and gas. Because of how unpredictable the wells that are used to retrieve the oil and gas, this component is considered to be the most difficult, and overall dangerous approach. However, it continues to be in high demand in today’s economy. Midstream Industry Once the oils and recovered from its respective location, the midstream industry helps to store and distribute the items. Some of the processed items include crude oil, natural gas, and sulfur. In general, the midstream industry is considered to be fairly safe, as they work to store the gas and oil until it is transported to locations that will determine where it will be distributed and utilized. Downstream Industry The downstream industry represents the final processing of the products,...
What Does The Oil And Gas Industry Look Like Right Now?

What Does The Oil And Gas Industry Look Like Right Now?

While there’s a lot of talk about green energy sources like wind and solar power, the simple truth is that we aren’t going to be moving exclusively towards these options right away. Moving towards renewable energy is going to require a transitional period where more traditional energy helps fill the gap. And despite a push towards green energy, the oil and gas industry is currently experiencing a boom. Where OPEC once largely held a monopoly on energy resources, the United States has been aggressively forcing its way into the market. It’s a change largely unprecedented. 2018 was the first time in 75 years that the United States could be seen as a net exporter of petroleum liquids. Between November 20 and December 5, the country exported more of these goods than they imported. That’s a good sign for the industry, but it’s equally important because it indicates that the U.S. has reached a point where they aren’t dependent on other nations to provide them with their energy needs. These numbers cover both crude oil and oil-derived liquids. The latter covers a wide range of different substances ranging from gasoline to diesel. All told, the discrepancy between barrels imported and exported was 211,000. That provision is important. While America is making major moves towards becoming energy independent, it’s unlikely that we’ll be able to sustain ourselves on domestically produced crude oil alone anytime soon. But that’s not a change that should be underestimated. This change has been unprecedented for three-quarters of a century, and it’s a tide shift from a decade ago. These shifting circumstances are largely predicated on our...
Top 3 Leading Companies of the Oil & Gas Industry

Top 3 Leading Companies of the Oil & Gas Industry

In 2016, Forbes brought together a list of the top leading companies of the oil and gas industry. Today, we will explore the top 3 biggest in the world. We will explore the details and differences of these companies, but it’s very clear why they are the top 3. 1. Gazprom Gazprom’s main trade is in natural gas and other energy resources. Holding the world’s largest natural gas reserve, Gazprom is also the largest importer of natural gas to the European market. This booming company in the industry strives to transport natural gas and other energy resources to their customers. Gazprom also has a high involvement in Russia, selling more than half of their gas to Russian consumers. This company is the only producer of Liquefied Natural Gas in Russia. Gazprom’s CEO Alexey Miller is an extremely powerful influencer in the world, and accounts for nearly 13% of world production. 2. Rozneft In terms of oil and gas production, Rozneft is the leading producer of petroleum in Russia, although they are a global company. As the deliverer of over 40% of oil to Russia, Rozneft has climbed the uphill battles of the economy and crises over the past. Being aware of the environmental ethics to the oil industry, Rozneft has a sustainable development policy which the company adheres to. Among that policy is the objective to regulate and unify activities pertaining to sustainability. The company will report its first quarter of 2017 financial results, Friday, May 5. 3. Exxon Mobil Depending on where you’re located, you may be more familiar with Exxon Mobil. With gas stations in 47 states...

How GOP Regulation Cuts Will Affect Oil and Gas

Gas industry giants have muddled through eight years of roadblocks, courtesy of the Obama administration, however the past months’ political upheaval has seen petroleum prospects finally looking a bit less sludgy. In fact, the path to a new black gold era seems to be clearing swiftly, thanks to industry support from a GOP-dominated congress, and a Republican president, both of which are currently shredding through Obama’s red tape like a pair of hyperactive scissors. Before the Trump phenomenon and the GOP power scramble-turned-surge, pandemonium was felt not by the established political order, but petroleum execs, who fed around $300 million per year to hordes of lobbyists in hopes of derailing regulatory momentum. Bret Sumner, O & G lawyer and lobbyist with the Western Energy Alliance, said of his group’s push to break limitations on federal land drilling, “This has been a full-court press to block these rules, from a legal standpoint, a policy standpoint and a political standpoint.” Despite its expensive weaponry, the struggle to deregulate oil and gas won sparse success against Obama’s maneuvering. The days following inauguration witnessed an altogether different outcome. Congressional supremacy again rests firmly with the GOP, who have wasted no time driving forward a new agenda presented by a coalition of oil and gas interests as “A Roadmap to Repeal,” or a list of Obama-era environmental initiatives to be considered for immediate slashing. Rules requiring a more efficient approach to methane emissions, disclosure of foreign transactions with publicly offered oil, gas and mining companies, and less debris deposited in streams are among the first Roadmap repeals. More are sure to follow, as the...
Oil & Gas Predictions for 2017

Oil & Gas Predictions for 2017

You might be thinking that last year’s ridiculously numerous developments in the oil and gas industry couldn’t possibly be matched. You might be muttering thanks as you catch your breath, grateful that finally, the 2016 hurricane has cleared; you might take comfort in some certainty that you and those invested in O & G can at last kick back and enjoy the sweet, uninterrupted trickle of stability. You might be very wrong. Of course, it’s never easy to predict anything about an industry whose recent trend charts more closely correlate with a profile of the Himalayas than anything resembling stable. Nevertheless, with the following list I will do my best to sketch you at least a semi-coherent picture of what 2017 has in store for the O & G industry. OPEC countries wiggle around production standards – Each year, the Organization of Petroleum Exporting Countries sets a production quota which limits how much oil member countries are allowed to drum up, and every year, member countries dream up new and innovative ways of skirting these strictures. This year should be no different, which means peace between oil supply and oil demand might again be postponed.   Trump’s relationship with Russia leaves a mark – If Trump continues his crusade to improve relations with Russia, it will likely lead to a number Obama’s sanctions being lifted, leaving Russia free to produce more oil. The old administration’s original deal was slated to last six months, so the second half of 2017 might likely see Russia ramping up its exports.   Companies benefit from Trump’s deregulation –  The Obama administration’s disdain for...

The Oil and Gas Industry: A Recap of 2016 Events

To say the least, 2016 has been a tumultuous year for the Oil and Gas (O &G) industry. In truth, market events year have blasted O & G like the pressurized spray of hydraulic fracking drill rips through shale, sending investors, prices and predictive analyses on a whirling, white-rapid roller coaster of a route, eventually ending in a place altogether alien. Yes, the industry has moved on and if 2016 events are any indication, those invested in O & G should accustom themselves to quick, ambiguous shifts as modern energy practice continues its metamorphosis.   Any year this memorable begs a recap, so with the following list let’s examine 2016’s major oil and gas happenings, and brace ourselves for the moment when pressure strikes the market again.     Drilling costs took a dive – Costs of installing and operating wells have plummeted, with a significant number of companies reporting a 50% decrease in expenses involved in installing wells throughout 2016’s later months. This price dive owes itself to the industry tradition of consistently innovating new and efficient drilling and rig tech.       Expected ultimate recoveries climb – EURs, or predictions for net recoverable product in a given area, flew to new heights this year, subsequently dropping economic barriers for the startup of new drilling projects. Technical tweaks like advanced hydraulic fracking techniques and fine-tuned detection equipment have contributed to this, since workers can now more efficiently target large, concentrated pockets of oil.       Oil booms in the Permian Basin – The US Geological Survey estimates that around 20 billion barrels worth of oil flows...

Shifting Industry Trends Could Combat Oil and Gas Bust

It is hardly a secret that the oil and gas industry has been racked with struggles in recent years. Extensive supply and waning demand have borne a global price plummet which blindsided investors and left oil execs itching to seek out innovative and efficient ways to streamline production and heal financial hemorrhages. Andreas Kleinshimdt, in an article for Siemens, one of the world’s largest energy and engineering companies, states   “The low price of oil is both a challenge and an opportunity for the industry. Well-run oil and gas (O&G) companies that are strong today are likely to emerge even stronger after prices rebound. While the availability of oil fields and the associated equipment is always paramount for them, during a slump they have every reason to also focus on cost-effective production.” For O & G to optimally shrug off price drops and re-stimulate industrial growth, the industry must adapt to a changing landscape where resource scarcity is no longer an issue and advances in oil production methods mean a one-size-fits-all approach to operational procedure is no longer ideal. Creating a less centralized and more agile management structure could allow companies to mediate challenges rapidly and efficiently. A loose, informal, team-based management style would take advantage of individual expertise to quickly generate specific, objective-based operational prototypes and quickly respond to issues. Innovations in digital analytics and monitoring tools are another agent of optimization; digital tech could allow companies to act proactively to avoid profit pitfalls such as machinery breakdown and dwindling reservoirs. According to projections by Mckinsey and Company, applying digital technologies to the oil and gas sector could...

Pirates Posing a Threat to Oil and Gas

Pirates may seem like an issue of the past, but in some parts of the world, they’re still a very real threat to ships, especially those carrying valuable cargo like oil and gas. Because oil tankers are traditionally older, larger ships, they don’t have the speed like the smaller speedboats of the pirates do. They also don’t often carry weapons, whereas pirates will board ships with machetes and guns, then incapacitate the crew so they can have easy access to the oil. Not only does the piracy of tankers harm the oil and gas industry, it harms the lives of those who work on these ships and also the people and environment around where the ships travel. Recent news The biggest hotspot of pirate attacks against oil tankers occurs in the South China Sea. Many tankers travel in this area, shipping oil amongst the hundreds of islands. Due to the high density of waterways and islands, pirates have taken advantage of these conditions. Sophisticated organizations have been established and grown much longer, so they can plan elaborate attacks, often multiple times in a week, against oil tankers, taking millions of dollars over a few attacks. It’s possible that the pirates began as simple fishermen in the area who were driven by desperation to make some quick money. Unfortunately, highjacking these oil ships is incredibly lucrative, so a huge organized crime system has developed around it, pushing more and more people to turn to piracy in exchange for the rewards it offers. The South China Sea also isn’t the only location where oil tankers are targeted. In the waters around...

Fracking and Local Economies

  Despite having its roots in US energy production dating back to the early 1900s, fracking has long been looked at as an unconventional and perhaps temporary means of producing natural gas and oil within the United States. I’ve written in the past on TonyVanetik.com about how fracking was conceived and how the process actually plays out, disspelling some of the fears around the process of collecting oil and gas within the United States. For at least 65 years, it has been used in a commercial capacity, helping to reduce the United States’ dependence on foreign oils and spur on the surge in domestic energy production. While the process does present environmental concerns when done at enormously high volumes, fracking has allowed for tremendous increases in US energy, revolutionizing the energy industry as a whole. Fracking has reduced the cost of energy production hugely across the nation–the so called fracking revolution has caused gas prices to drop by about 47% according to Brookings. Fracking wells as a whole produced the good majority of US natural gas across the nation–two third according to the Energy Information Association. In short, the fracking boom has hugely influenced the US economy and energy production. Few people will debate the large-scale economic benefits of increasing nationwide fracking, environmental concerns aside. But how does fracking affect local economies? Even in scenarios in which the national economy is bouncing back or doing well at large, there are always struggling local economies. Without a booming populous or a bustling business center, some small cities and towns struggle to keep themselves afloat. Fracking, though, in areas in which...

Will the US Ever Achieve Energy Independence?

Depending largely on who you believe, where you’re getting your information and what you’d like to hear, the United States could be on the verge of turning completely energy independent in the near future. Or, on the other hand, it could not. It seems as though every week a new article pops up online either detailing why the US will be energy independent in the next few years, then later claiming it’s a bit further from that, then claiming it will never happen, then claiming that it may, in fact, happen. This is because, in the most straightforward of terms, no one really knows. The Case for Independence  I’ve touched on the potential for America’s energy independence briefly in the past on my blog here. The price volatility of oil has had an enormous impact on the state of the United States economy. The less we have to rely on foreign nations (primarily in the Middle East) for their oil production, the more stable our own economy can grow, further utilizing the energy sources domestically. Additionally, energy independence would theoretically solve issues regarding national security and the military. While 100 percent energy independence is quite the task, moving towards independence even short of the 100 percent metric is important nonetheless. “For the U.S. to have more options and be more independent, it reduces our national security vulnerability and makes more oil available to the rest of the world, which enhances geopolitical stability to the rest of the world,” said Mike Ming, Oklahoma Energy Secretary. With the oil and fracking booms that the United States has seen explode in recent...