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....
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 Technology Is Changing The Gas And Oil Industry

How Technology Is Changing The Gas And Oil Industry

Technology is already infiltrating different industries and making a huge impact. Advances in technology that supports the industry are geared towards solving some of the biggest challenges in the oil and gas industry. From the need to enhance safety to preventing catastrophic disasters and unwanted effects, technology in the oil and gas industry has substantially revolutionized oil mining and distribution. Enhancing safety One cannot talk about the oil and gas industry without reviewing the safety issues that the industry faces. From the harsh reality of the loss of lives as a result of accidents to the inherent risk of making substantial losses in the valuable assets, the risk is all over. Various technological solutions have been developed, targeting enhancing the safety of oil and gas mining crew. Oil mining crew can, for instance, inspect the condition of oil wells at the click of a button and thereafter take the necessary corrective measure to enhance safety. Industry players also get a chance to guarantee the oil transmission process by inspecting pipes for leakages. Enhancing efficiency Oil mining and exploration technology also enable stakeholders in the entire industry to achieve high levels of precision when it comes to the mining process. Oil exploration companies, for instance, can use the latest equipment and technology to precisely map the quantity and feasibility of a given oil deposit. This increases the chances of return on investment since the mining companies can only invest after establishing sufficient feasibility. Data and communication The entire oil industry is currently digitized, with data being a key parameter that advises oil mining companies and other stakeholders on the strategic...
Understanding the Shale Boom and Its Effects

Understanding the Shale Boom and Its Effects

The shale boom helped to monetize an important natural resource. There’s always been fossil fuel trapped in shale formations. However, it was always difficult to access. Originally, oil and gas companies had to wait for natural breaks in the rock to make the gas accessible. The development of fracking in the first half of the 20th century made it possible to drill down. Advances in fracking over the past 20 years have made it possible to extract much more. Deeper drilling in hydraulic fracking has meant big things for countries like the United States and Canada. Governments love the idea of accessing these gas and light oil deposits, and it’s easy to see why. The shale boom has taken power from the hands of cartels like OPEC. By knocking them back on their heels, the West is getting closer to true energy independence. However, the big oil and gas companies aren’t thrilled about the shale boom. They haven’t been able to capitalize on it. Because there’s more supply of natural gas and light oil than before, prices are falling. The outlook for the companies hasn’t been that great. Though they’re making a profit, it’s not going as far as they need it to. The shale boom required a lot of investment in new technology. That means taking on some debt. Then 2008 created a recession that was felt the world over, in every industry. It’s also fairly expensive to extract this natural resource. Because the drilling is deeper than ever, it’s also more expensive than it used to be. Paying back the investment that makes this possible will take...