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.
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.
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.
The downstream industry represents the final processing of the products, ensuring they are refined from its original state, before being transported to various locations. Some examples include oil refineries, retail outlets, natural gas distribution companies, and more. Once they reach these locations, they are then utilized for commercial use, which helps drive a variety of commonly used products, from gasoline to heating oil, as well as plastics, natural gas, and propane.
Because of the profound amount that oil and gas are used to power today’s world, they have always been known as dominant industries. Even so, it is important to keep up with the news to track any changes to these major industries.