Oil & Gas

Oil and natural gas are two of the most important fossil fuels in the world, providing energy for transportation, heating, electricity, industrial production, and manufacturing. The oil and gas industry is one of the largest sectors in the world in terms of dollar value, generating an estimated $5 trillion in global revenue as of 2022. The industry is divided into three segments: upstream, midstream, and downstream. Upstream companies find reservoirs and drill oil and gas wells. Midstream companies transport the oil and gas from the wells to refineries. Downstream companies refine the oil and gas into finished products ready for sale.

Hydrocarbons make up crude oil and natural gas, which are naturally occurring substances found in rock in the earth’s crust. These organic raw materials are created by the compression of the remains of plants and animals in sedimentary rocks such as sandstone, limestone, and shale. The sedimentary rock itself is a product of deposits in ancient oceans and other bodies of water. As layers of sediment were deposited on the ocean floor, the decaying remains of plants and animals were integrated into the forming rock. The organic material eventually transforms into oil and gas after being exposed to specific temperatures and pressure ranges deep within the earth’s crust.