It may not matter whether you are an entrepreneur looking for the best industry to invest or a qualified graduate looking for a financial sector. It is crucial to know about the oil industry which has become a multi-trillion sector today.
So if you are among the individuals mentioned above, you need to understand the trading of oil to grasp the various factors that make the oil industry. The comprehension enables you to have a competitive edge among the many people who want to benefit from the coveted sector. Here are some of the things you need to know about the oil industry.
Production of oil comes in several different stages. They include the upstream and downstream phases. What is involved in these two stages? During the upstream stage, there is search and discovery as well as the extraction of oil from underground. The first step is to explore the possibility of oil deposits.
There is the use of various technologies like seismic imaging during this stage. After discovering oil, digging of wells nearby follows. It happens for scale appraisal as well as deposit value. It is also vital as it assists in working out the best way of field development. It may be either offshore on onshore.
Initially, there is a natural pressure underground that squeezes the oil. There is also the use of other mechanisms to get out the oil when the pressure reduces. Some of these ways include the injection of gas and water for the maintenance of pressure in the reservoir.
After this process, the oil now goes into the refinery stage. The downstream process now starts here. The processing and refining of crude oil take place. There is the production of useful products for sale.
There are various kinds of oil products
Oil is a general term used to refer to a variety of hydrocarbon products. Crude oil is natural after extraction from the ground. It consists of a mixture of light hydrocarbons and heavy ones. The two separate during the refinery process. The methods of separation are heating and fractional distillation process. The hydrocarbons obtained are known as ‘straight run products.’
The products go through various complicated processes for the creation of end products that are used by consumers. The products are fuel oil, diesel and gasoline while others get used in petrochemicals as feedstocks. They change to things products like plastics used by people. They also get used in home furnishing, on computers and cars.
There is growth in the consumption of crude oil and production
Today there is the production of barrels of crude oil amounting to 90 million. These are sold to consumers in different parts of the world every day. Spectra Oil is one of the companies around the globe distributing quality oil to consumers.
According to reports by governments and the World Energy Review by BP Statistical, the production is consistently increasing over the years. The main issue is the sustainable management of the resources.
In recent years, the global production of oil has been changing. OPEC countries do not dominate the production today as they used to do some years back. The change is due to the advancement in technology. Today oil can be from alternate reserves like oil sands and shale.
Non-OPEC countries are now producing about 60% oil in the global arena according to the report by the US Energy Information Administration. For example, the United States is now one of the biggest producers of gas and oil. Companies owned by states take the largest share. Some of these companies include National Iranian Oil, Saudi Aramco and different companies from Russia.