Oil & Gas Industry Overview
The oil and gas industry is a global sector that involves the exploration, extraction, refining, transportation, and marketing of petroleum products. The industry is divided into three segments:
- Upstream
- Midstream
- Downstream.
Upstream companies are responsible for finding reservoirs and drilling oil and gas wells. Midstream companies transport the oil and gas from the wells to refineries. Downstream companies refine the crude oil into finished products such as gasoline and fuel oil.
As of 2022, the oil and gas industry generated an estimated $5 trillion in global revenue. The industry is crucial to the global economic framework, impacting everything from transportation to heating and electricity to industrial production and manufacturing.
Investors looking to enter the oil and gas industry can quickly be overwhelmed by the complex jargon and unique metrics used throughout the sector. However, understanding key concepts such as hydrocarbons, which make up crude oil and natural gas, can help investors navigate this complex industry.
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