OIL AND GAS
INDUSTRY
OVERVIEW
Petroleum Industry

Petroleum Industry Overview
 The petroleum industry includes the global
processes of
exploration, extraction, refining, transporting (often
by oil tankers and pipelines), and marketing
petroleum products. The largest volume products
of the industry are fuel oil and gasoline (petrol).
Petroleum (oil) is also the raw material for many
chemical products, including
pharmaceuticals, solvents, fertilizers, pesticides, a
nd plastics. The industry is usually divided into
three major components: upstream, midstream
and downstream. Midstream operations are
usually included in the downstream category.

Oil Consumption across the
world
Petroleum is
vital to many
industries, a
nd is of
importance
to the
maintenance
of
industrialize
d civilization
itself, and
thus is a
critical
concern for
many
nations.
 Oil accounts for a large percentage of the world’s
energy consumption, ranging from a low of
 32% for Europe and Asia,
 up to a high of 53% for the Middle East. Other
geographic regions’ consumption patterns are as
follows:
 South and Central America (44%),
 Africa (41%), and
 North America (40%).
 The United States consumed 25% of the oil
produced in 2007
 The world consumes 30 billion barrels (4.8 km³) of
oil per year, with developed nations being the
largest consumers.. The
production, distribution, refining, and retailing of
petroleum taken as a whole represents the world's
largest industry in terms of dollar value.

Consumption by sector

Industry Structure
 The American Petroleum Institute divides the
petroleum industry into five sectors:[18]
 upstream (exploration, development and
production of crude oil or natural gas)
 downstream (oil tankers, refiners, retailers and
consumers)
 pipeline
 marine
 service and supply
 The oil and gas industry is usually divided into
three major sectors: upstream, midstream and
downstream.

Upstream
 The upstream oil sector is also commonly known as the
exploration and production (E&P) sector.[1][2][3]
 The upstream sector includes the searching for potential
underground or underwater crude oil and natural gas
fields, drilling of exploratory wells, and subsequently drilling and
operating the wells that recover and bring the crude oil and/or
raw natural gas to the surface.
 With the development of methods for extracting methane from
coal seams,[4] there has been a significant shift toward including
unconventional gas as a part of the upstream sector, and
corresponding developments in liquified natural gas (LNG)
processing and transport.
 Most upstream work in the oil field or on an oil well is contracted
out to drilling contractors and oil field service companies

Midstream
Midstream operations and processes include the
following:
 Gathering: The gathering process employs
narrow, low-pressure pipelines to connect oil- and
gas-producing wells to larger, long-haul pipelines
or processing facilities
 Processing/refining: Processing and refining
operations turn crude oil and gas into marketable
products. In the case of crude oil, these products
include heating oil, gasoline for use in vehicles, jet
fuel, and diesel oil
1

continues
 Transportation: Oil and gas are transported to
processing facilities, and from there to end users, by
pipeline, tanker/barge, truck, and rail.
 Storage: Midstream service providers provide storage
facilities at terminals throughout the oil and gas
distribution systems
 Technological applications: Midstream service
providers apply technological solutions to improve
efficiency during midstream processes. Technology
can be used during compression of fuels to ease flow
through pipelines; to better detect leaks in pipelines;
and to automate communications for better pipeline
and equipment monitoring
2

Downstream
 The downstream sector commonly refers to the
refining of petroleum crude oil and the processing
and purifying of raw natural gas, as well as the
marketing and distribution of products derived
from crude oil and natural gas. The downstream
sector touches consumers through products such
as gasoline or petrol, kerosene, jet fuel, diesel
oil, heating oil, fuel
oils, lubricants, waxes, asphalt, natural gas, and
liquified petroleum gas (LPG) as well as hundreds
of petrochemicals.
 Midstream operations are often included in the
downstream category and considered to be a part
of the downstream sector.

Pipeline
 Pipeline transport is the transportation of goods
through a pipe. Most commonly, liquids and gases
are sent, but pneumatic tubes using compressed
air can also transport solid capsules.
 As for gases and liquids, any chemically stable
substance can be sent through a pipeline.
Therefore sewage, slurry, water, or even beer
pipelines exist; but arguably the most valuable are
those transporting crude petroleum and refined
petroleum product including fuels: oil
(oleoduct), natural gas (gas grid), and biofuels.

Difference between Brownfield and
green field projects
 Brown field is assimilated more
to upstream oil & gas activities. It
comes from the oil which is being
produced from offshore facilities
which is brown in color. As for
other industries e.g.
petrochemical, the existing plant
which had existed for years will
actually had tarnished in its color
to brown or even black etc. Its
product can be of any color or
even colorless, but is not
necessarily brown in color unlike
the oil from the oil & gas sector.
This is one difference.
 Brown field projects have their
unique complications in that they
often have to be carried out in
and around existing plant and
operations, sometimes whilst
operations continue.
 Green field, it is also
synonymous and applicable to
the offshore upstream activities
when dealing with the installation
of new facilities. But there
again, one would like to expect to
be called "blue field" since it is
mostly being constructed in the
middle of the ocean. This is true
to the offshore sector. But there
are also the onshore sector
where one can find new facilities
being built onland, which is
normally surrounded by
greens, hence it is rightly called
"green field". Onland facilities
can exist in desert, arctic area
which are not fully 'green'. Over
here the color scheme is a bit
mix-up.