The Oil and gas company sector contribute the most to the economy of the country and the national GDP. It is considered as one of the biggest sectors in the world because of the revenue generated from this sector in terms of dollar value. The oil and gas companies are one sector which can’t be avoided in the global economy and world politics. The demand and the global dependence on oil and gas companies are increasing day by day and is even going to decline as every developing as well as a developed nation requires the availability of oil and gas. This sector is also responsible for the employment rate as the companies offer employment to thousands of people. The oil and gas industry of the United States supports around 10 million jobs.
The oil and the gas industry compromises and is subdivided to three main segments upstream, midstream, and downstream.
The upstream business of oil and gas company sector is all about exploration and production of oil and gas. These industries try and work their best to fin reservoirs all around the world. They work constantly to find a new source for raw materials around the world and then drill them to extract the material. These firms are called as E&P i.e. exploration and production. This department of the oil and gas sector consumes most of the time as it takes time to locate a new area and then extracting the materials from there. The upstream business or companies involve high investment capital. It is the major sector and primary sector of the oil and gas industries.
The midstream business takes care of the transportation process of the raw materials from the extracted place to the refineries to process the oil and gas. The midstream companies fill in the gap between the upstream companies and downstream companies. The midstream companies are all about shipping, trucking, pipelines, and storing raw materials. The success of the midstream companies completely depends upon the success of the upstream companies. The midstream business or companies operate on low capital risk.
The downstream businesses are the final stage of the gas and oil sector. They are the refineries who are responsible for removing the impurities from the oil and gas products and processing them to the final product which is made available to the general public. For instance, heating oil, asphalt, gasoline, jet fuel, and many other oil and gas products.