oil and gas

oil and gas
Name	Hydrocarbon energy industry
Type	Extractive industry
Products	Petroleum, natural gas, liquefied natural gas, petrochemicals
Major actors	ExxonMobil, Royal Dutch Shell, BP (British Petroleum), Chevron Corporation, TotalEnergies
Technologies	Drilling, seismic surveying, hydraulic fracturing, offshore platforms, LNG terminals
Founded	19th century
Headquarters	Global

oil and gas

The hydrocarbon energy industry comprises exploration, extraction, processing, transport, and marketing of liquid and gaseous fossil fuels. Firms and institutions from the industrial revolutions through the 21st century, including Standard Oil, Royal Dutch Shell, ExxonMobil, BP (British Petroleum), and Chevron Corporation, have shaped modern energy systems, geopolitics, and industrial chemistry. Major events and locations—such as the Spindletop, the Suez Crisis, the 1973 oil crisis, and fields like the North Sea oil and Permian Basin—have driven technology, capital flows, and regulatory regimes.

Overview

The sector spans upstream, midstream, and downstream activities undertaken by corporations such as TotalEnergies, Eni S.p.A., ConocoPhillips, and national companies like Saudi Aramco and Gazprom. Historical milestones include discoveries at Baku, operations led by entities like Anglo-Persian Oil Company, and crises exemplified by the 1973 oil crisis and the Iranian Revolution (1979). Technological advances have roots in pioneers like Edwin Drake and institutions including American Petroleum Institute and International Energy Agency. Major producing regions include the Gulf of Mexico, Caspian Sea, West Siberian Basin, and Gulf Cooperation Council states, while trading hubs such as Brent Crude, WTI (West Texas Intermediate), and Henry Hub anchor global markets.

Exploration and Production

Upstream activity relies on geological science, geophysics, and engineering practiced by firms like Schlumberger, Halliburton, and Baker Hughes. Seismic surveys pioneered by companies and research centers associated with MIT and Imperial College London guide drilling in basins such as the Permian Basin, Venezuelan Basin, and North Sea oil provinces. Offshore production uses platforms developed after incidents like the Deepwater Horizon oil spill and regulatory responses led by agencies such as the Bureau of Ocean Energy Management. Techniques include rotary drilling, directional drilling, and enhanced recovery methods influenced by studies at Stanford University and Texas A&M University. Unconventional development—exemplified in plays like the Eagle Ford Shale and Bakken Formation—employs hydraulic fracturing and horizontal drilling, often debated in courts and legislatures including the US Congress and in states like Texas and Pennsylvania.

Transportation and Storage

Midstream operations move hydrocarbons through networks of pipelines, tankers, rail, and storage terminals operated by companies such as Kinder Morgan and Marathon Petroleum. Major infrastructure projects, controversies, and legal proceedings have involved pipelines like the Nord Stream, Trans-Alaska Pipeline System, Keystone XL pipeline, and events such as protests at Standing Rock. Shipping relies on tanker classes traversing routes past chokepoints like the Strait of Hormuz, Suez Canal, and Strait of Malacca, with insurance and classification societies such as Lloyd's Register and regulations from the International Maritime Organization guiding safety. Storage hubs in locations like Cushing, Oklahoma influence benchmarks including WTI (West Texas Intermediate).

Refining and Processing

Downstream refining converts feedstocks into fuels and petrochemicals at complexes owned by ExxonMobil, Shell, and PetroChina. Refineries in regions such as the US Gulf Coast, Ruhr, and Jiangsu employ catalytic cracking, hydrocracking, and reforming technologies developed with research from Battelle Memorial Institute and companies like Honeywell UOP. Petrochemical value chains feed firms such as BASF, Dow Chemical Company, and SABIC to produce plastics, fertilizers, and solvents. Product specifications and emissions standards are influenced by regulators like the Environmental Protection Agency and directives from the European Commission.

Environmental and Health Impacts

Extraction, transport, and refining have driven incidents with global attention—Exxon Valdez oil spill, Deepwater Horizon oil spill—spurring responses from organizations such as Greenpeace and World Health Organization. Local pollution and occupational exposures are studied by institutions like National Institute for Occupational Safety and Health and universities including Johns Hopkins University. Climate effects from combustion of hydrocarbons link to reports by the Intergovernmental Panel on Climate Change and international agreements like the Paris Agreement. Remediation and conservation efforts involve NGOs, national parks, and legal frameworks such as rulings from the International Court of Justice and domestic courts.

Economics and Markets

Commodity markets trade futures and physical cargoes on exchanges and via brokers connected to New York Mercantile Exchange, Intercontinental Exchange, and trading houses like Vitol and Glencore. Price dynamics respond to supply shocks, cartel behavior by Organization of the Petroleum Exporting Countries and allies, macroeconomic indicators from the International Monetary Fund, geopolitical events involving nations like Russia and Saudi Arabia, and demand shifts measured by agencies such as the International Energy Agency. Investment decisions reflect risk assessments from rating agencies like Moody's and Standard & Poor's and corporate disclosures filed with bodies such as Securities and Exchange Commission.

Regulation and Policy

Regulatory frameworks are shaped by national laws, international accords, and agencies including the U.S. Department of Energy, European Commission, Norwegian Petroleum Directorate, and Ministry of Petroleum and Natural Gas (India). Policy instruments—taxation, subsidies, emission trading systems like the EU Emissions Trading System, and energy security strategies—are debated in parliaments and assemblies such as the United States Congress and European Parliament. Strategic reserves like the United States Strategic Petroleum Reserve and multilateral diplomacy during crises (for example the Suez Crisis) illustrate the intersection of policy, industry, and international relations.

Category:Energy industry