The oil and gas industry between the past and the present

The oil and gas industry between the past and the present

Dec 8, 2019

What is the first thing that comes to your mind when you hear about the oil and gas industry?

The oil and gas industry was the most powerful business and it is still in so many countries.

It is the main source of foreign income due to the enormous investments in it.

So before getting to know and to study every section of this enormous industry, I have to help you in shedding some light on so many important tips which will absolutely make you change your strategy.

How Oil and gas were formed?

Before getting into the industry itself we must know about the origin of the products that form the industry.

The beginning of this formation was millions of years ago.

Oil and gas were just microscopic fishes, trees, or maybe they were dinosaurs’ fossils that lived many years ago,
They were absorbing their energy from the sun.

After they died and being buried deeper and deeper, the heat and pressure started to rise.

The amount of those two elements decided if the produced material is going to be oil or gas.

What is the oil and gas industry?
oil industry

The oil industry is also known as the petroleum industry.

If we are going to define it in a simple way, then it is that specific activity that produces oil.

This industry plays an important role and it is considered as a major source of income in the global economy.

And like any other industry, it has it is own history which tells so many about the evolution of it.

The history of the oil industry

When it comes to the history of any industry, you have to pay attention because it is like a guide for you to make good plans and successful
strategies.

We can divide the history of the petroleum industry into two eras( The very early history and modern history)

The early history

It all started back in the 600 B.C when the first oil was actually discovered and extracted out from the ground.

It was discovered by the chinses.

Later, it was transported using bamboo poles.

And in 1859 the first oil company was founded by  Edwin Drake in Pennsylvania, which led the united states to the
oil rush industry.

And later on in the 19 century and early of the 20 century, it was like a remarkable period in this industry.

It was the start point of creation to the most well-know oil companies that still take a part in the market until today.

The modern history

It starts in the late 20 century when the market of oi industry turned from the influencer countries
such as( America and Europe) to the oil-producing countries such as( Iraq, Kuwait, Saudi Arabia,
and etc
).

Those countries formatted an organization which is called OPEC” Organization of the Petroleum Exporting”.

What is the gas industry history?

In early 1626 the natural gas was discovered in the united states of America by french explorers who identified
the gases which were around Lake Erie.

In 1821, the first well was specially designed to take out the gas which was found in New York and it was the first gas company.

What are the sectors of the oil and gas industry?

This energy industry has got three main sectors which are( Upstream, midstream and downstream).

The upstream

The upstream sector contains two sections and they are the exploration and production.

This stage of the industry is all about those activities which are happening in the field such as( Drilling and tracking) and it also includes those several environmental kinds of research.

What are exploration and production?

Exploration: in this stage, you search for hydrocarbons under the ground to locate the shale formations which
contain oil and gas.

This segment has too many methods and one of them involves seismology, which is a process where enormous
vibrations are being caused through those machines which are on the earth’s surface.

Production: this stage is about separating the liquid hydrocarbons that are being extracted from underground
from the non-saleable motifs.

The natural gas is also being processed while the oil is getting delivered to the refinery before being sold.

The upstream sector also cares wells, where to find oil and gas, and how far is to drill the wells.

In those two stages, there are two main ways to find oi and gas which are onshore and offshore

Onshore means on the land or the ground and you get to extract the oil and gas by ground equipment.

And the offshore means on the water and you get to extract the oil and gas by marine equipment.

The upstream sector has four major Characteristics which are:

1- The high risk of carries.

2- Technology.

3- It gives a high return.

4- It is easily affected by politics.

The midstream

The second sector of the three major stages of the oil and gas industry.

The midstream activities refer to processing, transporting, storing and the marketing of oil and gas.

Processing: it starts right on time with offshore or onshore oil and gas at the production level.

It is the step where oil and gas are being processed into marketable products,

Delivering or transporting: after the processing level, oil and gas are being delivered.

The liquids whether they are crude or refined start off their journey in a web that contains small pipelines,
once they are gathered together they get directly transported in tankers.

Storing: we divide this level into 2 sections, storing the crude oil and storing the natural gas.

When it comes to storing the crude oil it includes refinery tanks and holding them to get the liquids into the pipelines.

But it is completely different when it comes to the natural gas, due to its high pressure it is stored in underground
reservoirs until being ready to be transported to the market.

The downstream

The final sector in the supply chain of gas and oil and it includes 3 major Characteristics,
and they are( Oil Refining, Trading, and product marketing).

The downstream sector as it is shown, it is more related to business and how you can market the products.

How the industry of oil and gas works?

A big industry like this must have an epic plan to get all of this work done.

The petroleum industry is the most influence in the world.

It has two major sections, the streaming( upstream, midstream, and downstream) and the drilling.

And since we already talked about the first section, so let us shed some light on the drilling part.

What is drilling?

It is a process where a hole is made by a cutting tool in a solid material.

It is also can be a multi- cutting point in the solid material.

When it comes to rock’s drilling, the hole isn’t made by a circular cutting tool but instead, you usually have to hammer a hole a little bit into the hole with very fast movements.

In very rare cases, specifically shaped cutting tools are being used to make holes.

There are so many types of drilling so let me discuss with you a few of them.

The spot drilling: when you drill a hole which will act as a guide to reach your last hole, more like a map for you.

Gun drilling: This is mainly used to dig smaller holes.

And the bits in this type of drilling are self-centered which allows the concept of deep holes.

Center drilling: This is mainly used to drill countersink center holes.

These holes are meant to be in the center in order to turn and grind.

Conventional Drilling: it is the traditional type of drilling where the holes are being drilled directly from the
surface to the pay zone.

Slant Drilling: it is where you have to drill from a specific angle.

Is drilling only about the metal?

The answer to this question is absolutely no.

There is wood drilling which is so much easier and faster.

And there is also drilling in diamonds, gold, plastic, and etc.

How to be an expert planner in the petroleum industry?

Every industry needs a good plan in the market.

The oil and gas industry isn’t only about scientific facts but it also needs some strategic tips.

1- Know the history

Before entering any field in the market you need to have knowledge about its history and how it was developed.

You need to know the major players in history and who controlled the whole industry in the past.

2- Understanding

Understanding your field’s main characteristics is a must.

You need to understand the nature of the environment, the nature and the ability of the equipment that you are using.

3- Identify your methods

Knowing your industry’s methods is so important before setting up your plan.

You need to make a well- studied research about every method and study every section of it.

You also need to know about transporting and what is best for you produced material.

4- Market the industry

This is the most important part of the plan’s process.

Whether your company is big or small, the marketing step is a must.

It is the stage where you introduce your business and try to adapt to the market.

Marketing the petroleum industry

Marketing this kind of industry is so different from any other industry because of its nature.

You can’t depend on running campaigns just like any other company in a different field.

But we can gist the marketing strategy in 3 main steps.

1- Your website

Working and improving your website is a major step in your marketing strategy.

Your website is the first step that your business will be familiar with the people.

Having the same website for so many years require developing your website, especially when it comes to mobile designs.

According to Oil & Gas IQ,

71% of workers use mobile devices for work purposes, especially those in field operations, technical roles, and senior decision-makers

2- Invest in SEO and content writing

This is the only step in which your website has to perform its best to bring traffic to your site.

As an owner of any company in any field, you seek to be the leader.

And to increase your website’s SEO you have to make a good research on the most suitable keywords
which are related to your field and the topics people care about them the most.

Using these keywords to write useful articles about your company and about the whole industry is also
another tip to increase your SEO.

You have to be up to date when it comes to the field’s news, people need to hear from you first.

3- Use social media

By now, social media is the fastest way to promote and market for your business.

Social media is the perfect place where your relationship with your customers and other companies start.

Choosing the right platform for your business helps you a lot in the marketing process.

The importance of oil and gas

This industry has a major impact on the world’s economy is a direct and indirect way.

Also, It is the main source of energy in the world.

Oil and gas are also being used in building and in producing some medicine which is important for your health.

The products which are produced from oil are being used in plastic and chemicals.

Let us not forget about the role of gas in producing electricity and to produce the fertilizers.

Did the oil and gas industry make an impact on the environment?

Yes, Because of the regular usage of oil and gas over the years it made a major impact on the environment
such as( Air pollution, water pollution, and climate change).

The conclusion

This industry is not new to the world.

Oil and gas were formed millions of years ago naturally.

Appreciating the history of the oil and the gas is so important.

This industry has three major sections and there are so many companies that work in the three sections altogether.

The way this industry work takes 2 steps which are the streaming and the drilling.

Marketing is a must step to promote your company and organic marketing, in my opinion, works better than the paid campaigns.

Developing your website plays a vital role in your marketing plan.

This industry has so many bad effects on the environment.

Last but not least, the bigger the industry means bigger challenges, so you need to be prepared for everything
which will face you in the future.

FAQs

How Oil and gas were formed?

Oil and gas were just microscopic fishes, trees, or maybe they were dinosaurs' fossils that lived many years ago, They were absorbing their energy from the sun.

What is the oil and gas industry?

The oil industry is also known as the petroleum industry. This industry plays an important role and it is considered as a major source of income in the global economy.

What is the history of petroleum industry?

We can divide the history of the petroleum industry into two eras( The very early history and modern history)

What are the sectors of the oil and gas industry?

This energy industry has got three main sectors which are( Upstream, midstream and downstream).

How the industry of oil and gas works?

It has two major sections, the streaming( upstream, midstream, and downstream) and the drilling.

What is drilling?

It is a process where a hole is made by a cutting tool in a solid material.

How to be an expert planner in the petroleum industry?

Know the history, understanding, identify your methods, market your company.

How to market your business?

Improve your website, invest in SEO and content writing, and use social media.

What is the importance of oil and gas industry?

It has a major role in the world's economy, it is a source of energy, and producing electricity.

What is the environmental impact?

Air pollution, water pollution, and climate change

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