Thomas Kivisto Discusses The Three Sectors of The Oil and Gas Industry

History of the Oil and Gas Industry

The first American oil well, the Drake Well (1859), was drilled with cable tools in Titusville, Pennsylvania. Oil and gas production is the initial stage of the oil and natural gas industry. At this stage, raw crude oil or raw natural gas is extracted from beneath the earth’s surface by drilling wells through rock and soil. The process extracts pockets of oil or natural gas between layers of rock strata bound together by various chemical cement-like water or ice.

Upstream sector:

The upstream sector begins with the exploration of new sources of oil & gas. Oil & gas drills are used to drill through the ground or ocean floor to access pockets of underground fossil fuels. This process is expensive and very complex, as not only does it have a high risk for failure, but it can also cause environmental problems if done improperly.

Midstream sector:

The midstream sector involves transporting oil from where it is drilled to where it will be refined or converted into petroleum products for consumption by humans or machines.

Downstream sector:

The downstream sector refines oil & natural gas into petroleum products such as gasoline or diesel fuel. Other products include asphalt and lubricants like those necessary for machinery (such as those used in farming). The downstream sector also includes the manufacturing of plastics and other petroleum products.

Final Thoughts:

All three sectors of the oil & gas industry are involved in creating petroleum products, which are used for transportation, heating, and countless other purposes. Without these three sectors operating at full capacity, everyday life as we know it would be impossible to continue living.

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Thomas Kivisto

Thomas Kivisto

Thomas Kivisto serves on two board and manages 6 different entities in the Energy industry. Located in San Clemente, California.