How Rich Is The Natural Gas Industry

The petroleum industry is generally sub divided into three sections namely: The upstream this involves both exploration and production, Mid-stream includes storage, refining and transportation and Downstream involves supply and distribution.

 The upstream section first and foremost involves the procedures such exploration, development and production of both natural gas and crude oil. This segment is primarily involved in exploration.

 The midstream section mostly involves refining storage, and transportation of the natural gas products. The downstream section involves the procedures by which all refined products are taken and available to the customers through distribution and supply such as gas stations and industries stations.  There is a well defined distribution chain that is well developed system of transportation pipelines, storage and retail outlets.

Natural gas industry is considered to one of the biggest sectors worldwide in terms of dollars. The gas and oil sector is also a global source of power by having employed millions of workers globally and thus generating billions of dollars each and every year.  In areas that house the major NOCS, are very important as they contribute a large amount of money towards GDP.

Petroleum is the most important material for a huge number of chemical products, including pharmaceuticals, solvents fertilizers, and plastics. Petroleum is consequently essential to many companies and it’s of critical value to many countries as they are foundation of all industries. The major components of oil and gas industry include fuel oil and gasoline.

The global reliance on gas and oil has been on the increase global infrastructures economies have continued to rely to a great deal on petroleum products.  There have been deliberations of when or how world gas and oil production will on the peak due to the weak economy that is dwindling the availability of natural gas.

The gas and oil industries have continued to exert incredible pressure in the international politics and economics in particular in consideration of service levels in this sector, in U.S gas industry has been behind at least 10 million jobs.

In deliberation of gas industry low’s, for instance the collapse in prices 2013 and most important environmental tragedy such as the Mexico oil spill, the gas industry has now recovered. The recovery process has come in to been after OPEC and non OPEC agreement and also the increased explorations in developing countries. However political interferences on some of the countries have contributed and influenced   the gas industry. The drift towards the renewable / alternative energy is one more threat to oil and gas industries. 

Generation of electricity from offshore wind and solar powered process has become suitable, increasingly cheaper and also cost-effective mode of power generation.  IRENA has said that over 80 % of renewable energy will be cheaper than oil & natural gasses.  

Of late, there has been a rebirth of confidence in the gas industry as it enters its recovery period.  The Growth is growing at an outstanding rate, as an increased upstream system maintain to have an optimistic unforeseen effect on midstream businesses. The price of crude has now stabilized, steady price at $50 per barrel.