Video: Oil and Gas Industry Overview

Oil and Gas Industry Overview: History

On August 27, 1859, Edwin Drake made the first successful use of a drilling rig on a well drilled specifically for oil. Historians believe that the need to find a replacement for whale oil was the motivation for this endeavor. 

The Three Sectors of Oil and Gas

Upstream: The upstream industry finds and produces crude oil and natural gas. The upstream is sometimes known as the exploration and production sector, or E&P.  Today, there are several ways that E&P companies artificially lift the resources to the surface.

Midstream: Midstream companies are the vital link between the far-flung petroleum producing areas and the population centers where most consumers are located. The midstream industry processes, stores, markets and transports commodities such as crude oil, natural gas, and natural gas liquids, or NGLs

Downstream: The downstream industry includes oil refineries, petrochemical plants, petroleum products, retail outlets, and natural gas distribution companies. 

Oil and Gas Industry Overview: Geological Formations

Pay zones and the resource located within them can vary between wells drilled on the same site. 

The value of the resource found in these formations will dictate to the producer if they are worth exploring.

Types of Oil and Gas Wells

Not all well types exist in every production play. In the video we cover the most popular types of wells. 

Makeup of An Oil and Gas Wellstream

An oil well is not just producing oil. The wellstream can vary in makeup from play to play and from well to well depending on the ratio of oil to water or fluids to gas.

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