18 Feb All You Need to Know About the Three Sectors of the Oil and Gas Industry

The oil and gas industry is one of America’s biggest economic driving forces. The US is the biggest producer of natural gas on earth and one of the largest oil-producing countries. Additionally, the US is the largest oil and gas customer in the world, consuming over one-fifth of the world’s natural gas annually.

Oil And Gas Industry Overview

With such high energy production and consumption rates, the oil and gas industry’s supply chain makes up one of the largest employers in the United States with over 125,000 full-time employees and support staff. But the oil and gas sectors aren’t just limited to the United States: it is a global energy industry with international pipelines, onshore and offshore drilling operations and refineries situated around the world. Companies participating in the oil and gas sectors generate an estimated $3 trillion in annual revenue.

There are two main business entities that exist in the oil and gas industry: integrated companies and specialized companies. Integrated companies are vertically-aligned corporations that oversee operations in all three sectors (upstream, midstream, and downstream). Specialized companies may encompass an entire sector or operate a small part of it, performing vital functions within the oil and gas industry.

The Three Major Oil And Gas Sectors

With a massive industry such as the oil and gas field there comes a great number of interesting nuances and different jobs that can be performed. There is more to oil and gas operations than most people think. Want to know more about the ins and outs of the oil and gas industry? To get you started, here is a comprehensive guide to the three most prominent oil and gas sectors:

Upstream

The upstream sector of the oil and gas industry is commonly called the exploration and production (EandP) sector. Upstream operations involve the production end of the oil industry. The upstream sector includes exploration for potential oil reserves — both onshore and offshore — and then subsequently drilling these reserves with production rigs to bring oil and gas to the surface.

Midstream

In the midstream sector, workers gather, process, refine, store and transport the oil and gas produced by the upstream sector. Midstream sector workers may also be involved in the wholesale marketing of crude oil and petroleum. Midstream energy companies work to apply technologies and equipment that increase the efficiency and safety of these processes. Such technologies include automated communications and pipe leak detectors.

Downstream

The downstream sector is the one the average consumer is most familiar with. Downstream companies use refineries and manufacturing systems to purify natural gas and turn crude petroleum and oil into consumer products. Gasoline, jet fuel, asphalt and natural gas for heating are just some of the products we use every day that come from the downstream sector.

Get Dragon Products for Your Oil And Gas Sector

As a leading provider of heavy-duty industrial equipment, Dragon knows what it takes to get the job done. Family owned and operated for over 50 years, Dragon has been the first name in oil and gas supplies and equipment for generations. Our commitment to serving our customers is evidenced by the vast manufacturing and support network we use to support oil and gas operations nationwide. Speak with one of our dedicated sales staff today to learn more about all of our available products.