2021 has been a year of extraordinary challenges. Not in the least for the energy sector and oil and gas in particular. The COVID-19 pandemic and subsequent economic crisis caused unprecedented disruption in the energy landscape—and the path to recovery remains uncertain.
The oil and gas (O&G) industry, also known as the petroleum industry, includes the process of exploration, extraction, refining, transporting, and marketing of oil and gas products. This industry is sensitive to supply and demand around the world. Crisis such as Covid-19 impacted the energy industry globally. At the same time, the world’s energy systems are going through rapid transitions that are triggered by simultaneous shifts in technological development, regulations, consumer preferences, and investor sentiments.
The annual value of revenues within the industry is estimated at $3.3 trillion. The United States, Russia, Saudi Arabia, Canada, and China are the largest producers of oil in the world.
Upstream refers to the activities related with exploration and production of the oil and natural gas. Such activities include for example drilling and bringing the resources to the surface.
Midstream refers to the activities related to the storage, transport, and processing of petroleum products. Different means can be used for the transportation such as pipelines, rail, barge, oil tanker or truck.
Downstream is the final segment of the oil and gas industry. This includes operations involved in producing the finished products. Converting crude oil into gasoline, diesel, natural gas liquids, and different kind of energy resources.
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