Oil & Gas Sector: Oil Is Well, Despite The Slip-Ups!

Even though the oil and gas industry remains volatile due to the impact of geopolitical tension, the refining capacity has increased significantly in recent years as a result of the expansion of several refinery projects. As a result, the downstream sector is expected to grow during the forecast period of 2022-2027. In this article, Shreya Chaware emphasizes the performance of the oil & gas industry and the key trends shaping its future.

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Oil is crucial to the global economic framework, impacting everything from transportation to heating and electricity to industrial production and manufacturing. The oil and gas industry classifies to be one of the largest sectors in the world in terms of dollar value, generating an estimated USD 5 trillion in global revenue as of 2022. As the world’s primary fuel sources, oil and natural gas are major industries in the energy market and have a significant impact on the global economy. Oil and gas production and distribution processes are highly complex, capital-intensive and require cutting-edge technology.

Natural gas has historically been linked to oil owing to the production process or the upstream side of the business. Natural gas was regarded as a nuisance for much of the industry’s history, and it is still flared in large quantities in some parts of the world, including the United States, today. Because of the above mentioned shale gas development in the United States and natural gas’ lower greenhouse gas emissions when burned compared to oil and coal, natural gas has assumed a more significant part in the world’s energy supply. The sector is frequently broken down into three segments: upstream which deals with oil and gas exploration and production, midstream with storage and transportation, and downstream with refining and marketing.

Market Overview