Helpful Information For Career Aspirants About the Oil and Gas Industry

The oil & gas industry has changed dramatically over the past years. Increasing intake of oil and gas in countries such as Brazil, China and India are posing an ambiguity in future trends.

Crude oil is typically gathered from under the sea from sea creatures that perished and got buried several centuries ago. The typical formation of crude oil consists of decomposed bodies of animals and plants under mud and silt deposits. Here is the step-by-step process involved in the oil and gas industry -

Exploring > extracting > refining > transporting > marketing

Exploration consists of finding the new locations for oil, which leads us to the next two steps – extraction and refining. Refining transforms the oil into a usable form which we typically use in our daily lives.

Transporting introduces pipelines through which the oil is transfered to oil tankers that further take it to the several other places. Although, exploration may seem simple to you, it really isn't. This is because, it isn't easy to discover areas in a short period of time.

There is a huge demand for oil in the market to perform industrial, commercial and domestic duties. This demand is actually greater than the actual production of the oil. This is why, countries that are high in oil, are typically listed among the richest ones.

The oil and gas industry has to be in balance since it is very crucial for fulfilling the needs of the current society. Whenever there is a hike in the prices of oil, the prices of various other products remain continuously at risk of being affected.  The price of oil can be regulated if production cost of oil gets down.

Here is a list of major challenges faced by oil and gas companies:

• It is essential to ensure that newly discovered resources are designed keeping in mind the environmental changes. This must be accomplished in an economical way so that the increasing demand can be satisfied while keeping the prices controlled.

• Discovering new regions such as Alaska is already restricted because of environmental issues. Continuous efforts are being made to control over oil & gas greed, since it creates changes in climate. A lot of regions are marked as restricted and oil companies cannot start their operation there.

• New areas are situated far away from the markets. So transportation expense remains high.

• It is difficult, but, essential to lower the functional costs and increase the productivity.

These are some of the major challenges that industry faces and appropriate steps must be taken in order to cope with all such issues for the overall growth of the industry.