Petroleum industry Essay Sample

 The petroleum industry has evolved over the years to become a gigantic industry. Personnel in the areas of sciences & applied sciences are required:• Petroleum engineers• Mechanical engineers• Chemical engineers• Electrical engineers• Computer scientists• Physicists• Chemists• Marine biologists &• Geologists engineers• Others There2 broad classifications of globalpetroleum industry:• National Oil Companies (NOC)• International Oil Companies (IOC) Very large in terms of production, & some substantial in refining. They are owned by their respective governments. They account for about 33.33% of world crudeproduction. Examplesof NOCs:• Petronas (Malaysia)• Petroleos de Venezuela – PDVSA (Venezuela)• Saudi Aramco (Saudi Arabia)• Statoil Hydro (Norway)• Petrobras (Brazil)• PEMEX (Mexico)• NNPC (Nigeria)• Sinopec, CNOOC (China)• GNPC (Ghana) Also known as Multinationals. They have a significant proportion of their operations in several different countries. There are 5 major IOCs:• British Petroleum (BP)• ChevronTexaco• ExxonMobil• Royal Dutch/Shell (simply Shell)• TotalFinaElf (simply Total) Strength of the “Big Five”:• Production in more than 15 countries.• Refining in more than 15 countries.• Products marketing in more than 40 countries.• They account for approx. 13% of world production.• They account for 21% world refining.• They account for 35% world product sales. OtherIOCs are:• Amerada Hess• Anadarko• ConocoPhillips (simply Phillips)• ENI/Agip• Kerr McGee• Occidental• Repsol• Unocal The 2 main sectors in the industry are: Upstream Sector• Producing• Servicing DownstreamSector• Refining• Products sales• Transportation Basically involves the extraction & field treatment of oil & gas. There are 2 divisions:• Research & Development (R&D)• Exploration & Production (E&P) Research& Development (R&D)• Scientific inquiry to discover facts, new or better methodology & technology. Exploration& Production (E&P)• Field operations where petroleum deposits are being searched for and then produced. In the Upstream sector, there are 2 types of industry:• Producing Companies• Servicing Companies “Officially” recognized to be directly involved in petroleum exploitation. They are given permissions by the host country to operate within a carved out areas called Blocks. Examples: ExxonMobil, Chevron, NPDC, Petrobras, Statoil, Saudi Aramco, Royal Dutch Shell, Total, etc. “Officially” recognized to be indirectly involved in petroleum exploitation. They provide sales & services to producing companies in terms of personnel, research, technology, field operations, and tools & equipment. Examples: Transocean, Halliburton, Pride International, Schlumberger, BJ Services, Weatherford, Baker Hughes, etc. It involves refining, transportation, storage & marketing of petroleum products. After the initial field treatment of petroleum (separation of gas, oil & water), it is transported to the refinery by truck, train, ship, or pipeline. The basic refining tool is Distillation. Thermal cracking is used to increase the yield from distillation by subjecting the heavy crude oil to intense heat. Alkylation involves recombination of small molecules produced by thermal cracking in the presence of a catalyst. Catalytic cracking involves crude oil being cracked in the presence of a finely divided catalyst.