Oil-and-gas-banner-1500x500-Twitter-without-discount.png

Oil-and-gas-banner-1500x250-without-discount.png

Oil and natural gas remain the world's leading fuels, accounting for nearly 55% of global energy consumption

Oil and natural gas are formed from decaying plant and animal remains that became buried within layers of the earth and subjected to heat and pressure over millions of years. These two types of fossil fuels have been the world’s primary sources of energy for decades. They have enabled advances in quality of life and in all sectors of the economy, from residential lighting, cooking and heating to transportation and industrial manufacturing. However, the low carbon transition has put the oil and gas industry under pressure as these fuels are two of the main sources of greenhouse gases. The industry is associated with environmental disasters such as oil spills, and the prices of the two fuels – especially oil – are highly volatile with fluctuations directly impacted by political and socioeconomic events. Nevertheless, more than 100 countries currently produce oil and/or natural gas and the two fuels are expected to maintain their importance across the energy sector for many decades to come.

The production of oil and natural gas are often coupled as the two are typically found together in nature. The industry is commonly divided into three main operational sectors: upstream, midstream and downstream. The upstream sector incorporates the exploration and extraction of crude oil and natural gas reserves, while midstream focuses on transporting and storing the extracted products. The oil and natural gas then reach downstream processing facilities where they are refined, distributed and sold to the end customer. The product that reaches the end customer can take a number of forms including natural gas, liquefied petroleum gas (LPG), petrol, diesel fuel, jet fuel, heating oil, kerosene, asphalt and other petrochemicals. Several trends are currently impacting the future outlook of the oil and gas industry. The use of natural gas has increased across all economic sectors over the last few decades since natural gas – often viewed as a bridge fuel towards a low carbon energy system – burns cleaner than oil or coal for electricity generation. The switch to natural gas is becoming more widespread with the proliferation of the technology to liquify it (to LNG) for transport. Developments in shale gas and oil production have also greatly increased supply in the US, which has had implications in global oil, and increasingly LNG markets. Given a growing world population and continued demand for oil and gas products, discoveries of new deposits and advances in production technology will determine availability of supplies. Developments in carbon capture, use and storage (CCUS) will also impact the position of oil and natural gas in the long-term energy mix.

You can further explore the three sectors by clicking the links below:

Learn more about oil and gas extraction by exploring our Energy Insights.

For the latest news and articles on exploration and production read New Energy World.

Explore our dedicated collections on Aviation Fuel, Future of Gas, Road Fuels, Shale Gas and Working Offshore.

What's new?

New UK oil and gas decommissioning cost efficiency target

30/11/2022
The North Sea industry has made great strides cutting the overall cost estimate for decommissioning by 25%, or £15bn, since the start of 2017, but it ...

Read more »

New focus on European energy deals

30/11/2022
Across Europe, countries have stated their ambition to scale up their energy resilience in the wake of Russia’s unjustified military assault on Ukrain...

Read more »

UK Autumn Statement: More heat on average energy users and 45% levy on low carbon electricity generators

23/11/2022
Let’s look at the statement in detail. Energy bills: Many were concerned to learn that help with escalating energy bills is being scaled back. Fr...

Read more »

Floating wind will miss 2030 target

23/11/2022
The report from offshore wind analyst 4C Offshore notes that rather than being a supply issue, the lack of progress is often down to administrative de...

Read more »

New blockchain-based low carbon energy certificates

09/11/2022
By using smart sensor data gathered from across ADNOC’s operational chain – from the oil well right to the customer – the pilot will show how much CO2...

Read more »

Events and training

EI LIVE | Human Factors Safety Critical Task Analysis - December 2022

12/12/2022
A 5-day training course on Human Factors Safety Critical Task Analysis (SCTA). Delegates will be able to facilitate SCTA sessions of their own and kno...

Read more »

Internal Corrosion Monitoring Systems - Enhanced Safety through Innovation

19/01/2023
Roland’s presentation focuses on new solutions to problems related to intrusive corrosion monitoring systems. This is an opportunity to learn ab...

Read more »

EI LIVE | Human Factors Safety Critical Task Analysis - March 2023

27/03/2023
A 5-day training course on Human Factors Safety Critical Task Analysis (SCTA). Delegates will be able to facilitate SCTA sessions of their own and kno...

Read more »

Hazardous Area Classification - March 2023

28/03/2023
This 3-day training course will provide delegates with training on the Energy Institute Model Safe Code of Practice 15, Area Classification for Instal...

Read more »

Human Factors Foundation - April 2023

17/04/2023
This 5-day course delivers a comprehensive introduction into human factors for non-specialists. It provides a practical, engaging and interactive back...

Read more »

Technical guidance publications

Guidelines for the assessment of ageing and life extension of non-metallic components in the offshore oil and gas industry, volume 1: subsea flexible pipes and offshore marine hoses

2022
The intention of this publication is to provide guidance for assessing ageing and life extension (ALE) of non-metallic components in the offshore oil ...

Read more »

Best available techniques (BAT): Good practice for the oil and gas industry

2022
This guidance has been produced to inform good practice when undertaking best available techniques (BAT) assessments for offshore combustion equipment...

Read more »

Guidelines for the assessment of ageing and life extension of non-metallic components in the offshore oil and gas industry, volume 2: composite equipment and repairs

2022
This document captures industry good practice, knowledge and learning on these elements of composite materials. This guidance will provide a star...

Read more »

Research report: Application of life cycle assessment methodology to the understanding of the energy balance and efficiency of hydrogen value chain building blocks

2022
This document is free to download for registered users.This publication explores the efficiencies of the hydrogen energy system and quantifies the ene...

Read more »

Guidance on cost-benefit analysis for asset integrity: Cost-benefit analysis for repair and rectification of identified inspection anomalies

2022
This document provides guidance for utilising cost-benefit analysis when determining the most cost-effective course of action to repair or rectify pre...

Read more »

Visit our publishing site »

You may also be interested in