The Economic Situation of the Oil & Gas Industry

The oil and gas industry, including exploration andthe area is cleared and a drilling rig and crew are
production, consists of about 7,000 companies whobrought in to begin the process of extracting the
pull in a combined, estimated revenue of aroundresources that have been found.
£450 billion. However, the production andOil and gas jobs generally fall in to one of two
associated revenue are fragmented; around 10% ofcategories: upstream and downstream. Upstream
companies generate approximately 60% of thisjobs are found in the process of obtaining oil and gas
figure. Demand for oil and gas is caused by economicfrom natural resources: drilling jobs are upstream jobs.
activity, population growth and the need for energyOther jobs are likely to include those in construction
for residential, industrial and transportation uses. Theand those involved in production facilities. Not all
growth of an individual company is determined by theupstream jobs take place on land; for many, part of
success rate of new finds, as well as the ability tothe attraction of this industry is its variety. Gas and
continue to produce from existing sites.oil fields are also developed below sea level, such as
Larger companies have the upper hand, havingin the North Sea and the sub-sea sites recently
greater access to capital and the capacity to buydiscovered in West Africa. These require specialists
smaller companies or propagate amalgamations.to find and extract the resources available.
Smaller companies rely on their abilities to focus onDownstream jobs involve the transportation of oil
and develop expertise in a few geographical areas. Inand gas in their basic forms, the liquefaction of those
addition, oil and gas competes with other fuel-types,substances and their processing. While upstream jobs
such as coal, nuclear power and hydro-electricity. Intend to be comparatively more transitory, being
addition, other sources of energy are emerging, suchbased on exploration and ultimate extraction, it is in
as ethanol and bio-diesel and there are other formsthe downstream category that gas and oil careers
of application arriving on the market, such as theare made; while oil rig jobs, for example, will only last
new generation of hybrid-electric car.as long as the resource is there, marketing jobs can
Oil and gas are found in huge, underground basinsbecome life-long opportunities as the team packages
that meet certain geological criteria. As well asthe combined products across the globe.
creating three-dimensional maps of undergroundThe oil and gas industries are two of the world's
structures and using seismic waves to ascertain abiggest and most profitable enterprises. They employ
site's potential, exploratory drilling is still a majorhuge numbers of staff that work in an incredible
factor in finding oil and gas. Last year, the number ofrange of department, from those on the 'front-line'
exploratory drillings that took place exceeded 53,500.to those who design advertising campaigns to those
Once an area has been designated as having promise,who put it in our vehicles.