Introduction to the Oil & Gas Industry
The oil and gas industry is one of the most important sectors of any country, including Malaysia. People, and especially the professionals associated with this sector, should be familiar with the working procedures of this industry.
Moreover, it is a very technical industry, so everyone should be aware of certain critical responsibilities that are essential for the smooth functioning of the entire sector.
Overview of Petroleum & Petroleum Industry
Petroleum is a natural liquid present in rock formations. It is a combination of several mixtures of hydrocarbons of varying molecular weight and other organic compounds. Millions of years of old planktons are the source of oil.
When, for a long period of time, these planktons are exposed to Earth’s pressure and heat, oil is produced.
The oil and gas industry, also called the petroleum industry, generates billions of dollars around the world. Hence, it is one of the biggest industrial sectors globally. A lot of countries, like the USA, China and Saudi Arabia are dependent on the oil and gas industry for the growth and success of their industrial sector.
In fact, the oil and gas industry consists of a number of sectors.
Sectors of the Oil & Gas Industry
1. Upstream oil and gas
The three critical processes of the upstream oil and gas companies are:
- Exploration is necessary to obtain accurate data about specific areas and locations for further extraction. Typically, it takes several years for oil and gas companies to develop an efficient exploration well.
- Extraction means extracting petroleum from the Earth’s surface via the exploration well.
- Separation means the extracted mixture is separated from water and other solid components. The separate processing industry is needed to process oil, while natural gases are usually processed at the location of exploration and extraction.
In some countries, these organizations are called E&P industries. The goal of these companies is to find suitable locations of exploration and establish plants for extraction and separation. Such companies do both onshore and offshore activities.
- Offshore means the setup is installed on a floating platform in the ocean.
- Onshore means the installation of oil exploration and extraction is set up on dry land. About 70% of oil production is attributed to onshore drilling.
2. Midstream oil and gas
Transportation and storage are the main responsibilities of the midstream oil and gas companies. They have to transport the raw materials from upstream industries to oil and gas refineries and processing plants.
Strict regulation of these companies is essential to maintain the highest safety standards by protecting the pipeline transmission and overall transportation and storage facilities.
Midstream oil and gas companies in Malaysia use gas regulators to prevent leakage by regulating the gas pressure during transportation and storage. Similarly, solenoid valves are also used in Malaysia to control gas flow. The success of these companies relies on upstream oil and gas companies.
3. Downstream oil and gas
The role of the downstream oil and gas companies is to process, transport, market and sell the refined and final products manufactured from crude oil. These companies are entirely dependent on upstream and midstream oil and gas companies. Many industries and end-users enjoy thousands of products sold by the downstream oil and gas industry. Gasoline, diesel and kerosene are some of the most commonly used products processed and sold by these companies.
The Bottom Line
Undoubtedly, the oil and gas industry is one of the most important in the world. A huge majority of the advancements and technological inventions that people love and enjoy nowadays is due to the success and growth of the petroleum industry. While this sector is rapidly growing, massive pipelines are installed to transport oil and gas. These pipelines have to be insulated to minimize heat loss.
Moreover, solenoid valves and gas regulators are used in Malaysia to prevent the incident of leakage or overflowing, which, in turn, dramatically reduced the safety concerns associated with the oil and gas industry and allow rapid, efficient and easy transportation and storing of the raw materials, as well as refined end-products.
For more information, feel free to get in touch with us.
