Definition - What does Oil Industry mean?
Oil Industry, also known as the Petroleum Industry, includes exploration, production, Refining, transportation of Crude and Petroleum Products via rail, road, pipelines or sea (Oil Tankers) and marketing of petroleum products. It plays very vital role in the global economy of any nation because it promotes industrialization. It is divided into three major components, i.e., upstream, midstream and downstream.
Petropedia explains Oil Industry
The Oil Industry is broadly classified into three sectors:
The upstream sector includes well completions and drilling operations. Exploration and production organizations perform 2D and 3D seismic surveys of the ground to search for hydrocarbon formations of crude oil and natural gas. Once such formations are discovered or explored, exploratory wells are drilled and subsequently drilling is carried out. Some of the upstream sector organizations are: Chevron, BP, Shell, ExxonMobil, ConocoPhillips, Total and many more.
The midstream sector involves the transportation of oil or refined petroleum products to various refineries or industries for further processing or usage mainly through rail, tankers and pipelines.