petroleum industry

Topics: Petroleum, Saudi Arabia, Chevron Corporation Pages: 6 (447 words) Published: January 20, 2014
ADEYEMI G.A

OMEGA 2013

 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

 There

2 broad classifications of global
petroleum 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 crude
production.

 Examples

of 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.

 Other

IOCs 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
 Downstream

Sector

• 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.

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