How the Oil and Gas Industry Operates?
The oil and gas business has three major segments: exploration and production of oil and natural gas (the upstream); the transportation, storage, and trading of crude oil, refined products, and natural gas ( the mid stream); and refining and marketing of crude oil (downstream).
Participants include integrated oil and gas companies, pure-lay companies, and pure play companies in various areas, including exploration and production, midstream services, refining and marketing, and oilfield services and rilling.
Independent exploration and production companies with oil and gas reserves predominantly in the Americas tend to have higher cost profiles than their international counterparts, because the American continent is a geographically mature region with many fields in the late stages of their lives. In many cases, these independents bought their properties from the international integrated oils, which were focused on higher return operations abroad.
The independent exploration and production companies in the North American natural gas sector are cost-competitive due to tight supply and demand conditions and lack of competition from cheaper imports. Thus they are key players in North American natural gas.