About Oil and Gas Companies

Oil and gas are the preeminent sources of energy for the modern world. Without an abundant supply continually being found, extracted, refined and transmitted by pipe or ship to the world, we would all quickly find ourselves living in a much darker and colder world. Oil and gas companies are the ones that take on the formidable task of supplying these important fuels to the world.

History

Oil and natural gas first came on the energy scene in the late part of the 19th century. Before, the industrialization of the west occurred primarily through the use of wood and then coal. Oil became more widely used with the invention of the internal combustion engine that allowed for more mechanization, including the introduction of the first automobiles. Natural gas was first thought of as a useless by-product of oil extraction but was later harnessed as a heating gas.
The first major oil company was Standard Oil. Charged with anti-trust violations by the U.S. government, Standard Oil was broken up into several independent companies of which ExxonMobil and Chevron are around today.

Types

Oil comes in many varieties. The best type of oil is termed light or sweet because of its low viscosity. It can be easily refined into fuels like gasoline. Other types of oil contain more tar and sulfur and are heavier. These oils are more difficult and expensive to refine. Oil can also be found in rock and sand that must be crushed and liquefied to extract the oil for later refining. Natural gas is a more uniform resource.
Oil and gas companies fall into major suppliers like SaudiAramco, Gazprom, ExxonMobil, Shell and smaller regional companies. There also exist many small exploration-stage companies trying to find the next big supply.

Geography

Oil is a non-renewable resource that is abundant in the Earth, but with limited funds and technology, there is only so much companies can extract. Much of the remaining oil left lies in the Middle East, primarily within the borders of Saudi Arabia, Iran and Iraq. The major oil companies operating there are the national companies of Saudi Arabia and Iran (Saudi Aramco and NIOC). In Iraq, there are negotiations currently taking place between the Iraqi government and some Western oil companies like Shell, ExxonMobil and British Petroleum (BP).

Features

Many oil and gas companies have become nationalized. This means the country in which the oil or gas is located has taken over the operation of extraction and transportion of the fuels. National oil and gas companies now have much more influence and power than the traditional large companies in the west including ExxonMobil, Shell and BP.

Misconceptions

Many people blame the oil and gas companies for making large profits off an invaluable resource. Energy has come to be seen as an indispensable part of life, like food or water. When energy prices go up, people become upset. Usually, this is not the oil or gas companies' fault. They are simply responding to the market. When demand goes up, they raise the price. This allows them to secure funds to continue to find, drill, and transport the necessary oil and gas that makes modern life possible.

Resources

• List of the world's largest oil and gas companies