At the core of the multibillion dollar oil industry are chemical plants known as refineries. There, a yellow-to-black coloured, smelly, viscous liquid is converted mainly into a range of liquid fuels that are distributed to consumers across the globe and provide 35% of primary energy demand.
The major bi-product of this activity is natural gas that has grown to represent a further 23% of primary energy. The industry is dominated by several well-known brands such as Saudi Aramco, ExxonMobil, CNPC, BP, Royal Dutch Shell, Conoco Phillips, and Chevron. The marketing and distribution of refined petroleum products is termed ‘downstream’ and it is there that these majors are most visible.
The ‘upstream’ activities include exploration and extraction. Here two types of companies assist the oil companies to bring the crude oil to their refineries. Drilling companies physically drill and pump the crude oil from undersea or underground reserves and their specialised skills that are often in high demand, are typically contracted by the oil companies as and when required.
Historically, oilfield service companies have provided assistance to the drilling companies to set-up oil and gas wells by manufacturing, repairing and maintaining equipment and providing specialised services such as seismic testing, transport of rigs and equipment, and directional services to ensure that wells are drilled at the required angle.
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