11. Overview of the Oil and Gas Exploration and Production Process

The oil and gas industry comprises two parts: ‘upstream’— t__ __¹⁾ exploration a__ __²⁾ production sec__ __ __³⁾ of t__ __⁴⁾ industry; a__ __⁵⁾ ‘downstream’—t__ __⁶⁾ sector wh__ __ __⁷⁾ deals wi__ __⁸⁾ refining a__ __⁹⁾ processing o__¹⁰⁾ crude o__ __¹¹⁾ and g__ __¹²⁾ products, th__ __ __¹³⁾ distribution a__ __¹⁴⁾ marketing. Comp__ __ __ __ __¹⁵⁾ operating i__¹⁶⁾ the indu__ __ __ __¹⁷⁾ may b__¹⁸⁾ regarded a__¹⁹⁾ fully integ__ __ __ __ __²⁰⁾, (i.e. have bo__ __²¹⁾ upstream a__ __²²⁾ downstream inte__ __ __ __ __²³⁾), or m__ __²⁴⁾ concentrate o__²⁵⁾ a particular sec__ __ __²⁶⁾, such a__²⁷⁾ exploration a__ __²⁸⁾ production, comm__ __ __ __²⁹⁾ known a__³⁰⁾ an E&P com__ __ __ __³¹⁾, or ju__ __³²⁾ on refi__ __ __ __³³⁾ and mark__ __ __ __ __³⁴⁾ (a R&M company). Ma__ __³⁵⁾ large comp__ __ __ __ __³⁶⁾ operate glob__ __ __ __³⁷⁾ and a__ __³⁸⁾ described a__³⁹⁾ ‘multi-nationals’, whi__ __ __⁴⁰⁾ other sma__ __ __ __⁴¹⁾ companies conce__ __ __ __ __ __⁴²⁾ on spec__ __ __ __⁴³⁾ areas o__⁴⁴⁾ the wo__ __ __⁴⁵⁾ and a__ __⁴⁶⁾ often refe__ __ __ __⁴⁷⁾ to a__⁴⁸⁾ ‘independents’. Frequ__ __ __ __ __⁴⁹⁾, a specific cou__ __ __ __⁵⁰⁾ has ves__ __ __⁵¹⁾ its inte__ __ __ __ __⁵²⁾ in o__ __⁵³⁾ and g__ __⁵⁴⁾ in a nati__ __ __ __⁵⁵⁾ company, wi__ __⁵⁶⁾ its na__ __⁵⁷⁾ often refle__ __ __ __ __⁵⁸⁾ its nati__ __ __ __⁵⁹⁾ parenthood. I__⁶⁰⁾ the upst__ __ __ __⁶¹⁾ sector, mu__ __⁶²⁾ reliance i__⁶³⁾ placed up__ __⁶⁴⁾ service a__ __⁶⁵⁾ upon contr__ __ __ __ __⁶⁶⁾ companies w__ __⁶⁷⁾ provide speci__ __ __ __ __⁶⁸⁾ technical serv__ __ __ __⁶⁹⁾ to t__ __⁷⁰⁾ industry, ran__ __ __ __⁷¹⁾ from geoph__ __ __ __ __ __⁷²⁾ surveys, dril__ __ __ __⁷³⁾ and ceme__ __ __ __ __⁷⁴⁾, to cate__ __ __ __⁷⁵⁾ and ho__ __ __⁷⁶⁾ services i__⁷⁷⁾ support o__⁷⁸⁾ operations. This relationship between contractors and the oil companies has fostered a close partnership, and increasingly, contractors are fully integrated with the structure and culture of their clients.