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1. Read the words, remember the pronunciation.

[a:] advantage, plant, demand

[ə:] search, fertilizer, refer, entrepreneur

[u:] crude, include, lubricant

[ju:] pharmaceutical, consumer, fuel, butane

[ou] own, negotiate, solely

[e] head, head office, headquarters, immense, synthetic

[ ∫ ] negotiate, initial

  1. Read the following word formations and remember their pronunciation. Pay special attention to the stress.

Market – marketer – marketing

Refine – refinery – refinement

Explore – exploration – exploratory

Produce – producer – production

Dominate – dominated - dominance

3. Read the text and do the exercises.

Оil Industry Sectors

The entire oil industry is often divided into three major sectors: upstream, midstream and downstream.

Downstream (oil industry)

The downstream oil sector is a term commonly used to refer to the refining of crude oil, and the selling and distribution of natural gas and products derived from crude oil. The downstream sector includes oil refineries, petrochemical plants, petroleum product distribution, retail outlets and natural gas distribution companies. The downstream industry touches consumers through thousands of products such as gasoline, diesel, jet fuel, heating oil, asphalt, lubricants, synthetic rubber, plastics, fertilizers, antifreeze, pesticides, pharmaceuticals, natural gas and propane

Upstream (oil industry)

The upstream oil sector is a term commonly used to refer to the searching for and the recovery and production of crude oil and petroleum natural gas. The upstream oil sector is also known as the exploration and production (E&P) sector. The upstream sector includes the searching for potential underground or underwater oil and gas fields, drilling of exploratory wells, and subsequently operating the wells that recover and bring the crude oil and/or raw natural gas to the surface.

Midstream (oil industry)

However, midstream operations are usually simply included in the downstream category The midstream sector processes, stores, markets and transports commodities such as crude oil, natural gas and natural gas liquids (NLG) such as ethane, propane and butane.

The process of oil production, transportation, refinery and sale is managed by oil companies (producers). But there are also service companies that work as contractors to the oil companies. These are deeply involved in the oil business providing services that help oil companies to carry out their operations.

(www. Wikipedia.ed)

4. State whether the sentences are true or false. If true, add the information on the statement. If false, correct the sentence.

1. Oil industry is divided into three sectors.

T

F

2. Downstream begins from refinery to product distribution.

T

F

3. Upstream sector includes only drilling and exploration.

T

F

4. Midstream is part of the upstream sector.

T

F

5. Midstream transports such products as crude oil, natural gas and NGL.

T

F

6. Service companies help oil companies in different operations.

T

F

7. Oil companies can also be contractors.

T

F

5. Read the texts about three different oil companies and do the exercises.

The Seven Sisters of the petroleum industry is a term coined by an Italian entrepreneur, Enrico Mattei, that refers to seven oil companies that dominated mid-20th century oil production, refinement, and distribution.

These companies were the following:

  1. Standard Oil of New Jersey (Esso), which merged with Mobil to form ExxonMobil.

  2. Royal Dutch Shell Anglo-Dutch

  3. British Anglo-Persian Oil Company (APOC), which later became BP

  4. Standard Oil of New York (Socony). This later became Mobil, which merged with Exxon to form ExxonMobil.

  5. Standard Oil of California (Socal), now Chevron.

  6. Gulf Oil. Most of this became part of Chevron.

  7. Texaco. Merged with Chevron in 2001. Texaco remains as a Chevron brand name.

ROYAL DUTCH SHELL

Type: public

Founded: 1907

Headquarters: The Hague, the Netherlands

Industry: oil and gas

Products: oil, natural gas, petrochemicals

Royal Dutch Shell PLC is a multinational oil company ("oil major") of British and Dutch origins. It is one of the largest private sector energy corporations in the world, and one of the six "supermajors" (vertically integrated private sector oil exploration, natural gas, and petroleum product marketing companies). The company's head offices (also known as the "central offices") are in The Hague and London (Shell Centre). The company's main business is the exploration for and the production, processing, transportation and marketing of hydrocarbons (oil and gas). Shell also has a significant petrochemicals business (Shell Chemicals). Shell is incorporated in the UK with its corporate headquarters in The Hague, its tax residence is in the Netherlands, and its primary listings on the London Stock Exchange. Shell's revenues of $318.8 billion in 2006 made it the second-largest corporation in the world by revenues behind only ExxonMobil. Its 2006 gross profits of $26 billion made it the world's second most profitable company, after ExxonMobil and before BP. Forbes Global 2000 in 2007 ranked Shell the eighth largest company in the world. It operates in over 140 countries. In the United States, its Shell Oil Company subsidiary, headquartered in Houston, Texas, is one of Shell's largest businesses. One of the original Seven Sisters, Royal Dutch/Shell is the world's second-largest private sector oil company by revenue, Europe's largest energy group and a major player in the petrochemical industry. Shell has five core businesses Royal Dutch/Shell is the world's second-largest private sector oil company by revenue, Europe's largest energy group and a major player in the petrochemical industry. Shell has five core businesses: Exploration and Production ("Upstream"), Gas and Power, Refining and Marketing, Chemicals ("Downstream"), and Trading/Shipping.

ROSNEFT

Type: public

Founded: 1993

Headquarters: Moscow

Industry: oil and gas

Products: natural gas, petroleum

OAO Rosneft Oil Company is a Russian integrated oil company. Rosneft conducts oil and gas exploration and production activities on Sakhalin island, in Siberia, in the Timan-Pechora province, and in southern Russia, including Chechnya. It also owns and operates two refineries. Its plant in Tuapse, on the Black Sea, focuses on refining high-gravity oil from western Siberia. Another plant located in Komsomolsk-on-Amur is the easternmost oil refinery in Russia. Rosneft operates shipping companies, pipeline companies and marketing companies. Although the company is an open joint stock company, according to its website, it seems to be completely owned by the Russian Federation, as represented by the Federal Property Management Agency.

Market value of the company on the 29th of December was valued at $83.908 billion.

Type: public

Founded: 1927

Headquarters: the Netherlands, principal offices in Houston, Paris and the Hague

Industry: oilfield services

Products: oilfield services

Schlumberger Limited is the world's largest oilfield services corporation operating in approximately 80 countries, with about 70,000 people of 140 nationalities. Schlumberger supplies a wide range of products and services from seismic acquisition and processing; formation evaluation; well testing and directional drilling to well cementing and stimulation; artificial lift and well completions; and consulting, software and information management. Schlumberger also provides similar products and services for the groundwater industry.

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