Noble Energy, Inc - Research Paper Example

Global oil and gas industry includes global presence of extraction, refining, exploration, marketing and transporting the oil and gas products. The largest volume manufactured and distributed products of the industry are gasoline and fuel oil. Petroleum is also used as the raw material for several chemical products, such as solvents, pesticides, plastics, fertilizers and pharmaceuticals. The global oil and gas exploration and production industry is divided into three major parts, such as downstream, midstream and upstream.

Midstream operations are generally considered under the downstream category. Description of the Industry Oil and gas energy sources are very much important for several industries. Oil and gas energy resources are considered as the large global energy resources. Middle East is the largest consumer of oil and gas energy resources across the globe. This global region consumes almost 53% of total energy sources. On the other hand, Asia and Europe ranks last in ter4ms of consumption of oil and gas energy resources.

The consumption rate of oil and gas energy of Middle East is higher comparing to other global regions due to several reasons. First of all, the leading number of oil reservoirs is located in the Middle East countries. These countries can consume the oil and gas products in low price range comparing to other global countries. In addition to this, Middle East oil and gas extraction organizations act as cartel regarding pricing and distributing the crude oil to the global market. Strong oil process control is the major reason behind the economic growth of several Middle East countries.

Central and South America consumes 44%, North America consumes 40%, Africa consumes 41%, and Europe and Asia consumes 32% of total extracted and produced oil. The world consumes approximately 30 billion barrels on yearly basis (Li 22). The economically developed nations are the largest consumers of oil. In the year 2007, The United State consumed 25% of total produced oil which is impressive oil consumption figure. Recent financial crisis and global economic recession affected the global economic environment.

People are trying to reduce the consumption level of expensive products due to their low disposable income and limited purchasing power. Especially, the people of middle class income level are trying to find substitute energy resources of oil and gas due to hike in oil and gas price (Shelley 27). Apart from economic issues, the global oil and gas exploration and production industry is suffering from several global political issues. Several under developed and developing countries have to pay high petroleum tax to the oil and gas producing countries in order to improve the crude oil.

High tension and critical political conflicts between several countries are affecting the growth of this global oil and gas exploration and production industry. In addition to these, several countries have developed strict regulations regarding the extraction of oil and gas. Extraction of oil and gas from oil mine requires the uses of several deadly chemicals. It can affect the global ecological balance. Looking into this issue, the government of several countries developed strict rules and regulations regarding the extraction of oil.

It is expected that the number of total oil reservoirs and mines