Oil and Gas Management Project - Case Study Example

 Oil and Gas Management Project Introduction: The History of the Oil and Gas Industry Oil and gas industries have different histories in different countries of the world. The Sultanate Oman as an oil and gas producing country in the early 1900s experienced challenges as it began to grow into a successful industry. The first exploration faced disappointments and unsuccessful experiences that slowed down the process (Benes, 2015). In 1925, the geological reconnaissance led to a discovery of the oil reserves as the search for oil continued to intensify. Subsurface geology of oil reserves in Oman was highly encouraged by the neighboring countries to help in the exploration of oil by the geoscientists. In 1937, after twelve years of oil exploration, Darcy was granted the license of operation into the Petroleum Concession Company Ltd and was later renamed as “Oman and Dhofar Oil Company Ltd”. Geological studies progressed up to 1951 when the company’s name changed to PDO (Petroleum Development Company) (Bennear, 2015). Exploration activities that led to the recognition of oil in other countries helped the oil companies’ advance in its stages to commercial exploration and extraction companies. In 1956, oil was first discovered in the Sultanate via the Dhofar City Services Company. Successive discoveries were made in various countries including the Ukraine with the production of the crude oil amounting to 941, 000 barrels on a daily basis. Gas was also discovered in 1978 at the Yibal in Oman. The aforementioned led to more advancement in the energy sector where more of green sources of energies were used in most investment sectors. Recently, in 2014 and 2015, both the national and international oil companies dominated the market due to the rise in the products of oil and gas. It was named as “Big Oil” with rising prices (Benes, 2015). The Structure of Oil and Gas Some technical disruptions have hindered the structure of the gas and oil from gaining a string momentum. Some of the components of oil include petroleum and gasoline in most of the industries (Kelland, 2014). Gasoline and fuel oil are the largest products that are produced by the oil and gas industries. It is a constituent of carbon and other atoms that are freely moving or are held by weak forces that bind the particles of oil together. Exploration, extraction, and refining fall among the processes that help in the production process if oil and gas from its oil. The components of oil are found within the ore structure and fall among the first exploits to be extracted from its ore in most of the instances (Bennear, 2015). From the ore, oil and gas are extracted through the process of refining, which separates the components into separate systems to allow in the extraction in the most important factors. Other structures that have been found to help in the exploration of oil from its main source in most countries have been discovered to vary from one country to the other. The carbon elements in the oil produce smoke that pollutes the environment and cause diseases of the upper respiratory system. Unlike the gas structure, the oil structure has stronger bonds that hold the carbon atoms together to create a thick and consistent flow (Kelland, 2014). The Difference between the Supply Chain of the Petroleum Products and the Natural Gas The supply chain of the natural gas and the petroleum differs broadly. Whereas the natural gas is found at the upstream of the supply chain system, the petroleum products lie at the downstream of the supply chain system. The extraction of natural gas occurs from underground by the upstream companies while the petroleum supply chain is found at the refiners. The two kinds of oil are therefore fond in different supply chain and the kinds of the industries that produce the products (Bennear, 2015). The acquisition process of the natural gas is found in pure methods and with high quality, unlike the petroleum that are obtained from the refining process of oil to form the products. Natural gas has the highest percentage of energies while the percentage of power in the natural gas is higher than that of petroleum due to the effects of the refining process that reduces the percentage of oil in the petroleum. Natural gas could be obtained in greater quantities and in pure forms unlike the petroleum products, which are extracted in lesser quantities due to the natural gas’ fractions that are used in the process of oil production (Lyon, 2016). Petroleum is obtained from natural gas and is a constituent of the oil. It has the capacity to sustain the chemical structures that are within the system by holding it strongly. Aforementioned explains the reason the natural gas is found at the upstream while the supply chain petroleum is found downstream. The natural gas production is through natural extraction from the source whereas the petroleum supply chain production is through a refinery process (Benes, 2015). The natural gas is also a basic factor that determines the contents and form of the downstream oil. Whereas it is hard to extinct the natural gas, the extinction of petroleum gas is very easy due to the weak forces. The Comparison and Contrast of the National Oil Companies, Government Sponsored Enterprises and the International Oil Companies Characteristics The international oil companies, government sponsored enterprises, and the national oil companies have similarities as well as differences in their characteristics. Government-Sponsored Enterprises deal with businesses such as the production of oil and the transportation of the same from one country to the other while the Natural Gas Companies manufacturer natural gas. On the other hand, the International Oil Companies produces oil and oil products at large scale basis upon a distribution scale (Bennear, 2015). Such a company could operate internationally through the coordination of the world businesses. Some of the similarities and differences of the three companies are as outlined below; Differences The business strategies of the three companies vary depending their objectives and goals. The goals of the natural gas industries are the large scale production of oil products and the process of refinery. It aims at production of oil to meet the demands of the market. Its funds are obtained from international banks and donor organizations. The Government-sponsored enterprises operate its businesses at the national levels and are funded by the government. The businesses and enterprises run by the government are processed through various ways to suit the goods and services production (Tissot, 2012). The International Oil Companies operate closely through the international bodies by associations and creation of funders to help in solving critical issues in the companies. Similarities The three companies generate revenue through interconnection and goods production. They aim at making profits and associate with other companies through profit-making techniques. They improve specialization through regional and international development through business- oriented techniques. It improves on the local development and increases the chances for accessibility to international techniques. They increase the chances of having to undergo every bit of exercise regarding regional and local development. Further, the three entities operate at large scale production by distributing products and services in their various areas of coverage (Kelland, 2014). High returns for the processes of production are held high by the companies. They deal with the local and international production of services in various ways. The production processes are also held with high consideration of the demands in the market. It has accessibility to the proper areas of entire resources and is processed through the entire means of equality in the market. The companies are therefore similar in the targets they aim and the processes they handle to have the entire processes done (Lyon, 2016). The Impression of Oil and Gas Industry in Relation to my Career Aspiration I was also impressed by the upstream art of the production industry. The retrieval of the natural gas from the origin reveals the tough processes involved in the production of the other products of the natural gas. The reserves for future production aim at evaluating the service production of the companies. I have also discovered the cause of the increase in the pricing and costs of petroleum at certain periods in the year. The effect may be connected to the lack of funding from the relevant bodies or the failures in the production sector. I have also discovered that the entitlement for the oil and gas industries lies on the future production and reserves (Speight, 2014). The performance in the industry has also motivated me towards thinking more positive with regards to my career. It has expanded my knowledge regarding the way I view the industrial aspects and the development of better means of evaluating the performance within a certain production industry. Additionally, I am in the position of determining the essence of my course and the ability to land in a better job in future (Tissot, 2012). Aforementioned has been enhanced by the possibilities and the essentials that lie in the industrial development sector. Therefore, the skills gained in the course work would be enhanced by the learning experience of the oil and gas industry. Conclusion The oil and gas management in most companies have been faced by many successes as well as failures. The “Big Oil” companies are very determined at achieving the goals and objectives that would see them increase their accessibility to the entire areas, which would help them to develop and change. The history of gas has been assessed with several advances that would improve the development of companies and increase the profitability of the businesses. The international and national companies are sometimes faced by difficulties that decline the rates at which the customers frequent the areas. The oil and gas companies are therefore increasing with the increase in the greater management of resources to help the companies grow better. It is therefore recommended that all the gas and the oil companies be controlled to help them achieve the best outcomes as much as possible. Bibliography Benes, J., Chauvet, M., Kamenik, O., Kumhof, M., Laxton, D., Mursula, S. and Selody, J., 2015. The future of oil: Geology versus technology. International Journal of Forecasting, 31(1), pp.207-221. Bennear, L.S., 2015. Offshore Oil and Gas Drilling: A Review of Regulatory Regimes in the United States, United Kingdom, and Norway. Review of Environmental Economics and Policy, p.reu013. Kelland, M.A., 2014. Production chemicals for the oil and gas industry. CRC press. Lyon, D.R., Alvarez, R.A., Zavala-Araiza, D., Brandt, A.R., Jackson, R.B. and Hamburg, S.P., 2016. Aerial surveys of elevated hydrocarbon emissions from oil and gas production sites. Environmental Science & Technology. Speight, J.G., 2014. The chemistry and technology of petroleum. CRC press. Tissot, B. and Welte, D., 2012. Petroleum formation and occurrence: a new approach to oil and gas exploration. Springer Science & Business Media. Read More