The oil and gas industry majorly constitutes three segment – upstream, midstream, and downstream. The key difference between the three is the purpose and operations of the companies from each of these segment. While the oil and gas industry represents an endless pool of investment opportunities, you need to determine the industry vertical that’s best for your investment portfolio. That is when you need an energy investment company such as FIG Tree Capital Ventures, that has proven expertise in identifying promising oil and gas investment opportunities. To help get you started, we present an overview of the different segments in the oil and gas industry.
The upstream segment consists the E&P companies that are focused on searching for hydrocarbons beneath the ground and identifying viable fields, well development or drilling, processing the extracted resources, and finally restoring the well sites to environmental states that existed prior to drilling activities. A major part of the E&P companies constitute drillers that are mainly divided into two categories – land and offshore drillers. Though the common aim is drilling for oil or gas, the components differ based upon the location of drilling and the type of rigs and equipment needed.
In simple terms, the companies from the midstream segment serve as a support function in the overall oil and gas production process, which involves transporting and storing the oil resourced by the upstream companies. Midstream companies take the crude oil retrieved in the upstream sector and helps ensure it reaches the downstream processing facilities within the stipulated timelines and in compliance with transportation directives.
The downstream companies in the oil and gas industry are focused on processing and purifying raw natural gas, refining petroleum crude oil, and marketing and distributing the products derived from the extracted energy resources. The revenue of the segment is mainly generated from the sale of processed products such as gasoline, diesel, lubricants, fuel oils, kerosene, jet fuel, heating oil, waxes, asphalt, liquefied petroleum gas (LPG), natural gas, etc.
Become an Oil and Gas Investor, Today!
This blog post only introduces the oil and gas industry and offers a bird-eye view. Whichever industry vertical you choose for making an investment, you will need to identify investment opportunities that have the potential for high future returns, which you can accomplish by partnering with an energy investment consulting company such as FIG Tree Capital Ventures. To learn more about how to diversify your portfolio and multiply your wealth with energy investment opportunities, fill out our contact form or simply call 866-545-1225.