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See How Oil and Gas Industry Works

Today, we can learn
that even though you may be buying Chevron Gas, Chevron may not have much to do
with it. Welcome to our overview of the oil and gas vertical. You know most
people think they know the oil and gas industry, but they really don’t. So
we’re going to see if we can give you some useful information and clear up some
common misconceptions. So most people think of companies like ExxonMobil and
just assumed they get oil in the ground somewhere in the world, ship that crude
in ExxonMobil pipelines to an ExxonMobil refinery, sell it in ExxonMobil gas
station. But guess what? That is absolutely wrong, that is not how this
industry works. This is how it works. 
The industry is composed of four main segments;
upstream, midstream, downstream, and service. Upstream is actually getting the
crude out of the ground. You often hear it called E&P or Exploration and
Production. This is upstream, this is upstream, this is upstream, this is
actually and FPSO. The next segment is midstream. Midstream is basically moving
that crude oil in natural gas. So midstream stuff such as pipelines,
supertankers, rail cars. Then, we move to downstream. Downstream is actually
the refinery, the refining manufacturing and selling of the products from crude
oil and natural gas. So downstream things such a refineries, retail loop
stations, fertilizer which is big product of petrochemical refining,
lubricants, motor oils, retail gas stations, and plastic which is another large
product of crude oil. Then, we move to the service companies. Service are
companies that actually provide manpower and help in services the oil and gas
industry, but they don’t produce any petroleum or petroleum products
themselves. So you have everything from the guys that out there designing the
rigs to the crew boats that move men and equipment back and forth to the actual
roughnecks that do the drilling, to the manufacturer of drill stem, and things
like subsea installations. Every bit of this is service. 
Then, you also hear
the word Super Majors or Combined. What is that? That are companies that do
everything; upstream, midstream, downstream, and some service. And right now in
2013, there’s only five of them. This is it. These are the five Super Majors.
So what does that mean? We’re going to talk you through literally from cradle
to grave a drop the crude oil to the point where it gets into the gas tank of
your car. So, the US government auctions off a block of land the highest
bidder. After checking my last auction facts in the Gulf of Mexico, $2 billion
somebody paid for rights to drill on a piece of land for ten years. That’s it.
Think about that for a second. You write a check for $2 billion to have ten
years to make that money back and hopefully some profit, but there’s no
guarantees. So this case it was BP who spent that $2 billion for a deep Gulf of
Mexico lease.
 BP then needs to drill, right? BP does not have its own drill
rigs. BP contracts a drill rig basically rents it from companies such as
Transocean. That drill rigs needs to be staffed by people, so you have
companies such as Halliburton and Baker Hughes to actually help them operate
that drill rig. The crude that gets produced on the drill rig needs to be
transported. Guess what? BP puts out to open bid to all the different
industries all the different companies in the world who will move this crude
oil at the bets price. In this case, it was a supertanker and the win was won
by Chevron. So Chevron has the crude oil in supertanker and it’s in transport
to refinery, but halfway there, ConocoPhilips on their trading floor buys that
crude and it turns around and sells it for few cents profit per barrel. And it
was sold to Shell refinery who then refines that fuel at a profit, ships it in
Kinder Morgan pipeline to a 76 gas station as owned by who? No, not 76. It’s
owned by one of your neighbors which is called the Jobber. So there you go.
There it is from literally getting out of the ground into being burning your
gas tank as a fuel. And you look at how many different people are involved and
how many different layers of profits are involved and this is a very complex
industry. So hopefully this helps you understand at least at a high level what
goes on in the oil and gas industry.
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  47. I am going to gear this study in direction of 2 styles of Those people: current Zune owners who are looking at an update, and These striving in the direction of choose in between a Zune and an iPod. (There are other players relevance considering out there, which includes the Sony Walkman X, however I be expecting this delivers oneself adequate information toward make an conscious conclusion of the Zune vs players other than the iPod line as very well.)

  48. Hands down, Apple’s app retail outlet wins as a result of a mile. It really is a large selection of all kinds of applications vs a very not happy decision of a handful for Zune. Microsoft includes Options, specially in the realm of games, nevertheless I am not yes I would need to have towards bet upon the foreseeable future if this portion is necessary toward yourself. The iPod is a significantly superior final decision in that situation.

  49. If you’re still on the fence: seize your favorite earphones, brain down in the direction of a Perfect Obtain and request towards plug them into a Zune then an iPod and watch which just one seems improved in direction of you, and which interface would make by yourself smile much more. Then you will recognize which is straight for your self.

  50. The clean Zune browser is surprisingly beneficial, nevertheless not as positive as the iPod’s. It will work properly, but is just not as fast as Safari, and is made up of a clunkier interface. If by yourself from time to time system on getting the world-wide-web browser which is not an issue, nonetheless if you happen to be planning in the direction of examine the web alot towards your PMP then the iPod’s larger sized show and greater browser might be important.

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  53. I’ll devices this evaluation in the direction of Two types of human beings: latest Zune householders who are thinking of an update, and people in america seeking in the direction of determine involving a Zune and an iPod. (There are other players significance thinking of out there, like the Sony Walkman X, but I be expecting this gives you plenty of info to create an knowledgeable option of the Zune vs gamers other than the iPod line as properly.)

  54. Apple at present includes Rhapsody as an application, which is a Wonderful start, nevertheless it is already hampered by means of the incapacity to retail store domestically on your iPod, and has a dismal 64kbps little bit price. If this changes, then it will relatively negate this convenience for the Zune, yet the Ten new music per thirty day period will still be a massive in addition in Zune Pass’ favor.

  55. Palms down, Apple’s app shop wins through a mile. It really is a substantial number of all varieties of purposes vs a really not happy range of a handful for Zune. Microsoft incorporates plans, especially within the realm of game titles, but I’m not positive I might have to have toward bet upon the long run if this section is considerable towards by yourself. The iPod is a significantly improved preference inside of that scenario.

  56. I am going to devices this evaluation toward 2 styles of These: recent Zune property owners who are taking into consideration an update, and men and women hoping towards determine between a Zune and an iPod. (There are other avid gamers importance thinking of out there, including the Sony Walkman X, but I count on this gives you ample info toward create an knowledgeable conclusion of the Zune vs gamers other than the iPod line as very well.)

  57. Sorry for the significant review, however I’m really loving the fresh Zune, and count on this, as effectively as the high-quality reviews some other Those include created, will help oneself come to a decision if it’s the specifically determination for by yourself.

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