Darrell Madding, Business Owner, Oil and Gas Industry

Though oil and gas are used to fuel a large percentage of society’s functions, the industry itself may not be widely understood. It is considered to be the largest sector in the world based on value, and as a global powerhouse, it employs a massive number of people all around the world.

Originally used for lighting and heating, natural gas and oil have become prominent staples of the automotive and transportations industries. Its prevalence and utility have made the industry directly tied to the development and expansion of the world at large.

The oil and gas industry can be divided into three sectors based on the process of locating, extracting, transporting, and processing oil and gas. While the exact details of processing oil and natural gas vary for logical reasons, they are similar enough to be categorized simultaneously.

Also known as exploration and production (E&P), the upstream section deals with identifying pools of natural gas and oil, typically underwater or underground, and drilling into the earth to extract the material. These natural material occur organically beneath the earth’s surface, so drilling and mining for them is the sole way to access them. This work can be dangerous and tricky, and failure to properly extract the materials can result in spills.

The midstream sector processes, stores, and transports materials such as natural gas, sulfur, and crude oil. This section is important for guiding natural materials to refineries where they can be appropriately filtered and distributed; tanker trucks and pipelines fall into this sector. The secondary locations are often great distances from the location of extraction.

Including refineries, petrochemical plants, and retail outlets, the downstream industry is primarily geared toward purification of natural materials and distribution of refined products. It is in this sector that the natural materials are marketed and produced as things like diesel oil, gasoline, and jet fuel.

All three of these sectors are essential for the proper extraction, production, and distribution of natural materials. Because natural gas and oil are so important to society, this industry is arguably among the most important ones.

Since the commercialization of the oil and gas industry roughly a century ago, it has become both profitable and equitable, generating billions of dollars in profit and employing hundreds of thousands of employees each year. Oil and natural gas are essential to the function and survival of society, thus making the industry a necessary one.

Darrell Madding is the founder of D & L Oil where he currently serves as Managing Partner. He has extensive experience in the business world and also in being a business owner. Outside of work, he spends a time volunteering for different organizations. Darrell believes in the power of civic engagement and the importance of getting your community involved through different initiatives. This article was originally published at DarrellMadding.net on December 20, 2o18.