1.0 FORMATION OF HYDROCARBONS
Living organism and naturally occurring materials contain Hydrogen and Carbon. When these organisms (plant, animal and fishes) which live on/in water die, they settle at the bottom of the water and are covered by sand, silt and/or mud over long period of time (millions of years). The sedimentary layers prevent the organisms from decomposing fast which results in conversion of the remains of these organisms into carbon-rich compounds. The thickness/height of the sedimentary layers increases as more silt and mud deposit on top of the layer over years. The resulting high pressure and heat act on the carbon-rich compound which converts it into Hydrocarbons or what is known as Fossil Fuels (crude oil and natural gas). They are said to be non-renewable sources of energy because they cannot be replaced. We depend all over the world on crude oil and natural gas as sources of energy and for the manufacture of products such as pharmaceuticals, plastics, detergents, fertilizer, petrochemicals among others.
2.0 VALUE CHAIN IN THE OIL AND GAS INDUSTRY
Value Chain of Oil and Gas industry consists of sequence of activities or process which are undertaken to bring product and service from conception, procurement, different stages of production and distribution to the final customer. The value chain in the petroleum industry can be classified into three main streams, namely the Upstream, Midstream and Downstream. Individual companies can cover one or more activities along the value chain depending on whether they are fully integrated company or specialized company. For instance ExxonMobil and Total are fully integrated companies and therefore able to serve both Upstream and Downstream while Anadarko Petroleum is able to provide service for only upstream activities.
2.1 Upstream
The value chain starts with the identification of suitable areas to conduct exploration for oil and/or gas. After initial exploration, petroleum fields are... [continues]
Living organism and naturally occurring materials contain Hydrogen and Carbon. When these organisms (plant, animal and fishes) which live on/in water die, they settle at the bottom of the water and are covered by sand, silt and/or mud over long period of time (millions of years). The sedimentary layers prevent the organisms from decomposing fast which results in conversion of the remains of these organisms into carbon-rich compounds. The thickness/height of the sedimentary layers increases as more silt and mud deposit on top of the layer over years. The resulting high pressure and heat act on the carbon-rich compound which converts it into Hydrocarbons or what is known as Fossil Fuels (crude oil and natural gas). They are said to be non-renewable sources of energy because they cannot be replaced. We depend all over the world on crude oil and natural gas as sources of energy and for the manufacture of products such as pharmaceuticals, plastics, detergents, fertilizer, petrochemicals among others.
2.0 VALUE CHAIN IN THE OIL AND GAS INDUSTRY
Value Chain of Oil and Gas industry consists of sequence of activities or process which are undertaken to bring product and service from conception, procurement, different stages of production and distribution to the final customer. The value chain in the petroleum industry can be classified into three main streams, namely the Upstream, Midstream and Downstream. Individual companies can cover one or more activities along the value chain depending on whether they are fully integrated company or specialized company. For instance ExxonMobil and Total are fully integrated companies and therefore able to serve both Upstream and Downstream while Anadarko Petroleum is able to provide service for only upstream activities.
2.1 Upstream
The value chain starts with the identification of suitable areas to conduct exploration for oil and/or gas. After initial exploration, petroleum fields are... [continues]
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