petroleum industry has evolved over the
years to become a gigantic industry.
Personnel in the areas of sciences & applied
sciences are required:
• Petroleum engineers
• Mechanical engineers
• Chemical engineers
• Electrical engineers
• Computer scientists
• Marine biologists &
2 broad classifications of global
• National Oil Companies (NOC)
• International Oil Companies (IOC)
large in terms of production, & some
substantial in refining.
They are owned by their respective
They account for about 33.33% of world crude
• Petronas (Malaysia)
• Petroleos de Venezuela – PDVSA (Venezuela)
• Saudi Aramco (Saudi Arabia)
• Statoil Hydro (Norway)
• Petrobras (Brazil)
• PEMEX (Mexico)
• NNPC (Nigeria)
• Sinopec, CNOOC (China)
• GNPC (Ghana)
known as Multinationals.
They have a significant proportion of their
operations in several different countries.
There are 5 major IOCs:
• British Petroleum (BP)
• Royal Dutch/Shell (simply Shell)
• TotalFinaElf (simply Total)
of the “Big Five”:
• Production in more than 15 countries.
• Refining in more than 15 countries.
• Products marketing in more than 40 countries.
• They account for approx. 13% of world production.
• They account for 21% world refining.
• They account for 35% world product sales.
• Amerada Hess
• ConocoPhillips (simply Phillips)
• Kerr McGee
2 main sectors in the industry are:
• Products sales
involves the extraction & field
treatment of oil & gas.
There are 2 divisions:
• Research & Development (R&D)
• Exploration & Production (E&P)
& Development (R&D)
• Scientific inquiry to discover facts, new or better
methodology & technology.
& Production (E&P)
• Field operations where petroleum deposits are being
searched for and then produced.
the Upstream sector, there are 2 types of
• Producing Companies
• Servicing Companies
recognized to be directly involved
in petroleum exploitation.
They are given permissions by the host
country to operate within a carved out areas
Examples: ExxonMobil, Chevron, NPDC,
Petrobras, Statoil, Saudi Aramco, Royal Dutch
Shell, Total, etc.
recognized to be indirectly involved
in petroleum exploitation.
They provide sales & services to producing
companies in terms of personnel, research,
technology, field operations, and tools &
Examples: Transocean, Halliburton, Pride
International, Schlumberger, BJ Services,
Weatherford, Baker Hughes, etc.
involves refining, transportation, storage &
marketing of petroleum products.
After the initial field treatment of petroleum
(separation of gas, oil & water), it is
transported to the refinery by truck, train,
ship, or pipeline.
basic refining tool is Distillation.
Thermal cracking is used to increase the yield
from distillation by subjecting the heavy crude
oil to intense heat.
Alkylation involves recombination of small
molecules produced by thermal cracking in the
presence of a catalyst.
Catalytic cracking involves crude oil being
cracked in the presence of a finely divided
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