Oil & Gas Value Chain

Characteristics

Exploration

Geologists use seismic surveys (sending shockwaves into the ground to map rock layers) to locate potential hydrocarbon reservoirs.

Appraisal

Drilling initial evaluation wells to determine the size, quality, and commercial viability of a newly discovered field.

Development

Planning the infrastructure by designing the layout, drilling production wells, and constructing platforms or wellheads.

Production

Extracting the raw fluids from the ground and separating them into crude oil, natural gas, and water at the wellsite.

Decommissioning

Plugging the wells and restoring the environment once the reservoir is safely depleted.

Characteristics

Gathering

Using small-diameter pipeline networks to collect raw oil and gas from multiple wells and move them to central hubs.

Processing & Treating

Removing impurities such as water, carbon dioxide, and sulfur while separating natural gas liquids like propane and butane.

Transportation

Moving products over long distances using pipelines, oil tankers, railcars, and trucks.

Storage

Keeping reserves in tank farms, underground salt caverns, and LNG storage tanks to balance supply and demand.

Characteristics

Refining

Processing crude oil through distillation, cracking, and treating into gasoline, diesel, jet fuel, and heating oil.

Petrochemical Manufacturing

Converting chemical byproducts into plastics, synthetic rubbers, fertilizers, and pharmaceuticals.

Distribution

Delivering finished products from refineries to regional terminals and storage depots.

Retail & Marketing

Selling products directly to consumers through gas stations, aviation hubs, and industrial utilities.