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The History of The oil and Gas Industry

by JackHudson

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The oil and gas jobs industry is arguably one of the biggest industries in the world today. Many business people and nations are increasingly being attracted to the industry due to the profitability of the petroleum products. The profitability is largely due to the increasing global reliance on oil and gas. This has subsequently affected the average oil price by causing a consistent increase. Companies in this industry major in exploring, extracting, refining and transporting oil and gas. Each of these processes is undertaken by different specialists and equipment. Only a few of the companies have sufficient man power and equipment to comprehensively major in the petroleum industry by undertaking all these aspects.

The oil and gas which is extracted and refined has many different uses. Apart from being used as fuel, the resultant products are also used in making plastics, fertilizers, pharmaceuticals and pesticides. Due to the numerous machinery and vehicles which rely on petroleum fuel, there is a consistent global demand of oil and gas. In fact, oil and gas are arguably the two leading sources of energy in the world. According to reputable statistics, more than 32% of Europe energy consumption is based on oil. This percentage is even higher in other countries especially in the Middle East where it stands at 53%. The relevance and increased use of oil and gas proves that the two have contributed heavily to the global industrial development.

The importance of oil and gas as a reliable and expedient energy source has driven most governments to invest heavily in the industry. Countries which are located both at the tropics and temperate areas are consistently inviting oil investors to explore and possibly start extracting and refining. The United States is one example of a government which is extremely keen on the oil and gas industry and to expand on the oil & gas jobs and
oil and gas recruitment. To encourage companies, it offers reasonable subsidies like tax reduction on all their operations and equipment. Such a move has been welcomed by oil companies and consequently a significant number of them are currently focussed on operating within the United States.

How The Resource Was First Found

According to scientists and geologists, oil has existed within the earth’s crust for millions of years. It is a naturally occurring liquid composed of complex hydrocarbons which were formed after carbon compounds were subjected to extreme heat and pressure within the earth’s crust. These carbon compounds came from dead organisms like planktons.

Currently, there is no substantial documentation or evidence to point out on the precise time which oil started being used. However, historical scientists report that it was used by the early man as a combustible fuel and occasionally in wars. As the world advanced, people started using whale oil for lighting in the nineteenth century. Cooking on the other hand was facilitated by burning coal and wood. Oil only became popular as an industrial fuel during the industrial revolution period in the twentieth century. Industries gradually began switching from their old energy sources like coal and steam and adopted oil. At that time, oil was much more efficacious, cheap and convenient than the other energy sources. Its relevance as an effectual energy source increased when people realised that kerosene could be extracted from oil and burnt to produce energy. Other petroleum products were discovered after oil was distilled to many different products which could effectively be used as energy sources in industrial engines and homes.

The country which first took advantage of its oil resources is Russia. By the mid nineteenth century, Imperial Russia, as it was known at that time, produced more than 7000 tonnes of oil which was subsequently distributed globally. By the end of that century, more than fifty percent of the overall global oil output was coming from Russia. The country later built the first oil pipelines and commercialized its tankers to ferry oil to overseas locations. Other nations which began drilling for oil within the nineteenth century include Canada, United States and Sweden. Since then, the extraction and demand of oil and gas have incredibly shot up to make the world both a heavy producer and dependant of oil.

The Extracting and Refining Process

Oil, unlike most other minerals, cannot be used in the form it is extracted. There are several processes it has to go through before being converted into several types of fuel for use on different machinery. The basic and most fundamental process in the oil industry is extraction. Oil drilling companies dig oil wells in areas which have been comprehensively explored and concluded to have rich oil deposits. The oil drills subsequently extract unusable crude oil from the ground this process is also used in a number of other
mining jobs.

The oil wells are usually connected to refining companies by pipelines. This process is called gathering and only applies to countries which extract and refine oil in different locations. Countries which do not have oil deposits usually import it in crude oil form. That is the cheapest and most convenient form of transporting oil.

Oil refining is the employment of certain processes to convert the crude oil into various marketable petroleum products like kerosene, gasoline, diesel and jet fuel. Some of the processes the oil has to undergo before being converted into the final products include; alkylation, hydrotreating, isomerization, catalytic reforming and cracking and vacuum distillation. Natural gas on the other hand, is produced through amine treating, glycol dehydration and treating. After the refining process, the petroleum products are transported through pipeline, trucks, tankers and rail to the storage destinations. The leading oil producing locations which have sufficient resources to undertake these processes include Saudi Arabia, Iraq, Nigeria, Libya, Kuwait, Adu Dhabi, Venezuela, Sonatrach, Iran and Qatar.

Environmental Problems

Currently, the oil and gas industry is facing constant pressure from environmentalists due to the increased pollution and global environmental degradation. Some companies for instance, have been reported to pump some of their petroleum waste materials into water bodies hence causing pollution. Some countries like the United Sates have even faced severe pollution crisis due to major oil spills within their waters. The combustion of fossil fuels is also increasingly damaging the environment by releasing harmful gases into the atmosphere.

The Future of The Industry

Despite the heavy global reliance on oil and gas, they are non-renewable energy sources. They will therefore eventually deplete within all the global sources. This could lead to an economic collapse of all the major oil producing countries and crippling of the major industrial machinery. With such an eminent problem, scientists are developing ways of supplementing oil with renewable bio-fuels and electricity. They are subsequently developing machinery which can run on these renewable energy sources.


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