The term petroleum industry is a general term that covers the other more specific names in the industry. These terms include companies that manage the process of exploration, extraction, refining and transporting. The most prominent products of the industry are fuel oil and gasoline. While many people have been associating the term with the sector of the economy, when it comes to the commodity, petroleum is also known as the raw material for numerous kinds of products, from cosmetics to pesticides. Considering how vital the position of such products in today’s economy, many have also referred to the commodities as black gold.
Unfortunately, the term black gold relates to several practices of economic monopoly or the practice to control oil prices across the globe, and it proves to bring several adverse impacts on how the economy grows. It is the ultimate reason why governments in some countries impose high tax rates to many oil companies as a way to contribute to the economic system of a nation. The prices also relate to how technology plays a significant role in all the necessary processes to distribute the products.
The presence of petroleum has been around in certain parts of the earth since the prehistoric time. The oldest records state that the human has been utilizing the oil for at least five thousand years, and the process continues until today’s era. Before the era of capitalism, the use of the oil was already a subject of massive developments despite all the limited knowledge. When capitalism came, several parties came together to come up with a set of regulations to control the exploitation. The Industrial Revolution during the seventeenth century generated an increasing need for energy, and petroleum was one of the primary energy sources.
The progress continued until the twentieth century when Rusia accounted for half of the world’s oil production and became a superpower country. Approximately two hundred refining companies were operating during the era, and the citizens could expect much from economic growth. The trend continued and spread fast to another continent, such as America and the Middle East.
The Structure of the Industry
There are at least five categories that fall under the general term. These categories include the upstream companies which manage all the exploration processes, the downstream companies that control the operations of refining and consumer affairs, pipeline, marine, and service. These categories play an essential role in oil exploitation and have been using revolutionary software for the oil and gas industry.