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Introduction: Energy Download PDF

The energy industry is comprised of all activities involved in extracting, processing, and distributing natural resources to create energy. While it includes alternative energy sources, it is dominated by the production of petroleum and natural gas. The petroleum sector has always been unstable as disturbances in the supplier regions may greatly affect the supply, which in turn affects prices. Though bad for the consumer, the rise in the price per barrel of crude oil is good news for oil companies.

Main Sectors

The energy industry is the lifeblood of the modern economic system. It includes the production, distribution, and sale of energy to supply heat, light, propulsion, and any other kind of power. It plays a critical role in the infrastructure, as well in the maintenance of society nearly everywhere. There are many sources of energy, such as wind, water, solar, geothermal, bio-diesel, or nuclear power, but the main source of power, accounting for 40 percent of the worldâ€™s energy supply, is petroleum and natural gas. The petroleum and natural gas industry is split into three sectors: upstream, midstream, and downstream. The upstream sector is responsible for the exploration of resources, and includes production and extraction companies. The midstream sector is mainly involved in refining the natural resources, though it also includes pipelines to transport the oil or gas. Lastly is the downstream sector, which mainly involves distribution and sales. Gas distribution utilities, service stations, and other oil product wholesalers are all part of this sector, as well as other electric and heat utilities.