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Questions and Answers
What is the estimated value of the oil and gas industry's global revenue in 2024?
5.3 trillion
Hydrocarbons are only found in igneous rocks.
False
What are the three main segments of the oil and gas industry?
What process involves the transformation of organic matters into kerogen?
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Hydrocarbons are formed from the remains of dead _______ and _______.
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When was the first commercial oil well discovered in Nigeria?
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Which process is used to bring hydrocarbons to the surface?
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The midstream sector is responsible for refining petroleum products.
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What type of rocks contain hydrocarbons?
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The oil and gas companies involved in exploration and production are referred to as _______.
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What is the primary reason that causes a well to be plugged and abandoned?
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Study Notes
Oil and Gas Industry Overview
- The oil and gas industry is a large and impactful sector, generating an estimated $5.3 trillion in global revenue in 2024.
- Hydrocarbons are the fundamental component of the oil and gas industry, formed from the decomposition of organic matter over millions of years.
- The oil and gas industry is divided into three main segments: upstream, midstream, and downstream.
Upstream
- Companies in the upstream sector focus on exploring and extracting crude oil and natural gas.
- Upstream activities include searching for potential reservoirs, drilling wells, and producing hydrocarbons.
Midstream
- The midstream sector focuses on the transportation, storage, and processing of crude oil and natural gas.
- Midstream companies move hydrocarbons from production sites to refineries and distribution points.
Downstream
- The downstream sector focuses on refining crude oil into usable products like gasoline, diesel, and kerosene.
- Downstream companies also handle the distribution and marketing of petroleum products.
The History of Oil Exploration in Nigeria
- German company, Nigerian Bitumen Corporation, initiated oil exploration in Nigeria in 1908, but it was interrupted by World War I.
- Shell D'Arcy (predecessor to Shell Petroleum Development Company) resumed exploration in 1937, but this was interrupted by World War II.
- Exploration resumed in 1947, leading to the discovery of the first commercial oil well in Oloibiri, Bayelsa State, in 1956.
- Commercial production and exportation commenced in 1958 by Shell Petroleum Development Company (SPDC) at a rate of 5100 barrels per day.
- In 1959, the sole concession rights granted to SPDC were revised and extended.
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Description
Explore the vast landscape of the oil and gas industry, which generates trillions in revenue and is divided into upstream, midstream, and downstream sectors. Understand the processes from exploration to refining, highlighting the significant role hydrocarbons play in this vital sector.
