Explain Upstream Natural Gas Operations?
The upstream industry refers to the activities involved in exploring, developing, and producing oil, gas, and other natural resources. This sector is critical for ensuring a reliable and sustainable supply of energy, as well as supporting the global economy. The upstream industry requires significant investment in technology, expertise, and infrastructure, as well as significant risk-taking. Activities involved in the upstream industry include exploration, drilling, production, Processing, and storage. The industry is dominated by a relatively small number of established companies due to high barriers to entry, limited resources, and the complexity and risk associated with upstream operations. Despite these challenges, the upstream industry remains a key driver of economic growth and development, supporting millions of jobs and contributing to energy security worldwide.
Within the gas industry, the upstream segment consists of exploration and production activities. Exploration involves conducting geological surveys and acquiring land rights, while production involves both onshore and offshore drilling.
Natural gas can be found in both associated formations, which are generated and produced with the oil, and non-associated reservoirs. Gas can be dry (pure methane) or wet (contains additional hydrocarbons such as butane). Although wet gas must be processed before it can be delivered to extract other hydrocarbons and condensates, this can boost producer revenues because the removed products can be sold.
There are numerous firms active in the upstream phase of the value chain. These corporations include Exxon Mobil, Shell, Total Energies, and in India, ONGC, and OIL India, all of which are state-controlled led. There are also some private players involved, like Reliance Industries, Cairn India, and others in India.
