Energy Product Overview
The oil and gas industry is such a multifaceted industry because of the fact that it is all encompassing in many aspects of our lives, be it directly or indirectly, as illustrated below. It comprises mainly of crude oil and gas. As potential investors in oil and gas, it is essential to have a general understanding of the industry so that you will be better equipped to make more sound decisions on your investments.
Consumer Demand for Oil & Gas:
- Provides fuel that keep us cool in air-conditioned environments
- Cooks our food and heats our water
- Powers our transportation vehicles that we rely on to commute from home to work, school, etc, everyday
- Provides the raw materials that produce many common items we find in shops, such as fertilizers, fabrics and different types of plastic
- It also impacts our finances, especially when prices of petrol, natural gas or electricity rise sharply
From a business and political standpoint, the oil and gas industry represents a vital part of international commerce trade and also plays a key role in political world affairs in many countries.
Business & Economic Demand for Oil & Gas:
- Many companies invest billions of dollars annually to search and produce oil and gas
- More than 150 countries have invited such oil and gas exploration companies to negotiate rights in exploring on land and offshore, as any success in producing oil and gas will boost their national economies vastly.
- Many countries in North America, Europe and the Asia Pacific Region have been, and continue to be heavily dependent on imports of oil supply from the producing regions such as the Middle East and Russia
With the globalization of so many developing countries such as India and China, the world demand for oil and gas will continue to increase exponentially. Similarly, for countries that have been heavily dependent on exports for their oil supply, they are also looking for new ways of reducing the dependence on imported oil, such as tapping into domestic resources such as coal or developing alternative energy, such as bio-fuel.
As such, it is clear that be it on a consumer, economic or even political level, oil and gas will always be in great demand globally. And with exploration initiatives by many countries into alternative energy, this implies even greater opportunities for you to invest your funds into the energy industry.