What Kinds of Companies and
Organizations
are
in
the Oil and Gas Industry?
The oil and gas industry is
composed of a number of different companies and organizations that
contribute to supplying refined products and natural gas. The industry is composed of
fully-integrated
oil and gas companies,
independent
oil and gas producers, refiners
and marketers, pipeline operators, service companies, trade associations and government
agencies.
Operating companies
are those organizations that perform core functions along the value chain
such as exploration and refining.
Fully
Integrated
These companies are engaged in
all aspects of the oil and gas industry from exploration to
marketing. The average consumer is well-acquainted with these
companies by virtue of their branded gasoline stations. The
fully-integrated companies or majors explore for and produce oil and
gas around the world, own pipelines and tankers to transport this oil and gas,
have refineries to process the crude oil into refined products, and sell
these products through a global network of wholesale and retail
outlets. Typical fully-integrated companies are
ExxonMobil
Corporation,
BP,
ChevroTexaco,
ConocoPhillips Company and
Royal Dutch/Shell.
Independent
Producers
Independent oil and gas
producers are those companies that only explore and/or
produce crude oil and natural gas. These companies focus on their core strengths
to compete with the major companies. They may have global
operations and can range in size from under 25 to thousands of
employees. The
Independent Petroleum Association of America which
represents these companies has over 8,000 members. Typical independent oil
and gas producers are
Apache
Corporation,
Devon Energy Corporation,
Pioneer Natural
Resources and
XTO Energy Corporation.
Independent
Refiners
Independent refiners are those
companies that purchase crude oil and process it into finished
products. These companies may also own wholesale and retail
marketing outlets (independent refiners and marketers) or sell their
products to marketing companies. Many independent refiners are
members of the
National Petrochemical and Refiners
Association.
Typical independent refiners are Frontier
Oil Corporation,
Holly Corporation,
Sunoco, Inc., and
Valero Energy Corporation.
Independent
Marketers
Independent marketers are
companies that purchase refined products, usually gasoline, and sell them
at retail outlets. These companies would buy product from
independent refiners or majors. This classification would include
organizations whose primary business is gasoline sales such as
RaceTrac
and
QuikTrip and major retailers such as
Costcos,
Albertson's and
Wal-Mart
who sell gasoline in addition to other merchandise. The
Petroleum
Marketers Association of America represents this group.
Pipeline
Companies
Pipeline companies transport
crude oil, refined products, natural gas and natural gas liquids using
networks of pipes and pumping or compressor stations. These
companies may be independent operations or joint ventures of operating
companies.
Colonial
Pipeline Company is a major interstate pipeline that
moves from refined products from the Gulf Coast to the East Coast.
Each day, it delivers an average of 80 million gallons of gasolines,
kerosenes, home heating oils, diesel fuels and national defense fuels to
shipper terminals in 12 states and the District of Columbia. It is owned by BP
(17.96%),
CITGO Petroleum (15.79%),
Conoco (8.53%), Equilon (16.12%),
Koch
Industries (7.30%),
Marathon Oil Company
(2.82%),
Phillips Petroleum
(8.02%) and
Union Oil Company of California (23.44%).
The
Trans Alaskan Pipeline
System,
used to move crude oil production from the Alaskan North Slope to Valdez,
is owned by BP Pipelines (Alaska) Inc. ( 50.01%),
ExxonMobil
Pipeline Company (20.34%),
Amerada Hess Corporation (1.5%),
Phillips
Alaska Pipeline Corporation (1.42%),
Phillips Transportation Alaska, Inc.
(22.3%),
Unocal Pipeline Company (1.36%) and
Williams Alaska Pipeline Company,
L.L.C. (3.08%).
Natural gas
pipelines such as
El Paso
Corp.,
Northern Natural Gas Co.,
Tennessee
Gas Pipeline Co.,
Columbia
Gas Transmission Corp.
and
Transcontinental
Gas Pipe Line Corp.
transport gas from fields to consumers. The
American Gas Association represents interstate natural gas pipeline
companies.
Service
Companies
Service companies can range
from organizations that rent drilling rigs to firms that build
refineries. These organizations support the primary functions of the
value chain. They can also include accounting and information
management firms, financial institutions, and law firms.
Representatives from this group are companies like
Halliburton Company and
Schlumberger.
Trade and
Professional Organizations
Trade and professional
organizations support the industry and the its employees. Trade
organizations collect industry data, hold
meetings, and advocate public policy beneficial to the industry.
They generally have offices in Washington, DC where they conduct their
lobbying activities.
American Petroleum
Institute,
American Gas Association and
Independent Petroleum Association of America are
leading oil
and gas trade organizations.
Professional organizations are focused on the
industry's core technical skills. Organizations such as the
American
Association of Petroleum Geologists
and the
Society of Petroleum Engineers
conduct technical conferences and training seminars to keep their members
up-to-date on the latest technical developments. They have student
chapters that help college students learn more about the industry and
encourage them to pursue industry careers.
Government
Agencies and Research Organizations
Government agencies regulate
industry operations to ensure compliance with state and Federal laws and
compile industry statistics. The
Environmental Protection Agency
(EPA) sets and enforces standards on air and water quality. The
Federal
Energy Regulatory Commission (FERC) regulates interstate pipeline operations and
tariffs. The
Department of Energy
(DOE) collects industry data and
conducts energy research. Individual states have regulatory agencies, such as the
Railroad of Commission of Texas, that oversee the safe operation of oil
and gas production.
National
Oil Companies
National oil companies are the
oil and gas organizations of sovereign nations. They are part of the
government and are typically found in major oil producing nations.
These companies are among the largest in the world and include
Saudi
Arabian Oil Company,
Petroleos
de Venezuela. S.A. and
Petroleos
Mexicanos.
To learn more about
players in the oil and gas industry, check out the
following references:
Updated 08/08/07
Copyright 2000
PetroStrategies, Inc.
All rights reserved
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