Oil and Gas Basics: What You Need to Know

Jun 25, 2021 | Oil and Gas

Oil and gas basics revolve around the collection and uses of these two products. The oil and gas industry is one of the most significant revenue generators for specific states. Once you get past the complex terminologies in the industry, you can appreciate the role that the two products play in the global economy.

The process taken for oil and natural gas to reach the market is quite a long one. The oil collection process is in three primary steps. Different companies have a part to play in the oil collection process. Here are the steps involved in the oil collection process.

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What is the Oil Collection Process? 

Each one of the entities in the oil and gas collection determines oil distribution in the market. Here are the three steps involved in oil collection.


Upstream is a collective title for companies that participate in the exploration and production of oil and gas. Such companies take charge of exploring potential sources of crude oil and then drill them. This part of the oil collection process comes with high risks and a lot of investments.


This segment mainly takes care of the transportation of crude oil. You will find that there are a lot of regulations that govern the activities of midstream businesses. Transportation requires the installation of pipelines and oil trucks, thus the laws.


Refineries belong in this category. They process raw material to extract usable oil and gas and then release the finished product into the market. Downstream industries are dependent on the success of the upstream and midstream ones.

Oil Uses 

After processing and approval of oil products get released into the market for different uses, from oil, other effects such as petroleum, jet fuel, and heating oil. Such products are valuable when it comes to running powerful engines.

Natural Gas 

Natural gas undergoes necessary processing to make it safer for use in commercial and residential settings. Some forms of natural gas are preferred more than others for the sole reason that they don’t cause pollution. Natural gas also has many industrial applications.

Sapphire’s Role in the Industry

When it comes to gas and oil basics, it’s crucial to get the facts right. Companies involved in oil or gas production and distribution have to get specific permits and licenses before proceeding with their activities. Notably, Sapphire Gas Solutions is one of the key players in the industry.

Contact us to learn more about the oil and gas industry.