the future of oil and gas

The oil and gas industry is one of the world’s largest, complex, and expensive industry. The prices of oil and gas are probably the most closely plotted products in the global economy. In this industry there are three main segment of value chain: upstream, midstream, and downstream. It is evident that energy source play vital input to human activities, development, and growth of the economy. Hence, it is believed that after the industrial revolution, accessed clean, inexpensive and reliable energy has been a milestone of the world’s rising prosperity and economic growth’’ (Chu and Majumdar, 2012). According to Merriam-Webster’s, petroleum is “an oily flammable bituminous liquid that may vary from almost colourless to black, occur in many place in the upper strata of the earth, is a complex mixture of hydrocarbons with small amount of other substance, and is prepared for use as gasoline, naphtha, or other products by various refining process” (Inkpen, A. and Moffett H. 2011:363). In general, this essay try to discuss about the effects and benefits of globalization in upstream industry of oil and gas with focus on the future strategic aspect of the industry.
Admittedly, one of the most surprising features of the industry is almost all nations are the consumer of the products derived from oil and gas industry even if very few countries are a major producer of oil and gas. In value chain system, the upstream activates including exploration, development and production. The sources that discover during exploration requires development and production that actually take long term-process of drilling and extracting. And the amounts of oil estimated to be produced from known fields, normally stated under defined degrees of probability are reserves (Bentley, R. 2002). In every industry, there are various activates used as an input raw materials that take place to convert into final products procured by customers such as Knowledge, labour and capital (Inkpen and Moffett,