Think you know everything about the oil and gas industry? This industry is full of facts that not many people know.
So many people are confused about the actual perception of the oil and gas industry. To help you have a better perception of what the industry actually encompasses, we have compiled the top 4 interesting facts about the oil industry that you should know:
1. The Oil Industry is Bigger Than You Would Think
Everyone and everything uses oil and gas everyday. Every country has major exports and imports of oil that span into a massive spiderweb of shipping routes across the globe.
This oil and gas industry includes more than just shipping. The petroleum industry includes the processes of exploration, extraction, refining, and then shipping. Oil and gas are the largest products of the petroleum industry, as they are a vital part of many different industries. From pharmaceuticals to plastics, oil and gas are used just about everywhere.
2. Oil = Wealth for Everyone
The production of these precious resources is one of the leading causes of economic growth, and the effect is larger than you could ever imagine. The production of oil and gas in developing nations has the ability to pull them out of poverty. On the other hand, the failure to produce oil and gas can devastate a country.
The production of these precious resources is one of the leading causes for economic growth, and the effect is larger than you could ever imagine. The production of oil and gas in developing nations has the ability to pull them out of poverty. On the other hand, the failure to produce oil and gas can devastate a country.
3. Oil Companies are Safer Than Ever
Many people believe that because the processes of oil extraction are so intense that it is unsafe for workers. This isn’t the case. Many oil companies in the US are extremely safe for workers. Over the years, the oil industry has made impressive strides in the safety of the extraction and refining of oil and gas.
With the creation and adaption of tools and technology, oil is now extracted faster and safer than ever before.
4. Oil Companies Don’t Make Much
Many people believe that the oil business is one of the richest. Although major brands like Chevron and ExxonMobil are household names, these companies don’t make that much money. Because oil is widely traded, this means that the the profit margins will go as low as possible.
Many of these companies look to factoring companies to get cash for their outstanding invoices on major orders with oil and gas factoring. Without this, the long wait time for payment can sink even the largest companies. Because oil and gas companies do not typically get paid until the oil is received by the buyer, they can be waiting up to 90 days for massive charges.
There is so much to know about the oil and gas industry. The image of the industry is flooded with inaccurate myths and Hollywood portrayals that make the average person skeptical about the operations of the business. We hope that after reading this, you have a better understanding about the oil and gas industry.