Impacts of Oil and Gas: Benefits of Oil and Gas -

Impacts of oil and gas: benefits of oil and gas. Positive impacts of oil and gas. Importance  of oil and gas. Industries that depend on oil and gas.

Impacts of oil and gas: Benefits of oil and gas. Economic benefits of oil and gas. Industries that depend on oil and gas. Oil and gas trade. Oil and gas

Benefits of Oil and Gas

   

 

 

 

 

 

 

 

The positive impacts of oil and gas leaves much to be desired. Crude oil or petroleum is a natural unrefined fossil fuel formed by the decomposition of organic materials subjected to pressure and temperature beneath the earth crust. Crude oil is composed of hydrocarbons. During the extraction of crude oil, natural gas is found associated with crude oil. Crude oil being a naturally occurring  and unrefined fossil fuel can however be refined by distillation process after extraction into various petroleum products using specific oil and gas equipment or oil and gas machinery through specific oil and gas techniques. The techniques used in oil and gas industry are oil and gas processes that are often used in refining petroleum. Some of the common crude oil products obtained for use are gasoline or petrol ( Premium Motor Spirit- PMS ), kerosene (Dual Purpose Kerosene- DPK ), bitumen as well as petrochemicals from which petrochemical products and petrochemical derivatives are derived by use of petrochemical equipment or petrochemical machinery through viable petrochemical techniques. The petrochemical techniques are set of petrochemical processes applied on petroleum in order to produce petrochemicals.

Natural gas is a combination of different gases made up of hydrocarbons. In the extraction of petroleum, natural gas is associated with oil and gas but on the surface of the earth unlike crude oil that is  under the earth’s surface. Natural gas is also used as a fuel. Typical examples of natural gas are methane, butane, propane and ethane which are hydrocarbons made up of different number of carbon and hydrogen as well as other gases like nitrogen and carbon(iv)oxide.

The discovery of oil and gas in some countries and the effects or impacts of oil and gas as well as the use of the proceeds from oil and gas has over the years given rise to a debatable question if oil and gas is a blessing or a curse hence there is a divergent  answer to the question if oil and gas is a blessing or a curse. Any country endowed with crude oil and natural gas can consider it a blessing because oil and gas are sources of energy, revenue and jobs. Oil and gas as well as petroleum products are useful not only to the oil and gas industry but in other industries.

Some Examples of Sectors or Industries that  Depend on Oil and Gas

Some of the sectors that depend on oil and gas can be divided broadly into manufacturing industries, service industry and technology industry. Within these industries that are dependent on the oil and gas industries are other subcategories of industries. These industries include but not limited to the following

  1. Petrochemical Industry

The petrochemical industry is dependent on the oil and gas industry. This is because  petrochemicals, petrochemical products and petrochemical derivatives are produced from petroleum. Thus petrochemical sector depend on oil and gas sector.

  1. Other Chemical Industry

Some chemical industries other than petrochemical industry make use of oil and gas. Some chemical sectors depend on oil and gas.

  1. Agriculture Industry

Agricultural industry make use of oil and gas products directly or indirectly. For example in agriculture the use of agrochemicals- fertilizers,  pesticides, etc are of importance. Hence  agricultural sector make use of products from oil and gas sector.

 

  1. Transport Industry

Transport industry using land (road transport, rail transport, pipeline transport), water (water transport) and air (air transport) make use of oil and gas products as fuel. The transport industry is of importance to hospitality and tourism too. Without doubt, transport sector make use of products derived from oil and gas.

 

  1. Manufacturing industry

Manufacturing industry make use of oil and gas products in their operation and production process directly or indirectly. Example is the use of petroleum products like diesel or petrol as a source of fuel for their machinery and vehicles. Thus, the manufacturing sector make use of products from oil and gas.

  1. Energy Industry or Power Industry

The power or energy and power industries make use of the products of the oil and gas industry. Besides, without the power industry other industries are likely not not exist. The energy industry is thus made up of electrical power industry, natural gas industry, coal industry, nuclear power industry, renewable energy industry (alternative energy industry) as a sustainable energy industry as well as solar energy industry, wind energy industry and hydroelectric power industry. This implies that power industry make use of oil and gas directly and indirectly.

 

  1. Other Industries

Other Industries that make use of oil and gas products directly or indirectly in one way or the other are telecommunication industry, information technology industry, mining industry for minerals , gemstones, metals and alloys, etc.

From the ongoing, it is therefore laudable to know that all existing industries are dependent on others in one way or the other. As a result of this fact oil and gas can be said to be a blessing.

Benefits of Oil and Gas: Economic Benefits of Oil and Gas

The economic  benefits of oil and gas to any oil and gas economy cannot be overemphasized. Some of the economic benefits of crude oil and natural gas are as follows.

  1. Oil and gas industry serves as a source of revenue for the government or oil and gas companies from the local and international sale of oil and gas products, oil and gas machinery, oil and gas equipment as well as oil and gas services. To the government these revenue can be as a result of oil and gas taxes or oil and gas royalties paid to the These revenue are used in financing and developing other non-oil sectors of an economy.
  1. Oil and gas industry serves as sources of oil and gas jobs.
  1. Oil and gas have numerous oil and gas opportunities for oil and gas investors who invest in oil and gas stocks.
  2. Oil and Gas Trade: The availability of oil and gas creates an oil and gas market for buying and selling of crude oil, petroleum products, oil and gas machinery, oil and gas equipment as well as oil and gas services using oil and gas marketing strategies. Oil and gas trade also keeps the economy afloat.

So far, it is indisputable that oil and gas is a blessing to countries that are endowed with it despite some negative impacts of oil and gas on the environment, health and safety. Oil and gas is a source of revenue, job creation and useful to other non-oil industries. Irrespective of some of these benefits of oil and gas, it is also imperative for countries dependent on oil and gas for revenue to diversify their economies from being over dependent on oil since it is one of the nonrenewable resources. Hence it will be wise to think beyond oil and gas.

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