The Role of Oil and Gas in the Global Economy
Introduction
Oil and gas have been the cornerstone of the global economy for decades. These resources power industries, enable transportation, and provide essential raw materials for countless products. Despite the rise of renewable energy, oil and gas remain critical drivers of economic growth worldwide.
Upstream and Downstream Activities
The industry is divided into two main sectors: upstream, which involves exploration and extraction, and downstream, which focuses on refining, processing, and distribution. Advances in technology, such as hydraulic fracturing and horizontal drilling, have made upstream operations more efficient, unlocking previously inaccessible reserves.
Economic Contributions
Oil and gas contribute significantly to national GDPs, especially in resource-rich countries. The industry generates millions of jobs and supports infrastructure development, from pipelines to ports. However, reliance on these resources presents challenges, including market volatility and environmental concerns.
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