most important conglomeration of businesses
The energy industry is perhaps the largest and most important conglomeration of businesses involved in all the different sectors of the economy that produce, transmit and distribute energy. When it comes to energy, we are talking about everything from oil and gas production to chemical processing, nuclear power, electricity and everything in between. The energy industry also includes various distinct parts. Those include actual physical processes, such as extracting oil or gas, converting them to other forms and so on. Other parts include activities related to the design, manufacture and the sale of energy products, which are generally seen as a by-product of the actual energy production process.
One of the biggest parts of the energy industry besides oil and gas is petroleum. This part of the industry includes the entire gamut of oil refining industries, such as petroleum refining, chemical refineries, natural gas pipelines and so on. Other petroleum-related industries include petrochemical plants, such as those operating for utilities like Southern Company (SCE), Enterprise, Rex and Pever Enterprised. All these industries, as well as the others mentioned above, have a direct stake in the stability and profitability of the oil and gas sector.
involves transmission and distribution
Another major facet of the energy industry involves transmission and distribution. This aspect of the energy industry usually deals with the movement of liquid petroleum and other fluids and has an enormous effect on the market prices and supply. Transportation, which refers to the movement of petroleum liquids and other fluids via pipelines and transportation systems, constitutes about fifty percent of the total energy industry. The transportation of natural gas and petroleum coals form another significant sector, with the coal and crude oil storage and transportation sectors accounting for the remaining percentage.
Oil and gas are the key drivers of the global economic and political economy and provide the world with much of its energy. However, the Middle East, Africa and the United States represent the other major sources of oil and gas. These countries have huge potential energy resources and they are highly potential when it comes to development. As the world’s attention turns to these emerging energy sources, the role of oil and gas in the global economy will grow further and it will become a very important player in the global energy sector. The growth of the oil and gas sector in the Middle East will boost its share of world output, and this country has been one of the main drivers of the global price increase in oil and gas.
affect the electricity supply
Other sectors that will directly or indirectly affect the electricity supply will be the use of nonrenewable energies, which means those that are not replenished. One of these is the use of nuclear energy. This form of energy has been heavily regulated by governments because it is considered to be detrimental to the environment if used excessively. As a result, nuclear plants are limited to producing a limited amount of electricity. Aside from this limitation, there is also a shortage of nuclear fuel which has made it difficult to utilize nuclear energy.
The slowing down or the decline of the use of fossil fuels will definitely have an effect on the electricity sector. When this happens, demand for oil and gas will greatly decrease. This will also have an effect on the price of oil and gas as well. Because of these trends, oil and gas companies have already seen a decline in profit and investment.