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Wall Street Investments Group
How Does an Energy Company Work?
In terms of natural gas and oil, companies are split up into upstream, downstream, and midstream. These focus on either the production, transport and storage, or refining of these energies.
- Upstream providers are involved in the production of gas and oil, and carry out mining operations or processes required in extracting fossil fuels from the ground.
- Mid-stream providers provide storage, processing, and transportation of primarily petroleum products, often utilising tanker ships, pipelines, and storage facilities.
- Downstream means the delivering of these elements from a production site to a refinery. Here, they are refined into a final product.
This final product is generally gasoline, but some companies also specialize in refining oil and gas into speciality chemicals. In today’s world, some of the largest energy producers in the world produce multiple types of energy as they diversify their output to serve a wider variety of purposes. Lots of these companies therefore combine upstream, midstream, and downstream operations within their businesses for maximum profits.
An ever-growing number of these businesses are now also investing in renewable energy projects as well as non-renewables, meaning there are lots of opportunities to invest.