Business and Management

Role Of Oil Exploration & Production Companies

The role of the exploration and Production Company is the early stage of energy production, which includes searching for and extracting oil and gas. An E&P company finds and extracts the raw materials used in the energy business. However, E&P companies typically do not refine or produce energy but merely find and extract raw materials to be shipped to other oil companies within the production process.

The exploration and production companies find mineral deposits and drill oil and gas wells. Exploration and production enterprises include companies engaged in oil and gas exploration and production. Midstream companies are responsible for transportation from oil and gas wells to refineries, while downstream companies process and sell finished products.

While petroleum products make life easier, finding, extracting, and transporting crude oil can have negative environmental impacts. Technological advances in oil exploration, production, and transportation, as well as compliance with safety and environmental laws and regulations, help to avoid or mitigate these impacts.

New technologies in the oil and gas sector led to an explosive growth in production in the United States, known as the Shale Revolution. Shale areas such as the Permian Basin and Eagle Ford have become huge production hotspots for major US oil companies. The combination of hydraulic fracturing and horizontal drilling allows producers to access oil and gas reserves from tight geological formations that were previously too expensive to extract.    

Compared to vertical wells, oil and gas production is several times higher. Exploration includes the search for rocks associated with oil or gas deposits, including geophysical prospecting and/or exploratory drilling. The search and exploration stage involves the search for hydrocarbons, which are the primary components of petroleum and natural gas.