Call Us Today 888.279.9701
Home Page Email
Business
Insurance
Home/Auto
/Life
Health &
Benefits
Payroll
& HR

oil well in a fieldWhen people put gasoline in their cars, few of them think about everything that was involved in bringing that product to the pump.  Here are the basics of petroleum production:

There are two main sectors in the oil industry, which are upstream and downstream.  Downstream activities entail the commercial aspect, e.g., the operation of service stations or the delivery of heating oil; while upstream operations regard extraction and refining.  Extraction activities are further divided into two main areas, which are drilling and oilfield services. 

Drilling companies drill wells and pump oil out of the wells.  Drilling personnel are highly skilled and have much expertise; most drilling companies are contractors hired by big petroleum producers.  They work on a variety of different “rigs”, including land rigs, submersible rigs, jack-ups, and drillships.  Only the first is used on land, where wells are drilled from 5,000 to 30,000 feet, while the other three types are used for drilling in swamps, lakes, and oceans.  Oilfield service companies are the people who assist the drilling companies by manufacturing, repairing, and maintaining the equipment and machinery used to extract and transport oil.  Some of their services are seismic testing, transporting, and directional services (when wells need to be drilled at an angle or horizontally).

Refining companies are usually very large firms who also market their product.  Due to the very substantial amount of capital investment necessary to enter this field, it is dominated by a small number of big competitors.  During refining, petroleum is separated and converted into fuels like gasoline, aviation fuel, LPG, and kerosene; it is also used to produce asphalt, lubricants, solvents, wax, and petrochemicals (which are in turn used to produce chemicals and plastics).

Alliance Insurance Group are specialists when it comes to insuring everything involved in both upstream and downstream activities, including workers’ comp, general liability, commercial vehicles, lease operations, contractors, pollution coverage, and more.  Visit our Oil and Gas page or fill out the short form below.

 


Posted 9:28 AM

Share |


NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
Workers Compensation
Commercial Real Estate
Independent Contractors
Bar & Restaurant
Farm & Crop
Oil & Gas
Manufacturing
Bonding
Auto/Home/Life
Group Health & Benefits
Payroll & HR
Cyber/Tech Liability
Auto Service & Garages
Commercial General Liability
Trucking
Construction & Trades
Life Insurance
Professional Liability
FREE BUSINESS TIPS!
FACEBOOK TWITTER
READ OUR BLOG!
Stay up to date on all the latest news with Aliance Insurance Agency!
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
Connect With Us:
Social Social Social Social Social
Alliance Insurance Group
710 Golden Ridge Rd., Suite 120
Golden, CO 80401

Phone: (303) 279-9700
Alliance Insurance Group Rated 4.8 / 5 based on 5 reviews. | Review Us