Energy Industry Overview
The components that make up the energy industry
The energy sector is a large and all-encompassing term that describes a complex and interrelated network of companies, directly and indirectly, involved in the exploration and development of oil or gas reserves, oil and gas drilling, and refining. The energy industry also includes integrated power utility companies such as renewable energy and coal, production and distribution of energy needed to power the economy and facilitate the means of production and transportation.
The energy sector companies are involved in various types of energy. For the most part, energy companies are often categorized based on how the energy that they produce is sourced and will typically fall into one-of-two categories:
Petroleum products and oil
Biofuels such as ethanol
Worldwide energy is largely driven by supply and demand, which also includes secondary sources like electricity.
Types of Energy Sector Companies
We have segregated a few types of companies found in the energy industry. Every sector below has a distinct role in energy to the people.
Oil and Gas Drilling and Production
This type of company drills, pumps, and produces oil and natural gas. Production typically involves pulling oil out of the ground.
Pipeline and Refining
Oil and natural gas must be delivered from the production site to a refinery to be refined into a final product such as gasoline.
We are classifying Coal companies as energy companies since coal is used to power plants, including nuclear.
Clean energy has gained traction and investment dollars over the years and is likely to be a growing part of the energy sector in the future. Examples of renewable energy include wind and solar.
Some companies specialize in refining oil and gas into specialty chemicals, although many larger oil producers such as Exxon Mobil are integrated energy producers, meaning they produce multiple types of energy and control the entire