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From fuel to plastic, the oil sector is present in almost everything and influences the global economy and business decisions
A oil industry is everywhere. From the fuel that powers our cars to the plastic in the objects we use. It also influences prices, jobs, policies and even international decisions. Many people don't realize it, but oil directly affects our daily lives and the functioning of the economy.
What is the oil industry?
A oil industry involves the exploration, extraction, refining, transportation and marketing of oil. It starts underground, passes through refineries and ends at gas stations, factories and homes.
It is divided into three main areas:
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China becomes biggest buyer of Canadian oil after US sanctions on Russia, Venezuela
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Petrobras signs contract with Suzano to supply natural gas to five factories in São Paulo
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Ibama approves Petrobras' emergency plan for offshore drilling in the Equatorial Margin under technical and environmental conditions
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Oil workers put pressure on Petrobras and may stop activities after meetings in the North of Rio de Janeiro
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- Upstream: is the exploration and production phase, which includes finding oil and extracting it from the ground.
- Midstream: deals with transportation, whether by pipelines, ships or trucks.
- Downstream: this is where oil becomes a product. Gas, diesel, kerosene, plastics and many others.
Each stage moves billions and employs millions of people around the world.
Where is the oil?
Oil is found in specific places on the planet. The largest producers are in the Middle East, the United States, Russia, Brazil, among others. Here in Brazil, oil industry gained strength with the discovery of pre-salt.
Oil reserves are limited. That's why there is so much competition and interest in them. Countries and companies are investing heavily to find new sources.
Derivatives: It's In Everything
What many people don't know is that oil industry produces much more than fuel.
She is responsible for:
- Plastics (from packaging to electronics)
- Cosmetics
- Medicines
- Fertilizers
- rubbers
- Paints
- Clothing (such as synthetic fabrics)
- Cleaning products
In other words: the oil industry impacts what we eat, wear, use and even how we take care of our health.
Impacts on the economy
A oil industry influences the global economy. When the price of oil rises, it affects the cost of transportation, production and even electricity. This directly impacts inflation.
Companies that depend on transportation or use plastic suffer the most, while producing countries benefit when the price goes up.
Furthermore, oil is priced in dollars. When the dollar rises, oil becomes more expensive for countries that use other currencies, such as Brazil.
Job creation
Millions of direct and indirect jobs depend on oil industry. They are geologists, engineers, operators, technicians, drivers, chemists, analysts, administrators, salespeople and much more.
It also involves outsourced maintenance, cleaning, security and logistics companies. In regions where there is exploration, such as the Campos Basin (RJ) or the pre-salt layer, the local economy revolves around oil.
Private and public sector
In Brazil, oil industry has a strong presence in the public sector, with Petrobras. But there are also private companies, both national and foreign.
The government makes money from royalties and taxes. In other words, part of the country's revenue comes from oil. This helps fund education, health, infrastructure and other public services.
Energy and electrical matrix
Oil is also one of the main sources of energy in the world. Even with the growth of renewable sources, oil industry is still dominant in many countries.
In Brazil, electricity comes mostly from hydroelectric plants, but diesel is still essential for transportation and generation in isolated locations.
Environmental risks and disasters
A oil industry Oil spills bring benefits, but also risks. Oil spills can cause major environmental impacts. Well-known examples are the BP disaster in the Gulf of Mexico (2010) and the spill off the coast of Northeast Brazil (2019).
Additionally, burning fossil fuels emits CO₂, which contributes to global warming.
Companies in the sector have been investing in security, monitoring and cleaner technologies. But risks still exist.
The Energy Transition
With the advancement of renewable energy and global targets against global warming, oil industry faces a challenge: adapting.
Companies are diversifying their investments. Many are already investing in solar energy, wind energy, biofuels and carbon capture. This is what is called the energy transition.
Even so, oil will still be needed for decades, especially in sectors that are difficult to electrify, such as aviation and heavy industry.
Political Influence
A oil industry also has political influence. OPEC countries, for example, set production targets that affect the price of a barrel of oil in the world.
In Brazil, decisions on taxes, concessions and environmental laws directly involve the sector. Large companies also lobby to defend their interests.
Oil in your everyday life
Even if you don't have a car, oil industry impacts your daily life. The bus you take, the bottle of your shampoo, the fertilizer that helped produce the food you eat, all pass through petroleum.
Understanding this makes it clearer why this industry is so strategic. It is behind almost everything we consume.
Investments and opportunities
invest in oil industry can be attractive. There are shares in companies in the sector, funds linked to oil, as well as opportunities for technical professionals and engineers.
With digitalization, the sector is also looking for IT, data, automation and cybersecurity professionals.
Furthermore, there is room for innovation in clean energy, efficiency and sustainability, areas that are growing within the oil industry itself.
The Future of the Oil Industry
The industry is expected to remain relevant for many decades to come, even with the growth of renewable energy. It is transforming itself, seeking ways to be cleaner and more efficient.
Diversification and innovation will be crucial. Companies that fail to adapt may lose ground. But those who invest in the transition responsibly may come out ahead.
A oil industry It's not just about gas stations or offshore wells. It's at the heart of the global economy, it affects everyone's lives and it's undergoing major changes.
Understanding how it works and where it is present helps you make more informed decisions, whether as a consumer, professional or investor.
