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Gas Companies, Gas Company

By: EconomyWatch Date: 17 July 2010

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Gas companies are mainly involved in the extraction and distribution of natural gas. Most of these companies are located in countries with large natural gas reserves. Some of the top gas producers are situated in Algeria, Bolivia, Brunei, Egypt, Indonesia, Iran, Libya, Malaysia, Nigeria, Qatar, Russia, Trinidad and Tobago, and the United Arab Emirates. This 14-nation group is planning to establish a gas cartel on the lines of OPEC, to promote their interests.

Gas Companies: Functions

The varied functions of gas companies include:

Exploration: Gas companies undertake gas exploration through geological surveys and onshore and offshore seismic exploration. The company also uses magnetometers and gravimeters to analyze the sub-surface properties. Drilling of exploratory wells and logging form an important part of gas exploration.

Extraction: On identification of gas reservoirs, the development of a gas drill and the extraction of natural gas commence. The exact placement of drill depends on several geographical components, such as size and depth of reserve, subsurface topography, and so on.

Production and Transportation: Following the extraction of natural gas, its impurities are removed at processing unit located near the drill. The purified gas is transported through a network of pipelines. It can also be collected in storage facilities and transported later when required.

Distribution: The final product is delivered to end-users through high capacity pipelines contracted by gas marketing companies. Some private and public local distribution companies are also involved in the delivery of gas.

Gas Companies: Major Integrated Oil and Gas Companies

Some of the major integrated oil and natural gas companies are:

Gazprom OAO: In 1989, USSR’s Ministry of Gas Industry was organized into a common entity, named Gazprom. In 1996, an export subsidiary of the company was established. It further won accolades for the ambitious Blue Stream gas pipeline project in the early 2000s. Now, Gazprom has become the world’s largest natural gas company and it expected to play a crucial role in the stabilization of gas prices.

ExxonMobil Corp: The company was founded in 1999 following the merger between Exxon and Mobil to form one of the world’s largest publicly traded companies, Exxon Mobil Corporation. By 2005, its annual income topped at US$36 billion. In 2008, the company decided to foray into the retail fuel business.

Royal Dutch Shell: It was established in 1907 when the Royal Dutch Petroleum Company merged with the Shell Transport and Trading Company. In 1919, the company took charge of Mexican Eagle Petroleum Company. In 2004, Exxon Mobil Corp was entangled in an ugly controversy regarding the overstatement of its reserves. The company has taken major steps in the commercialization of next generation biofuels.