The Zacks Oil & Gas US Integrated industry encompasses companies largely engaged in upstream and midstream energy enterprises. Generally, these enterprises engage in operations that are categorized as 'upstream,' characterized by the exploration, drilling, and extraction of oil and gas, or 'midstream,' involving the storage, transportation, and wholesale marketing of these valuable energy commodities. The magnitude and dynamics of these operations significantly influence the oil and gas industry's overall performance.
1. The Zacks Oil & Gas US Integrated industry involves companies predominantly engaged in upstream and midstream energy operations.
2. 'Upstream' operations generally include exploration, drilling, and extraction of oil and gas, a lot of which is done in the U.S.'s shale resources.
3. 'Midstream' operations typically involve the storage, transportation, and wholesale marketing of these valuable energy commodities.
4. A number of companies within this industry also contribute to downstream energy operations like refining and marketing of petroleum products.
5. The success and integration of these diverse operations contribute to the overall profitability and viability of companies within the Zacks Oil & Gas US Integrated industry.
In 2020, the US Integrated Oil & Gas industry reported a negative growth rate of approximately 21.5% due to challenges related to the COVID-19 pandemic.
The upstream operations predominantly include exploration and production activities for oil and natural gas, a major portion of which is conducted in the prolific shale resources of the United States. Midstream activities primarily involve the gathering, transportation and processing of oil, gas and natural gas liquids. Moreover, some entities within the industry are also involved in downstream energy operations like refining and marketing of petroleum products. The proper functioning and integration of these diverse operations ensure the overall profitability and viability of the companies in the Zacks Oil & Gas US Integrated industry.