Integrated Oil & Gas Company

AAA

DEFINITION of 'Integrated Oil & Gas Company'

A business entity that engages in the exploration, production, refinement and distribution of oil and gas. Given the high entry costs relating to many oil and gas industry operations, many of the world's largest oil and gas companies, like Chevron Corporation and Exxon Mobile, are integrated. Typically, integrated companies divide their various operations into categories: upstream, which includes all exploration and production endeavors, and downstream, which is confined to refinement and marketing activities.

INVESTOPEDIA EXPLAINS 'Integrated Oil & Gas Company'

Because integrated oil and gas companies are involved in so many facets of the fossil fuel industry, often their business bottom lines can be counterintuitive. For example, during times of rising crude prices, an integrated oil and gas company may actually have lower profit margins than a non-integrated rival as a result of having greater downstream than upstream capability, or vice-versa.

RELATED TERMS
  1. Oil Services Industry ETF

    A sector exchange-traded fund (ETF) that invests in companies ...
  2. Oil Field

    A tract of land used for extracting petroleum, or crude oil, ...
  3. Oil Refinery

    An industrial plant that refines crude oil into petroleum products ...
  4. Oil Reserves

    An estimate of the amount of crude oil located in a particular ...
  5. Rig Utilization Rate

    A ratio used in the oil services industry that measures the amount ...
  6. Recoverable Reserves

    A term used in natural resource industries to describe the amount ...
RELATED FAQS
  1. Which industries tend to have the greatest EBITDA margins?

    High profit margins can only be attained if cost structure is low relative to revenue. Pricing power is usually the key to ... Read Full Answer >>
  2. Which sectors have similar pros and cons to the drugs sector?

    In financial terms, the drug sector has a high level of risk and growth. It must gather a lot of up-front investment to drive ... Read Full Answer >>
  3. What are some of the major companies in the chemicals sector?

    As of 2014, BASF, a German company, was the largest in the chemicals sector based on annual sales. Next was the Chinese company ... Read Full Answer >>
  4. If oil producers run out of room to store oil, will the price of gasoline plummet?

    The price of gasoline would plummet if oil producers run out of room to store oil. However, running out of room to store ... Read Full Answer >>
  5. What product categories make up the chemicals sector?

    The chemicals sector is one of the largest industry sectors in the world, covering five major subsectors that impact manufacturing, ... Read Full Answer >>
  6. How does the law of supply and demand affect the oil industry?

    The law of supply and demand primarily affects the oil industry by determining the price of oil. The price, and expectations ... Read Full Answer >>
Related Articles
  1. Active Trading

    What Determines Oil Prices?

    Changes in the price of oil aren't arbitrary. Read on to find out what moves them and why.
  2. Economics

    What Determines Gas Prices?

    Gas prices are influenced by more than supply and demand. Find out what determines the price you pay at the pump.
  3. Chart Advisor

    Commodity Traders are Watching These 3 Charts

    As we head towards the summer months, many commodity traders are looking to diversify their holdings and to protect themselves against inflation.
  4. Economics

    Gaining Market Influence-- The Case of US Shale

    A convergence of sustained bank financing, falling production costs and rising oil prices might position the US shale industry for a greater market role.
  5. Charts & Patterns

    Should Investors Get Into Oil Now?

    Oil has enjoyed a steady climb after a violent plunge. Where is it going next, and how can investors profit?
  6. Chart Advisor

    Copper Is Headed For A Pullback

    While copper prices have stabilized over the past few weeks it may still be too early for most commodity traders to enter a long position.
  7. Professionals

    A Look at How the Ultra-Wealthy Invest

    Ultra-wealthy investors are cautious this year as they approach the markets. Many target mutual funds and stocks, but most also diversify their portfolios.
  8. Mutual Funds & ETFs

    Top Commodities ETFs for Your Retirement Portfolio

    There are many commodity-tracking ETFs, but only a few are must-adds to your retirement portfolio.
  9. Fundamental Analysis

    The Economics Of Tesla Batteries

    Last week, Tesla announced its own line of commercial and residential batteries, called the PowerWall series, proving once again that no technical challenge is too great for Elon Musk.
  10. Chart Advisor

    3 Commodity Stocks Poised For A Move Higher

    When it comes to the industrial metals industry, there are few companies that have the scope of operations as that of Vale S.A.

You May Also Like

Hot Definitions
  1. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  4. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  5. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  6. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
Trading Center