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 Articles
  1. Active Trading

    What Determines Oil Prices?

  2. Economics

    What Determines Gas Prices?

  3. Chart Advisor

    Traders Fight To Push Corn Prices Higher

  4. Gasoline prices have been dropping lately after holding fairly steady for a year or so, following world oil prices.
    Personal Finance

    How Long Will Lower Energy Prices Last?

Hot Definitions
  1. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  2. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  3. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  4. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  5. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  6. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
Trading Center