What is the energy sector?
The energy sector is a term that usually refers to the oil and gas industry. Depending on the standard used for categorization companies, it may also include the production and distribution of other fuels and equipment. It also generally includes companies related to survey, marketing and distribution of oil products. In order to categorize industries, the energy industry companies can be distinguished from companies with electricity production, which are usually organized in a separate sector of public services. Unlike electricity, the end products of enterprises in the energy sector are often used as mobile energy sources.
Today, two main standards of industry classification are used. The global standard of the GICS classification (GICS) was created by Morgan Stanley Capital International and Standard and Poor's. GICS provides a structure in which the main public companies can be divided into 10 sectors. Second standard used, benchmark for classification PRThe meaning (ICB) was developed by Dow Jones and FTSE Group. ICB categorizes companies up to 10 main groups on the basis of a source of income.
both standards have the energy sector as one of 10 groups. The energy sector focuses primarily on the oil and gas industry, which includes businesses in which the construction of oil platforms and drilling equipment, as well as survey, marketing, refining and transport of oil products, dominated. In both standards, these products and services are usually oriented to produce fuels for mobile vehicles and equipment than on electricity production. However, GICS includes coal production in the energy sector.
Except for fuel, both standards categorize electricity production according to the public services sectors. Electricity is a source of energy that usually requires applicants are stationary to use it. However, in developed countries, it is widely used for personal andIndustrial applications. In countries such as the United States and China, coal-free burning is a source of electricity. In France, however, nuclear energy represents almost 80% of electricity production.
In GICS and ICB, some businesses that are not strict oil and gas companies are included. Standards indicate the seismic data collection services in the energy sector because of their role in survey and oil production and gas production. In addition, ICB includes many companies that produce renewable energy products within the energy sector. It can be equipment for solar, water, geothermal and wind power plants. They can also be alternative fuels such as ethanol and methanol.