Defining Upstream Oil & Gas
The upstream sector is used to check with the seek for, followed by the recovery and production of, crude oil and natural gas. This sector can also be widely known because the exploration and production (E&P) sector. Stages throughout the upstream petroleum-product industry include the search for underground or underwater oil and gas fields, the drilling of exploratory wells and, if the wells are deemed economically viable and recoverable, the operation of wells that bring crude oil and raw natural gas to the well’s surface.
The midstream sector can include some elements of both the upstream and downstream sectors. distillation column crude oil However, the primary component of midstream is the gathering system. Gathering systems are oil and natural gas storage areas where raw produced products are held until they are distillation column crude oil often transported, via pipeline, railcar or tanker truck to the refinery, where they’re turned into marketable petroleum products.
The downstream sector refers to the refining of crude oil, and the selling and distribution of natural gas and products which can be derived from crude oil. Such products can include LPG, gasoline, jet fuel, diesel fuel, fuel oils, asphalt and petroleum coke. The downstream segment includes oil refineries, petrochemical plants, petroleum distribution outlets, retail outlets and natural gas distribution companies. The downstream sector touches consumers through thousands of products from motor fuels to lubricants and fertilizers to pharmaceuticals.