The Progression of the Oil and Gas Industries: Midstream, Downstream, and Upstream
In the oil and gas industry, before being delivered to end users as refined petroleum products, natural gas and liquids, crude oil and associated fluids typically go through a number of processing steps. Midstream processing facilities and those downstream of initial production but upstream of end users are some of the locations where these processes take place.
What does it mean to be upstream, midstream, or downstream?
These three terms are almost certain to appear in any news report about the oil and natural gas industry. But what exactly do they mean?
Upstream
This includes everything related to the discovery and exploration of oil and natural gas. Exploration generally refers to geological surveys and any collection of data used to locate specific areas where oil and natural gas deposits are likely to be found. The term “upstream” also includes the steps of drilling on the seafloor and transporting oil and natural gas to the surface, referred to as “production.”
Midstream
The oil and gas industry’s “midstream” segment refers to everything required for transporting and storing crude oil and natural gas prior to refining and processing. Midstream refers to pipelines and the infrastructure required to transport these resources over long distances, such as pump stations, oil tankers, tank wagons, and so on.
Downstream
The final sector of the oil and gas industry is known as “downstream.” Everything required to convert crude oil and natural gas into thousands of different products is included. Fuels, such as gasoline, diesel, kerosene, and domestic fuel oils, are among the most visible products. Long-chain hydrocarbons, which are found in both oil and natural gas, are used to make a wide range of products, including synthetic rubbers, fertilizers, preservatives, plastics, clothing, and paints.
Improving Inspections in the Midstream Oil and Gas Industries
The midstream oil and gas industry exists between the drilling of the upstream oil and gas industry and the downstream refining of oil into consumer and industrial products. This industry is in charge of processing and storing oil, as well as transporting it via pipelines, trucks, and ships. It is the world’s longest oil and gas pipeline, transporting petroleum products thousands of miles from fields to refineries around the world.
Prices in the oil and gas industry are variable from day to day. Regulations and how they are interpreted vary by country, and new regulations are debated each year. Nondestructive testing (NDT) of midstream oil and gas industry equipment and infrastructure, on the other hand, ensures that products reach downstream refinery facilities without costly leaks or headline-grabbing spills.
