What are the differences between Upstream Midstream & Downstream?
An Overview of Upstream, Midstream, and Downstream: In the Oil and Gas Industry
In the vast and intricate landscape of the oil and gas industry, there exist three critical sectors: that are upstream, midstream, and downstream. All of them have their specific although interrelated tasks regarding the utilization of hydrocarbon resources throughout their life cycle. Such distinctions and differences between these sectors are vital for capturing the dynamics, challenges, and opportunities within the industry.
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The upstream sector is also known as the exploration and production (E&P). It includes operations that are centered on the exploration, development, and initial treatment of crude oil and natural gas resources. This sector is where the journey starts, as companies search geologically for hydrocarbons, and drill wells, and tap into the resources beneath the earth’s crust.
Exploration:
Exploration entails looking for areas in the earth with the possibility of containing hydrocarbons through geophysical mapping, seismic surveys, and others. Nonetheless, it is worth noting that new technologies such as seismic surveys and remote sensing have greatly enhanced the exploration and targeting of reserves.
Drilling:
Drilling operation comes after a viable reservoir is identified. This entails the deployment of drilling platforms that dig into the ground using rounds to reach the hydrocarbon resources that are well hidden beneath the earth's surface enclosed by layers of rock and sediment.
Production:
Production processes include the drilling and pumping of crude oil and natural gas from wells. Primary, secondary, and tertiary recovery techniques are used in order to optimize extraction rates and recoverable reserves.
Initial Processing:
After extraction crude oil and natural gas is processed through a simple separation process in an effort to remove unwanted elements that may be present. It may include the process of/cessation of the formation of oil, gas, and water, and purification from undesirable admixtures such as sulfur and heavy metals.
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The midstream segment is uniquely positioned between the upstream and downstream segments in the venture. It mainly deals with the transportation, storage, and wholesale marketing of crude oil, natural gas, and other finished products.
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