Midstream is an essential stage of the oil and gas industry. It is the process of collecting, processing, transporting, and storing crude oil and natural gas from the production site to the refining site.
This process is necessary for the production and consumption of oil and gas, and the midstream sector is responsible for bridging the gap between the upstream and downstream sectors.
The midstream sector includes activities such as gathering and boosting, natural gas processing, crude oil storage, pipelines and railcars, and other activities such as marketing and trading.
In this article, we will discuss the different components of midstream in the oil and gas industry, and provide examples of each.
Gathering and Boosting
Gathering and boosting is the process of collecting crude oil and natural gas from the production site and boosting, or increasing, the pressure of the oil and gas so that it can be transported via pipeline.
Gathering is usually done by a gathering system, which is a network of pipelines that connect the production wells to a central point.
The gathering system is designed to collect the oil and gas from the wells at a certain pressure, and the boosting process then increases the pressure of the oil and gas so that it can be transported via pipeline.
Once the oil and gas is collected from the production site, it is transported to a processing plant where it is processed and separated into its various components, such as natural gas liquids (NGLs), crude oil, and natural gas. This process is known as natural gas processing.
Natural Gas Processing
Natural gas processing is the process of converting raw natural gas into useful products such as NGLs, crude oil, and natural gas. This process is done in a natural gas processing plant.
The plant separates the raw natural gas into its various components, such as ethane, propane, butane, pentane, and natural gas. These components are then transported via pipeline to their respective destinations.
Once the natural gas is processed, it is ready for transport. This is usually done via pipeline, but in some cases, the natural gas can be transported via railcars or tankers.
Pipelines and Railcars
Pipelines are the most common form of transportation for oil and gas. Pipelines are large diameter tubes that transport oil and gas from the production site to the refining site.
The pipeline system is made up of a network of pipes that transport the oil and gas from production sites to refineries, storage facilities, and other destinations.
In some cases, oil and gas can also be transported via railcars or tankers. Railcars are a type of train that transport oil and gas in large tanks. Tankers are large ships that transport crude oil, natural gas, and other commodities across the ocean.
Storage
Storage is an essential part of the midstream sector. Storage facilities are used to store crude oil and natural gas until they are ready to be shipped to their destination.
Crude oil is usually stored in large tanks, while natural gas is stored in underground caverns. Storage facilities are also used to store NGLs, such as ethane, propane, and butane.
Conclusion
Midstream is an essential part of the oil and gas industry. It is responsible for the collection, processing, transportation, and storage of crude oil and natural gas from the production site to the refining site.
The midstream sector includes activities such as gathering and boosting, natural gas processing, crude oil storage, pipelines and railcars, and other activities such as marketing and trading.
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