What Is Midstream?
Midstream is a period of time used to provide an explanation for probably the most an important 3 number one stages of oil and gasoline industry operations. Midstream movements include the processing, storing, transporting and promoting and advertising and marketing of oil, natural gasoline, and natural gasoline liquids.
The two other number one stages are upstream, which refers to raw crude oil and natural gasoline production, and downstream, which refers to the refining of crude oil into gasoline, diesel, jet, and other fuels. Nowadays, many large oil companies undertake all streams of the process and are known as integrated oil companies.
Key Takeaways
- Midstream refers to problems throughout the oil production process that falls between upstream and downstream.
- In particular, midstream movements include the storage, processing, and transportation of petroleum products.
- The ones would most likely include companies that specialize in operating tanker ships, pipelines, or storage facilities.
Watch Now: Midstream Oil and Gasoline Operations Outlined
Working out Midstream Movements
Midstream movements are regularly included as part of other operations for a large number of the global oil and gasoline industry. The midstream and downstream movements occur after the initial production phase, known as upstream, and through to the endpoint of sale. Many oil and gasoline companies are thought to be integrated because of their talent to combine upstream, midstream, and downstream movements as part of their common operations.
The midstream industry designation is much more prevalent throughout the oil industry in the United States and Canada than in the rest of the world because of the massive privately-owned oil pipelines and storage facilities in the ones international locations. As an example, the Keystone Pipeline Device is an oil pipeline device in Canada and the United States, commissioned in 2010 and now owned simplest by the use of TransCanada Corporate. Other purely midstream operating companies include names like Oasis Midstream Partners, Sanchez Midstream Partners, Hess Midstream, Magellan Midstream Partners and EQT Midstream Partners. The designation throughout the U.S. of crude oil transportation and storage as a separate part of the producing chain is what lets in the midstream industry to exist.
Midstream Example
Magellan Midstream Partners states on their web page that they non-public and serve as 5 marine storage terminals situated along coastal waterways with more or less 26 million barrels of mixture storage capacity and more or less one million barrels of storage jointly owned by the use of their Texas Frontera, LLC joint venture. The marine terminals provide distribution, storage, blending, inventory keep watch over and additive injection services and products and merchandise for refiners, marketers, consumers, and other end-users of petroleum products. The ones key services and products and merchandise presented between raw upstream production and the refiners are the most important part of the midstream industry designation.
In Europe, the transportation and storage of crude tends to be integrated with the upstream production industry. Number one European oil companies similar to Shell or BP generally tend to report production and transportation costs together in their annual financial results. Additionally, many European oil pipelines are controlled by the use of governments of the international locations whose territory they transfer or by the use of state-owned oil transportation companies within the ones international locations. This state ownership tends to end result throughout the absence of midstream as a one by one designated part of the oil production price chain.
