All About the Midstream Process of Oil and Gas

The oil and gas products we use daily go through three primary stages. The first is the upstream segment, which involves exploration and crude oil extraction. The second covers downstream processes like refinement. But sitting in the middle is the midstream.

Midstream processes are the points of production that fall between upstream and downstream. Companies in this segment typically deal with the transportation, storage and processing of petroleum products.

Transportation

One of the most critical pieces of the midstream puzzle is transportation. In many cases, production facilities and refineries are located far away from extraction sites. That's especially true for offshore drilling platforms. Crude oil needs to get to those facilities somehow, and that's what many midstream businesses do.

Transportation is complex and includes many logistics. For that reason, many businesses use a platform midstream oil and gas software to manage operations, identify value-adding opportunities and streamline processes. Transporting oil and gas products can include using pipelines, tanker ships and more.

Some companies combine upstream, midstream and downstream processes. However, midstream activities are more prevalent in the United States and Canada due to the large number of privately owned pipelines and transportation companies.

Storage

Storage is another crucial element of the downstream process. While there's a never-ending demand for oil and gas products, supply and demand fluctuates. Therefore, there's a need for storage facilities.

Midstream companies that specialize in storage support the industry in many ways. Storage is more common when prices are low, paving the way for higher profits and easier solutions to supply shortages. With platform midstream oil and gas software, companies can carefully manage their storage needs.

Many storage companies will use enormous tanks to contain fluids at different stages of the refinery process. In this case, storage is usually temporary and short. However, it allows refineries to work more efficiently.

Overall, midstream processes are vital for the oil and gas industry. They help to keep things running smoothly, moving and storing petroleum products while playing a big part in balancing supply and demand.

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