1. Up Stream , Mid stream , Down Stream .
Eslam Elsayed Elwaey
23 April 2018
2. THE OIL AND GAS INDUSTRY
• It’s very large and complex. It’s also essential for todays economy. No
modern society can run smoothly without oil and gas. These products
are in high demand in industry, commerce, retail, and
commercial/domestic purposes.
• There is a long supply chain (production and distribution) that starts from
ground exploration and ends with the consumer. This article will briefly
address how that happens. The oil industry can be broken into three
chronological sectors;
4. UPSTREAM SECTOR
Upstream is commonly known as the exploration & production (E&P) section. It covers all
activities related to searching for, recovering, and producing crude oil and/or natural gas
from underground or underwater fields. This sector covers drilling of exploratory wells,
and subsequent drilling and operating the wells that recover and bring the crude oil or raw
gas to the surface. Lone Tree typically serves clients that operate in this sector. The oil
and gas industry is constantly looking for hard working, skilled workers, to keep up with
technological changes. This is where Lone Tree adds value. Providing a warm, comfortable,
inviting place to eat and rest is as critical as the work itself. By doing this, the workers in
the industry remain safe, healthy, and well rested for the important and labor intensive
work they perform .
5. SOME OF THE MAJOR ACTIVITIES IN THIS
SECTOR INCLUDE
Geological & geophysical (G&G) surveys
are used to explore possible sites.
Drilling exploratory wells (costly).
Searches for underground or underwater
crude oil & natural gas fields.
Leases & permissions from the land
owners to drill are acquired.
Exploration
6. PRODUCTION
Extensive time and
labor is required to
drill the oil and gas.
Short term storage of
the oil & gas.
Plug & abandonment
finish off the well. This
is the last step in the
process. The size of the
underground/water
field determines the
extent of this activity.
7. The upstream section is risky, complex, and heavily regulated by
government. Outside factors that affect what happens in this
sector include political instabilities in the US or abroad,
international conflicts, & even seasonal weather patterns.
8. MIDSTREAM SECTOR
• The midstream sector connects the upstream sector to the downstream sector. Often
times it is lumped in with the downstream sector. Pipelines and other transport
systems can be used to move crude oil from production sites to refineries and deliver
the various refined products to downstream distributors. Natural gas pipeline
networks aggregate gas from natural gas purification plants and deliver it to
downstream customers, such as local utilities.
9. MAJOR ACTIVITIES INVOLVED IN THE
MIDSTREAM SECTOR INCLUDE:
Transportation (pipeline, rail, barge, oil
tanker, and/or truck).
Marketing of wholesale products.
10. The midstream operations are often taken to include
some elements of the upstream and downstream sectors.
For example upstream may include some storage
functions and downstream may include some transport
that overlaps into the midstream sector.