a presentation about the midstream and downstream

1. In the name of God

2. Downstream & Midstream
of oil industry
COURSE INSTRUCTOR :
DR. MOHAMMAD GHAVIDEL SYOOKI
INTRODUCE BY:
HOSSEIN MOKHLESI & MAHDI SHAHBAZI

3. Review
 The oil and gas industry is usually divided into three major sectors:
 -Upstream
 -Midstream
 -Down stream

4. Upstream
 The upstream sector includes searching for potential underground
crude oil and natural gas fields, drilling exploratory wells, and
subsequently drilling and operating the wells that recover and bring
the crude oil and raw natural gas to the surface

5. Upstream
Exploration
Drilling
Production

6. Midstream
 As its name implies, the midstream segment encompasses facilities and
processes that sit between the upstream and downstream segments.

7. Midstream
 The midstream sector involves the transportation (by pipeline , rail, barge, oil
tanker or truck), storage, and wholesale marketing of crude or refined
petroleum products

8. The most important thing in
midstream business is the location…
Location,
Location,
Location...

9. Processing
 Processing oil and gas liquids into marketable products is the beginning of
the midstream segment of the business.
 Field processing is the first phase of oil and gas processing, starting in the
onshore or offshore production field

10. Processing
Here, surface facilities are designed and installed that:
Measure the production rate,
Separate the oil, gas, and water,
Remove impurities,
Temporarily store the crude or gas.

11. Transportation
 After field processing, treated oil and gas is delivered via a complex
transportation, transmission and distribution infrastructure.
 land transportation
 pipelines, truck and rail
 Marine transportation
 tankers or vessels , pipelines and barges

12. Marine transportation
 Some times it is so complicated to use pipelines in marine
transportation , so we use the SBM (single buoy mooring) method.

13. SBM

14. SBM
 The disadvantage of ordinary SBM is that they have no storage
capacity.
 So a SBM has been developed by Shell , called Spar buoy to storage
300,000 barrels of crude.

15. Spar buoy
 The advantage of this method is that we can keep produce crude ,
even when we can’t load tankers due to weather

16. Spar buoy

17. What is Downstream?
Processing, transporting and selling refined
products made from crude oil is the business of the
downstream segment of the oil and gas industry.

18. The downstream industry provides thousands of
products to end-user customers around the globe.
What is Downstream?

19. Globally, the most widely known crude oil product is
Gasoline.
Other fuel products are diesel, jet fuel and
marine fuel oil.
Fuel products for transportation are 65%
of global demand.
Fuel Products

20. FERTILIZER
Familiar Products:
Unfamiliar Products:
Petrochemicals
GASOLINE
LUBRICANTS
SYNTHETIC
RUBBER
PLASTICS PESTICIDES
HEATING

21. What is Downstream?
Key downstream business sectors include:
Oil Refining,
Product Marketing
Supply andTrading
Wholesale & Retail.

22. Product Marketing

23. Downstream Customers

24. Commercial Consumers

25. Retail Customers

26. Refining
History of Refining
The history of refining
innovation is really driven
by the evolution of
product demand.

27. Early Distillation Stills

28. Enter The Automobile

29. Motor Fuels Dominate

30. RefiningToday
Transportation
Electricity
Generation
Industrial
Processing
Home Heating
Petrochemical
Production

31. Crude oil is combustible, of course, and it is sometimes
asked why crude isn’t burned as fuel without the expense of
refining.

32. Why Refine Crude Oil

33. Why Refine Crude Oil

34. Crude oil is first washed to remove salt. Crude oils are
complex mixtures of hydrocarbons which range form
those containing only one carbon atom in the
molecule(methane, CH₄)up to those containing 60 or
more. Such mixtures do not have a single boiling point.
CRUDE OIL

35. Downstream of production
 The first stage in the refining of crude oil is
usually the separation BS & W at the tank
farm. From here, the oil is pumped via the
crude train to the first column in the refinery
system.

36. Distillation – A Boiling Process
the distillation of crude oil is the start of the refining
process, and is primarily a boiling operation. Distillation
process of first driving gas or vapour from a liquid by
heating, then collecting the gas or vapor by
condensation(ie., reduction to a denser form by cooling;
eg., condensation of steam to water)

37. Crude Distillation Unit
Crude oil is first washed to
remove salt, heated in a
furnace, and introduced to the
Crude Distillation Unit (CDU).
In the CDU, the crude oil is
separated by boiling range
into a number of fractions.

38. Fractions
A fraction is the term
used for a specific
hydrocarbon which is
produced and captured
according to its molecular
weight and boiling point.
Some fractions have all
the qualities needed as
refined products and are
ready for sale. Other

39. Fractionation
Such mixture do not have a single boiling point, since some
components will vapourise at relatively low temperatures
(ie., the lighter hydrocarbons) while others will require
relatively high temperatures (the heavier hydrocarbons). On
the basis of boiling ranges, therefor, the many different
hydrocarbons in crude can be divided into a small number of
groups(called ‘cuts’ or ‘fractions’)
Which will separate from the crude at different
temperatures.The distillation process by which fraction are

40. Multi-stage distillation
 In most modern refineries, the crude is processed
through several CDU’s, so that the various cuts can be
produced to very precise specifications. Multi-stage
distillation also ensures that straigh-run fractions are
free of impurities.

41. Thanks for your attention