1)issue in upstream midstream & downstream market

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1)issue in upstream midstream & downstream market

  1. 1. (1)ISSUE IN UPSTREAM MIDSTREAM & DOWNSTREAM MARKET (2) IMPACT OF LPG IN UPSTREAM MIDSTREAM & DOWNSTREAM SECTORS
  2. 2. (1)ISSUE IN UPSTREAM MIDSTREAM & DOWNSTREAM MARKET • The oil and gas industry is usually divided into three major sectors: upstream, midstream and downstream. The downstream sector commonly refers to the refining of petroleum crude oil and the processing and purifying of raw natural gas, as well as the marketing and distribution of products derived from crude oil and natural gas. The downstream sector touches consumers through products such as gasoline or petrol, kerosene, jet fuel, diesel oil, heating oil, fuel oils, lubricants, waxes, asphalt, natural gas, and liquified petroleum gas (LPG) as well as hundreds of petrochemicals. • The midstream sector involves the transportation (by pipeline, rail, barge, or truck), storage, and wholesale marketing of crude or refined petroleum products. 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
  3. 3. • Midstream operations are often included in the downstream category and considered to be a part of the downstream sector • The downstream sector commonly refers to the refining of petroleum crude oil and the processing and purifying of raw natural gas,[1][2][3] as well as the marketing and distribution of products derived from crude oil and natural gas. The downstream sector touches consumers through products such as gasoline or petrol, kerosene, jet fuel, diesel oil, heating oil, fuel oils, lubricants, waxes, asphalt, natural gas, andliquified petroleum gas (LPG) as well as hundreds of petrochemicals.
  4. 4. • The upstream oil sector is also commonly known as the exploration and production (E&P) sector. • The upstream sector includes the searching for potential underground or underwater crude oil and natural gas fields, drilling of exploratory wells, and subsequently drilling and operating the wells that recover and bring the crude oil and/or raw natural gas to the surface. • With the development of methods for extracting methane from coal seams,there has been a significant shift toward including unconventional gas as a part of the upstream sector, and corresponding developments in liquified natural gas (LNG) processing and transport.
  5. 5. • (2) IMPACT OF LPG IN UPSTREAM MIDSTREAM & DOWNSTREAM SECTORSdescribing a group of Liquefied petroleum gas (LPG) is a term hydrocarbon-based gases derived from crude oil and or natural gas. Natural gas purification produces about 55 percent of all LPG, while crude oil refining produces about 45 percent. • LPG is mostly propane, butane or a mix of the two. It also includes ethane, ethylene, propylene, butylene, isobutene and isobutylene; these are used primarily as chemical feedstocks rather than fuel. • LPG becomes a liquid at normal pressure and a temperature of -42° C, or at normal temperatures under a pressure of about eight atmospheres (standard units equivalent to ordinary atmospheric pressure at sea level and 0 degrees centigrade). • Separating the economic impact of LPG is problematic because it is derived from both oil and natural gas
  6. 6. • • • • The petroleum industry includes the global processes of exploration, extraction, refining, transporting (often by oil tankers and pipelines), and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum (oil) is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations are usually included in the downstream category. Petroleum is vital to many industries, and is of importance to the maintenance of industrial civilization in its current configuration, and thus is a critical concern for many nations. Oil accounts for a large percentage of the world’s energy consumption, ranging from as low of 32% for Europe and Asia, up to a high of 53% for the Middle East. Other geographic regions’ consumption patterns are as follows: South and Central America (44%), Africa (41%), and North America (40%). The world consumes 30 billion barrels (4.8 km³) of oil per year, with developed nations being the largest consumers. The United States consumed 25% of the oil produced in 2007.[1] The production, distribution, refining, and retailing of petroleum taken as a whole represents the world's largest industry in terms of dollar value. Governments such as the United States government provide a heavy public subsidy to petroleum companies, with major tax breaks at virtually every stage of oil exploration and extraction, including for the costs of oil field leases and drilling equipment

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