Oil and gas downstream operations involve refining crude oil and natural gas into essential fuels and petrochemicals that power industries and daily life.
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2. The final sector of the oil and natural
gas industry is known as downstream
Downstream operations are the
processes involved in turn oil and gas
into final products
There are upstream, midstream, and
downstream operations within the oil
and gas industries
About Downstream
oil and gas
3. The downstream industry provides
numerous products such as jet fuel,
gasoline, diesel, synthetic rubber, plastics,
pesticides, pharmaceuticals, natural gas,
and propane.
The downstream process delivers the
products most directly connected to
consumers, making it the most relatable
sector of the oil and gas industry for the
public.
About Downstream
oil and gas
5. Distillation: The initial step in refining, it
separates the crude oil into different
components based on their boiling points.
Cracking: To ensure optimal utilization of crude
oil, heavier fractions are broken down into
lighter, more usable products like gasoline and
diesel oil.
Treatment: Once separated and cracked, these
fractions undergo treatment to remove
impurities, such as sulfur and volatile organic
compounds.
Oil Refining
The oil refining process is crucial in the oil and gas industry,
converting raw crude oil into various refined petroleum
products
6. Purification: Processing facilities meticulously
remove moisture, carbon dioxide, and other
pollutants to make the gas safe and efficient for
use.
Liquefaction: To facilitate transportation,
especially overseas, natural gas is cooled to
become liquefied natural gas
Separation: Among its components, raw
natural gas includes valuable natural gas
liquids (NGLs) such as propane, butane, and
ethane.
Natural Gas
7. Transportation Modes: Refined products are
transported from refineries to end-users
through pipelines, tanker ships, rail cars, and
trucks, each chosen based on efficiency,
volume, and distance.
Storage Facilities: Products are stored in tank
farms and terminals to manage supply,
accommodate demand fluctuations, and
ensure a steady distribution flow. l
Product Distribution
8. Market Analysis and Segmentation: Identify
target markets based on geography, industry
sectors, and consumer demographics.
Pricing Strategy: Set pricing levels based on
factors such as crude oil prices, refining costs,
market demand, and competitive dynamics.
Promotion and Advertising: Create marketing
camSeparation: Among its components, raw
natural gas includes valuable natural gas
liquids (NGLs) such as propane, butane, and
ethane.
Marketing