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The terms '''upstream, midstream and downstream''' are often used to refer to the major sectors of the [[petroleum industry]].


== The upstream sector ==


The [[petroleum industry]] is usually divided into three major components: Upstream, [[midstream]] and [[Downstream (oil industry)|downstream]], though midstream operations are usually included in the downstream category.
The '''upstream''' sector involves the exploration for and extraction of [[petroleum crude oil]] and [[natural gas]]. The upstream oil sector is also known as the '''''exploration and production (E&P)''''' sector.


== The upstream sector ==
The upstream sector includes the searching for potential underground or underwater oil and gas fields, drilling of exploratory wells, and subsequently operating the wells that recover and bring the [[petroleum crude oil]] and/or raw [[natural gas]] to the surface.


The '''upstream''' oil sector is a term commonly used to refer to the searching for and the recovery and [[Extraction of petroleum|production]] of [[crude oil]] and [[natural gas]]. The upstream oil sector is also known as the ''exploration and production (E&P) sector''.
== The midstream sector ==


The upstream sector includes the searching for potential underground or underwater oil and gas fields, drilling of exploratory wells, and subsequently operating the wells that recover and bring the [[Petroleum|crude oil]] and/or raw [[natural gas]] to the surface.
The '''midstream''' involves storing, marketing and transporting petroleum crude oil, natural gas, [[natural gas liquids]] (mainly [[ethane]], [[propane]] and [[butane]]) and byproduct [[sulfur]]. Midstream operations are sometimes included in the downstream category.


== The midstream sector ==
== The downstream sector ==


The '''midstream industry''' processes, stores, markets and transports commodities such as crude oil, natural gas, natural gas liquids (mainly ethane, propane and butane) and sulphur. Midstream operations are sometimes included in the downstream category.
The '''downstream''' sector involves the [[Petroleum refining processes|refining]] of petroleum crude oil and the [[Natural gas processing|processing of raw natural gas]]. It includes the selling and distribution of processed natural gas and the products derived from petroleum crude oil such as  [[liquified petroleum gas]] (LPG), [[Gasoline|gasoline]] (or petrol), [[jet fuel]], [[diesel oil]], other [[fuel oil]]s, [[Asphalt  (petroleum)|petroleum asphalt]] and [[petroleum coke]].  


== The downstreanm sector ==
The downstream sector includes [[Petroleum refining processes|petroleum refineries]],<ref>{{cite book|author=Gary, J.H. and Handwerk, G.E.|title=Petroleum Refining Technology and Economics|edition=2nd Edition|publisher=Marcel Dekker, Inc|year=1984|isbn=0-8247-7150-8}}</ref> petroleum product distribution, retail outlets and natural gas distribution companies.  
The '''downstream''' oil sector is a term commonly used to refer to the [[refining]] of [[petroleum|crude oil]], and the selling and distribution of [[natural gas]] and products derived from crude oil. Such products include [[Liquified petroleum gas|liquified petroleum gas (LPG)]], [[Gasoline|gasoline or petrol]], [[jet fuel]], [[diesel oil]], other [[fuel oil]]s, [[asphalt]] and [[petroleum coke]].  


The downstream sector includes [[Oil refinery|oil refineries]]<ref>{{cite book|author=Gary, J.H. and Handwerk, G.E.|title=Petroleum Refining Technology and Economics|edition=2nd Edition|publisher=Marcel Dekker, Inc|year=1984|isbn=0-8247-7150-8}}</ref>, [[petrochemical]] plants, petroleum product distribution, retail outlets and natural gas distribution companies. The downstream industry touches consumers through thousands of products such as petrol, diesel, jet fuel, [[heating oil]], asphalt, [[lubricant]]s, [[synthetic rubber]], [[plastic]]s, [[fertilizer]]s, [[antifreeze]], [[pesticide]]s, [[pharmaceutical]]s, natural gas and propane.
The [[Petrochemicals|petrochemical industry]] is not usually considered to be a part of the petroleum industry.


=== Byproduct sulphur ===
=== Byproduct sulphur ===


Crude oil is a mixture of hundreds of [[hydrocarbon]]s, including many which contain [[sulphur]]. Refining the crude oil includes  converting most of that sulphur into gaseous [[hydrogen sulphide]]. Raw natural gas also contains gaseous hydrogen sulphide and sulphur-containing [[mercaptans]], which are removed in [[natural gas processing]] plants before the gas is distributed to consumers. The hydrogen sulphide removed in the refining and processing of crude oil and natural gas is subsequently converted into byproduct elemental sulfur. In fact, the vast majority of the 64,000,000 metric tons of sulfur produced worldwide in 2005 was byproduct sulphur from refineries and natural gas processing plants.<ref>[http://minerals.usgs.gov/minerals/pubs/commodity/sulfur/sulfumcs06.pdf Sulphur production report] by the [[United States Geological Survey]]</ref><ref>[http://www.agiweb.org/geotimes/july03/resources.html Discussion of recovered byproduct sulphur]</ref>
Petroleum crude oil is a mixture of hundreds of [[hydrocarbon]]s, many of which contain sulfur that is removed during the refining of the crude oil. Raw natural gas also has sulfur-containing compounds, which are removed in processing of the raw natural gas before it is distributed to consumers. The sulfur-containing compounds removed in the refining and processing of petroleum crude oil and raw natural gas are subsequently converted into byproduct elemental sulfur. The production and marketing of the byproduct sulfur is considered to be part of the downstream sector.
 
The vast majority of the 64,000,000 metric tons of sulfur produced worldwide in 2005 was byproduct sulphur from refineries and natural gas processing plants.<ref>[http://minerals.usgs.gov/minerals/pubs/commodity/sulfur/sulfumcs06.pdf Sulphur production report] by the [[United States Geological Survey]]</ref><ref>[http://www.agiweb.org/geotimes/july03/resources.html Discussion of recovered byproduct sulfhur]</ref>
 
== References ==
{{reflist}}

Revision as of 02:18, 6 July 2009

The terms upstream, midstream and downstream are often used to refer to the major sectors of the petroleum industry.

The upstream sector

The upstream sector involves the exploration for and extraction of petroleum crude oil and natural gas. The upstream oil sector is also known as the exploration and production (E&P) sector.

The upstream sector includes the searching for potential underground or underwater oil and gas fields, drilling of exploratory wells, and subsequently operating the wells that recover and bring the petroleum crude oil and/or raw natural gas to the surface.

The midstream sector

The midstream involves storing, marketing and transporting petroleum crude oil, natural gas, natural gas liquids (mainly ethane, propane and butane) and byproduct sulfur. Midstream operations are sometimes included in the downstream category.

The downstream sector

The downstream sector involves the refining of petroleum crude oil and the processing of raw natural gas. It includes the selling and distribution of processed natural gas and the products derived from petroleum crude oil such as liquified petroleum gas (LPG), gasoline (or petrol), jet fuel, diesel oil, other fuel oils, petroleum asphalt and petroleum coke.

The downstream sector includes petroleum refineries,[1] petroleum product distribution, retail outlets and natural gas distribution companies.

The petrochemical industry is not usually considered to be a part of the petroleum industry.

Byproduct sulphur

Petroleum crude oil is a mixture of hundreds of hydrocarbons, many of which contain sulfur that is removed during the refining of the crude oil. Raw natural gas also has sulfur-containing compounds, which are removed in processing of the raw natural gas before it is distributed to consumers. The sulfur-containing compounds removed in the refining and processing of petroleum crude oil and raw natural gas are subsequently converted into byproduct elemental sulfur. The production and marketing of the byproduct sulfur is considered to be part of the downstream sector.

The vast majority of the 64,000,000 metric tons of sulfur produced worldwide in 2005 was byproduct sulphur from refineries and natural gas processing plants.[2][3]

References

  1. Gary, J.H. and Handwerk, G.E. (1984). Petroleum Refining Technology and Economics, 2nd Edition. Marcel Dekker, Inc. ISBN 0-8247-7150-8. 
  2. Sulphur production report by the United States Geological Survey
  3. Discussion of recovered byproduct sulfhur