What Is Midstream?

Описание: What Is Midstream?

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Midstream provides the vital supply chain link between oil and gas producing areas and the population centers where customers are located. Midstream activities include processing, storage, and transportation of crude oil and natural gas.

Processing oil and natural gas liquids (NGLs) into marketable products is the beginning of the midstream segment of the business. Crude and refined liquids start their journey in a spider web of small-diameter field gathering pipelines. Larger volumes are transported via pipelines, trucks, rail cars and marine vessels.

Field processing measures the production rate of the oil, gas, and water that is produced from the reservoir. These elements are then separated from one another, with impurities removed to prepare the oil or gas for sale.

In most cases, oil and gas reserves are not located in the same area as refining assets and major consumption regions. Treated oil and gas is delivered via a complex transportation, transmission and distribution infrastructure. Natural gas, which flows at much higher pressure than crude oil, is transported in large-diameter, high-pressure-handling pipelines called transmission lines.

The movement of oil and gas by interstate pipeline is highly regulated in the US by the Federal Energy Regulatory Commission (FERC). International pipeline expansions can require approval from the Executive branch and become part of the national political debate.

Success in the midstream depends on a continuous delivery of reserves to healthy refining, natural gas and petrochemical markets.

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