The Oil & Gas Midstream segment is a crucial part of the global energy sector, serving as the link between the upstream exploration and production activities and the downstream refining, processing, and distribution. Midstream companies primarily focus on the transportation, storage, and wholesale marketing of crude oil, natural gas, and their refined products.
Key activities in the Oil & Gas Midstream industry include:
- Transportation: Moving crude oil, natural gas, and refined products from production sites to refineries, processing facilities, and end-users. This involves the use of pipelines, tanker ships, rail, and trucks.
- Storage: Managing and maintaining facilities such as storage tanks, terminals, and underground reservoirs to store crude oil, natural gas, and refined products in strategic locations to meet fluctuating demand and ensure a stable supply.
- Gathering and processing: Collecting raw natural gas from production sites, separating and treating it to remove impurities, and processing it into marketable natural gas and natural gas liquids (NGLs).
- Wholesale marketing: Trading and selling oil and gas commodities in bulk to refineries, utilities, and other large-scale customers, managing price risks, and ensuring a consistent supply.