DistributionĪs the name suggests, distribution is the final step where the finished petroleum products are transported and distributed to businesses, government agencies, and to the general public composed of industrial consumers, electrical providers, and heating of residential and commercial establishments, among others. ![]() This process commonly includes the units of: distillation, cracking, coking, reforming, and post treatment. Oil refining also involves several processes depending on the desired end product. Refining is the process of converting oil and natural gas into finished petroleum products that can be used for various reasons such as transportation and electricity fuels, asphalt and road oils, kerosene, or as raw materials for making plastic and synthetic materials. ![]() Stage 3: Downstreamĭownstream refers to the third stage and final process of refining and distribution of petroleum products. Unrefined oil is transported via tankers and pipelines, while final petroleum products travel to the market through trucks, railroad cars, tankers, and more pipelines. It starts from when oil and gas are extracted and brought to the processing plants, transferred to companies and businesses across the nation and to other countries, and finally to the general public or primary consumers. Transportation is an all-encompassing process for the industry. Natural gases are usually stored in underground spaces such as depleted reservoirs, while finished oil products, crude oil, and refined oil commonly use above ground tanks as storage. Proper storage of the products is essential to keep up with the domestic and international demand, prevent shortage and discrepancies in supply, and ensure safety for all the workers and people involved in the industry. This is the midstream stage where oil and natural gas are separated, then transferred to the gas processing plants where unnecessary products and nonhydrocarbon gases are removed. Stage 2: MidstreamĪs the secondary stage, midstream mostly refers to the processing, storing, and transportation of oil and gas products. This is also the step where fracking and recycling of fracking fluid is done. Oil and gas extraction generally includes the actual process of extracting conventional oil and natural gas from underground reservoirs and wells. New drilling techniques include: horizontal drilling, multilateral drilling, extended reach drilling, and complex path drilling. Oil and gas are commonly drilled vertically but using newer technologies offered various advantages such as time-saving opportunities, lesser operating costs, and reduced negative environmental impact. Normally, it takes about two to four weeks, but drilling an offshore well can last for several months. The well drilling process and timeline can vary depending on the techniques and equipment used in the procedure. After a site is selected, it will be prepared and developed for the actual production process. This is the initial part where geologists and other industry experts search for rock formations or areas where oil and gas are commonly found. Upstream refers to the primary process of the oil and gas production that includes exploration, drilling, and extraction. Oil and Gas Production Process Stage 1: Upstream Learn more about the stages of oil and gas production in the following: There are also international agreements that have to be observed and complied with. Each stage is regulated and laws can vary per locality or state. The process of oil and gas production is divided into three major stages namely upstream, midstream, and downstream. President Joe Biden of the United States, the world’s largest oil and gas producer, announced in March 2022 that aside from encouraging the increase of domestic oil and gas production, the country is also releasing 1 million barrels a day from its Strategic Petroleum Reserve to help cut prices across the nation. With all the things recently happening between two major oil producers, there’s a call of ramping up oil and gas production to avoid shortages and prevent the prices from increasing further. But just like any other industry, it can also be very fragile and prone to volatility. The oil and gas industry is one of the largest sectors in the world and a huge factor in the global economy. Getting started with Safet圜ulture Platform.ISO 45001:2018 Occupational Health & Safety Management. ![]() ISO 14001:2015 Environmental Management.
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