The Midstream is a segment of the production process in the oil industry related to the transportation, storage, and wholesale distribution of oil products. It is one of the three main subsectors of this oil and gas industry, the other two being Upstream and Downstream. In fact, it would be the intermediary between both and is essential for the proper functioning of all three.
One could say that it is equivalent (with certain differences) to a wholesaler who receives the product from the factory and distributes it to retailers. In turn, they sell it to the end customer and this completes the production cycle.
Upstream refers to the entire process of exploration, discovery, and production of oil and gas, which is the first phase of the cycle. Midstream is the intermediate process of transportation, storage, and wholesale distribution to marketing companies. Downstream is focused on the retail companies and is the final phase of the process, with the aim of reaching the end customer – businesses, institutions, and individuals.
It is important to note that this is a very complex production process and requires experts to carry it out. In addition, it is a highly regulated sector worldwide, which increases the degree of complexity even more.
Activities within the Midstream
Within the Midstream, there are a series of activities as follows:
- Collection. In this stage, the product is collected and a first treatment is performed for subsequent storage.
- Processing. Next, impurities are removed so that a clean product arrives at the marketing companies.
- Transportation. This is one of the most important phases, as it is a toxic product. Safety is taken into 4. account to avoid accidents that could affect the environment or people due to its hazardous nature.
- Storage. It is distributed to the marketing companies, with special emphasis on storage, which must meet all safety guarantees.
Laws and the Midstream
As we have seen, this stage is essential for the oil and gas production cycle. For this reason, regulations help avoid problems arising from this activity. Thus, the goal is the protection of citizens and the environment.
All countries legislate to regulate this strategic sector. In addition, we are talking about an essential industry in the world for many other activities. For this reason, in all phases, including the Midstream, there are very strict compliance regulations.
