The Oil & Gas Value Chain
Upstream, Midstream, and Downstream
Upstream
This is the exploration and production (E&P) phase. It includes locating oil and natural gas reservoirs, drilling wells, and extracting raw hydrocarbons. The upstream sector involves geologists, drilling engineers, and production specialists.
Midstream
Once hydrocarbons are extracted, they need to be moved, processed and stored before use by consumers. This is where the midstream sector comes in.
Downstream
After processing and transportation, crude oil and natural gas products are distributed to consumers as fuels, lubricants, petrochemicals, or other end-use products.
What Is Midstream?
The midstream sector serves as the critical bridge between production (upstream) and consumption (downstream). Its main focus is gathering and transportation, processing, and storage of hydrocarbons. Key activities include:
Gathering/Transportation
“Gathering” is the movement of crude oil and natural gas from wells to processing plants. “Transportation” is the movement of processed crude oil, natural gas, and natural gas liquids (NGLs) from processing plants to consumers. This can involve pipelines, rail, trucks, barges, and tankers.
Processing
Treating and processing plants remove impurities and water from raw natural gas. They also chill and compress the natural gas until natural gas liquids (NGLs) fall out of the gas stream. The combined mix of NGLs are then separated from each other by fractionators.
Storage
Temporary holding of oil and gas products in tanks or underground facilities to balance supply and demand.
Because midstream is largely about logistics and infrastructure, it is often considered more stable and less price-volatile compared to upstream exploration.
Join the Conversation
Take Action