Definition: The sector of the oil and gas industry responsible for the transportation, storage, and wholesale marketing of crude or refined petroleum products.
Key Components:
- Transportation: Moving hydrocarbons via pipelines, railways, barges, oil tankers, or trucks from production sites to refineries and distribution centers.
- Storage Facilities: Holding crude oil, natural gas, and refined products in tanks or underground caverns to manage supply and demand balances.
- Processing Plants: Facilities that treat and process natural gas to remove impurities and separate natural gas liquids (NGLs).
Use Cases/Industries:
- Pipeline Companies: Operating extensive networks to transport oil and gas across regions or countries.
- Storage Operators: Managing facilities to ensure a steady supply of petroleum products.
- Natural Gas Processors: Purifying raw natural gas for consumer and industrial use.
Advantages:
- Efficient Resource Movement: Ensures timely delivery of oil and gas products from extraction sites to markets.
- Market Stability: Balances supply and demand through effective storage solutions.
Challenges:
- Infrastructure Maintenance: Requires significant investment to maintain and upgrade transportation and storage facilities.
- Environmental Concerns: Potential risks associated with spills, leaks, and emissions during transportation and storage.
Related Terms:
- Upstream (Oil & Gas): Exploration and production sector focusing on locating and extracting oil and gas.
- Downstream (Oil & Gas): Refining and marketing sector dealing with processing and selling finished petroleum products.
Example: A midstream company operates a network of pipelines transporting natural gas from extraction sites to processing plants and then to distribution hubs, ensuring a reliable supply to consumers.
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Synonyms:
Oil and Gas Transportation, Petroleum Logistics
