Mid-Stream
The mid-stream sector in the petroleum industry refers to the
transportation, storage, and wholesale marketing of oil, natural gas,
and refined products. It encompasses activities such as pipeline
transportation, storage in tanks and terminals, and bulk breaking and
distribution. The mid-stream sector is a crucial link between upstream
oil and gas production and downstream refining, distribution, and retail
sales.
The activities of mid-stream companies include:
- Pipeline transportation: Operating pipelines to transport crude oil,
natural gas, and refined products from production facilities to
terminals and storage facilities.
- Terminal storage: Providing storage services for crude oil, natural
gas, and refined products in terminals, large storage facilities that
serve as distribution centers.
- Wholesale marketing: Selling crude oil, natural gas, and refined
products in large quantities, or batches, to refineries, marketers,
and other bulk users.
- Trading: Buying and selling crude oil, natural gas, and refined
products on the spot market or through long-term contracts to maximize
profits and manage risks.
Overall, the wholesale marketing of mid-stream petroleum products aims
to match supply with demand and ensure that products are available in
the right quantities, at the right time, and at the right price.
Mid-stream companies work with upstream producers to secure supplies of
crude oil, natural gas, and other feedstocks, and with downstream
refineries, distributors, and retail businesses to ensure that products
are delivered to end-users in a timely and efficient manner. In some
cases, mid-stream companies may also engage in trading and marketing
activities, buying and selling petroleum products to maximize profits
and manage risks.
Pipelines are a major component of the mid-stream sector. There are many
major pipelines in the world, carrying crude oil, natural gas, and
refined petroleum products. Some of the most significant pipelines and
their locations include:
- Trans Alaska Pipeline System (TAPS): Carries crude oil from the
North Slope of Alaska to Valdez, Alaska, for export.
- Dakota Access Pipeline: Transports crude oil from the Bakken shale
formation in North Dakota to Illinois.
- Keystone Pipeline: Carries crude oil from Alberta, Canada, to
refineries in the United States.
- West-East Gas Pipeline: Runs from Xinjiang in northwestern China to
eastern China and is one of the largest natural gas pipelines in the
world.
- Baku-Tbilisi-Ceyhan Pipeline: Transports crude oil from the Caspian
Sea region to the Mediterranean Sea.
- Trans-Saharan Gas Pipeline: Runs from Nigeria to Algeria and is one
of the largest natural gas pipelines in Africa.
- Nord Stream: A natural gas pipeline that runs from Russia to Germany
under the Baltic Sea.
- Turk Stream: A natural gas pipeline that runs from Russia to Turkey
under the Black Sea.
The above are just a few examples of the many major pipelines in
operation around the world. The location and routes of pipelines are
often determined by factors such as proximity to sources of supply,
demand for the products being transported, and the political and
regulatory environment in the countries through which the pipelines run.
There are many pipelines in the United States, transporting crude oil,
natural gas, and refined petroleum products. The below pipelines play a
crucial role in the US energy system, helping to transport and
distribute the products that drive the economy, from gasoline for
transportation to natural gas for heating and electricity generation.
Some of the main pipelines in the US include:
- Keystone Pipeline: Carries crude oil from Alberta, Canada, to
refineries in the United States.
- Dakota Access Pipeline: Transports crude oil from the Bakken shale
formation in North Dakota to Illinois.
- Trans Alaska Pipeline System (TAPS): Carries crude oil from the
North Slope of Alaska to Valdez, Alaska, for export.
- Colonial Pipeline: Carries gasoline, diesel, and jet fuel from
Houston, Texas, to the northeastern United States.
- Enbridge Mainline: Carries crude oil from Canada to the United
States.
- Magellan Midstream Partners Pipeline: Transports petroleum products,
including gasoline and diesel fuel, from the Gulf Coast to the Midwest
and southeastern United States.
- Plains All American Pipeline: Carries crude oil and natural gas from
the Permian Basin in Texas and New Mexico to the Gulf Coast.
- Energy Transfer Crude Oil Pipeline: Runs from the Permian Basin in
Texas to refineries and terminals along the Gulf Coast.