Midstream activities include the processing, storing, transporting and marketing of oil, natural gas, and natural gas liquids.
Major Assets:
1. Field gathering
2. Processing plants
3. Transmission pipelines (Marine vessels, Railroads and trucks. Storage assets exist throughout the chain)
Business Key Characteristics
· A low-risk business
· Contains regulated components
· Depends on health of upstream
· Market prices affect demand
Key Players of Upstream
Master Limited Partnerships, or MLPs, are companies engaged in the transportation, storage, processing, and production of natural resources. MLPs, midstream —those companies involved in transportation, storage, and processing. Like (Spectra Energy-Kinder Morgan)
The link between producing areas and population centers
Many oil and gas companies are considered integrated because of their ability to combine upstream, midstream, and downstream activities as part of their overall operations
The designation in the U.S. of crude oil transportation and storage as a separate part of the production chain is what allows the midstream industry to exist.
In the US the marine terminals provide distribution, storage, blending, inventory management and additive injection services for refiners, marketers, traders, and other end-users of petroleum products. These key services offered between raw upstream production and the refiners are an important part of the midstream business designation.
In Europe, the transportation and storage of crude tends to be integrated with the upstream production business.
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