The oil and gas industry operates through a supply chain that includes the transportation and distribution of products from the points of origin to the destination markets. For this reason, it is an essential stage for engineering projects in the sector since oil wells are often far away from refining and consumption areas.
The supply chain for the hydrocarbon industry is composed of three levels: the first is the upstream sector, which is responsible for finding and producing crude oil and natural gas. Next, we find the midstream sector, which handles the processing, storage and transportation of energy products. Finally, the downstream sector includes refineries, sales outlets and natural gas distribution companies.
There are also various means of transporting oil, but there are two that are most commonly used: continuous flow pipelines and oil tankers. Other means of transport, such as railcars, tankers, trucks, railroads or coastal vessels, are generally used for the distribution of products derived from crude oil.
Means of transportation of crude oil
To go into more detail and taking pipelines as an example, we can mention that they are key to understanding how oil is transported and distributed. In addition, we define them as a set of facilities made up of pipes that allow the transportation of oil. As a fact of interest, according to OPEC predictions, by 2040 pipelines will cover more than 50% of all the world’s energy needs.
Pipelines also include the facilities necessary for their operation, such as storage tanks, pumping stations, and cleaning equipment, among others. But these not only transport crude oil but sometimes even connect the field storage tanks directly to the refinery storage tanks. It is estimated that there are currently more than 1,500,000 kilometers of pipelines used to transport crude oil and finished products worldwide.
Within this context, the midstream segment fulfills a complex and highly important task in processing the entire oil and gas production chain for commercial use. The processes that take place there are summarized in terms of fuel transportation (post-extraction) and conversion of this component for distribution and post-processing.
In conclusion, I would like to close with the following reflection: I believe it is essential for companies to have a highly specialized team in the different stages of the process, phases that are undoubtedly interconnected, such as collection, processing, compression and fracking to ensure a successful implementation of the working conditions in the industry.
Owner of several companies in the energy and mining sector, and inventor of the design and engineering of the Super Matroid Heater and Ultra Filtration Systems for the oil and gas industries.
