The placement of an oil or gas firm in the supply chain is referred to as upstream and downstream oil and gas production. Companies that find, extract, or generate raw materials are involved in Kerala’s upstream oil and gas training. Anything linked to the post-production of crude oil and natural gas is considered downstream oil and gas production. Midstream services involve transportation and storage and connect upstream and downstream.
Geologists, geophysicists, service rig operators, engineering companies, scientists, and seismic and drilling contractors are all engaged in the upstream business. Before any drilling operation begins, Oil And Gas Training In Kerala helps professionals discover and estimate reserves.
This is a catchall word for all activities in the business that have to do with natural gas and oil exploration and production. Upstream firms look for and exploit raw material reserves. They are mostly involved in the early production phases, such as drilling and bringing oil and gas to the surface. Upstream companies are typically referred to as E&P companies.
Midstream businesses connect upstream and downstream companies by providing oil and gas training in the Philippines. On the other hand, the downstream manufacturing process entails converting the resources gathered during the upstream stage into a final product. The actual selling of that product to other corporations, governments, or private persons is included in the downstream stage. The downstream process, regardless of the industry, has direct interaction with consumers via the completed product.
Distribution, wholesaling, and retailing are all part of the downstream process, and they all play a role in guaranteeing timely delivery to customers. Customer service is included in the downstream process because it is the ultimate link between the product and the end-user. Ineffective customer service may have a detrimental influence on the ultimate product’s sale.
Upstream and Downstream Oil and Gas Operations
Refiners of petroleum crude oil and natural gas processors, who provide useable products to end-users and customers, represent this oil and gas industry sector, which is the last phase in the production process. They sell and distribute crude oil and natural gas products. Expressed, the downstream oil and gas industry encompasses all operations related to crude oil and natural gas after being produced.
Integration of Upstream and Downstream Process
In certain cases, a corporation may discover that combining the downstream and upstream processes and managing all elements of manufacturing is more efficient and cost-effective. Vertical integration happens when a single management team manages both upstream and downstream production elements from the same location. This can also be effective through effective Oil And Gas Training.
The farther downstream an oil and gas business is in the sector, the closer it is to providing customers with petroleum products. Downstream operations take place following the production phase and up to the point of sale in the oil and gas industry.
Finally, since they correspond to an oil and gas company’s position in the supply chain, upstream, midstream, and downstream oil and gas activities are three connected sections. Upstream is concerned with obtaining oil and gas. At the same time, midstream is concerned with transporting, processing, and storing these valuable resources, and downstream is concerned with transforming these valuable resources into finished goods for public consumption.