What is Downstream in oil and gas operations

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WHAT IS DOWNSTREAM IN OIL AND GAS OPERATIONS
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About Downstream oil and gas

• The final sector of the oil and natural gas
  industry is known as downstream
• Downstream operations are the processes involved
  in turn oil and gas into final products
• There are upstream, midstream, and downstream
  operations within the oil and gas industries

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About Downstream oil and gas

• The downstream industry provides numerous
  products such as jet fuel, gasoline, diesel,
  synthetic rubber, plastics, pesticides,
  pharmaceuticals, natural gas, and propane.
• The downstream process delivers the products most
  directly connected to consumers, making it the
  most relatable sector of the oil and gas industry
  for the public.

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Processes of Downstream Oil and Gas.

• Oil Refining
• Natural Gas
• Product Distribution
• Marketing

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Oil Refining
The oil refining process is crucial in the oil
and gas industry, converting raw crude oil into
various refined petroleum products

• Distillation The initial step in refining, it
  separates the crude oil into different components
  based on their boiling points.
• Cracking To ensure optimal utilization of crude
  oil, heavier fractions are broken down into
  lighter, more usable products like gasoline and
  diesel oil.
• Treatment Once separated and cracked, these
  fractions undergo treatment to remove impurities,
  such as sulfur and volatile organic compounds.

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Natural Gas

• Purification Processing facilities meticulously
  remove moisture, carbon dioxide, and other
  pollutants to make the gas safe and efficient for
  use.
• Liquefaction To facilitate transportation,
  especially overseas, natural gas is cooled to
  become liquefied natural gas
• Separation Among its components, raw natural gas
  includes valuable natural gas liquids (NGLs) such
  as propane, butane, and ethane.

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Product Distribution

• Transportation Modes Refined products are
  transported from refineries to end-users through
  pipelines, tanker ships, rail cars, and trucks,
  each chosen based on efficiency, volume, and
  distance.
• Storage Facilities Products are stored in tank
  farms and terminals to manage supply, accommodate
  demand fluctuations, and ensure a steady
  distribution flow. l

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Marketing

• Market Analysis and Segmentation Identify target
  markets based on geography, industry sectors, and
  consumer demographics.
• Pricing Strategy Set pricing levels based on
  factors such as crude oil prices, refining costs,
  market demand, and competitive dynamics.
• Promotion and Advertising Create marketing
  camSeparation Among its components, raw natural
  gas includes valuable natural gas liquids (NGLs)
  such as propane, butane, and ethane.

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