Downstream (oil industry)

From Wikipedia, the free encyclopedia

The downstream oil sector is a term commonly used to refer to the refining of crude oil, and the selling and distribution of products derived from crude. Such products include gas, petrol, diesel and other kinds of fuel.

The petroleum industry is often divided into three major components: upstream, midstream and downstream. However, midstream operations are usually simply included in the downstream category.

The upstream industry finds and produces crude oil and natural gas. The upstream is sometimes known as the exploration and production (E&P) sector.

The midstream industry processes, stores, markets and transports commodities such as crude oil, natural gas, natural gas liquids (NGLs, mainly ethane, propane and butane) and sulphur.

The downstream industry includes oil refineries, petrochemical plants, petroleum products distributors, retail outlets and natural gas distribution companies. The downstream industry touches consumers through thousands of products such as gasoline, diesel, jet fuel, heating oil, asphalt, lubricants, synthetic rubber, plastics, fertilizers, antifreeze, pesticides, pharmaceuticals, natural gas and propane.