Midstream – What it is, definition and concept | 2023

Therefore, we are facing one of the three large subsectors of this oil and gas industry, the other two being Upstream and Dwonstream. In fact, it would be the intermediate between the two and is essential for the proper functioning of all three.

We could say that it is the equivalent (with certain differences) to a wholesaler who receives the product from the factory and distributes it to retailers. These, in turn, market it to the final customer and thus, the production cycle is completed.

Midstream, Upstream and Downstream

Let’s take a closer look at these three segments of activity:

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  • Upstream. It would be the entire process of exploration, discovery and production of oil and gas. Therefore, we are before the first phase of the cycle.
  • Midstream. It is the intermediate process of transport, storage and wholesale distribution to the marketers.
  • Downstream. In this case, we would be before the retail companies and it is the last phase of the process. The objective is to reach the end customer, companies, institutions and individuals.

It must be taken into account that we are facing a very complex production process that requires experts to carry it out. In addition, it is a highly regulated industry around the world, which increases the degree of complexity even more.

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Midstream Activities

Within the Midstream there are a series of activities that are the following:

  1. Harvest. In this stage the product is collected and a first treatment is carried out for its subsequent storage.
  2. Prosecution. Next, impurities are removed, so that a clean product reaches the marketers.
  3. Transport. It is one of the most important phases, since it is a toxic product. Here safety is taken into account to avoid accidents that could affect the environment or people, due to their danger.
  4. Storage. It is distributed to marketers, with special emphasis on storage, which must comply with all security guarantees.

Laws and the Midstream

As we have seen, this stage is essential for the oil and gas production cycle. For this reason, the rules and regulations help to avoid the problems derived from this activity. Thus, the objective is the protection of citizens and the environment.

All countries legislate to regulate this strategic sector. In addition, we are talking about an essential industry in the world for many other activities. For this reason, in all phases, including the Midstream, there are very strict regulations that must be complied with.

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