Extraction to Distribution: The Upstream, Midstream, and Downstream

How the Oil & Gas Sectors Fuel Our World

The Oil & Gas industry is crucial to the global economy. It powers most homes and directly fosters technological innovation and industrial advancement via the production of oil and natural gas liquids. In North America alone, over 10 million professionals are involved in the upstream, midstream, and downstream sectors of the Oil & Gas industry. This industry is a hub of expertise and teamwork. Each sector supports the other, facilitating efficient energy production and consumption, driving economic growth throughout industry, and powering the world.

Let’s explore how these three sectors work together, enhancing one another and supplying customers with usable products and dependable energy solutions.

Upstream: Unlocking Oil & Gas

The upstream sector is the initial stage of the Oil & Gas supply chain, located far from the end-user. This sector’s primary focus is exploration and production, beginning with the search for hydrocarbons—the essential components of petroleum and natural gas. Some of the biggest upstream oil companies that perform exploration within the United States and Canada are Canadian Natural Resources Limited, ConocoPhillips, Oxy, Chevron, and Antero Resources.

These companies begin their upstream operations searching for Oil & Gas in unchartered territories. Here they complete geological surveys and feasibility studies to determine the presence of these key resources and their potential for extraction. When exploring these areas, upstream Oil & Gas experts analyze data and conduct seismic surveys to identify commercial viability. These tests in the upstream sector help estimate the amount of Oil & Gas within the reserves before drilling.

Once a site is discovered and the potential for resources is viable, exploratory wells are drilled. If the exploratory wells prove these resources are abundant, the magic begins, and upstream oil extraction commences. During the upstream process, many types of fired equipment are used to extract these raw materials including:

• Glycol dehydrators
• Heated separators
• Gas production units
• Indirect line heaters
• Heater treaters
• Heated tanks
• Incinerators
• Combustors
• Flaring

How burner management systems support the upstream sector?

In the upstream process, as crude oil and natural gas are extracted from the ground, impurities like water and sand are separated. This ensures the resources are suitable for transportation to refineries, processing facilities, or storage tanks. Throughout these processes burner management & combustion control solutions are utilized. Paired with the fired equipment listed above, Burner Management Systems provide safe and reliable startup, operation, and shutdown of burners.

Additionally, they optimize processes for improved efficiency and emission control. Once these resources are processed to a certain point, they are moved into midstream to be transported to the buyers for processing and storage.

Midstream: The Lifeline of Oil & Gas

What are midstream oil operations? Often overlooked, the midstream sector of Oil & Gas is crucial to the industry’s stability. Midstream Oil & Gas involves transporting, storing, and marketing the extracted resources. This includes transporting the products from production fields and processing plants to storage facilities and refineries.

Transportation happens via pipelines, tankers, barges, and railcars; however, pipelines are mostly used for transporting larger volumes of products over long distances. These pipelines stretch like main arteries, crossing vast land and linking markets. Pipelines are prevalent in the United States and Canada. Many privately owned oil pipelines and storage facilities are dotted across the continent. One major pipeline in North America is the Keystone Pipeline System owned by one of our longtime partners, TC Energy. Stretching from Texas, and up to Alberta, it crosses through the United States, into Canada, and spans 2,687 miles (4,324 kilometers).

How burner management systems support midstream operations?

Burner management & combustion control solutions are often utilized in the midstream sector of the Oil & Gas industry to heat pipelines and storage tanks. These solutions are important for safety and regulatory compliance and improve operational efficiencies and reliability. The midstream sector uses burner & combustion management solutions for heater treaters, line heaters, and separators, among other applications. Once the products are delivered to their intended destinations, the downstream sector of the industry takes over.

Downstream: Delivering Refined Products to the World

The final stage is downstream but what is downstream Oil & Gas? In this final step of the supply chain, crude oil and natural gas liquids are refined, processed, and converted into products and chemicals for domestic, industrial, and transport uses. Within this segment, there is a wide range of activities that take place including:

• Refining
• Petrochemical production
• Distribution
• Retail operations
• Storage
• Quality control

End-user sales of the finished products will then be wholesaled through business-to-business or business-to-consumer transactions. The downstream sector is important for processing raw materials extracted and transported by the upstream and midstream sectors. It transforms these materials into products that fulfill consumer needs and fuel economic growth. Downstream transportation is key to delivering energy to the world.

How do burner management systems support downstream operations?

In the downstream sector of the Oil & Gas industry, burner & combustion management solutions play a vital role in the production process. As always, these solutions provide safety and efficiency for operations. Burner Management Systems (BMS) are utilized in furnace and boiler operations to heat crude oil and other feedstocks for refining processes. The BMS solutions ensure safe operation by controlling ignition, monitoring flame stability, and managing fuel supply to prevent gas leaks or flameouts in the production stage.

Burner Management Systems are used in heat exchangers to optimize the air-to-fuel ratio, ensuring efficient heat transfer and reducing fuel consumption. It’s all about maintaining the right temperatures for the refining processes. When reducing fuel consumption, BMS solutions also enable refineries to meet strict environmental regulations on emissions. They effectively lower pollutants such as NOx and CO2 by ensuring complete combustion and minimizing excess air, thereby diminishing the environmental impact.

Advanced Burner Management Systems enhance operational efficiency by delivering real-time data on operating conditions, enabling swift monitoring and diagnosis of issues. These burner & combustion management solutions ensure consistency, reducing downtime for downstream operations.

What is an Integrated Oil & Gas Company?

Many entities compose the upstream, midstream, and downstream sectors of the Oil & Gas industry. And, for the most part, companies tend to specialize in only one of the Oil & Gas sectors. Over the years, the industry’s growth has given rise to larger companies that have mastered all three sectors.

Profire partners with some of the largest integrated Oil & Gas companies including Chevron, BP, and ExxonMobil. An integrated company offers comprehensive control over processes within each segment, enhancing overall efficiency and paving the way for a brighter, greener future through improved process management.

Where does Profire fit in the Upstream, Midstream, and Downstream of Oil & Gas?

Our diverse service and product offerings enable seamless operation across every sector of the oil industry supply chain. With authoritative expertise, our burner management and combustion control solutions guarantee safe, reliable, and efficient industry-wide operations. As a trusted partner, we provide products & components and expert engineering & custom designs that exceed expectations.

With a forward-thinking approach, we enhance your operations through innovative solutions and provide technological advancements for your burner management systems. You can rely on us for a dependable partnership and clear, accessible expertise to support your industrial heating needs.