Midstream Energy Explained in 5 Facts
You work hard to get your oil and gas out of the ground. When you're ready to deal with the logistics of moving it, midstream energy companies know how to connect you with the buyers you need.
Midstream is the phrase where oil gets shipped, stored, and sometimes even marketed. That middle step, midstream energy, is the crucial link between upstream and downstream energy production. Midstream helps Upstream get their oil and gas out of the ground and connects it with end buyers in the Downstream market.
It Connects Upstream and Downstream
There's a huge divide between pulling gas and oil out of the ground and refining and developing it into precisely the right petrochemical product that consumers demand. Midstream companies fill this gap, connecting with both ends and taking care of everything necessary to get oil and gas from their place of origin to their final destination.
Piping Networks Must Overcome Many Obstacles
Much of the oil and gas removed by upstream operations has to be distributed via pipeline, but putting in a pipeline isn't always straightforward. Vast pipeline networks have to be built across all types of terrain. Some of the biggest obstacles in pipeline construction include:
Geopolitical Boundaries
In many cases, oil must travel through a number of countries on the way to the final destination. Getting it from Point A to Point B requires the ability to navigate these tricky waters and keep everything in compliance with local regulations. Another key hurdle is getting essential personnel from one country to another and arranging for their transportation and lodging along the way.
Compressor Stations
Oil and gas must always be under just the right compression at all times. To keep up the pressure, compressor stations must be constructed at regular intervals along the pipeline so that everything moves smoothly and safely to the final destination.
Maintenance
Maintenance personnel must be moved across borders, yet despite the inconvenience of moving people about, it's crucial to keep on top of maintenance issues. A cracked or burst pipe can cause enormous environmental damage and financial loss, and midstream energy providers must carry out regular preventative maintenance and inspections.
Terrain
In the course of just one journey, a pipeline can move through nearly every terrain on the planet, from frozen tundra to the hottest deserts and over mountains. Each terrain puts specific demands on the construction process and requires particularly maintenance steps to keep things moving.
There Are Complicated Logistics
After moving oil and gas by pipeline, the final moving stages involve some complicated coordination with trucking, ship, and rail transport. Both oil and gas can be transported in different ways, and there are many business sectors involved in storing and transporting oil and gas on the way to its final destination. Each of these sectors has to be coordinated efficiently to ensure the product arrives at the destination on time and within budget.
Oils and Gas Must Be Tested
Before oil or natural gas can be moved from one location to another, midstream energy is responsible for measuring and sampling products before they're distributed. The midstream sector must, therefore, comply with the strictest possible safety standards and put robust fire and safety systems in place to ensure the security of everyone involved.
Midstream Can Help You Find Buyers
An effective midstream energy company is committed to your success. When you win, everyone wins. Midstream companies connect oil recovery companies with the right buyers, transport your hydrocarbons wherever they need to go, and function as an essential partner in your success.
Partner With the Right Midstream Energy Company
BlackRock Midstream takes pride in moving what moves the world. Whether your shipments are big or small, contact BlackRock Midstream today to learn how we provide the best possible service at prices you can afford. Don't choose between price and quality when it comes to moving your oil. We provide both!