In the name of God

Downstream & Midstream of oil industry

COURSE INSTRUCTOR :DR. MOHAMMAD GHAVIDEL SYOOKIINTRODUCE BY:HOSSEIN MOKHLESI & MAHDI SHAHBAZI

Review

The oil and gas industry is usually divided into three major sectors: -Upstream -Midstream -Down stream

Upstream

The upstream sector includes searching for potential underground crude oil and natural gas fields, drilling exploratory wells, and subsequently drilling and operating the wells that recover and bring the crude oil and raw natural gas to the surface

Upstream

Exploration

Drilling

Production

Midstream

As its name implies, the midstream segment encompasses facilities and processes that sit between the upstream and downstream segments.

Midstream

The midstream sector involves the transportation (by pipeline , rail, barge, oil tanker or truck), storage, and wholesale marketing of crude or refined petroleum products

The most important thing in midstream business is the location…

Location, Location, Location...

Processing Processing oil and gas liquids into marketable products is the

beginning of the midstream segment of the business. Field processing is the first phase of oil and gas processing,

starting in the onshore or offshore production field

ProcessingHere, surface facilities are designed and installed that:

Measure the production rate,

Separate the oil, gas, and water,

Remove impurities,

Temporarily store the crude or gas.

Transportation After field processing, treated oil and gas is delivered via a

complex transportation, transmission and distribution infrastructure.

land transportation pipelines, truck and rail

Marine transportation tankers or vessels , pipelines and barges

Marine transportation Some times it is so complicated to use pipelines in marine

transportation , so we use the SBM (single buoy mooring) method.

SBM

SBM

The disadvantage of ordinary SBM is that they have no storage capacity.

So a SBM has been developed by Shell , called Spar buoy to storage 300,000 barrels of crude.

Spar buoy

The advantage of this method is that we can keep produce crude , even when we can’t load tankers due to weather

Spar buoy

What is Downstream?Processing, transporting and selling refinedproducts made from crude oil is the business of

thedownstream segment of the oil and gas industry.

The downstream industry provides thousands of

products to end-user customers around the globe.

What is Downstream?

Globally, the most widely known crude oil product is

Gasoline.

Other fuel products are diesel, jet fuel and marine fuel oil.

Fuel products for transportation are 65% of global demand.

Fuel Products

FERTILIZER

Familiar Products:

Unfamiliar Products:

Petrochemicals

GASOLINE JET FUEL

ASPH

ALT

LUBRICANTS

SYNTHETIC RUBBER

PLASTICS PESTICIDES

HEATING

What is Downstream?Key downstream business sectors include:

Oil Refining,

Product Marketing

Supply and Trading

Wholesale & Retail.

Product MarketingProduct marketing is the business of

finding and supplying wholesale and retail customers.

Downstream Customers

These customers possess either internal demandfor refined fuels or distribution networks for

reaching retail customers.

Large direct consumers of downstream products include:

Petrochemical & Industrial Manufacturers,

Utilities,

Municipalities,

Trucking Fleets,

Airlines.

Commercial Consumers

Other companies may possess distribution assetsor branded sites aimed at reaching retail customers.

Retail Customers

RefiningHistory of Refining

The history of refining innovation is really driven by the evolution of product

demand.

Early Distillation Stills The earliest petroleum refineries in the 1880’s

were really little more than stills - like those to make “moonshine” alcohol in the old movies!

They were designed to extract both kerosene from crude oil for use as lamp oil and petroleum grease.

Enter The Automobile

By the early 1920’s the automobile and airplane were firmly established as major modes of transportation in the developed

economies.

This growth forced global refiners to expand.

Motor Fuels Dominate

Refiners also developed new refining technologies to increase yields of gasoline and other motor fuels.

Refining Today

Today, refiners produce a wide range of fuels and specialty oils.

Transportation Electricity Generation

Industrial Processing Home Heating Petrochemical

Production

Crude oil is combustible, of course, and it is sometimes asked why crude isn’t burned as fuel without the expense of refining.

Why Refine Crude Oil

Why Refine Crude Oil

Crude oil cannot be used as it occurs in nature, other than burning for fuel, which is wasteful.

Modern engines will not run on crude oil

Most crudes contain the lighter hydrocarbons, and as a result they are so inflammable that they must be handled by very experienced men. only whit a flashpoint above 65°C are safe enough for ordinary use. To ensure a high flashpoint, therefore, the more volatile parts of the crude must be removed by refining.

Why Refine Crude Oil

Crude oil is first washed to remove salt. Crude oils are complex mixtures of hydrocarbons which range form those containing only one carbon atom in the molecule(methane, CH₄)up to those containing 60 or more. Such mixtures do not have a single boiling point.

CRUDE OIL

Downstream of production

The first stage in the refining of crude oil is usually the separation BS & W at the tank farm. From here, the oil is pumped via the crude train to the first column in the refinery system.

Distillation – A Boiling Process

the distillation of crude oil is the start of the refining process, and is primarily a boiling operation. Distillation process of first driving gas or vapour from a liquid by heating, then collecting the gas or vapor by condensation(ie., reduction to a denser form by cooling; eg., condensation of steam to water)

Crude Distillation Unit

Crude oil is first washed to remove salt, heated in

a furnace, and introduced to the Crude Distillation Unit (CDU). In the CDU, the crude oil is separated by boiling range into a number of

fractions.

Fractions

A fraction is the term used for a specific

hydrocarbon which is produced and captured

according to its molecular weight and boiling point.

Some fractions have all the qualities needed as refined products and are ready for sale. Other require further

processing.

FractionationSuch mixture do not have a single boiling point,

since some components will vapourise at relatively low temperatures (ie., the lighter

hydrocarbons) while others will require relatively high temperatures (the heavier hydrocarbons).

On the basis of boiling ranges, therefor, the many different hydrocarbons in crude can be divided into a small number of groups(called

‘cuts’ or ‘fractions’)Which will separate from the crude at different temperatures. The distillation process by which fraction are separated from a mixture is known

as ‘fractionation’

Multi-stage distillation

In most modern refineries, the crude is processed through several CDU’s, so that the various cuts can be produced to very precise

specifications. Multi-stage distillation also ensures that straigh-run fractions are free of

impurities.

Thanks for your attention