Downstream Oil and Gas

Definition - What does Downstream Oil and Gas mean?

Downstream Oil and gas is a sector in the oil and gas industry that pertains to the distribution and marketing of refined petroleum products and processed natural gas to the consumer market such as retail customers, industrial customers and commercial customers. The downstream sector offers thousands of the products such as LPG, Naphtha, Diesel, Gasoline, Kerosene and various other petroleum products that consumers use in their everyday life.

Petropedia explains Downstream Oil and Gas

The oil and gas industry comprises of three sectors, i.e., upstream sector, midstream sector and downstream sector.

Some professionals neglect the midstream sector and consider all the midstream activities such as refining of crude oil and processing of natural gas under downstream sector only. Thus, as per them the oil and gas industry is divided into upstream and downstream sectors only. Such consideration is predominantly used in the United States and Canadian Market, however, the rest of the world describes oil and gas activities as per three sectors mentioned above.

Downstream oil and gas sector is considered as the sector that actually provides the closest connection to the everyday consumer. The downstream sector starts from the Refinery exit gates which involves building up product pipelines (interstate as well as intrastate), establishing petroleum product storage depots in various geographic locations, customer retail outlets, modes of distribution, etc.

Share this:

Connect with us

Email Newsletter

Subscribe to our free newsletter now - The Best of Petropedia.