In the modern world the oil and gas industry promptly develops. This field of activity is the most perspective for modernization. Generally the oil and gas industry can be divided into three main directions: upstream, midstream and downstream. Most the companies in the oil industry are engaged in activity in one of sectors. But activity of some, the largest, the companies includes all sectors. Such companies are called the vertically integrated companies
Upstream. It is an initial stage of oil and gas production and the most risky and most profitable sector of the world of oil. The upstream industry includes geological, geophysical and geochemical exploration of the alleged field and production. Wildcatting, well drilling, well-head equipment installing and connecting are a part upstream. The oil production majority in the world is carried out by the national oil companies. Such companies are controlled by the relevant states and carry out the activity mainly in the territory of the country. The oil production majority in the world is carried out by the national oil companies. Such companies are controlled by the relevant states and carry out the activity mainly in the territory of the country. For example, in all member countries of The Organization of the Petroleum Exporting Countries (OPEC) oil production is carried out by such companies. About a third of oil production in the countries which aren't entering into OPEC also carry out the national oil companies. The largest vertically integrated NOCs in the countries which aren't entering into OPEC exist in: Mexico — Petróleos Mexicanos (PEMEX); Brazil — Petróleo Brasileiro S. A. (Petrobras); Russia — Rosneft, Gazpromneft.
Midstream [2]. It is based on the transportation of oil and gas. The midstream sector involves the transportation (by pipeline, rail, barge, oil tanker or truck), storage, and wholesale marketing of crude or refined petroleum products. Pipelines and other transport systems can be used to move crude oil from production sites to refineries and deliver the various refined products to downstream distributors. Only small part of the large oil companies in the world have the divisions on naphtha transportation. A majority of the companies at this or that stage of transportation use services of the third-party companies.
Downstream. The sector downstream includes the petroleum (petrochemical) refineries, network on distribution of products of petroleum refining and their retails.
In the world about 720 oil refineries (oil refinery) which are located in 120 countries. The largest oil refinery in the world, Jamnagar Refinery, is located in India. It processes 1.24 million barrels of naphtha a day. In Russia 27 large oil refineries which process nearly 6 million barrels of naphtha a day work.
Each oil refinery is ready for processing of a particular grade of naphtha (mild or heavy, with this or that impurity level). And each complex is ready for production of particular termination oil products. As a rule, more complex (more complex) oil refineries produce more refined oils (such as gasoline) which have higher value for consumers.
The midstream sector is primarily concerned with the transportation of oil and natural gas from the extraction site to the refineries. This sector is often included as an extension of either the upstream or downstream sector, depending on the source.
Russia’s Transport Strategy for the Period up to 2020. Transportation of oil and gas in Northwest Russia and in the Arctic. In accordance with Russia’s Energy Strategy for the Period up to 2020, it is the Russian government’s intention to increase the production volumes of gas (by up to 10 %) and oil (by 3–6 %) by commissioning new fields on the Continental shelf in East and West Siberia.1 This, in turn, will lead to the need to increase transport capacities: the construction of port terminals and the development of main pipeline systems. Russia’s Energy Strategy for the Period up to 2020 represents the main document which strategically defines the process for developing the oil and gas complex in Russia.
At present, bulk oil loads are mainly transported in the form of crude oil, or residual fuel oil, which is conveyed by rail and pipeline to ports on the White and Barents Seas. From these ports the oil is transferred to tankers for subsequent transportation by sea to the western market either directly, or through oil transhipment complexes in the Kola Gulf.
Transportation of oil and gas in Russia. The export of oil and gas in Russia. Main oil and gas pipelines of the country.
Russia is the world’s largest exporter of natural gas. Its proven gas reserves are the largest in the world and amount to approximately 48 billion cubic meters of gas, or 25 percent of the world gas reserves. Russia is also currently the largest oil-producing country in the world. It has approximately 70 billion barrels of proven oil reserves, which equates to 5 percent of the world oil reserves.
Transporting raw oil and natural gas is a highly technical process that involves compressing the fluids to necessary pressures in order to be transported through pipelines or on tankers from offshore drilling sites. The midstream sector is also responsible for treating raw materials in order to remove impurities such as water vapor or hydrogen sulfide. Removing impurities and compressing the fluids helps maximize the amount of oil and natural gas that can be transported, thus maximizing efficiency and profits for companies are an important aspect in this sector of the industry.
As its name implies, the midstream segment of the oil and gas industry encompasses facilities and processes that sit between the upstream and downstream segments. Activities can include processing, storage and transportation of crude oil and natural gas. In most cases, oil and gas reserves are not located in the same geographic location as refining assets and major consumption regions. Transportation is a big part of midstream activities and can include using pipelines, trucking fleets, tanker ships, and rail cars.
Since the time of the first commercially drilled oil operation in the 1800s, oil has become a resource of astronomical importance to the modern society. Along with the soaring demand for oil arrived the need for an efficient means of storing and transporting this valuable resource to the homes and industrial facilities which use it for energy and the production of a multitude of consumer products.
In the 1940s, custom built tanker trucks were the primary means of transporting oil from the site of production to refineries, where it could be refined or shipped to further destinations via railroad. Tankers which transport oil have since become increasingly complex, as have the requirements for the operators who drive them. The use of tanker trucks remains a valuable component of the oil supply chain today, though it is no longer the primary means of transporting large volumes of oil. With increasing volumes of oil being produced, the demand for an efficient means of transporting large quantities of the resource became apparent, and the notion of using pipelines as a means of transporting oil evolved.
Today the transportation of oil, oil products and gas in the following ways (Table 1):
Table 1
Types of transportation of naphtha and gas
Types of transport |
Main kinds |
Production capacity |
Application area |
Significant objects |
OIL TANKERS |
1.The crude tanker; (Crude tankers move large quantities of unrefined crude oil from its point of extraction to refineries.) 2.The product tanker; (Product tankers, generally much smaller, are designed to move refined products from refineries to points near consuming markets.) by size (Supertankers (VLCC and ULCC)) [1]. |
These ships can transport 2,000,000 barrels (320,000 m3) of oil/318,000 metric tons and up to 550,000 tons. |
offshore oil and gas |
A merchant vessel designed for the transportation of oil is called an oil tanker. The biggest ship in the world, Seawise Giant (1979–2009) Sierra Leone, belongs to that category. Disposed in India. (564,763 tons) The biggest oil tankers in service currently are the TI Class. TI Europe and her sister ships TI Africa,TI Oceania and TI Asia (South Korea) were the first ULCC built for the last 24 years.(441,585 tons) |
PIPELINES |
1.Gathering Lines (These lines travel short distances gathering products from wells and move then to oil batteries or natural gas processing facilities.) 2.Feeder Lines (Feeder lines move products from batteries, processing facilities and storage tanks in the field to the long-distance haulers of the pipeline industry, the transmission pipelines.) 3.Transmission Pipelines (Transmission lines are the energy-highways, transporting oil and natural gas within a province and across provincial or international boundaries.) |
Length of pipelines Russia is 217 thousand km, including 151 thousand km of gas mains, 46.7 thousand km of the oil pipeline and 19.3 thousand km of pipelines. |
offshore and onshore oil and gas |
The Yamal-Europe pipeline is a natural gas distribution system running across Russia, Belarus, Poland and Germany. The 4,107km-long pipeline has a diameter of 1,420mm and can carry 33 billion cubic metres a year. Once constructed, the Eastern Siberia-Pacific Ocean oil pipeline (ESPO) will export crude oil from Russia to the Asian Pacific markets of Japan, China and Korea over a length of 4,700km. These two pipelines are among the longest in Russia. |
RAIL TRANSPORTATION |
1.specialized tank containers, 2.railway tank wagons, 3.railway gondolas, 4.universal platforms, 5.covered wagons. |
The transportation is carried out in a special steel tank wagons with carrying capacity of 50, 60 and 120 tons. |
onshore oil and gas |
There are rail transporters of different models and types of capacity from 50 to 500 tons for transportation of oil products and natural gas. |
As pipelines have become the most efficient means of transporting oil over long distances, they have also become safer and more technologically advanced. Pipelines now facilitate the transport of crude oil over vast distances, traversing rugged mountains, valleys and rivers and utilizing precisely engineered pump systems to regulate the movement of products through them.
References:
- Oil tanker / Wikipedia / [electronic resource]: https://en.wikipedia.org/wiki/Oil_tanker
- Oil and Gas Section / [electronic resource]: https://www.jobmonkey.com/oilindustry/midstream_oil/