THE ACTIVITIES OF OIL AND GAS INDUSTRY

1.UPSTREAM TECHNOLOGY ACTIVITIES

Oil and gas industry activities are classified into two core activities (core business) is the upstream oil and gas activities and the activities of the downstream industry or often also referred to as the upstream and downstream businesses. This article will discuss the upstream oil and gas activities that are the basic stages of any activity in the oil until the process generated a wide range of refined petroleum products are widely used by people.

Upstream Migas- sea Rig

Understanding Upstream Oil and Gas Industry

Upstream activities consist of two main parts, namely the stage of exploration and exploitation. Exploration is the early stage that aims to find oil and gas wells, conducted by investigating areas that have the potential to contain oil and gas while the exploitation is the circuit or the next process after the discovery of a field which contains oil and gas. Read also: Understanding basic industries

exploration

The process of exploration is a fundamental stage of the upstream oil and gas industry is composed of three parts, namely the investigation of geological and geophysical investigation and exploration drilling, the following explanation:

    Geological investigation stage.

    An activity that aims to determine the types of rocks, the chemical composition, age structure of the rocks making up the soil and the potential of the region contain oil and gas. The main objective of this process is to predict whether the area has natural resources therein.

    Phase Geophysics.

    This process includes the step of mapping the structure of the layer below the ground and seek other forms of structures that may be a trap oil and gas, or commonly known as trap or prospects. This process is usually done by the seismic survey.

    Drilling exploration.

    This stage is often called drilling proof because basically this stage aims to prove whether a trap has been believed in the previous stage actually contain oil and gas. This process is done by drilling to a specified depth in accordance with the mapping of underground structures.

Exploitation

This stage is the second of a series of processes activities upstream oil and gas industry to produce oil and gas from the region that has been shown to contain resources in it. Exploitation consists of several parts, namely a drilling process development and provision of equipment and stage production phase, the following explanation:

    Development drilling.

    Making process is well advanced in accordance with the operating standards and complete the production of the desired pattern.

    Supply Facility.

    This stage is the process of providing various forms of infrastructure such as technology, the types of equipment and shelters oil and gas.

    Stage Production.

    After the provision of infrastructure in accordance with the standard operation, it will resume production stage, namely the appointment process of oil and gas to the surface by using technology and tools that have been determined.

Once the oil is on the surface then will do basic purification process with the aim of eliminating the molecules of solid or solutions that are not desirable. Next will be stored in a holding tank and is ready to be sent to the next processing unit

2.DOWNSTREAM TECHNOLOGY ACTIVITIES

Downstream oil and gas industry - As we have seen, that the oil and gas industry activities consist of two activities, namely upstream and downstream (upstream and downstream). In the previous article far we've discussed about all activities covering the upstream oil and gas, so as to equip it then this article I will try to discuss the activities of the downstream oil and gas that is the second stage of all activities of the oil and gas industry to produce various types of products resulting from the processing of petroleum which is widely used by people today.

Understanding Natural Gas Industry

In general, the downstream business can be defined as the processing of crude oil and natural gas reached the stage of marketing the product, the process includes processing, transportation, storage and commerce (marketing). For more details, the following explanation of each of the process:

1. Processing

The first stage in the downstream business is the processing stage, basically processing intended to purify crude, get the parts you want and enhance the quality and value-added petroleum fractions or natural gas. Processing crude oil carried in an area often referred to refineries (Refinery Unit) which consist of various types of processing equipment and technology in it. The treatment process will produce different types of fuel products and semi-finished products, the following example:

1. Products Fuel consisting of gasoline, kerosene, diesel oil, jet fuel, fuel oil, LPG (Liquefied Petroleum Gas) and some other processed products.

2. Semi-finished products, or often called intermediate products are the ingredients of processed products which can be used as raw material in other industries, such as petrochemical industry. Examples of intermediate products such as propylene, ethylene, benzene, toluene, methanol and so forth.

The main equipment in this process is the distillation column which serves to separate fractions of crude oil. then the refining process that aims to eliminate components such unwanted minerals (salt), sulfur and water, then the conversion process that serves to improve the quality of processed products. For more details, please read the articles before.

2. Transportation

The process of transporting the oil and gas downstream industry is a displacement activity of oil and gas produced from the work area either processing or from shelters. The transportation process usually uses a boat or through the transmission and distribution pipelines. If speculators use the pipes need special attention such as the selection of pipe in accordance with the characteristics of the fraction that will be streamed in it.

3. Storage

Storage activities include the admissions process, collection, and storage of petroleum and natural gas as well as processed products. The storage location for the processed may be located underground or on the surface of a tank in accordance with the characteristics of fractions in it.

4. Activities Commerce (Marketing)

The Activity of marketing is the final stage in the downstream business / downstream industry which consists of the purchase, sale, export and import of oil and gas and other processed products. Commercial activities can be classified into two parts, namely general commercial businesses and a limited commercial enterprise, the following explanation:

1. Commerce general (wholesale)

That is an activity which includes the purchase, sale, export and import fuel and other products on a large scale by using facilities and commercial facilities were adequate. Recipient company has the right to make a sale by using a specific brand.

2. limited Commerce (trading)

A sale of commercial products such as petroleum oil and natural gas, fuel gas and other processed products due to lack of facilities and does not have a commercial license.

Thus, the discussion about the activities of the downstream industry, or often called the downstream business. In accordance with the observations in the contents of this article, we may conclude that the activity of downstream processing phase consists of raw materials into finished products, transportation, storage, and marketing stage to consumers. Hopefully, this article useful for you, Thank you.