The oil and gas industry is a large, diversified ecosystem that comprises everything from upstream exploration and production to downstream refining and distribution. It is an important sector in many ways, catering to the world's ever-escalating energy demands. 

It is responsible for transporting, storing, and processing hydrocarbons within this value chain, thus providing the interfacing of midstream and downstream. This midstream infrastructure forms the backbone of any flow, from the wellhead down to the end consumer. 

The article identifies five necessary middle-stream layers of oil and gas infrastructure that are quintessential to the seamless running of the business. It further explains the essential elements that expose an enormous web of systems leading to powering our global energy needs. 

Pipelines 

Pipelines form the backbone of midstream oil and gas infrastructure, which plays a very important role in energy resource movement far over long distances. The diameter of a pipeline in the infrastructure is set depending on the type and daily volume of hydrocarbons.  

Moreover, the larger crude oil pipelines usually have diameters ranging between 8 and 48 inches, although natural gas pipes can step up as large as 60 inches. Some of the pipelines are of high-strength steel and polyethylene. These pipelines are fitted with advanced control and monitoring systems to ensure safe and efficient transportation.

Processing and Fractionation Facilities

Processing and fractionation are midstream facilities that significantly prepare raw hydrocarbon resources for further downstream processing or distribution. In this respect, the facilities transform crude oil and natural gas into usable products such as refined fuels, petrochemicals, and NGLs. 

Refineries, better known as facilities for crude oil processing, apply various separation and conversion processes to separate crude oil into its constituent products such as gasoline, diesel, and jet fuel. These plants utilize sophisticated distillation columns, catalytic crackers, and other specialized equipment that optimize the yield and quality of the final products. 

However, natural gas processing plants separate valuable NGLs like propane, butane, and ethane from raw natural gas and remove impurities. These facilities use a combination of physical and chemical processes, such as cryogenic separation and acid gas removal, to produce pipeline-quality natural gas and separate the valuable NGL components for further downstream processing or distribution.  

That said, it's vital to know the driving factors behind the market industry and the factors that influence the availability of components. The midstream oil and gas industry has undergone several changes regarding market activity over the past few years. For instance, Midstream oil and gas merger and acquisition values fell 59% in Q4 2018, a fluctuation consistent with the ones the industry experiences that influence investment and operations in this industry.  

Storage Facilities 

Different storage facilities represent midstream infrastructure, which balances the supply of crude oil, natural gas, and refined petroleum products against market requirements. Storage facilities like these play a significant role in balancing supply and demand fluctuations and maintaining a consistent flow of resources to the end-user. 

The tank farm is the most common storage facility, usually comprising a few sizable aboveground storage tanks. These may range in capacity from a few thousand to millions of barrels for storing crude oil, gasoline, diesel, and other refined products. Such tank farms are typically sited near refineries, pipelines, or transport hubs to ensure ease of movement of the resources. 

The underground storage cavern is another facility mainly used to store natural gas. Such caverns create large-scale, long-term storage capacity when excavating or solution-mining salt domes or other geological formations arise. Comparatively, underground storage caverns allow several advantages since safety, security, and environmental protection are higher than in aboveground facilities. 

Terminating and Loading Facilities

Terminating and loading facilities also comprise midstream infrastructure and provide the critical interface between transportation and delivery of hydrocarbons to either the end-user or distributing networks. 

Crude oil and refined product terminals often exist with refineries, pipelines, or other major transportation hubs. They are equipped with tanks, loading racks, and other facilities for loading and unloading tanker trucks, railcars, and barges. They are commonly located at points with easy access to refineries, pipeline access points, or main transport centers. Terminals represent key distribution points that enable hydrocarbons to be moved easily from one mode of transportation to another.

Compression and Pumping Stations 

The final major component of midstream oil and gas infrastructure is compression and pumping stations, which regulate necessary pressures and the flow of hydrocarbons within the transportation network. 

Compression stations are mainly used in the transportation of natural gas, mainly because their purpose is to raise the gas's pressure so that it can be appreciated in its movement along a network of pipelines. The stations apply heavy compressor units that are driven by electric motors or engines run by natural gas, and their purpose is to increase the gas's pressure so that it can maintain the required flow rate. 

Final Thoughts  

The midstream oil and gas infrastructure is complex and interconnected, forming an essential linkage in the energy supply chain. From pipelines to storage facilities and processing plants to terminating stations, every component of this infrastructure contributes to hydrocarbons' transport, storage, and distribution efficiency. 

As global demand for energy continues to rise, the need for robust and reliable midstream infrastructure will only grow. Yet industry leaders and policymakers will have to make the necessary investments to maintain, upgrade, and expand critical infrastructure so that it can keep up with an evolving energy industry and the communities it serves.