Originally published on einnews.com
Adam Ferrari outlines the three sectors that produce oil to be consumed and transferred into energy products - upstream, midstream, and downstream.
EL SEGUNDO, CA, USA, January 27, 2021 /EINPresswire.com/ -- There are no signs that the oil and gas industry will be stopping anytime soon, as oil is an essential power generating resource for millions of Americans.
“Knowing the different segments of the oil industry is essential in monitoring the necessity and practicality of producing crude oil and processing it into all the valuable components used in many other products or directly as energy,” stated Adam Ferrari, CEO of Ferrari Energy.
The upstream sector of the oil industry is most commonly known as the exploration and production sector (E&P) and ensures sufficient reserves of oil and natural gas are achieved through exploration and development activities. Many oil companies will explore both onshore and offshore for potential oil reserves and design systems to ensure the oil and gas can be extracted safely and efficiently.
The midstream oil sector is responsible for gathering, transporting, and storing the oil and natural gas produced from the upstream sector. The midstream sector may also be responsible for wholesale marketing of various oil and natural gas derived products. Midstream energy workers use current technology and advanced equipment that increases transportation and storage efficiency and often use advanced automated communications and trucking fleets.
The downstream oil sector processes all the raw products gathered from the upstream phase. Crude oil will be refined in the downstream phase, and natural gas will be refined and purified. Most Americans are familiar with this part of the process, as they interact with gasoline, asphalt, natural gas, and other chemicals and gasses processed by this sector every day.
While there is an expected peak for the demand for oil in the future, there is no substantial proof that the U.S. has already surpassed its peak. COVID-19 has thrown a wrench into many oil industry’s production plans. As a vaccine has been developed, it is more likely that oil will bounce back from a trying year when more and more Americans can receive vaccines and business travel resumes as usual.
Based on the Short-Term Energy Outlook reported in December 2020, Market Watch claims that it expects 2021 prices to average around $45.78, which is approximately 3.5% more than the previous forecast.
About Adam Ferrari
Adam Ferrari is the founder of the mineral acquisitions company Ferrari Energy. He is a chemical engineer by degree and is an accomplished petroleum engineer by profession. He also has experience in the financial sector through his work at an investment banking firm. Under his leadership, his company has supported numerous charitable organizations, including St. Jude Children’s Hospital, Freedom Service Dogs, Denver Rescue Mission, Coats for Colorado, and Next Steps of Chicago.