Midstream Oil and Gas Fundamentals

Oil and Gas Technology October 25, 2025
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Introduction

This introductory course provides a comprehensive overview of the entire midstream sector, bridging the gap between upstream production and downstream consumption. It explores the core functions of gathering, processing, transportation, and storage for both crude oil and natural gas. Participants will gain a foundational understanding of the critical infrastructure, technologies, and economic drivers that govern the movement of hydrocarbons. The training covers key areas like gas processing plants, pipeline systems, and storage facilities, equipping attendees with the holistic perspective necessary to work effectively across this vital segment of the energy industry.

Objectives

Upon completion of this course, participants will be able to:

  • Describe the entire oil and gas value chain and the specific functions of the midstream sector.
  • Identify the major components of oil gathering systems, pipelines, and storage terminals.
  • Explain the processes and equipment used in natural gas gathering and processing (e.g., dehydration, sweetening).
  • Understand the economic principles of tariffs, capacity utilization, and midstream revenue models.
  • Detail the major safety, regulatory, and environmental challenges of pipeline and facility operations.
  • Describe the logistics and operations of crude oil, natural gas, and NGL storage (tanks, salt caverns).
  • Interpret basic midstream system flow diagrams and operational data.

Target Audience

  • New Hires in Midstream Companies (pipelines, gas processing).
  • Commercial, Financial, and Legal Professionals supporting midstream assets.
  • Entry-level Engineers and Technicians in the oil and gas industry.
  • Administrative and Support Staff requiring industry orientation.
  • Investors and Analysts focused on the energy sector.
  • Journalists and Public Relations Personnel covering energy infrastructure.

Methodology

  • Case Studies: Analyzing the financial performance of different midstream business models.
  • Group Activities: Mapping the flow of hydrocarbons from a well to a terminal.
  • Individual Exercises: Calculating the total capacity of a simple pipeline segment.
  • Discussions on the safety culture and regulatory challenges in pipeline operations.
  • Simulations: Walking through the steps of a custody transfer process.

Personal Impact

  • Gain a holistic, comprehensive understanding of the entire midstream value chain.
  • Enhance collaboration and communication across functional midstream teams (e.g., commercial and operations).
  • Improve ability to analyze midstream investment opportunities and risks.
  • Accelerate career growth by understanding the fundamental economic drivers of the sector.
  • Increase personal value as a well-rounded energy professional.
  • Develop a strong foundation for more technical, specialized midstream training.

Organizational Impact

  • Improved strategic planning and investment decisions across the company's midstream assets.
  • Enhanced cross-functional integration between engineering, commercial, and operations departments.
  • Better regulatory compliance due to a holistic understanding of safety standards.
  • Reduced financial risk through improved contract interpretation and throughput forecasting.
  • Faster and more effective onboarding for new hires across the organization.
  • More efficient negotiation and management of pipeline capacity agreements.

Course Outline

Unit 1: The Role and Scope of the Midstream Sector

Section 1.1: Value Chain Context
  • Defining the midstream sector: Gathering, processing, transportation, and storage.
  • The link between upstream (E&P) and downstream (Refining, Utilities).
  • Overview of the infrastructure: Pipelines, compressor stations, gas plants, and terminals.
  • Key commercial structures: Tariffs, capacity agreements, and fee-based models.

Unit 2: Natural Gas Gathering and Processing

Section 2.1: Gas Handling
  • The purpose of gas gathering systems and centralized processing units.
  • Fundamentals of gas treatment: Dehydration (water removal) and sweetening (H2S, CO2 removal).
  • The recovery of Natural Gas Liquids (NGLs) and its economic importance.
  • Sales gas specifications (BTU, pressure, temperature, water content).

Unit 3: Pipeline Transportation Systems

Section 3.1: Pipeline Logistics
  • Design and operation of crude oil and natural gas transmission pipelines.
  • The function of pump stations (oil) and compressor stations (gas).
  • Pipeline integrity management: Pigging, corrosion control, and monitoring systems.
  • Custody transfer and measurement procedures for hydrocarbons.

Unit 4: Storage and Terminal Operations

Section 4.1: Storage Infrastructure
  • Crude oil storage: Tank farms, design considerations, and inventory management.
  • Natural gas storage: Depleted reservoirs, aquifers, and salt caverns.
  • Terminal operations: Loading/unloading, blending, and interface management.
  • Safety and environmental regulations for large-scale storage facilities.

Unit 5: Regulation, Safety, and Commercial Drivers

Section 5.1: Business Environment
  • Overview of pipeline safety regulations (e.g., PHMSA) and environmental compliance.
  • Financial drivers: Throughput, capacity utilization, and operating expenses (OPEX).
  • Key commercial agreements: Take-or-pay contracts and capacity booking.
  • The energy transition and the future role of midstream infrastructure (e.g., hydrogen, CCS).

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