Upstream encompasses searching for, recovering, and producing crude oil and/or natural gas from underground or underwater fields. Complex and risky, this segment is highly impacted by political and economic realities. Plagued by regulation that drives technology change and subsequent work force skill issues, the upstream is the most complex of the oil and gas segments.
This segment is focused on managing volatility and risk. Change is constant in all aspects of business operations. Rapid development, efficiently, and cost effectively are critical to return on assets as well as customer satisfaction.
Midstream operations often include some elements of the upstream and downstream sectors. This segment embodies the complete execution dilemma of Supply and Demand. Covering transportation, processing, storage and distribution operations the objective is getting crude oil and natural gas to refineries. Tasked with installing the infrastructure for getting product from wellhead to processor; consolidating supply and demand channels is especially challenging in the global economy.
Challenges today are founded in the diversities of quality, location and quantity of supply’s and demands. Mismatches foster asset utilization issues on both the oil and gas supply chains. Disruptive/ destructive technologies like fracking “laser” focus on sustainable demand to maintain price ultimately supporting infrastructure development and deployment.
Downstream operations include the Refining and Processing of Natural Gas and Liquid Natural Gas which produces the byproduct element sulfur (65% of world supplies). Distribution and trading are vital and appropriate avenues are a constant struggle to balance. The need for better results and creating alliances in the supply chain, is a growing focus in this sector. Supply Chain performance is increasingly dependent on technologies that model, design and monitor operational and engineering assets. In addition, rising cost of services is a challenge that cuts across the oil & gas industry; exploration, production, refinement and transportation.