Structure of Petroleum industry

Petroleum industry is consisting of very complex upstream and downstream operations.

Upstream operations comprise of exploration and development of field for oil & gas; production,
separation, transportation and marketing of oil & gas. Similarly, downstream operations
comprise of refining of crude oil (i.e., to produce petrol or gasoline, diesel, lubricating oil, and
etc.) and synthesis of petrochemical products (e.g., commodity and speciality products of all
kinds i.e., polymers, soaps, detergents, explosives, synthetic chemicals, and etc.) along with
transportation and marketing of refinery and petroleum products. Simplified sequential stages of
petroleum industry are shown in Figure 1.1.

1. Search of
Oil & Gas
(i.e.,
2. Discovery
exploration
of Oil & Gas
)
for
3. 4.
Developmen
Productio Abandonm
oftOil
5.n Surface ent of well
& Gas for
Operation
the Treatment
6. Oil & Gas
of Oil & Gas
Transportation
,7.Marketing
Refining 8.
and
and Marketing
Distribution
Processing and
10.
9. Synthesis
of Oil Distributio
Marketing
of &
Gas nand
of
Petrochemic
Refined
Distributio
al Products
Products
n of
Petrochemi
cal
products

Figure 1.1 Stages of Petroleum Industry

In figure 1.1 Steps (1) – (6) are exclusively for exploration and production (E & P) industry of
hydrocarbon, called upstream and steps (7) – (10) are exclusively for downstream industries or
sometimes called hydrocarbon processing plants. Some companies have independent operating
units and some have integrated upstream and downstream operating units. Schematic production
and processing operations is also shown in Figure 1.2.

Group

Activities: Geological and geophysical (i.e., G & G activity) and drilling of wild cat or