The energy industry is a crucial part of our everyday lives. It powers our homes, makes it possible for hospitals and schools to further our society, enables us to communicate with people across the globe, and also facilitates transport with private vehicles and public transport.
Most of us are aware of how solar power is harvested or fossil fuels extracted, as well as how the energy is ultimately used in household applications and cars. But there is a hidden layer in between, commonly referred to as the midstream.
Today we will explore this branch of the energy industry, and shed some light on an important aspect of energy production and consumption. Enjoy!
Defining the Midstream Sector
Once the raw energy sources have been extracted, they will need to be transported into storage facilities, awaiting the moment when they eventually is sent downstream to be processed and distributed to the end-consumers.
In other words, the midstream sector is an intermediary stage between the extraction phase, and the distribution and consumption phase. And while consumers tend to forget this phase exists, it is at the very heart of the operation, connecting everything together, and allowing a seamless flow of energy.
The midstream sector is thus concerned with logistical aspects of many different sizes, such as overseeing the massive networks of pipelines transporting natural gas or crude oil, as well as managing fleets of trucks, ships, trains and other means of moving the natural energy resources to their storage places.
Infrastructure Investments in the Midstream Sector
Significant investments are required into the midstream sector, not only to facilitate the pipeline networks, storage tanks, terminals, warehouses, fleets of vehicles and personnel required, but also to ensure a safe operation, as well as help fuel the energy transition as a whole.
These investments have a significant impact on the overall reliability of the energy supply in a given region, and can also help determine the potential for economic growth of the companies involved, since a smooth operation will help prevent downtime, lack of adequate resources and more.
David Goodnight of Austin, Texas also highlights the significance of a resilient supply chain in the midstream sector. Investments in redundancy, diversification of routes, and disaster recovery systems can mitigate disruptions caused by natural disasters, accidents, or geopolitical events.
More modern investments have also helped ease the burden and workload, for instance in the form of digital monitoring of the miles of pipelines, as well as new technologies that help detect leaks before they become serious and expensive to deal with. Thus, the midstream sector is a complex and diverse area, that requires many specialists and experts from many different fields.
Challenges and Future Trends
The future of the midstream sector holds a few different challenges. One of the more prominent ones, according to David Goodnight of Austin, TX, is the various regulatory hurdles associated with the operations in general.
Depending on the jurisdictions and governments, new requirements for compliance are often challenging and resource-intensive, and new rules and regulations seems to be added to the mix with an increasing frequency.
This is primarily done out of environmental concerns, and thus is designed to help protect our planet and climate. But it can also be in order to ensure the safety of the workers on the plants, at the pipelines or in the storage facilities, both issues that are worthwhile.
As for the future, the midstream sector looks towards significant changes that might be driven by an increased level of digitalization, various environmental imperatives, as well as an increased focus on energy diversification.
This will help bolster resilience in the field, and help build infrastructure that allows for cleaner fuels, and the possibility of technology to help lower emissions and more. Overall, an interesting time for the midstream sector lies ahead!