Midstream

What is 'Midstream'

Midstream is a term used to describe one of the three major stages of oil and gas industry operations. Midstream activities include the processing, storing, transporting and marketing of oil, natural gas and natural gas liquids.

BREAKING DOWN 'Midstream'

Midstream activities are commonly included as part of downstream operations for much of the oil and gas industry. The midstream and downstream activities take place after the initial production phase and through to the point of sale.

Many oil and gas companies are considered integrated because of their ability to combine upstream, midstream and downstream activities as part of their overall operations.

RELATED TERMS
  1. Upstream

    Operations stages in the oil and gas industry that involve exploration ...
  2. Downstream

    The oil and gas operations that take place after the production ...
  3. Integrated Oil & Gas Company

    A business entity that engages in the exploration, production, ...
  4. Oil Price to Natural Gas Ratio

    A mathematical ratio comparing the prices of crude oil and natural ...
  5. Natural Gas Equivalent

    The amount of energy used by the burning of natural gas versus ...
  6. Natural Gas ETF

    Exchange-traded funds (ETFs) that invest in natural gas futures ...
Related Articles
  1. Options & Futures

    (AM) Who are Antero Midstream Partners' Main Competitors?

    Learn about Antero Midstream Partners, and discover the companies in the energy sector that are its main competitors. Obtain a brief summary of each company.
  2. Savings

    Do Natural Gas Prices Always Follow Oil Trends?

    Prices for oil and natural gas are highly correlated. But investors should be aware of different factors affecting the prices of these commodities.
  3. Trading Strategies

    Upstream And Downstream Oil And Gas Operations

    Upstream and downstream are business terms that refer to a company’s location in the supply chain. The closer to the end user a function or firm is, the further downstream it is.
  4. Options & Futures

    5 Stocks to Invest in the Decline of Oil Storage Capacity (MMP, EDP)

    Discover five stocks that may likely benefit from the decline of oil storage capacity, and learn about their core business operations.
  5. Options & Futures

    The Difference Between Oil Services And Refiners

    Oil service companies and refiners both play an important role in the oil industry, but they tend to profit more in opposite markets.
  6. Investing News

    Oil Producers Not Alone in Downturn

    Upstream oil producers are not the only ones feeling the pressure from low oil prices. Midstream and offshore players are suffering too.
  7. Investing Basics

    5 Reasons Why Private Equity Investors Like Oil and Gas Companies

    Oil and gas companies may look like a risky industry on the outside, but private equity investors have found reasons to regularly invest in these firms.
  8. Fundamental Analysis

    Kinder Morgan and Midstream Oil

    Kinder Morgan, Inc. is one of the biggest players in the midstream energy sector, which involves the transportation and storage of oil and natural gas products.
  9. Stock Analysis

    The World's Top 10 Natural Gas Companies (XOM, OGZPY)

    Read about the 10 companies that combined to produce about 105 billion cubic feet of natural gas in 2014, about 30% of the world's total production.
  10. Options & Futures

    Do Oil and Natural Gas Prices Rise And Fall Together?

    Do the prices of crude oil and natural gas affect each other? Investopedia explores price patterns and provides analysis.
RELATED FAQS
  1. What is the difference between upstream and downstream oil and gas operations?

    Learn about the oil and gas supply chain. Learn why exploration, production, and drilling are considered upstream, while ... Read Answer >>
  2. What average annual return does the oil and gas sector generate for an investor?

    Learn about the average annual return for the oil and gas sector and how it compares to the average annual returns for the ... Read Answer >>
  3. What are average operating expenses for the oil and gas sector?

    Learn about the average operating expenses and average operating expenses margin for the oil and gas sector and how they ... Read Answer >>
  4. What percentage of the global economy is comprised of the oil & gas drilling sector?

    Read about a rising industry that already composes as much as one-twentieth of total global economic output: the oil & gas ... Read Answer >>
  5. What are the main benchmarks that track the oil & gas drilling sector?

    Read about several different types of benchmarks that investors can use to track the overall performance of the oil and gas ... Read Answer >>
  6. What economic indicators are important to consider when investing in the oil and ...

    Find out more about economic indicators and which ones are important when investing in companies in the oil and gas sector. Read Answer >>
Hot Definitions
  1. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  2. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  3. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  4. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  5. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  6. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
Trading Center