Chemical and Processing Engineering (Downstream)

The closer an oil and gas company is to supply consumers with petroleum products, the further downstream it is said to be in the industry. Downstream operations are oil and gas processes that occur after the production phase to the point of sale.

This sector of the oil and gas industry—the final step in the production process—is represented by refiners of petroleum crude oil and natural gas processors, who bring usable products to end-users and consumers. They also engage in the marketing and distribution of crude oil and natural gas products. Simply put, the downstream oil and gas market is anything that has to do with the post-production of crude oil and natural gas activities.

Many of the products that consumers use every day come directly from downstream production, including diesel, natural gas, gasoline, heating oil, lubricants, pesticides, pharmaceuticals, and propane.

Companies engaged in the downstream process include oil refineries, petroleum product distributors, petrochemical plants, natural gas distributors, and retail outlets. Many major downstream companies are also diversified and engage in all levels of the production process.