1.

Introduction

Petrochemicals are products derived from crude oil and natural gas. The materials are
used to produce industrial consumer goods such as plastics, synthetic fibres, synthetic
detergents, and solvents. Aside from that, they are also sources of base materials for other
chemicals which include paints, dyes, pharmaceuticals, and other chemicals (Abdullahi &
Galadima, 2014). The feedstocks for petrochemicals are converted to seven basic building
blocks which can be processed into intermediate chemicals and finally converted to end-
use products (Clews, 2016).

The seven basic building blocks can be grouped into three categories (1) the three
olefins, namely ethylene, propylene and the C4 olefins; (2) the three aromatics, namely
benzene, toluene and the xylenes and (3) synthesis gas (Clews, 2016). A simple conversion
of the feedstocks into final products can be seen in Figure 1 below.

Feedstock Building Intemediate Final

blocks Chemicals Products
• Ethane • Ethylene • Monomers • Plastics
• NGLs • Propylene • Oxides • Fibres
• Naphtha • C4s • Acids • Solvents
• etc • BTX • Alcohols • Dyes
• Syngas • etc • etc

Figure 1: Conversion of feedstocks into final products. Adapted from (Clews, 2016).

The oil and gas industry is usually divided in 3 main components, upstream, midstrea m,
and downstream (“Upstream, Midstream and Downstream – Understanding the Three
Petroleum Markets Petro Online,” n.d.). The upstream sector is responsible for exploring
and producing crude oil and natural gas. Industrially, it is known as the exploration and
production sector (E&P). Once oil has been found, the midstream sector takes charge by
storing, marketing, and transporting the feedstocks. This sector links two areas which are
upstream and downstream. Finally, in the downstream sector, the feedstocks are converted
and refined into products such as gasoline, lubricants, plastics, and other valuable
petrochemicals. A depiction of these sectors can be seen in Figure 2.
 Figure 2: The Petroleum Chain. Adapted from Google Images.

2. References

Abdullahi, A. S., & Galadima, W. (2014). Petrochemicals and Economic Developme nt:
Issues and Challenges. Academic Journal of Interdisciplinary Studies, 3(5), 47–54.
https://doi.org/10.5901/ajis.2014.v3n5p47

Clews, R. J. (2016). The Petrochemicals Industry. Project Finance for the International
Petroleum Industry. Elsevier Inc. https://doi.org/10.1016/B978-0-12-800158-
5.00011-6

Upstream, Midstream and Downstream – Understanding the Three Petroleum Markets

Petro Online. (n.d.). Retrieved December 14, 2018, from https://www.petro -
online.com/news/fuel- for-thought/13/breaking- news/upstream- midstream-and-
downstream-ndash-understanding-the-three-petroleum- markets/32165