11/30/2018 Downstream oil and gas industry - Energy Education

Downstream oil and gas industry

Downstream industry is the portion of the oil and natural gas industry that is responsible for the refining, distributing, and
retail of petroleum products. This portion of industry includes oil refineries, petrochemical plants, petroleum products
distributors, and natural gas distribution companies. Downstream industry provides numerous products such as jet fuel,
gasoline, diesel, synthetic rubber, plastics, pesticides, pharmaceuticals, natural gas, and propane.[1]

Figure 1. Representation of upstream, midstream, and downstream industry.[2]

The different sectors within the downstream industry include:[3]

Distributors
Retail outlets (like gasoline stations)
Production plants

Environmental Impacts
There are several environmental impacts that can be connected to various downstream petroleum activities. Distribution
activities can be heavily reliant on fossil fuels, which can result in more greenhouse gas emissions to the atmosphere. These
emissions include carbon dioxide, sulfur oxides (SOx) and nitrogen oxides (NOx); along with occasional releases of
hazardous materials such as solvents or groundwater contamination from production.[4] 2013 estimates report that the
downstream oil and gas sector contributed about 5% of the sulfur oxide (SOx) emissions, 1% of the nitrogen oxide emissions
(NOx), and 2% of the volatile organic compound emissions in Canada.[5] These values are significantly lower than the
emissions for upstream industry. Moreover, since distribution is a component of downstream oil and gas, the possibility of
leaks exists.

Gasoline stations are particularly notorious for emitting volatile organic compounds.

Interactive Graph
For an interactive graph showing what pollutants arise from downstream oil industry click here (http://energyeducation.ca/wi
ki/index.php?title=Detailed_pollution_data&pollutant=SOX&source=Oil_and_Gas_Industry#Detailed_Source_Data). The
values can be compared as well to emissions from upstream and midstream industry. The pollutant being looked at is
automatically set to sulfur oxides, but try changing the pollutant to nitrogen oxides, volatile organic compounds, or carbon
monoxide!

For Further Reading

https://energyeducation.ca/encyclopedia/Downstream_oil_and_gas_industry 1/2
11/30/2018 Downstream oil and gas industry - Energy Education

Upstream oil and gas industry

Midstream oil and gas industry
Greenhouse gas
Fossil fuel
Or explore a random page

References
1. PSAC. (June 11, 2015). Industry Overview [Online]. Available: http://www.psac.ca/business/industry-overview/
2. Created internally by a member of the Energy Education team.
3. Careers in Oil and Gas. (June 12, 2015). Downstream Industry [Online]. Available:
http://www.careersinoilandgas.com/build-your-career/about-the-industry/industry-overview/downstream-petroleum-
industry.aspx#.VXnzaM9Viko
4. E. La Rovere, J. Mariano. (June 12, 2015). Environmental Impacts of the Oil Industry [Online]. Available:
http://www.eolss.net/sample-chapters/c08/e6-185-18.pdf
5. Environment Canada. (July 28, 2015). Air Pollutant Emissions [Online]. Available: http://ec.gc.ca/inrp-npri/donnees-
data/ap/index.cfm?lang=En

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Authors and Editors

Bethel Afework, Jordan Hanania, Kailyn Stenhouse, Jason Donev
Last updated: September 3, 2018
Get Citation

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