Sociedad Peruana de Hidrocarburos

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FAQs

What is the difference between upstream and downstream?

UPSTREAM (Torrente de arriba): Consists of oil exploration and production. This sector includes tasks of: search for potential crude oil and natural gas deposits (both underground and submarine), drilling of exploratory wells and drilling and exploitation of those wells that carry crude oil or natural gas to the surface. It is the sector that generates the highest profitability.
DOWNSTREAM (Torrente de abajo): It consists of refining crude oil and processing natural gas to present them as derivative and consumable products. In this way they can be marketed and distributed in society. Some examples of final products are: gasoline, kerosene, jet fuels, diesel, lubricants, waxes, asphalt, liquefied gas, and hundreds of petrochemicals.
Sometimes the transportation of crude oil (either by pipeline or by ship) is called midstream.

Petroleum, a coveted energy resource, composed mainly of carbon and hydrogen, can be found in a liquid (oil, also called “crude”) or gaseous (natural gas) state. Both oil and natural gas are known as fossil fuels since, according to the most accepted theory, their origin is organic; that is, these hydrocarbons are the remains of creatures and plants that died millions of years ago, including the dinosaurs.
In the past, this organic matter was deposited at the bottom of lakes and seas and was covered by successive layers of sand, mud, clay and other sediments that were transported by winds, rivers and tides, later these deposits were compacted forming what Geologically it is known as “sedimentary formations or basins”.

After a complex physical-chemical process, which occurred over millions of years, inside the earth, in which, due to pressure and high temperatures, the decomposition of enormous amounts of organic matter occurs, led to the creation of oil and natural gas. Temperatures between 60°C and 100°C led to the formation of crude oil; while temperatures above 150°C helped transform oil into natural gas.
At first, the sedimentary layers were deposited horizontally but due to the changes that the earth's crust suffered, their conformation varied, also modifying the places where oil is found. According to geology, there are currently several types of underground structures where oil can be found: anticlines, faulted structures, stratigraphic traps, salt domes, among others. In all cases, since oil (and gas) are less dense than water, they move up through layers of porous rocks (mainly sandstone and limestone).

For many people, the mouse is an essential element when using the computer, either to facilitate the management of the graphical environment or as a gaming device; however, we hardly ever think about what is behind this little device, much less what it has to do with oil.
For the most part, the mouse is made of plastic material whose main raw material is petroleum, an oily substance, commonly dark, called a hydrocarbon for its hydrogen and carbon components.
At present, oil, a non-renewable natural resource, is a source of energy that moves the world and is present in our daily lives; among other petroleum derivatives, through different physical and chemical processes that take place in refineries or petrochemical plants.

In our current society, the importance of the energy resource that affects from the business sector to the domestic sector is evident. Energy allows us to live and have a better quality of life. The activities of all of us are governed by energy and revolve thanks to it.
The energy sector is made up of the production and consumption of hydrocarbons (oil and natural gas), of all derivatives thereof, and of renewable energies. According to the International Energy Agency (IEA), energy security is commonly defined as the availability of an adequate supply of energy at affordable prices.
Energy security has become one of the most important issues due to the great demand for energy that has occurred in recent years. The use of modern renewable energy will nearly triple by 2035; however, they cannot meet the growth in world demand, so the consumption of hydrocarbons (oil and gas) will continue to grow in the future, becoming a key point for energy security.