Midstream
Midstream covers everything that gathers, compresses, processes, and transports oil and gas between the wellhead and the end customer.
The oil and gas industry is usually split into three segments: upstream, which finds and produces oil and gas from the ground; midstream, which gathers, compresses, processes, stores, and transports it; and downstream, which refines and markets the final products. Midstream is the connective tissue between the two — it's where gathering systems, compressor stations, processing plants, storage terminals, and pipelines all live, and it's the segment most directly tied to compression, since almost nothing in midstream moves without pressure being added somewhere along the way.
Career paths often move through midstream as a kind of hub between the other two segments — engineers describe moving from refinery or production roles into midstream project management and back out into large-scale power generation, picking up a broad view of how molecules actually get from the wellhead to a customer's meter. That breadth is also why midstream roles are attractive: they expose people to gathering, compression, and processing all at once, rather than one narrow slice of the value chain.
Compression sits right at the heart of midstream economics, since gathering systems, processing plants, and pipelines all rely on compressors at multiple points to keep gas moving at the pressure the next piece of infrastructure needs. That's why a compression service company's growth so often tracks midstream buildout directly — new gathering systems and processing capacity in a fast-growing basin translate almost one-for-one into new compressor packages that someone has to design, install, and maintain.
Midstream also tends to be where the industry's boom-and-bust cycles land hardest, since gathering and pipeline projects are typically financed years ahead of the drilling activity they're built to serve — overbuild during a boom and capacity sits idle when prices soften, underbuild and producers end up with gas they can't move to market. That long planning horizon is exactly why experienced midstream project managers, moving between refining, gathering, and power generation roles over a career, are so valuable to the companies building this infrastructure.
Heard on the show
“Coming in on the service side and and being parts of the production side and and being able to see all the moving pieces and you get in the midstream, and then you get into the refining”
“your career has taken you from refinery operations to midstream project management and now large-scale power generation”