How do downstream companies make money

The oil and gas industry is usually divided into three major sectors: upstreammidstreamand downstream. The downstream sector is the refining of petroleum crude oil and the processing and purifying of raw natural gas[1] as well downsstream the marketing moneu distribution of products derived from crude oil and natural gas. The downstream sector reaches consumers through products such as gasoline or petrolkerosenejet fueldownstraem oilheating oilfuel oilslubricantswaxesasphaltnatural gasand liquefied petroleum gas LPG as well commpanies hundreds of petrochemicals. Midstream operations are often included in the downstream category and are considered to be a part of the downstream sector. Crude oil is a mixture of many varieties of hydrocarbons and most usually have many sulfur-containing compounds. The oil refining process commonly includes hydrodesulfurization which converts most of that sulfur into gaseous hydrogen sulfide. Raw natural gas also may contain gaseous hydrogen sulfide and sulfur-containing mercaptanswhich are removed in natural-gas processing plants before the sownstream is distributed to consumers. The hydrogen sulfide removed in the refining and processing of crude oil and natural gas is subsequently converted how do downstream companies make money byproduct elemental sulfur. In fact, the vast majority of the 64, metric tons of sulfur produced worldwide in was byproduct sulfur from refineries and natural-gas processing plants.

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Downstream operations are the processes involved in converting oil and gas into the finished product. These include refining crude oil into gasoline, natural gas liquids , diesel, and a variety of other energy sources. The closer an oil and gas company is to the process of providing consumers with petroleum products, the further downstream the company is said to be. Most large oil companies are described as «integrated» because they combine upstream activities, which include exploration and production, with downstream operations. Oil and gas operations can be divided into upstream, midstream, and downstream operations, with the refining process taking place either midstream or downstream, and the distribution of oil and gas occurring in the downstream phase. Companies in the downstream sector are those that provide the closest link to everyday users. Thereafter, the oil is refined, marketed, distributed and sold, which is the downstream process. However, the refining of crude oil to petroleum products may be conducted in midstream operations.

Selling a Product

Main downstream business categories include oil refining, supply and trading, and product marketing and retail. The downstream process is the one that provides the most products that are closely linked to consumers, and is the sector of the oil and gas industry that people can relate to the most. Some of these products include liquefied natural gas, gasoline, heating oil, synthetic rubber, plastics, lubricants, antifreeze, fertilizers, and pesticides. The downstream industry also plays a key role in other sectors and industries of the economy that may not necessarily be obvious to some, including the medical field. The downstream process has a big influence on some of the products and equipment needed and used by medical professionals. Similarly, the downstream process plays a key role in the agricultural sector , because of its relationship to pesticides and fertilizers, as well as the fuel needed for farming equipment.

Drilling down into the downstream refining and petrochemicals sector of the energy industry reveals some investing opportunities.

Having a unified view of the industry is important for long-term success. In the oil and gas business, the downstream segment traditionally includes refining, distribution and fuel sales, and marketing to retail and commercial customers. However, with growing interconnectedness between refining and chemicals, in terms of feedstocks, opportunities for process integration, and evolving end-markets, much is changing. Browse the Oil, gas and chemical collection. Currently, the downstream business seems to be in the midst of a golden age, driven by a heady combination of low feedstock prices and healthy demand for both transportation fuels and chemical products. This recent period of healthy growth and profitable margins, however, may not necessarily signal brighter days ahead.

One Downstream

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What is the downstream oil and gas sector?

Of course a company cannot do something for nothing, so it makes sense that the outcome would be making a profit, but how do busnesses make money? Preferred Stocks. We’ve got answers. Corporate Governance. That’s important, as the insurance company underwriting business model ensures that insurers stand a good chance of making additional income by not having to pay out on the policies they sell. John Wall Street — Sports Business. Again, this is favorable for companies asking for modification as they are engaging professionals who have already worked on the code rather than asking their own programmers to study and modify the code. The need for installation and training becomes necessary in this companoes. One needs to be pretty active in the field of open source to get an offer from the companies wanting modification or extra features. Hiring such programmers to create addonsplugins, and extras for the software, nake much less expensive than mone a professional from outside. Mergers and Acquisitions. Real Money Hhow. Bull Market Fantasy with Jim Cramer. Health Insurance.

Global oil giants are betting increased downstream investments will add billions of dollars to their earnings

Open Source software is nothing new to. It is free downatream software that is made available along with its code. Many big companies, including Oracle and Google, too xompanies open source software. It can be taken for granted that people create open source software because they love coding. But do Open Source developers make money? The objective of this post gow to identify and list the methods by which such software companies and developers can make money.

Open Source companies sometimes create software and do not make public, all of the code. In other words, part of the software is open source, while the some parts are private.

If anyone wants to use such software, he or she needs to pay to the company some money to be able to use the software with full functionality. Open source companies like Oracle. In such cases, the open source companies provide for-profit assistance with installation and training of employees of the company that hires.

Some open-source companies — mostly the ones that develop software for mobile devices — display in-software advertisements to make money. These advertisements are displayed cmpanies top or bottom of the screen and generally, are not intrusive.

But they do occupy the valuable screen space. On the contrary, since they are free, users do not have much objection to the adverts. You might find it hard to believe this, but there are companies that pay the programmers who create open source software.

For example, Red Hat, IBM, Novell, Linux Foundation and other distributors of Linux operating system pay the programmers working on Linux so that the work of upgrading and patching the software continues.

Though Linux comes at free cost to the end users, it costs a little to the distributors of the operating. But then, the costs are much less than what they would have to pay when distributing Windows or Apple operating. If any loophole is discovered in such software, say Linux, there will be companies willing to pay programmers who can fix the problem. These are the companies that use Linux for making profit in one way or the.

A simple example could be hardware developers who sell Linux installed computers. Among other examples could be companies that develop software based on Linux. Similarly, for other open-source products too, there are people out there who pay for proper build and maintenance companie the software. Some companies who are using any kind of Open Source Software may hire the programmers involved in the project to create special plugins and extras.

Since they have already worked on creating the open-source software, they have knowledge of the code and they need not work from scratch. Hiring such programmers to create addonsplugins, and extras for the software, is much less expensive than hiring a professional from outside. Though the companies may have their own programming wing, it is time-saving companiss hire of the programmers involved in the creation of the open-source software rather than having their own employees to study the code and then ask them to create addons.

Again, this is favorable for companies asking for modification as they are engaging professionals who have already worked on the code rather than asking their own programmers to study and modify the code. This saves time though a little overhead is added by way of payment to such programmers.

Since open source means quick operations, if a company picks up a free to use, open-source software to integrate into its existing project and a little work is needed, it is always feasible to hire a professional who already worked on the code if time is a factor, as it always is.

Not all open-source software is easy to install and use. Companies who implement a version of such software might engage one of the open-source programmers to train their staff and to provide support in case of problems.

Some people deliberately create a sort of open-source software that passes off as free and open but has many parts hidden. The need for installation and training becomes necessary in this case. Though such software is not an Open Source Software ethically, it still sells. One needs to be pretty active in the field of open source to get an offer from the companies wanting modification or extra features.

As far as I know, people working on a group project, often include their name and email IDs in the comments of the source code, so that others studying the code can contact them for any reason and if an email ID appears hoe times, as that person is probably the best one to work on tweaking, modifying, creating extras or performing similar actions on the downstrezm. I guess the major percentage of money in the open-source software sector comes from the support and customization of the open-source code.

If I missed anything, please comment. ArunKumar TWC. How do Open Source Companies and Programmers make money? How do Open Source Companies make money Open Source companies sometimes create software and do not make public, all of the code. How do Open Source Programmers make money Companies Pay Open Source Programmers You might find it hard to believe this, but there are companies that pay the programmers who create open source software.

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How do Open Source Companies and Programmers make money?

The oil doownstream gas industry consists of three main sectors that work together to take raw production from a well and turn it into mlney products:. Because downstream companies use how do downstream companies make money to make other things, their business model differs significantly from that of upstream oil companies. But downstream companies buy oil from producers, and then sell the refined products they dowhstream for more money to end users. This difference means they’re less sensitive to oil price volatility, which enables them to generate more free cash flow that they tend to return to investors. Those factors can make downstream oil and gas companies more appealing options for investors who don’t like all the volatility that often comes with owning an upstream oil producer.

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Downstream oil and gas companies turn crude oil into high-value finished products. Image source: Nake Images. The downstream segment of the petroleum industry focuses on three main activities: refining oil, manufacturing petrochemicals, and marketing and distributing refined products and natural gas. Oil refineries process crude oil and other raw materials such as ethanol into the following higher-value refined petroleum products:.