What Happens After Oil and Gas Leaves the Ground? Understanding the Integrated Value Chain
Inspired by investment bank research, I mapped out how a single barrel of crude oil branches into dozens of end products.
Notes
๐ข๏ธ Crude Oil. Raw petroleum extracted from the ground. Primary feedstock for the entire downstream value chain.
๐ญ Fuel Refinery. Processing plant that converts crude oil into usable products through distillation and cracking.
โฝ Fuels - Refined petroleum products.
๐ Gasoline & Gasoil. Petrol for vehicles and diesel for heavy transport. Largest revenue segment of refining.
โ๏ธ Jet Fuel. Aviation kerosene.
โ๏ธ Naphtha (Cracker). Light petroleum fraction fed into steam crackers. Key bridge between refining and petrochemicals.
๐ก Sulphur. Byproduct of refining (desulphurization). Used in fertilisers, chemicals, vulcanisation of rubber.
๐งช Butadiene & Chemicals. Base petrochemicals produced from cracking. Feedstock for synthetic rubber, plastics, resins.
โป๏ธ 3 PVC. Polyvinyl Chloride - pipes, window frames, flooring, cable insulation.
โป๏ธ 4 PE. Polyethylene - packaging films, bottles, containers. Most produced plastic globally.
โป๏ธ 9 ABS. Acrylonitrile Butadiene Styrene - electronics housings, LEGO bricks, automotive trim.
โป๏ธ 5 PP. Polypropylene - food containers, automotive parts, textiles, medical devices. Second most produced plastic.
๐ต LPG. Liquefied Petroleum Gas (propane/butane). Byproduct of refining and natural gas processing. Stored under pressure.
๐ข LNG. Liquefied Natural Gas. Natural gas cooled to -162ยฐC for transport by tanker.
๐ฅ Cooking Gas. LPG/LNG used as household fuel. Primary energy source for cooking in emerging markets.
๐ Transport. Gas as vehicle fuel (CNG for buses/trucks, LNG for heavy freight and shipping). Cleaner alternative to diesel.
๐ฑ Fertiliser. Natural gas is the primary feedstock for ammonia โ urea โ nitrogen fertilisers. Critical for global food supply.
โก Power. Gas-fired power generation. Flexible peaking capacity, lower emissions than coal. Key transition fuel.
๐ข Helium. Extracted as byproduct of natural gas production. Non-renewable, increasingly scarce. No synthetic substitute exists.
๐ฒ Semiconductors. Helium used for cooling during chip fabrication, leak detection, and as carrier gas in lithography.
๐ Aerospace / Defence. Helium used in rocket propulsion systems purging, pressurisation of fuel tanks, wind tunnel testing, satellite cooling.
๐ฅ Healthcare. Helium is essential for MRI scanners (superconducting magnet cooling), respiratory treatments, and cryogenics.
