Pipelines are used to move the products from production sites to refineries and deliver them to downstream distributors.
The midstream segment is different from upstream and downstream segments of oil & gas industry because there is considerably low risk.
The activities involved in Midstream segment are usually integrated as part of downstream operations for most of oil & gas industries.
After the initial production phase, midstream activities, which also incorporate some downstream activities takes place and are carried forward to the point of sale.
Midstream includes pipelines and all the infrastructure needed to move these resources long distances, such as pumping stations, tank trucks, rail tank cars and transcontinental tankers.
In Europe, the transportation and storage of crude tends to be integrated with the upstream production business.
Major European oil companies such as Shell or BP tend to report production and transportation costs together in their annual financial results.
Additionally, many European oil pipelines are controlled by governments of the countries whose territory they cross or by state-owned oil transportation companies in those countries.
This state ownership tends to result in the absence of midstream as a separately designated part of the oil production value chain.