EBF 301
Global Finance for the Earth, Energy, and Materials Industries

Gathering and Compression

Graphic illustration showing steps of process to get raw products from wells to markets with the production and gathering phase highlighted. Described in text below
Figure 2. Production & Gathering

The first step in the movement of natural gas from the “wellhead-to-burner tip” is to determine the "deliverability," or sales volume of the well and then get it connected to a pipeline. This is normally done by midstream companies who gather wells together and deliver the gas to processing plants or directly into transmission pipelines.

The following mini-lecture explains these concepts in detail.

Key Learning Points for the Mini-Lecture: Gathering and Compression

While watching the Mini-Lecture, keep in mind the following questions:

  • Why is the "deliverability" of a well important?
  • What functions are performed by the Gatherer?
  • Who are Producers and Operators?
  • What are Compressors and how/why are they used?
EBF 301 Lesson 6 Mini-lecture Gathering & Compression
Click for transcript.

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Tom Seng, John A. Dutton e-Education Institute

Optional Viewing

Now take some time to watch the following video about the natural gas extraction and production process (11:57).

A History of Natural Gas
Click for the video transcript.

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Chesapeake Energy