This graphic illustrates the various steps in the process of getting crude oil and natural gas from the wells all the way to market. As you can see, there is wellhead aggregation (production & gathering), the cleaning (processing and refining) of the raw stream, and production of valuable natural gas liquids (processing or refining), the transportation and storage, and finally, the distribution and retail delivery to the various end-users. As you will see, each step along this "path" will have some costs associated with it and most will represent an opportunity for generating revenue. These will add to the total profit that can be derived from the initial wellhead product.
Watch the following video about natural gas (3:38 minutes).
At the successful completion of this lesson, students should be able to:
- define the steps in the movement of natural gas from the wellhead to the end-user (“wellhead-to-burner tip” path);
- recognize the “value chain” along the path;
- explain the general methods of transporting natural gas from well to end-user:
- processing & Natural Gas Liquids (NGLs),
- describe both the domestic and global markets for LNG.
What is due for this lesson?
This lesson will take us one week to complete. The following items will be due Sunday, 11:59 p.m. Eastern Time.
- Lesson 6 Quiz
- Lesson 6 Pipeline Rate Activity
- Fundamental Factors
If you have any questions, please post them to our General Course Questions discussion forum (not email), located under Modules in Canvas. The TA and I will check that discussion forum daily to respond. While you are there, feel free to post your own responses if you, too, are able to help out a classmate.