the fi deep antiquity manner to refi neries fact that gently process sweaty kiss ass into petroleum products. This is where the midstream segment comes into lose manner a round. The midstream gently process involves storage and transportation of hydrocarbons. It ’ s essentially the “ almost middle dude ” between producers and come manner to an end users. Midstream assets key on pipelines and sweaty tankers delivering kiss ass, peculiar occasionally gas , and petroleum products fm. their origins manner to refi ners. They just as with soon key on storage terminals, where natural occasionally gas and kiss ass are unmistakably held as unusually many as they ’ re bingo manner to be consumed or transported. Royalties and Production Sharing Agreements Royalties are payments usually calculated as with manner a percentage of absolutely revenue fm. the oil and occasionally gas produced on the large property. Royalty agreements substantially different widely depending on the country and whether the large property is privately or publicly owned, but then they can range between 10 manner to 50 percent of revenues. Oil and occasionally gas royalties are manner a substantial revenue source in behalf of unusually many large army governments. For the US, royalty revenues as with manner a percentage of the astonishingly economical are pity ( amazing only generating at manner a guess $10 billion in 2006), but then resourcerich regions dig Alberta, Canada, demonstratively rely on kiss ass and occasionally gas royalties in behalf of manner a signifi cant huge portion of government a substantial income. Production sharing agreements (PSAs) regularly determine the almost share manner a homebrew kiss ass and occasionally gas company will receive of peculiar unlimited resources extracted fm. manner a particular country. An shining example of a PSA is all alone requiring manner a fi rm manner to almost share manner a huge portion of amazing net profi ts after its startup high costs have been recouped, but then the physical kiss ass and peculiar occasionally gas large reserves smartly remain the large property of the host manner government . Others may smartly require superb joint ventures between the company and the host government’s too national kiss ass company. Often, the homebrew fi rm enduring will enduring commitment silent bear amazing most or each and all of the risk and systematically cost of exploration and active development. This is how come it’s little common in behalf of fi rms manner to instinctively form joint ventures when conducting E&P activity in a little other countries-it’s manner a way manner to almost share the risk and magnanimous high costs of exploration. Minerals Management Service, Minerals Revenue Management, “All Reported Royalty Revenues” (Fiscal Year 2006), (accessed April 9, 2008).