What does upstream mean in the oil and gas industry?

What does upstream mean in the oil and gas industry?

What Does Upstream Mean in the Oil and Gas Industry? Upstream refers to the initial phases of oil and gas production, involving exploration, drilling, and extraction of crude oil and natural gas.

How are midstream companies involved in the oil industry?

Midstream companies gather the raw resource and transport the resource via pipeline, railway, or tanker truck to refineries. Refineries are the downstream phase of the oil and gas industry. They process the raw crude oil into their end petroleum products.

Which is an example of a downstream oil company?

Examples of downstream companies include leading U.S. refiners Marathon Petroleum ( MPC) and Phillips 66 ( PSX ). Phillips 66 was initially part of parent company ConocoPhillips ( COP) until the larger oil company opted to spin off the downstream business in 2012.

How are downstream operations different from upstream operations?

Downstream operations include refineries and marketing. These services turn crude oil into usable products such as gasoline, fuel oils, and petroleum-based products. Marketing services help move the finished products from energy companies to retailers or end users.

Upstream is a term for the exploration and production stages in the oil and gas industry. It is the first stage in oil or gas production, followed by the midstream and downstream segments. Downstream operations are functions regarding oil and gas that happen after the production phase, through to the point of sale.

What is the upstream process in the oil industry?

Upstream oil and gas production is the process of locating and extracting crude oil and natural gas reserves, according to The Petroleum Services Association of Canada. This process is commonly referred to as exploration and production (E&P).

What are oil and gas upstream activities?

Key Takeaways Upstream refers to points in production that originate early on in the processes. Often applied to the oil and gas industry, upstream activities include exploration, drilling, and extraction. Today many large oil companies are integrated, in that they maintain upstream, midstream, and downstream units.

What is upstream and downstream in the oil industry?

upstream midstream downstream (oil industry) The upstream sector includes the searching for potential underground or underwater crude oil and natural gas fields, drilling of exploratory wells, and subsequently drilling and operating the wells that recover and bring the crude oil and/or raw natural gas to the surface.