What is upstream in oil and gas?
Upstream refers to points in production that originate early on in the processes. Also called exploration and production (E&P), upstream is farthest from the end-user consumer in the oil & gas supply chain. Upstream activities include exploration, drilling, and extraction.
What is upstream and downstream in oil and gas industry?
The terms upstream and downstream oil and gas production refer to an oil or gas company’s location in the supply chain. Upstream oil and gas production is conducted by companies who identify, extract, or produce raw materials. Downstream oil and gas production companies are closer to the end user or consumer.
What does the up stream segment of the oil and gas industry include?
The upstream segment of the oil and gas industry contains exploration activities, which include creating geological surveys and obtaining land rights, and production activities, which include onshore and offshore drilling. Crude oil is categorized using two qualities: Density and sulfur content.
What does downstream mean in oil and gas?
Downstream operations are the processes involved in converting oil and gas into the finished product. These include refining crude oil into gasoline, natural gas liquids, diesel, and a variety of other energy sources.
What are midstream oil companies?
Midstream refers to points in the oil production process that falls between upstream and downstream. In particular, midstream activities include the storage, processing, and transportation of petroleum products. These may include companies that specialize in operating tanker ships, pipelines, or storage facilities.
What is difference between upstream and downstream?
Upstream refers to the material inputs needed for production, while downstream is the opposite end, where products get produced and distributed.
How do upstream companies make money?
These companies focus primarily on the upstream segment. While some independent E&Ps will operate midstream assets that support their production, they make most of their money by producing oil and gas.
What is the difference between upstream midstream and downstream in oil and gas?
The final sector of the oil and natural gas industry is known as ‘downstream. ‘Upstream’ is about extracting oil and natural gas from the ground; ‘midstream’ is about safely moving them thousands of miles; and ‘downstream’ is converting these resources into the fuels and finished products we all depend on.
Is oil refining midstream or downstream?
The oil and gas industry is usually divided into three major sectors: upstream, midstream, and downstream. The downstream sector is the refining of petroleum crude oil and the processing and purifying of raw natural gas, as well as the marketing and distribution of products derived from crude oil and natural gas.
How do midstream oil companies make money?
How midstream companies make money. Midstream companies have an opportunity to make money along each link of the oil, gas, and NGL value chains, earning revenue via three primary means: fees, regulated tariffs, and commodity-based margins. Gathering pipelines, for example, tend to be fee-based.
What is the definition of upstream oil?
The upstream oil sector is a term commonly used to refer to the searching for and the recovery and production of crude oil and natural gas. The upstream oil sector is also known as the exploration and production (E&P) sector.
What is upstream and downstream?
“Upstream” and “downstream” are general business terms referring to an oil or gas company’s location in the supply chain. The closer to the end user a function or firm is, the further downstream it is said to be. Raw material extraction or production are elements of the supply chain considered to be upstream.
What are upstream companies?
Upstream firms deal primarily with the exploration and initial production stages of the oil and gas industry. Many large oil companies are called “integrated” because they combine upstream activities with midstream and downstream operations, which take place after the production phase through to the point of sale.
What is the definition of upstream?
English Language Learners Definition of upstream : in the direction opposite to the flow in a stream, river, etc. : toward the source of a stream, river, etc. : at or toward the beginning of a stream She rowed upstream.
