What is ‘Upstream’
Upstream refers to the operations stages in the oil and gas industry that involve exploration and production. Oil and gas companies can generally be divided into three segments: upstream, midstream and downstream. 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.
BREAKING DOWN ‘Upstream’
The upstream sector of the oil and gas industry includes all the steps involved from the preliminary exploration through the extraction of the resource. Upstream companies can be involved in all the steps of this phase of the life cycle of the oil and gas industry, or they may only be involved in part of the upstream sector. Another name for the upstream oil sector, which is actually more representative of what occurs in this stage of development of an oil asset and/or natural gas…