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Upstream

The segment of the oil and gas industry concerned with the exploration, appraisal, development and production of hydrocarbons.

Definition

Upstream refers to the exploration and production segment of the oil and gas value chain, encompassing activities associated with locating hydrocarbon resources, drilling wells, developing production facilities and producing crude oil and natural gas. Upstream operations provide the raw hydrocarbons that are subsequently transported, processed and refined by downstream and midstream sectors.

Why It Matters

Upstream comprises the exploration, development and production activities that supply hydrocarbons to the oil and gas value chain.

In Practice

The oil and gas industry is commonly divided into upstream, midstream and downstream sectors, each representing different stages in the hydrocarbon value chain.

Common Misuse

Upstream focuses on exploration and hydrocarbon production, whereas Downstream encompasses refining, processing, distribution and marketing activities.

Related Terms
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Term Details
Synonyms:
Upstream; Exploration and Production; E&P; Upstream Oil and Gas
Classification:
Operations & Production
Concept
Intermediate
Applications

Oil and Gas; Industry; Asset Management.

Where It's Used

Oil and gas.; Offshore.; Onshore.; Energy.; Exploration and production.

References

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