What do they mean by 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. Companies within this segment are primarily focused on locating and extracting commodities from the earth.

The exploration stage involves the search for hydrocarbons , which are the primary components of petroleum and natural gas. Land surveys are performed to help identify the areas that are the most promising. The goal is to locate specific minerals underground in order to estimate the amount of oil and gas reserves before drilling.

Geologists study rock formations and layers of sediment within the soil to identify if oil or natural gas is present. The process can involve seismology, which uses substantial vibrations as a result of machinery or explosives to create seismic waves. How the seismic waves interact with a reservoir containing oil and gas helps to pinpoint the reservoir's location. Once it has been determined that there appear to be reserves beneath the ground, the test drilling process can begin.

Upstream companies measure oil production in barrels. One barrel, usually abbreviated as bbl, is equal to 42 U. Companies often describe production in terms of bbl per day or bbl per quarter. Oil and gas exploration is an important part of the upstream sector. Petroleum exploration requires very sophisticated techniques, and the technology available for petroleum exploration is rapidly advancing. Normally, exploration starts in an area that has a high potential to hold a resource, usually due to the local geology and known nearby petroleum deposits.

In a high-potential area, further exploration is completed to delineate a resource. The geophysical and geochemical analysis is done using techniques including induced polarization IP surveys, drilling and assaying , electrical currents, and so on. In the exploration phase, the goal is to locate and estimate the potential of a resource.

If an area shows potential to host a resource, exploratory wells are drilled to test the resource. In the oil and gas sector, test drilling is an important component of the exploration phase.

In the event that the exploratory well is successful, the next step is to construct wells and extract the resource. Upstream companies also operate the wells that bring the crude oil or natural gas to the surface.

Rig count and utilization rates are economic indicators of the amount of activity happening in the United States at any given time. Once the resource has been extracted, the upstream part of the business is over.

Here are my concerns: 1. Consider instead: There may be other terms that more clearly delineate the marketing function that is needed — e. Categories B2B Research. Get Our Predictions First Sign up to get an alert the minute Forrester's Predictions are available, and be the first to know about the dynamics impacting your organization in the year ahead. Sign Up. Nancy Maluso October 13, But long-chain hydrocarbons found in both oil and natural gas are used to make far less obvious products like synthetic rubbers, fertilizers, preservatives, containers, and plastics for parts in countless products.

Oil and natural gas products are even used to make artificial limbs, hearing aids and flame-retardant clothing to protect firefighters. In fact, paints, dyes, fibers and just about anything that is manufactured has some connection to oil and natural gas.

So now you know. Together, these three sectors of the oil and natural gas industry sustain the steady flow of fuels and materials that make life better and safer for us all. The OERB provides free environmental restoration of abandoned well sites and works to educate the state's citizens about the oil and natural gas industry. Education Innovation Environmental Empowerment Economic. Follow me on Twitter for more tips on how to become a better software developer.

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