Upstream Oil and Gas Production
Upstream oil and gas production and operations identify deposits, drill wells, and recover raw materials from underground. They are also often called exploration and production companies. This sector also includes related services such as rig operations, feasibility studies, machinery rental, and extraction of chemical supply.
Many of those employed in this part of the industry include geologists, geophysicists, service rig operators, engineering firms, scientists, and seismic and drilling contractors. These people are able to locate and estimate reserves before any of the actual drilling activity starts.
Upstream oil and gas production and operations identify deposits, drill wells, and recover raw materials from underground. They are also often called exploration and production companies. This sector also includes related services such as rig operations, feasibility studies, machinery rental, and extraction of chemical supply.
Many of those employed in this part of the industry include geologists, geophysicists, service rig operators, engineering firms, scientists, and seismic and drilling contractors. These people are able to locate and estimate reserves before any of the actual drilling activity starts.
Downstream Oil and Gas Production
The closer an oil and gas company is to supplying consumers with petroleum products, the further downstream it is said to be in the industry. Downstream operations are oil and gas processes that occur after the production phase to the point of sale.
This sector of the oil and gas industry—the final step in the production process—is represented by refiners of petroleum crude oil and natural gas processors, who bring usable products to end users and consumers. They also engage in the marketing and distribution of crude oil and natural gas products. Simply put, the downstream oil and gas market is anything that has to do with the post-production of crude oil and natural gas activities.
Many of the products that consumers use every day come directly from downstream production, including diesel, natural gas, gasoline, heating oil, lubricants, pesticides, pharmaceuticals, and propane.
The closer an oil and gas company is to supplying consumers with petroleum products, the further downstream it is said to be in the industry. Downstream operations are oil and gas processes that occur after the production phase to the point of sale.
This sector of the oil and gas industry—the final step in the production process—is represented by refiners of petroleum crude oil and natural gas processors, who bring usable products to end users and consumers. They also engage in the marketing and distribution of crude oil and natural gas products. Simply put, the downstream oil and gas market is anything that has to do with the post-production of crude oil and natural gas activities.
Many of the products that consumers use every day come directly from downstream production, including diesel, natural gas, gasoline, heating oil, lubricants, pesticides, pharmaceuticals, and propane.
Source: Investopedia
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