Downstream

AAA

DEFINITION of 'Downstream'

The oil and gas operations that take place after the production phase, through to the point of sale. Downstream operations can include refining crude oil and distributing the by-products down to the retail level. By-products can include gasoline, natural gas liquids, diesel and a variety of other energy sources.

INVESTOPEDIA EXPLAINS 'Downstream'

Most large oil companies are known as being "integrated" because they combine upstream activities, which include exploration and production, with downstream operations. Some prefer to divide downstream operations into mid and downstream, with the refining process taking place midstream and the distribution occurring in the downstream phase.

RELATED TERMS
  1. Midstream

    Term used to describe one of the three major stages of oil and ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with ...
  3. Horizontal Integration

    The acquisition of additional business activities that are at ...
  4. Horizontal Market

    A market diversified so that the products created are able to ...
  5. Vertical Merger

    A merger between two companies producing different goods or services ...
  6. Upstream

    Operations stages in the oil and gas industry that involve exploration ...
Related Articles
  1. Industry Handbook
    Investing Basics

    Industry Handbook

  2. Oil: A Big Investment With Big Tax Breaks
    Investing Basics

    Oil: A Big Investment With Big Tax Breaks

  3. Uncovering Oil And Gas Futures
    Active Trading

    Uncovering Oil And Gas Futures

  4. Unearth Profits In Oil Exploration And ...
    Active Trading

    Unearth Profits In Oil Exploration And ...

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center