Upstream

AAA

DEFINITION of 'Upstream'

Operations stages in the oil and gas industry that involve exploration and production. Upstream operations deal primarily with the exploration stages of the oil and gas industry, with upstream firms taking the first steps to first locate, test and drill for oil and gas. Later, once reserves are proven, upstream firms will extract any oil and gas from the reserve.

INVESTOPEDIA EXPLAINS 'Upstream'

Oil and gas companies can generally be divided into three segments: upstream, midstream and downstream. Most large oil companies are known as "integrated" because they combine upstream activities with midstream and downstream operations, which take place after the production phase through to the point of sale.

RELATED TERMS
  1. Net Acres

    The amount of leased real estate that a petroleum and/or natural ...
  2. Gross Acres

    The amount of leased real estate, that a petroleum and/or natural ...
  3. Midstream

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

    1. A basic good used in commerce that is interchangeable with ...
  5. Horizontal Market

    A market diversified so that the products created are able to ...
  6. Downstream

    The oil and gas operations that take place after the production ...
Related Articles
  1. Industry Handbook
    Investing Basics

    Industry Handbook

  2. Getting A Grip On The Cost Of Gas
    Home & Auto

    Getting A Grip On The Cost Of Gas

  3. Oil And Gas Industry Primer
    Active Trading

    Oil And Gas Industry Primer

  4. Fueling Futures In The Energy Market
    Options & Futures

    Fueling Futures In The Energy Market

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center