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

    Getting A Grip On The Cost Of Gas

  2. Oil And Gas Industry Primer
    Active Trading

    Oil And Gas Industry Primer

  3. Fueling Futures In The Energy Market
    Options & Futures

    Fueling Futures In The Energy Market

  4. Is That Airline Ready For Lift-Off?
    Active Trading

    Is That Airline Ready For Lift-Off?

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

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

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center