Upstream

What is 'Upstream'

Upstream refers to 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.

BREAKING DOWN '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.

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RELATED FAQS
  1. What is the difference between upstream and downstream oil and gas operations?

    Learn about the oil and gas supply chain. Learn why exploration, production, and drilling are considered upstream, while ... Read Answer >>
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    Learn about the growth rate in the critically important market sector of oil and gas exploration and production, and see ... Read Answer >>
  3. What are average operating expenses for the oil and gas sector?

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  4. What are the main benchmarks that track the oil & gas drilling sector?

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  5. What percentage of the global economy is comprised of the oil & gas drilling sector?

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  6. What metrics can be used to evaluate companies in the oil and gas sector?

    Learn how to analyze oil and gas sector companies using the same metrics and analytical techniques as professional investment ... Read Answer >>
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