{{Short description|Sector of the oil and gas industry}} The [[petroleum industry|oil and gas industry]] is usually divided into three major sectors: '''upstream''' (also called '''exploration and production''' or '''E&P'''), ''[[midstream]]'' and ''[[downstream (petroleum industry)|downstream]]''.<ref>[http://wpccanada.com/yc/industry-info/about-the-industry/upstream-midstream-downstream.html Upstream, midstream & downstream] {{webarchive|url=https://web.archive.org/web/20140107135234/http://wpccanada.com/yc/industry-info/about-the-industry/upstream-midstream-downstream.html |date=2014-01-07 }}</ref><ref>[http://www.psac.ca/business/industry-overview/ Industry Overview] {{webarchive|url=https://web.archive.org/web/20170508053546/http://www.psac.ca/business/industry-overview/ |date=2017-05-08 }} from the website of the Petroleum Services Association of Canada (PSAC)</ref> The upstream sector includes searching for potential underground or underwater [[crude oil]] and [[natural gas]] fields, drilling exploratory [[oil well|wells]], and subsequently operating the wells that recover and bring the crude oil or raw natural gas to the surface.<ref>[[US Environmental Protection Agency]], [http://www.epa.gov/coalbed/basic.html Coalbed Methane Basic Information] {{webarchive|url=https://web.archive.org/web/20121205051119/http://www.epa.gov/coalbed/basic.html |date=2012-12-05 }}</ref>

The upstream industry has traditionally experienced the highest number of Mergers, Acquisitions (M&A) and Divestitures. M&A activity for upstream oil and gas deals in 2012 totaled $254 billion in 679 deals.<ref>{{cite web |url=http://www.1derrick.com/oil-and-gas-ma-values-reach-record-254-billion-in-2012/5232/ |title=Oil and Gas M&A; Values Reach Record $254 Billion in 2012 |access-date=2013-11-05 |url-status=live |archive-url=https://web.archive.org/web/20131105101814/http://www.1derrick.com/oil-and-gas-ma-values-reach-record-254-billion-in-2012/5232/ |archive-date=2013-11-05 }}</ref> A large chunk of this M&A, 33% in 2012, was driven by the unconventional/shale boom especially in the US followed by Russia and then Canada.

The aggregate value of upstream E&P assets available for sale (Deals in Play) reached a record-high of $135 billion in Q3 2013.<ref>{{cite web |url=http://www.1derrick.com/135-billion-worth-oil-and-gas-assets-on-the-market/11420/ |title=$135 Billion Worth Oil and Gas Assets on the Market |access-date=2013-11-05 |url-status=live |archive-url=https://web.archive.org/web/20131105101221/http://www.1derrick.com/135-billion-worth-oil-and-gas-assets-on-the-market/11420/ |archive-date=2013-11-05 }}</ref> The value of Deals in Play doubled from $46 billion in 2009 to $90 billion in 2010. With ongoing M&A activity, the level remained almost the same, reaching $85 billion in December 2012. However, the first half of 2013 saw approximately $48 billion of net new assets coming on the market. Remarkably, the total value of Deals in Play in Q3 2013 nearly tripled over 2009 to $46 billion, in less than four years.

==Business== This categorization comes from value chain concepts, even before formal development of Value Chain Management.

*'''Drilling Contractor Company''' A company that owns and operates drilling rigs that are contracted by an operator to drill wells. Examples include Patterson UTI, Trans-ocean, Nabors, Independence Contract Drilling and Cactus.

*'''Integrated Oil & Gas Company:<ref name="API">[[American Petroleum Institute]] {{Cite web |url=http://www.api.org/ |title=Archived copy |access-date=2016-05-22 |archive-date=2011-11-26 |archive-url=https://web.archive.org/web/20111126210019/http://www.api.org/ |url-status=bot: unknown }} Definition Of Upstream Company and description</ref>''' A company that has upstream as well as downstream operations. Examples include [[Saudi Aramco]], [[ExxonMobil]], [[BP]], [[Shell plc|Shell]], [[ChevronTexaco]] and [[SOCAR]].

*'''Independent Oil & Gas Company:<ref name="API"/>''' A company that has either upstream or downstream operations, but not both. Examples include [[Anadarko Petroleum]], [[Sunoco]], [[Phillips 66]], [[ConocoPhillips]] and [[Murphy Oil]].

*'''Oil Service Company:<ref name="API"/>''' A company that provides products and/or services to the oil and gas industry. Usually a combination of labor, equipment, and/or other support services. Examples include [[Schlumberger]], [[Halliburton]], [[Saipem]] and [[Baker Hughes]].

*'''Oil Equipment Manufacturer:<ref name="API"/>''' A company that specializes in the sale and distribution of equipment to the oil and gas industry. Examples include [[Siemens]], [[Schneider Electric]] and [[ABB]].

*'''Security''' Many major security companies take part in securing the industry.<ref>{{Cite web|url=https://www.oilvoice.com/Press/3929/Eyal-Mesika--Security-Issues-in-the-Upstream-Oil-Industry|title=Eyal Mesika - Security Issues in the Upstream Oil Industry - OilVoice|website=www.oilvoice.com|access-date=2017-04-20|url-status=live|archive-url=https://web.archive.org/web/20170420170640/https://oilvoice.com/Press/3929/Eyal-Mesika--Security-Issues-in-the-Upstream-Oil-Industry|archive-date=2017-04-20}}</ref>

==Upstream in ISO== [[ISO 14224]] defines "Upstream" in its definition section as: <br> '''3.98 upstream'''<ref>[[International Organization for Standardization|ISO]] 14224</ref><br> business category of the petroleum industry involving [[hydrocarbon exploration|exploration]] and [[Extraction of petroleum|production]]. ::''Example: Offshore oil/gas production facilities, drilling rigs, intervention vessel.''

== See also == {{div col|colwidth=22em}} * [[Coal bed methane]] * [[Downstream (petroleum industry)]] * [[Extraction of petroleum]] * [[Gas field]] * [[Hydrocarbon exploration]] * [[List of oil exploration and production companies]] * [[Midstream]] * [[Natural Gas]] * [[Natural gas condensate]] * [[Natural-gas processing]] * [[Petroleum]] * [[Oil production plant]] * [[Oil refinery]] * [[Oil well]] {{div col end}}

==References== {{Reflist}} {{Petroleum industry}}

==External links== *[http://www.slb.com/news/inside_news/2016/2016_10_17_upstream_innovations.aspx Upstream innovations] {{Webarchive|url=https://web.archive.org/web/20180204071601/http://www.slb.com/news/inside_news/2016/2016_10_17_upstream_innovations.aspx |date=2018-02-04 }}

[[Category:Natural gas]] [[Category:Petroleum production]]