# Upstream (petroleum industry)

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Sector of the oil and gas industry

The [oil and gas industry](/source/Petroleum_industry) is usually divided into three major sectors: **upstream** (also called **exploration and production** or **E&P**), *[midstream](/source/Midstream)* and *[downstream](/source/Downstream_(petroleum_industry))*.[1][2] The upstream sector includes searching for potential underground or underwater [crude oil](/source/Crude_oil) and [natural gas](/source/Natural_gas) fields, drilling exploratory [wells](/source/Oil_well), and subsequently operating the wells that recover and bring the crude oil or raw natural gas to the surface.[3]

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.[4] 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.[5] 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:[6]**

A company that has upstream as well as downstream operations. Examples include [Saudi Aramco](/source/Saudi_Aramco), [ExxonMobil](/source/ExxonMobil), [BP](/source/BP), [Shell](/source/Shell_plc), [ChevronTexaco](/source/ChevronTexaco) and [SOCAR](/source/SOCAR).

- **Independent Oil & Gas Company:[6]**

A company that has either upstream or downstream operations, but not both. Examples include [Anadarko Petroleum](/source/Anadarko_Petroleum), [Sunoco](/source/Sunoco), [Phillips 66](/source/Phillips_66), [ConocoPhillips](/source/ConocoPhillips) and [Murphy Oil](/source/Murphy_Oil).

- **Oil Service Company:[6]**

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](/source/Schlumberger), [Halliburton](/source/Halliburton), [Saipem](/source/Saipem) and [Baker Hughes](/source/Baker_Hughes).

- **Oil Equipment Manufacturer:[6]**

A company that specializes in the sale and distribution of equipment to the oil and gas industry. Examples include [Siemens](/source/Siemens), [Schneider Electric](/source/Schneider_Electric) and [ABB](/source/ABB).

- **Security**

Many major security companies take part in securing the industry.[7]

## Upstream in ISO

[ISO 14224](/source/ISO_14224) defines "Upstream" in its definition section as: **3.98 upstream**[8] business category of the petroleum industry involving [exploration](/source/Hydrocarbon_exploration) and [production](/source/Extraction_of_petroleum).

- - *Example: Offshore oil/gas production facilities, drilling rigs, intervention vessel.*

## See also

- [Coal bed methane](/source/Coal_bed_methane)

- [Downstream (petroleum industry)](/source/Downstream_(petroleum_industry))

- [Extraction of petroleum](/source/Extraction_of_petroleum)

- [Gas field](/source/Gas_field)

- [Hydrocarbon exploration](/source/Hydrocarbon_exploration)

- [List of oil exploration and production companies](/source/List_of_oil_exploration_and_production_companies)

- [Midstream](/source/Midstream)

- [Natural Gas](/source/Natural_Gas)

- [Natural gas condensate](/source/Natural_gas_condensate)

- [Natural-gas processing](/source/Natural-gas_processing)

- [Petroleum](/source/Petroleum)

- [Oil production plant](/source/Oil_production_plant)

- [Oil refinery](/source/Oil_refinery)

- [Oil well](/source/Oil_well)

## References

1. **[^](#cite_ref-1)** [Upstream, midstream & downstream](http://wpccanada.com/yc/industry-info/about-the-industry/upstream-midstream-downstream.html) [Archived](https://web.archive.org/web/20140107135234/http://wpccanada.com/yc/industry-info/about-the-industry/upstream-midstream-downstream.html) 2014-01-07 at the [Wayback Machine](/source/Wayback_Machine)

1. **[^](#cite_ref-2)** [Industry Overview](http://www.psac.ca/business/industry-overview/) [Archived](https://web.archive.org/web/20170508053546/http://www.psac.ca/business/industry-overview/) 2017-05-08 at the [Wayback Machine](/source/Wayback_Machine) from the website of the Petroleum Services Association of Canada (PSAC)

1. **[^](#cite_ref-3)** [US Environmental Protection Agency](/source/US_Environmental_Protection_Agency), [Coalbed Methane Basic Information](http://www.epa.gov/coalbed/basic.html) [Archived](https://web.archive.org/web/20121205051119/http://www.epa.gov/coalbed/basic.html) 2012-12-05 at the [Wayback Machine](/source/Wayback_Machine)

1. **[^](#cite_ref-4)** ["Oil and Gas M&A; Values Reach Record $254 Billion in 2012"](http://www.1derrick.com/oil-and-gas-ma-values-reach-record-254-billion-in-2012/5232/). [Archived](https://web.archive.org/web/20131105101814/http://www.1derrick.com/oil-and-gas-ma-values-reach-record-254-billion-in-2012/5232/) from the original on 2013-11-05. Retrieved 2013-11-05.

1. **[^](#cite_ref-5)** ["$135 Billion Worth Oil and Gas Assets on the Market"](http://www.1derrick.com/135-billion-worth-oil-and-gas-assets-on-the-market/11420/). [Archived](https://web.archive.org/web/20131105101221/http://www.1derrick.com/135-billion-worth-oil-and-gas-assets-on-the-market/11420/) from the original on 2013-11-05. Retrieved 2013-11-05.

1. ^ [***a***](#cite_ref-API_6-0) [***b***](#cite_ref-API_6-1) [***c***](#cite_ref-API_6-2) [***d***](#cite_ref-API_6-3) [American Petroleum Institute](/source/American_Petroleum_Institute) ["Archived copy"](https://web.archive.org/web/20111126210019/http://www.api.org/). Archived from the original on 2011-11-26. Retrieved 2016-05-22.{{[cite web](https://en.wikipedia.org/wiki/Template:Cite_web)}}: CS1 maint: archived copy as title ([link](https://en.wikipedia.org/wiki/Category:CS1_maint:_archived_copy_as_title)) CS1 maint: bot: original URL status unknown ([link](https://en.wikipedia.org/wiki/Category:CS1_maint:_bot:_original_URL_status_unknown)) Definition Of Upstream Company and description

1. **[^](#cite_ref-7)** ["Eyal Mesika - Security Issues in the Upstream Oil Industry - OilVoice"](https://www.oilvoice.com/Press/3929/Eyal-Mesika--Security-Issues-in-the-Upstream-Oil-Industry). *www.oilvoice.com*. [Archived](https://web.archive.org/web/20170420170640/https://oilvoice.com/Press/3929/Eyal-Mesika--Security-Issues-in-the-Upstream-Oil-Industry) from the original on 2017-04-20. Retrieved 2017-04-20.

1. **[^](#cite_ref-8)** [ISO](/source/International_Organization_for_Standardization) 14224

v t e Petroleum industry Petroleum Primary energy Benchmarks Argus Sour Bonny Light Brent Dubai Indian Basket Indonesian Isthmus-34 Light Japan Cocktail OPEC Reference Basket Tapis Urals West Texas Intermediate Western Canadian Select Data Natural gas Consumption Production Reserves Imports Exports Price Petroleum Consumption Production Reserves Imports Exports Posted oil price Price of gasoline and diesel Exploration Core sampling Geophysics Integrated asset modelling Petroleum engineering Reservoir simulation Reservoir modeling Petroleum geology Petrophysics Reflection seismology Seismic inversion Seismic source Drilling Blowout Completion Squeeze job Differential sticking Directional drilling Geosteering Drill stem test Drilling engineering Drilling fluid invasion Lost circulation Measurement Shale oil extraction Ljungström method Tracers Underbalanced drilling Well logging Production Petroleum fiscal regime Concessions Production sharing agreements Artificial lift Gas lift Pumpjack Submersible pump (ESP) Downstream Enhanced oil recovery (EOR) Gas reinjection Steam injection Midstream Petroleum product Pipeline Refining Upstream Water injection Well intervention XT History 1967 Oil Embargo 1973 oil crisis 1979 oil crisis 1980s oil glut 1990 oil price shock 2000s energy crisis 2010s oil glut 2020 Russia–Saudi Arabia oil price war Nationalization GECF OPEC Seven Sisters Standard Oil Canada France India Iraq Norway Saudi Arabia United States Venezuela Provinces and fields List of natural gas fields List of oil fields Caspian Sea Daqing Oil Field East Midlands Oil Province East Texas Gulf of Mexico Niger Delta North Sea Permian Basin Persian Gulf Prudhoe Bay Russia Venezuela Shengli Oil Field Western Canada Sedimentary Basin Other topics Abbreviations Classification sweet oil sour oil Oil shale gas Orphan wells Peak oil fossil fuel phase-out timing Petrocurrency Petrodollar recycling Petrofiction Shale band Shale gas Swing producer Unconventional (oil and gas) reservoir heavy crude oil sands oil shale tight oil Companies and organisations Major petroleum companies Supermajors BP Chevron Eni ExxonMobil Shell TotalEnergies National oil companies Abu Dhabi National Oil Company ANCAP Bharat Petroleum China National Offshore Oil Corporation China National Petroleum Corporation Ecopetrol Equinor Gazprom Hindustan Petroleum Indian Oil Corporation Iraq National Oil Company KazMunayGas Kuwait Petroleum Corporation Lotos Naftogaz National Iranian Oil Company National Iranian South Oil Company NNPC Limited Oil & Gas Development Company Oil and Natural Gas Corporation Orlen PDVSA Pemex Pertamina Petrobangla Petrobras PetroChina Petronas Petrovietnam PTT Public Company Limited QatarEnergy Rosneft Saudi Aramco Sinopec SOCAR Sonangol Sonatrach TPAO YPF Energy trading Enron Glencore Gunvor Mercuria Naftiran Intertrade Trafigura Vitol Others APA Corporation Cenovus Energy Cepsa ConocoPhillips Devon Energy Eneos Holdings Galp Energia Hess Corporation Husky Energy Imperial Oil Lukoil Marathon Oil Marathon Petroleum Occidental Petroleum OMV Phillips 66 Port Harcourt Refining Company Reliance Industries Repsol Suncor Energy Sunoco Surgutneftegas TechnipFMC TNK-BP Tullow Oil Tüpraş Valero Energy Major services companies Amec Foster Wheeler Baker Hughes Cameron International CGG CH2M Chicago Bridge & Iron Company China Oilfield Services Enbridge GE Power Halliburton Nabors Industries Naftiran Intertrade NOV Inc. Petrofac Saipem SLB Snam Subsea 7 TC Energy Transocean Valaris Limited Weatherford International John Wood Group Others American Petroleum Institute Canadian petroleum companies Intercontinental Exchange Futures International Association of Oil & Gas Producers International Energy Agency Society of Petroleum Engineers World Petroleum Council Category

## External links

- [Upstream innovations](http://www.slb.com/news/inside_news/2016/2016_10_17_upstream_innovations.aspx) [Archived](https://web.archive.org/web/20180204071601/http://www.slb.com/news/inside_news/2016/2016_10_17_upstream_innovations.aspx) 2018-02-04 at the [Wayback Machine](/source/Wayback_Machine)

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Adapted from the Wikipedia article [Upstream (petroleum industry)](https://en.wikipedia.org/wiki/Upstream_(petroleum_industry)) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Upstream_(petroleum_industry)?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.