What is the difference between upstream and downstream in oil & gas?
The terms upstream and downstream oil and gas production refer to an oil or gas company’s location in the supply chain. Upstream oil and gas production is conducted by companies who identify, extract, or produce raw materials. Downstream oil and gas production companies are closer to the end user or consumer.
What is the difference between upstream and downstream in a river?
The term upriver (or upstream) refers to the direction towards the source of the river, i.e. against the direction of flow. Likewise, the term downriver (or downstream) describes the direction towards the mouth of the river, in which the current flows.
What is the difference between upstream and downstream?
As a business owner or operations manager responsible for production, understanding the supply chain is essential to the success of your business. Upstream refers to the material inputs needed for production, while downstream is the opposite end, where products get produced and distributed.
Are pipelines upstream or downstream?
Midstream includes pipelines and all the infrastructure needed to move these resources long distances, such as pumping stations, tank trucks, rail tank cars and transcontinental tankers. DOWNSTREAM: The final sector of the oil and natural gas industry is known as ‘downstream.
What are the 3 stages of oil and gas?
Oil and gas companies can generally be divided into three segments: upstream, midstream, and downstream. Upstream firms deal primarily with the exploration and initial production stages of the oil and gas industry.
Why is upstream more profitable than downstream?
When crude oil is expensive the seller will see a rise in profits while the buyer will see a rise in costs. The companies say they making their money through crude oil exploration and production, the “upstream” part of the business, but not in refining and selling fuel, the “downstream” part of the business.
What does it mean by upstream river?
English Language Learners Definition of upstream : in the direction opposite to the flow in a stream, river, etc. : toward the source of a stream, river, etc.
What is upstream water?
upstream in Water topic From Longman Dictionary of Contemporary Englishup‧stream /ˌʌpˈstriːm◂/ adverb along a river, in the opposite direction from the way the water is flowing OPP downstream Fish instinctively fight their way upstream against the current.
What is upstream in oil and gas?
Upstream refers to points in production that originate early on in the processes. Also called exploration and production (E&P), upstream is farthest from the end-user consumer in the oil & gas supply chain. Upstream activities include exploration, drilling, and extraction.
What does downstream mean in oil and gas?
Downstream operations are the processes involved in converting oil and gas into the finished product. These include refining crude oil into gasoline, natural gas liquids, diesel, and a variety of other energy sources.
Is Chevron upstream or downstream?
Chevron Corporation generates its revenues from two sources: its upstream business — which includes Crude Oil & Natural Gas Liquid, and the Natural Gas segments — and from its downstream operations.
Are gas stations downstream?
Downstream industry is the portion of the oil and natural gas industry that is responsible for the refining, distributing, and retail of petroleum products. The different sectors within the downstream industry include: Distributors. Retail outlets (like gasoline stations)
What does upstream mean in the oil and gas industry?
Upstream is a term for the exploration and production stages in the oil and gas industry. It is the first stage in oil or gas production, followed by the midstream and downstream segments. Downstream operations are functions regarding oil and gas that happen after the production phase, through to the point of sale.
What is the upstream process in the oil industry?
Upstream oil and gas production is the process of locating and extracting crude oil and natural gas reserves, according to The Petroleum Services Association of Canada. This process is commonly referred to as exploration and production (E&P).
What is upstream and downstream industries?
The upstream industry is dedicated to extraction of raw material for manufacturing use. It also includes procurement of these products from cultivators. Downstream industries undertake further manufacturing operations on intermediate products made from agricultural materials. Examples are manufacturing of bread, biscuit and noodle making
What is the definition of upstream oil?
The upstream oil sector is a term commonly used to refer to the searching for and the recovery and production of crude oil and natural gas. The upstream oil sector is also known as the exploration and production (E&P) sector.