What is the meaning of upstream and downstream?
Simply put, upstream works include the exploration and production of crude oil and natural gas, whilst downstream refers to the processes applied after extraction through to it being delivered to the customer in whatever format required.
What is the difference between upstream midstream and downstream in oil and gas?
‘Upstream’ is about extracting oil and natural gas from the ground; ‘midstream’ is about safely moving them thousands of miles; and ‘downstream’ is converting these resources into the fuels and finished products we all depend on.
What are the stages of oil?
The seven steps of oil and natural gas extraction
- STEP 1: Preparing the Rig Site.
- STEP 2: Drilling.
- STEP 3: Cementing and Testing.
- STEP 4: Well Completion.
- STEP 5: Fracking.
- STEP 6: Production and Fracking Fluid Recycling.
- STEP 7: Well Abandonment and Land Restoration.
Are refineries upstream or downstream?
downstream
Companies engaged in the downstream process include oil refineries, petroleum product distributors, petrochemical plants, natural gas distributors, and retail outlets. Many major downstream companies are also diversified and engage in all levels of the production process.
Is oil refining upstream or downstream?
downstream process
After crude oil is discovered and extracted—the upstream process—it’s shipped and transported—the midstream process. Thereafter, the oil is refined, marketed, distributed, and sold, which is the downstream process. However, the refining of crude oil to petroleum products may be conducted in midstream operations.
What is the difference between upstream and downstream flow?
Upstream means that the object is going opposite to the flow of the river. In this case you have to subtract the speed of the given object in still water from the speed of flow of the stream. Downstream means that the object is flowing along the river and in this case you have to add the speed.
Why is upstream oil more profitable than downstream?
When crude oil prices are low the refineries and petrol stations can make money on the downstream part of the business, while the upstream business may lose money. When crude price falls, the exploration arm of the business is hit the hardest, with the petrol stations benefiting.
What is the difference between upstream and downstream in the oil industry?
What Is the Difference Between Upstream and Downstream in the Oil and Gas Industry? Upstream oil companies are involved primarily with oil discovery, extraction, and production. Downstream oil companies instead deal with refining and delivering petroleum products to consumers.
Are refineries downstream?
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.