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What is upstream oil and gas production?

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‘Upstream’ in oil and gas production refers to the first stage of the process, associated with locating, drilling and extracting the oil or gas.

The upstream stage is followed by the midstream and downstream stages.

The difference between upstream, midstream and downstream

The oil and gas production process is categorized into three different stages, including upstream, midstream, and downstream. Below is a breakdown of what each of these categories entails:

  • Upstream: exploration, drilling, and production
  • Midstream: transportation, storage, and processing
  • Downstream: Refining, marketing, and distributing

How does oil and gas exploration work?

Oil and gas exploration makes up a major component of the upstream oil and gas production stage. This part of the process involves a series of complex steps and considerations. While no exploration process will look the same, ideally this stage will unfold as follows:

  1. Geological and geophysical analysis, including studying surface rocks and historical data to pinpoint promising areas to explore
  2. Conducting seismic surveys to create detailed images of underground rock formations
  3. Initiating exploratory drills into promising areas to collect rock samples and assess reservoirs
  4. Evaluating discovered reservoirs to plan for future production
  5. Conducting an economic evaluation to determine commercial viability
  6. Additional appraisal drilling to gather more data
  7. Getting regulatory approval

What are the environmental considerations in upstream production?

Because upstream oil and gas production involves exploring and drilling into new grounds, there are several environmental factors to consider, from waste to disruption. Here are some of the big categories to keep in mind:

  • Greenhouse gas emissions
  • Air pollution
  • Water contamination
  • Waste management
  • Soil and land degradation

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