What is the definition of upstream oil company and downstream oil company?

Question

What is the definition of upstream oil company and downstream oil company?

Answer 1

An upstream oil company does everything from prosepcting for oil (and gas) to extracting the oil. A downstream oil company takes the crude oil and then refines it into usable products such as gasolilne.

Answer 2

Share provided a very good answer!

Answer 3

The petroleum industry is usually divided into three major components:

Upstream, midstream and downstream.

Midstream operations are usually included in the downstream category.

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.

The upstream sector includes the searching for potential underground or underwater oil and gas fields,

drilling of exploratory wells, and subsequently operating the wells that recover and bring the crude oil

and/or raw natural gas to the surface

The downstream oil sector is a term commonly used to refer to the refining of crude oil, and the selling and distribution of natural gas and products derived from crude oil.

Such products include liquified petroleum gas (LPG), gasoline or petrol, jet fuel, diesel oil, other fuel oils, asphalt and petroleum coke.

The downstream sector includes oil refineries, petrochemical plants, petroleum product distribution, retail outlets and natural gas distribution companies.

The downstream industry touches consumers through thousands of products such as gasoline, diesel, jet fuel, heating oil, asphalt, lubricants, synthetic rubber, plastics, fertilizers, antifreeze, pesticides, pharmaceuticals, natural gas and propane