An Overview of the Upstream and Downstream Sector of the Industry
To really understand the processes involved in the oil and gas industry, it makes sense to consider its subdivisions. The oil and gas industry is essentially subdivided into three phases and these include: 

  • Upstream sector
  • Midstream sector
  • Downstream sector

Before examining these phases, it is important to note that the midstream sector is also included in the downstream sector.

Upstream sector
The upstream sector of the oil and gas industry involves processes including the searching for and the recovery of crude oil as well as its production. In the upstream sector, discovery or exploration of crude oil takes place. This involves intensive and extensive efforts towards ascertaining the actual places where crude oil is located.

Exploration is a very difficult process and therefore requires the service of experts in the field. More so, information technology plays active roles in the exploration or searching of crude oil in order to easily discover new grounds where oil is located and therefore take advantage of them.

The upstream sector includes different operations such as the searching for prospective underwater oil and gas fields, drilling of exploratory wells and also making requisite operations on the well so as to bring the crude oil or natural gas to the ground surface.

Downstream sector
The downstream sector of the oil and gas industry involves the refining of the crude oil and/or raw natural gases obtained in the upstream sector as well as selling or distributing the products obtained. Many products are derived from the refining of crude oil and these may include diesel oil, liquefied petroleum gas (LPG), asphalt, petroleum coke, gasoline, fertilizers, antifreeze, plastics, rubbers, pesticides, synthetic rubber, jet fuel and many more.

The downstream sector of the industry is the sector that relates with the consumers. Facilities involved in this sector include petrochemical plants, oil refineries, natural gas distribution companies, retail outlets and so forth.

The main processes involved in the upstream and downstream oil and gas operation include the following:

  • Exploration
  • Extraction
  • Refining
  • Transporting