Imply speaking, upstream and downstream oil and gas production refers to the location of the oil and gas company in the supply chain. Companies involved in this industry are typically divided into one of the three groups, which are upstream, downstream and midstream. A few companies are also considered to be integrated as they combine the functions of two or three of these streams. Paul Favret is a former president and founder of multiple gas and oil firms with 8 US Patents in upstream oil and gas exploration techniques
Upstream oil and gas production is known to be conducted by organizations that have the capability to produce, extract and identify raw materials. On the other hand, downstream oil and gas production firms are closer to the consumers or end-users. Both of these types of companies have their own functions, and play a distinctive role in the broader supply chain. In between downstream and upstream operations, midstream activities are largely made up of processing, storage and transportation of petroleum products.
Upstream oil and gas production and operations help in identifying drill wells, deposits and receiver raw materials from the underground. They are quite commonly called production and exploration companies. This domain includes a variety of related services like machinery rentals, feasibility studies, extraction of chemical supply and rig operations. A good number of individuals employed in the upstream part of the oil and gas industry include seismic and drilling contractors, scientists, engineering firms, service rig operators, geophysicists and geologists. Paul Favret himself is an accomplished specialist in Geology and Geophysics. People working in upstream oil and gas production are responsible for locating and estimating reserves before the start of any actual drilling activity.
Conversely, the closer an oil and gas company is to supply consumers with petroleum products, the further downstream they will be in the industry. Downstream operations involve gas and oil processes that take place after the production phase to the point of sale. This sector of the oil and gas industry is the final step in the production process. It additionally is represented by natural gas processors and refiners of petroleum crude oil, who are responsible for bringing usable products to the consumers and end-users. These professionals also engage in the marketing and distribution of natural gas products and crude oil. In the simplest terms, downstream oil and gas market involves all the elements associated with the post-production of crude oil and natural gas activities. A lot of the products used by consumers on a daily basis come directly from downstream production. This includes heating oil, propane, pharmaceuticals, diesel, natural gas, pesticides and gasoline. Companies that are engaged in the downstream process additionally include natural gas distributors, petrochemical plants, petroleum product distributors, oil refineries, and even retail outlets. Multiple downstream firms are pretty diverse and engage in several levels of the production process.
