upstream and downstream

The downstream and upstream sectors of the oil and gas industries are related. Upstream is the industry which supplies the feed-stock in terms of oil and gas which the downstream industry requires to produce its products. Conversely, the downstream industry gives the markets and facilities in which the upstream industry can sell its products. Oil and gas industry has a very large share on the global economy in the present era. It supports movements, warmth and power for vehicles, homes and industries respectively. It also gives employment and business opportunities to several millions of people globally. Therefore, due to the existence of challenging factors such as climate change, environmental regulations, and competitiveness of the renewable energy sources, the oil, and gas industries are set with challenges. But it is also going ahead in the defining of technologies and coming up with new methods through which oil and gas resources could be harnessed and utilized. This paper analysed the oil and gas industry as a sector of the global economy and determined that while there is no definite future for this industry, it is set to remain a crucial segment in the global economy for quite a long time.

what is upstream and downstream

In connection with the current topic, the terms upstream and downstream are used effectively in different fields to signify different roles or phases in a procedure, chain of supply, or system. Here's a more detailed explanation:Here's a more detailed explanation:
Upstream:
Upstream can also be used to indicate the preceding stages or parts of a procedure, organization or network of distribution.
Operations, upstream experiences in manufacturing relate to the processes of raw material acquisition, generation, and initial preparation.
It can also include the process of acquiring raw materials, assembling parts of an item, or researching and designing a product.
When you are talking of a river or any water course, upstream is the part or section which is nearer to the source of the river.
Downstream:
While downstream on the other hand refers to the later steps or the sections of a certain process or chain or network.
In the manufacturing process downstream activities are the last stages such as; assembling of the manufactured product, packaging, distribution of the manufactured product and selling of the manufactured product.
In a supply chain it comprises of the distribution, marketing, sales, and thus the final link with the customer.
Concerning liquids, downstream indicates the section of the river or a water system that is near the end, is the furthermost from where water in the river is channeled from its source.
Both of these terms are commonly used to explain the movement of materials, information or processes in different industries/fields and systems. The analysis of what belongs to upstream and what belongs to downstream is useful in improving efficiency of complexes, supervising suppliers and customers or addressing a problem or potential improvement at a certain phase of a cycle.

what is upstream and downstream flow in piping

In piping system designing the term downstream and upstream refers to the direction in which flow of the fluid is take or flow of the fluid is being taken. Upstream means in the direction towards the source of the fluid while downstream is the direction opposite to the source of the fluid.

For instance, a pipeline transporting oil from an oil well to a refinery then the upstream is the position of the pipeline at the oil well end while the downstream position is at the refinery end.

In addition, it is also probable to state that terms upstream and downstream are applied for definition of the components’ location in a pipe. That is for example in the instance of pump the valve upstream of pump means the valve is positioned in the direction of flow of the pump on the other let the valve downstream of the pump is positioned in the opposite direction of flow of the pump.

Here are some other examples of how the terms upstream and downstream are used in piping:Below are some other examples of the use of the terms upstream and downstream in relation to piping:
 

  • Upstream pressure: Pressure of the fluid at initial stage of the pipeline or at the terminal stage of the pipeline closer to the supply end.
  • Downstream pressure: The pressure at which the de-signed structure is loaded by the fluid exiting the pipeline, or the downstream pressure.
  • Upstream velocity: The velocity of the fluid at a particular upstream side of the pipeline and it is the velocity at the entry point of the pipeline.
  • Downstream velocity: The average velocity of the fluid as it enters at the other end of the pipe of coming or going based on the direction of flow.
  • Upstream temperature: The status of the fluid at the entrance of the fluid pipeline system is.
  • Downstream temperature: The temperature of the fluid at the line-end where from it flowed in the pipeline with some pressure in the pipeline.

 

Upstream and Downstream Meaning 

Upstream

The upstream segment involves the processing of engaging in the search for the oil and natural gas resources through exploration besides their production.. This includes:

Exploration: To seek and acquire the anticipated crude oil and natural gas on or beneath the ground.

Drilling: Seeking for the oil and gas through the drilling of wells.

roduction: Drilling and producing of the oil and gas and getting it to the surface.

Development: More critically it involved building the necessary facilities required in the development of the newly discovered oil and gas fields.

Downstream

The downstream segment concerns the refining and marketing of the crude oil and natural gas final products obtained from the upstream segments.

Refining: Refining the crude oil and natural gas to more usable forms which includes the gasoline, diesel, jet fuel, heating oil and petrochemicals.

Distribution: Promoting the percentages of carbon in hydrocarbons in products that undergo pipelines, trucks and ships.

Marketing and Sales: Reselling the refined products to end consumers such as the measured stations, industries as well as homes.

Midstream

It is also important to present the midstream segment as the one connecting the upstream and downstream segments. Midstream activities include:

Transportation: Transferring crude oil or natural gas from the production facility to the refineries, processing and or marketing terminals usually by pipeline, tanker or rail.

Storage: Pumping liquids that are in various stages of storing processing and distribution of oil and gas products.

Processing: Cleaning the raw natural gas and the process of getting rid of unwanted substances and then fractioning the different types of hydrocarbons found in the raw natural gas.

In summary:

Upstream: Exploration and production.

Midstream: Transportation and storage.

Downstream: They include refining and distribution of the crude oil as well as the sales aspect of it.


 

what is the difference between upstream and downstream

Upstream and downstream are the two activities that are mainly linked with the oil and gas industry which categorize in a way what it is that the do in the supply chain.

Upstream consists of activities in searching, drilling, and moving the discovered oil and natural gas from the earth. This ranges from exploration, drilling, production, and transportation of the natural resources in the commercial market.
Downstream in this context represents the processes of conversion, marketing and personal consumption of oil and gas products. These include; physical processing of crude through refining, converting, marketing, and distribution.
Upstream and downstream oil and gas industries are integrated industries in that they are related. The upstream industry gives the feed stock for the downstream industry to process and give its product. The downstream industry on its part offers the markets and required framework within which the upstream industry can sell its products.

Here is a table summarizing the key differences between upstream and downstream:

FeatureUpstreamDownstream
DefinitionThe activities involved in finding, extracting, and transporting oil and gas from the ground.The activities involved in refining, processing, marketing, and distributing oil and gas products.
LocationNear the source of oil and gasNear the point of consumption
ActivitiesExploration, drilling, production, transportationRefining, processing, marketing, distribution
ProductsCrude oil, natural gasGasoline, diesel fuel, jet fuel, plastics, fertilizers, asphalt

The key difference between upstream and downstream lies in their position or stage within a process, system, or supply chain:

upstream midstream and downstream

Upstream:
Upstream means the prior or an earlier level of a process or a system.
It incorporates activities that happen at a relatively early stage of a production or supply chain.
In upstream activities, the major emphasis is given to the tasks that involve preparing for and acquiring the inputs or resources to be used in a particular activity.
Some of them are: purchasing of raw materials, manufacturing of the components make up of a product, Conducting research and development.
Downstream:
The downstream is therefore the latter part of a process or system or the latter section of a chain.
It covers activities that are done at later stages in the production or supply process, normally after the fundamental processes of production or assembling have been completed.
Another downstream activity which is streamlined is distribution or marketing, sales, and customer service.
These may include packaging of the products, dispatch to the dealers, the promotional activities, sales to the consumers, and follow up services.
Therefore, upstream and downstream are relative terms that give the position or the stage of the activity within the larger context. Upstream activities are more towards the early part of the process and downstream refers to the processes that are more towards the later part of the process. It is necessary to know this difference for the processes are better managed, supplies are delivered as required, and for targeting current issues or enhancements at particular phases of a system.

midstream

The midstream of the oil and or the downstream sector in the petroleum industry entails the transmission, storage and the marketing of the crude or the products derived from the crude. Thus, it acts as the intermediary between the upstream activities, which entail exploration and production, and the downstream processes that contain refining and distribution. Major midstream activities are; Pipelines through which hydrocarbons are transported by pipelines, Rail, Tanker ships as well as through trucks, Storage of hydrocarbons in tanks and terminals so as to feed the refineries and users continuously. This segment has great importance in preserving the functionality and reliability of the whole oil and gas chain.

what is midstream upstream and downstream

upstream midstream and downstream oil and gas is the most widely acknowledged classification that is utilized in the oil and the natural gas industry in a representation of the value chain in the business.

Upstream comprise some key activities comprising of searching for and pumping of crude oil and natural gas and the existing pipeline transferring the substances from the production point to the refining station. This includes; exploration for and the drilling and production of, and the transportation of petroleum and other related products.
This means the process that entails on the transportation, storage as well as marketing of the petroleum products. This entails operation functions like oil and gas collection and storage besides handling and moving of the same from one point to the other.
Downstream is related to all those activities which have something to do with the generation, distribution/ marketing and sale of the oil and all the relevant products. This Involves such processes as refining and processing, marketing and distribution of the oil products.

The upstream and downstream industries are sometimes considered parts of the same industry because they are interdependent. The upstream industry supplies oil and gas to the downstream industry for it to be able to manufacture its products. The downstream industry on the other hand offers the markets and support structures the upstream industry requires to market its goods.

The midstream oil and gas industry is defined as the industry that is between upstream and downstream sectors of the industry. It offers the pipeline facilities through which the oil and gas can get from the well head to the refinery and from the refinery to the consumer most efficiently.

Here is a table summarizing the key differences between upstream, midstream, and downstream:Here is a table summarizing the key differences between upstream, midstream, and downstream:

FeatureUpstreamMidstreamDownstream
DefinitionThe activities involved in finding, extracting, and transporting oil and gas from the ground.The activities involved in storing, transporting, and marketing oil and gas.The activities involved in refining, processing, marketing, and distributing oil and gas products.
LocationNear the source of oil and gasBetween the upstream and downstream industriesNear the point of consumption
ActivitiesExploration, drilling, production, transportationOil and gas gathering, processing, and transportationRefining, processing, marketing, distribution
ProductsCrude oil, natural gasOil and gas productsGasoline, diesel fuel, jet fuel, plastics, fertilizers, asphalt

what is upstream and downstream in oil and gas

In the oil and gas industry, the terms "upstream" and "downstream" are commonly used to describe different stages or sectors of the industry. Here's an overview of their meanings:

Upstream:
The upstream sector of the oil and gas industry could also be regarded as the crude oil and natural gas sector, and it encompasses stages regarding exploration and initial processing of the created resources. It involves activities such as:

Exploration: Exploration entails the identification of new opportunities where oil and gas resources can be searched for by using surveys, geology and the act of drilling of test wells.

Drilling and Production: The process of drilling the wells and using the production techniques to pull out the oil and gas from the subterranean formations.

Field Development: The construction of facilities and systems that involves the management and enhancement of oil and gas fields including production facilities, pipelines, and the offshore platform.

Reservoir Engineering:Lives within the field’s context and concerns as referred to the assessment and enhancement of the reservoir performance based on reservoir information, well production, and technologies to increase the volume of produced oil and gas.

Well Services: The activities related with the upkeep and enhancement of well productivity and stocks that involve processes including well logging, well testing, and well stimulus techniques, including hydraulic fracturing.

Downstream:
Downstream is defined as the segment of the company that deals with processing and marketing of crude oil and natural gas which has been refined. It focuses on activities that occur after the extraction process and includes:It focuses on activities that occur after the extraction process and includes:
Refining: The process of upgrading crude oil into various products like gasoline, diesel, jet fuel, lubes, and other petrochemicals through processes like distillation, cracking and many others.
Petrochemicals: The manufacturing of chemicals and other items from crude oil including the general assortment of polymerized materials like; plastics, synthetic fibers, fertilizers and other chemical products.
Marketing and Distribution: Marketing and delivering of the refined oil and natural gas products to consumers as well as customers using pipelines, tankers, trucks, as well as outlets.
Retail: The last subsector of downstream; it entails marketing of finished products to the final consumer through fuel stations or other outlets.
In essence, specifically, the upstream sector involved in the search, drilling, and development of the oil and gas reserves whereas the downstream sector is involved with the transformation of the derived products to meet the demands of the final consumers.
However, there is also a middle link known as the midstream that comprises transportation, storage, and wholesale marketing of the products that are in the form of oil and gas products and pipeline as well as terminals.

petroleum upstream and downstream

Petroleum upstream and downstream are two main stages of the petroleum value chain.

  • Upstream Here Upstream is defined as the activities required to explore for, produce and deliver the crude oil and natural gas. These areexploration and acquisition, drilling and development, operation and management, and transportation and marketing.
  • Downstream Downstream refers to the activities involved in refining, processing, marketing, and distributing petroleum products. This includes activities such as refining, processing, marketing, and distribution.

The upstream and downstream petroleum industries are closely linked. The upstream industry provides the crude oil and natural gas that the downstream industry needs to produce its products. The downstream industry, in turn, provides the markets and infrastructure that the upstream industry needs to sell its products. Here is a table summarizing the key differences between petroleum upstream and downstream:

FeatureUpstreamDownstream
DefinitionThe activities involved in finding, extracting, and transporting crude oil and natural gas from the ground.The activities involved in refining, processing, marketing, and distributing petroleum products.
LocationNear the source of crude oil and natural gasNear the point of consumption
ActivitiesExploration, drilling, production, transportationRefining, processing, marketing, distribution
ProductsCrude oil, natural gasGasoline, diesel fuel, jet fuel, plastics, fertilizers, asphalt

what is upstream and downstream in supply chain

upstream and downstream supply chain:

Upstream Activities:
Upstream Supplier Management: Defining a list of potential suppliers of raw materials or components to the customer.
Procurement: Buying the materials, components, and other items required for the creation of the company’s products.
Logistics: Moving of materials form places of origin such as supplier’s premises to the manufacturing or assembly points.
Participants: Particularly, the suppliers of the raw material, component suppliers, and any other middlemen suppliers between the company and the Johnson’s.


Downstream Activities:
Production: The process of putting the final product together from raw materials ad other components that are needed in the production of the final product.
Distribution: Transportation from one company to the other or from the company to the end users or retailers in the case of finished goods.
Sales and Marketing: Marketing and distributing of the final goods to the ultimate consumers.
Customer Service: Responding to inquiries customers may have concerning the products they purchased, or managing cases of sale returns and warranties.
Participants: Finally, the target consumers consist of distributors, wholesalers, retailers, and end customers.


Example
Upstream: An automotive company buying steel for its car bodies, rubber for tires and electronic parts for use in cars.
Downstream: Car maker supplying completed automobiles to automobile agents who in turn sell them to end users.
Therefore the distinction between upstream and downstream is essential in comprehending the whole supply chain, arranging the business properly and satisfying the consumer’s needs.