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Oil & Gas — Upstream Operations

From finding hydrocarbons in the ground to bringing them to the surface: a click-through guide to exploration, drilling, completion, production, and how upstream fits into the wider energy picture.

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What is Upstream?

Definition of upstream, its role in the oil and gas value chain, and key company types (IOCs, NOCs, independents, service companies).

What “Upstream” Means
Where Upstream Fits
Who Does Upstream

Exploration

Seismic surveys, licensing rounds, success probabilities, and how geologists and geophysicists locate potential reserves.

Finding Hydrocarbons
Seismic & Geology
Appraisal

Drilling

Rig types (land, jack-up, semi-sub, drillship), drilling fluids, casing, blowout preventers (BOPs), and safety.

Rigs & Well Types
Casing & Drilling Fluids
Safety & Environment

Completion & Stimulation

Cementing, perforating, hydraulic fracturing, artificial lift (rod pumps, ESPs, gas lift), and preparing the well for production.

Well Completion
Perforation & Fracking
Artificial Lift

Production & Reservoir

Reservoir management, decline curves, flow assurance, enhanced oil recovery (EOR), and end-of-life abandonment.

Flow & Maintenance
Reserves & Decline
EOR & Abandonment

Economics & Metrics

Cost per barrel, capex & opex, internal rate of return (IRR), break-even price, production decline rates, and benchmarks.

Production Rates
Capex & Opex
Benchmarks

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Quick facts
Common challenges
Who is typically involved
Example

Upstream in context: midstream and downstream

Upstream does not operate in isolation. What is produced at the wellhead is passed to midstream, which handles gathering, processing, and transportation. Understanding this handoff and how downstream demand and prices feed back helps explain upstream economics.

How upstream feeds midstream

How downstream and transport affect upstream

Upstream economics are influenced by downstream prices (e.g. refined product prices and crude benchmarks such as Brent and WTI) and by transportation costs. If the cost to move oil or gas from the field to the market is high, or if the price at the refinery is low, upstream margins shrink.

Break-even prices and investment decisions therefore depend on both finding and producing the resource and on the cost and price environment all the way to the end user.

Diagrams and settings

Hover over or tap the labelled areas on each diagram to see what the main components are.

Drilling rig — main components

Well completion — key elements

Offshore vs onshore

Onshore

Wells are drilled from land. Lower capital and operating cost, easier access for equipment and people. Common in regions like the Permian Basin, Middle East, and many conventional fields. Land rigs and shorter logistics chains.

Offshore

Wells are drilled from platforms, jack-ups, semi-submersibles, or drillships over water. Higher cost and complexity; weather and water depth drive rig choice. Typical in the North Sea, Gulf of Mexico, Brazil, and West Africa.