Upstream activities in the oil & gas industry are the very beginning of the supply chain. This stage is referred to as exploration and production, or E&P. It is the farthest from the end-user consumer and involves several processes.

The exploration stage is the first step of the upstream process. This is when companies search for potential sites for oil or gas reserves. Professionals use data from geological surveys and satellite imagery to develop a list of potential areas. Companies may also rely on geological analysis of seismic waves to probe the subsurface for deposits of gas and oil. Once a site is chosen, the drilling process begins.

The drilling process involves creating a wellbore to reach the oil and gas deposits deep underground. This can involve drilling through rock, sand and other materials to reach the target depth. Companies will then use the drilling process to test the site to see if the deposit is commercially viable. Once the wells are established, the extraction process begins.

The extraction process involves pumping the drill bit through the wellbore to collect oil and gas flowing through the well. This process generally requires the use of specialized machinery, pumps, and piping to extract the oil and gas from the well. This outcome is then transported to a refinery for further processing and eventual distribution.

Upstream activities are an integral part of the oil & gas industry supply chain. The exploration and production processes are the key to finding and collecting the valuable energy commodities we rely on in our everyday lives. Without the upstream stage, it would be impossible to bring these goods to market.