Upstream

Upstream oil and gas production is conducted by companies who identify, extract, or produce raw materials.
The upstream segment is all about wells:

• where to locate them
• how deep and how far to drill them
• how to design, construct, operate and manage them
  
• how to deliver the greatest possible return on investment with the lightest, safest and smallest operational footprint

Many of those employed in the upstream part of the industry include geologists, geophysicists, service rig operators, engineering firms, scientists, and seismic and drilling contractors.
These people are able to locate and estimate reserves before any of the actual drilling activity starts.

Upstream oil and gas production and operations identify deposits, drill wells, and recover raw materials from underground.
This sector also includes related services such as rig operations, feasibility studies, machinery rental, and extraction of chemical supply.

The upstream industry is arguably the most complex of all the oil and gas business sectors.
Its also impacted by the prevailing host country political environment and regulations, including:

• Political instability (war, civil unrest, or other international conflicts)
• Laws and regulations (environmental, social programs)
• Price controls and tax regimes
• Expropriation or forced divestiture of property
• Respect for contracts

Upstream is also subject to global forces of supply and demand, economic growth and recessions, and crude production quotas.