What is upstream

There are three key segments that make up the oil and gas industry: upstream, midstream and downstream. Each is critical to the manufacture and distribution of gasoline, diesel, refined petroleum products and petrochemicals that are essential to the broader economy and modern life.

What is upstream?

Members of the upstream segment explore for and extract crude oil, natural gas and natural gas liquids (NGLs). Crude oil and NGLs are used as feedstocks to produce fuels and petrochemicals, and in some cases directly as sources of energy and natural gas is used as a source of energy.

Did you know?

• The United States is the world's top producer of crude oil, natural gas and NGLs.
• In October of 2024, the United States established a new record for monthly crude oil production, ~13.44 million barrels per day (b/d). No country has ever produced more crude oil in a single month.
  • The top petroleum producing regions for the United States are the Permian Basin (Texas and New Mexico), Gulf of America (previously known as Gulf of Mexico), the Bakken (North Dakota and Montana) and the Eagle Ford Shale (Texas).
• There are hundreds of varieties of crude oil around the world, ranging in viscosity (from heavy to light) and in sulfur content (from sweet, low sulfur, to sour, high sulfur).
• The crude oil produced in the United States is largely light sweet crude oil, but we also import heavier crude and unfinished oils.
  • 80% of U.S. crude production (in the lower 48 states) has API gravity of 35+, which is light. Close to 60% is even lighter-above 40.
  • 90% of crude oil imports into the United States are heavier than U.S. shale crude (35 or less).
• NGLs - like ethane and propane - are the primary feedstocks used in petrochemical manufacturing in the United States.

Learn more about midstream and downstream.