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Upstream, midstream and downstream. Midstream operations are usually included in the downstream category. The upstream oil sector is a term commonly used to refer to the searching for and the recovery and production of crude oil and natural gas. The upstream oil sector is also known as the exploration and production (E&P) sector. The downstream oil sector is a term commonly used to refer to the refining of crude oil, and the selling and distribution of natural gas and products derived from crude oil.
Drilling and Operating Wells for Crude Oil. The final big stage in the upstream segment of the oil industry is the drilling and operating of wells that are producing crude oil. One of the main criteria that separates the upstream category from the midstream category is the nature of the oil it produces.