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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.
Definition of Upstream. The upstream stage of the production process involves searching for and extracting raw materials. The upstream part of the production process does not do anything with the material itself, such as processing the material. This part of the process simply finds and extracts the raw material.Thus, any industry that relies on the extraction of raw materials commonly has an upstream stage in its production process.he upstream part of the production process does not do anything with the material itself, such as processing the material. This part of the process simply finds and extracts the raw material.