Upstream (petroleum industry)
The
The upstream industry has traditionally experienced the highest number of Mergers, Acquisitions (M&A) and Divestitures. M&A activity for upstream oil and gas deals in 2012 totaled $254 billion in 679 deals.[4] A large chunk of this M&A, 33% in 2012, was driven by the unconventional/shale boom especially in the US followed by Russia and then Canada.
The aggregate value of Upstream E&P assets available for sale (Deals in Play) reached a record-high of $135 billion in Q3 2013.[5] The value of Deals in Play doubled from $46 billion in 2009 to $90 billion in 2010. With ongoing M&A activity, the level remained almost the same, reaching $85 billion in December 2012. However, the first half of 2013 saw approximately $48 billion of net new assets coming on the market. Remarkably, the total value of Deals in Play in Q3 2013 nearly tripled over 2009 to $46 billion, in less than four years.
Business
This categorization comes from value chain concepts, even before formal development of Value Chain Management.
- Drilling Contractor Company
A company that owns and operates drilling rigs that are contracted by an operator to drill wells. Examples include Patterson UTI, Trans-ocean, Nabors, Independence Contract Drilling and Cactus.
- Integrated Oil & Gas Company:[6]
A company that has upstream as well as downstream operations. Examples include
- Independent Oil & Gas Company:[6]
A company that has either upstream or downstream operations, but not both. Examples include Anadarko Petroleum, Sunoco, Phillips 66, ConocoPhillips and Murphy Oil.
- Oil Service Company:[6]
A company that provides products and/or services to the oil and gas industry. Usually a combination of labor, equipment, and/or other support services. Examples include Schlumberger, Halliburton, Saipem and Baker Hughes.
- Oil Equipment Manufacturer:[6]
A company that specializes in the sale and distribution of equipment to the oil and gas industry. Examples include Siemens, Schneider Electric and ABB.
- Security
Many major security companies take part in securing the industry.[7]
Upstream in ISO
ISO 14224 defines "Upstream" in its definition section as:
3.98 upstream[8]
business category of the petroleum industry involving exploration and production.
- Example: Offshore oil/gas production facilities, drilling rigs, intervention vessel.
See also
- Coal bed methane
- Downstream (petroleum industry)
- Extraction of petroleum
- Gas field
- Hydrocarbon exploration
- List of oil exploration and production companies
- Midstream
- Natural Gas
- Natural gas condensate
- Natural-gas processing
- Petroleum
- Oil production plant
- Oil refinery
- Oil well
References
- ^ Upstream, midstream & downstream Archived 2014-01-07 at the Wayback Machine
- ^ Industry Overview Archived 2017-05-08 at the Wayback Machine from the website of the Petroleum Services Association of Canada (PSAC)
- ^ Coalbed Methane Basic Information Archived 2012-12-05 at the Wayback Machine
- ^ "Oil and Gas M&A; Values Reach Record $254 Billion in 2012". Archived from the original on 2013-11-05. Retrieved 2013-11-05.
- ^ "$135 Billion Worth Oil and Gas Assets on the Market". Archived from the original on 2013-11-05. Retrieved 2013-11-05.
- ^ a b c d American Petroleum Institute Archived 2011-11-26 at the Wayback Machine Definition Of Upstream Company and description
- ^ "Eyal Mesika - Security Issues in the Upstream Oil Industry - OilVoice". www.oilvoice.com. Archived from the original on 2017-04-20. Retrieved 2017-04-20.
- ^ ISO 14224