Upstream and downstream refer to oil and gas production, specifically its position in the overall supply chain.
Oil and gas companies involved in ‘upstream’ operations mean they’re in the business of identifying, mining, and drilling resources such as petroleum or liquified natural gas. For such companies, their task is to locate where these minerals might be located and then engage in drilling or extracting processes to store the raw material.
Downstream companies play a role in ensuring that the raw material is delivered to the end consumer. This means they have a part in processing the material and then delivering it to places like gas pumps or aviation fuel depots. They’re also referred to as production companies.