Upstream Definition
The term ‘upstream’ is used in a variety of different contexts, but generally refers to something that is earlier in the process or development cycle. In software development, for example, upstream refers to code that has been developed and released by a project’s original authors, while downstream refers to code that has been modified or developed by someone else.
In the context of oil and gas production, upstream refers to activities associated with exploration and production, while downstream refers to activities associated with refining and marketing.
Upstream activities are typically more capital intensive than downstream activities, and tend to be more risky. However, they can also be more profitable if successful.
