It is important for any oil and gas business to understand the phases of oil and gas production and the industries associated with each. The 3 stages of oil and gas production refer to upstream, midstream, and downstream oil and gas.
Upstream oil and gas businesses explore potential reservoirs and extract the raw materials from them. If a site does not have enough resources for drilling, it is abandoned. Midstream oil and gas companies process the materials that upstream businesses extract, removing some amount of impurities.
The processed raw materials are transported to oil refineries and processing plants, where downstream businesses create finished products from natural gas and oil. Even though different businesses are responsible for different things, each stage of oil and gas production depends on the previous stage.