# Upstream Oil and Gas (Exploration & Production) Explained
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> The upstream segment of the oil and gas industry is exploration and production (E&P) — finding oil and gas and bringing it to the surface. What upstream includes, the lifecycle of a well, how it differs from midstream and downstream, and why upstream is where a mineral owner's royalties come from.

**URL:** https://www.buckheadenergy.com/upstream-oil-and-gas
**Source:** Buckhead Energy (https://www.buckheadenergy.com/)
**Generated:** 2026-08-16 (heuristic; server-side extraction)

## Answer
Upstream oil and gas — also called exploration and production, or "E&P" — is the segment of the industry that finds oil and gas underground and brings it to the surface: leasing acreage, exploring, drilling wells, completing them, and producing the hydrocarbons. It is the first of the industry's three segments (upstream, midstream, downstream), and it is where a mineral owner's royalties are generated. Frequently asked questions What does upstream mean in oil and gas? Upstream is the exploration-and-production (E&P) segment: finding oil and gas underground and bringing it to the surface through leasing, exploration, drilling, completion, and production. It is the first of the industry's three segments — upstream, midstream, downstream — and where royalties are generated. What is the difference between upstream, midstream, and downstream? Upstream finds and produces oil and gas (the wells). Midstream gathers, processes, transports, and stores it (pipelines, plants, storage). Downstream refines it into finished products like gasoline and sells them (refineries and marketing). A mineral owner's royalty is an upstream revenue stream. Are mineral royalties part of the upstream segment? Yes. A royalty is a share of oil and gas production at or near the wellhead, so it is fundamentally an upstream revenue stream. The operators who lease your minerals and pay your royalty are upstream (E&P) companies, and upstream fundamentals — prices, well productivity, decline, and drilling inventory — drive what your interest is worth. Who are the operators in upstream oil and gas? Upstream operators (or E&P companies) are the companies that drill and produce wells, ranging from small independents to large publicly traded producers. The "operator of record" on a well is the company responsible for it — and for a mineral owner, that operator's capital, competence, and activity level directly affect royalty income and value.

## Page Outline
- Upstream Oil and Gas: Exploration and Production
  - What upstream oil and gas means
  - What the upstream segment includes
  - How upstream differs from midstream and downstream
  - Conventional vs. unconventional, independents vs. majors
  - Why upstream matters to mineral owners
  - Related reading
  - Frequently asked questions
  - Ready to Sell Your Mineral Rights?

## Related Pages
- [Midstream Oil and Gas](https://www.buckheadenergy.com/midstream-oil-and-gas)
- [Oil & Gas Operators Directory](https://www.buckheadenergy.com/operators)
- [Track Operator Activity Near You](https://www.buckheadenergy.com/resources/whos-drilling-near-you-track-operator-activity)
- [Oil & Gas Encyclopedia — all terms](https://www.buckheadenergy.com/learn)

## About Buckhead Energy
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