Postcards: The Upstream

It's good.

Dear Fellow Investor:

Energy's upstream portion of the supply chain consists of the exploration and production (E&P) of crude oil and natural gas.

But let’s go further.

It’s a very easy place to navigate if you follow how money flows in and out of the sector.

People think high-risk and high-investment ventures mark this segment.

It’s not.

We just follow the flow. Easy peasy.

Let’s go.

Oil is Fun

The oil and gas industry's value chain (supply chain) goes like this.

The upstream (E&P), midstream (transportation and storage), and downstream (refining and sale) activities.

The sector starts with exploration, where cutting-edge geological and geophysical technologies are employed to identify subsurface hydrocarbon deposits.

Techniques such as seismic surveys and satellite data analysis are crucial in mapping potential reserves.

The development follows successful exploration, focusing on designing and constructing the infrastructure required for hydrocarbon extraction. This phase can vary significa…