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The upstream oil and gas industry includes all the activity that happens in the field, such as:
- Identifying prospects
- Acquiring land and mineral rights
- Completing environmental studies
- Conducting public involvement
- Shooting seismic surveys
- Engineering planning
- Drilling and servicing wells
- Cementing, perforating and fracturing wells
- Manufacturing and selling tools, supplies, drilling fluids and equipment
- Trucking
- Testing well production
- Producing crude oil (by pumping) and natural gas (with compression)
- Constructing, coating and inspecting pipe
- Mining oil sands
If you live near “the oilpatch”, you may have seen some upstream activity yourself!
The Canadian upstream petroleum industry has attained an international reputation for excellence in many areas including:
- High-tech exploration and production methods
- Cold-climate operations
- Development of oil sands, heavy oil and sour gas
- Gas processing, sulphur extraction and heavy oil upgrading
- Construction and operation of pipelines
- Specialized controls and computer applications
- Services, equipment and training for environmental protection and safety
Upstream Industry Sectors
Thousands of companies operate in the upstream oil and gas industry in Canada. Because Alberta accounts for more than 80% of Canada's oil and gas production, many upstream businesses are based in Alberta and most have their head offices in Calgary.
There are four main upstream industry sectors:
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