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The petroleum and, in general, fossil-fuel industry is usually divided into three major components: Upstream, midstream and downstream, though midstream operations are usually included in the downstream category.
The upstream oil sector is a term commonly used to refer to the searching for and the recovery and production of crude oil and natural gas. The upstream oil sector is also known as the exploration and production (E&P) sector.
The upstream sector includes the searching for potential underground or underwater oil and gas fields, drilling of exploratory wells, and subsequently operating the wells that recover and bring the crude oil and/or raw natural gas to the surface.
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