What are the 3 Sectors of the Oil and Gas Industry

3 sectors of oil and gas industry

Oil and Gas is one of the major industries in India. And India is the 3rd largest consumer of crude oil in the world.  

The oil and gas industry can be divided into 3 sectors 

  • Upstream 
  • Mid-stream 
  • Downstream 


oil and gas offshore rig

The sector is all about finding, drilling and bringing up the crude oil and natural gas from beneath the earth’s crust. This can be from onshore as well as offshore. 

The activities doing the upstream are; 

  • Exploration: is the process of finding crude oil and natural gas deposits under the earth’s crust with the help of many modern technologies and equipment. 
  • Drilling:  The process of bringing up the found natural gas and crude oil to the ground from many 1000 feet below the earth’s crust. the drilling process is different on-shore and offshore drilling. This part is very expensive in the oil and gas sector 

Examples of upstream companies in India are; 

  • Oil and natural gas corporation (ONGC) 
  • Indian oil corporation limited  
  • Gujarat state petroleum corporation 
  • Reliance industries 
  • Essar oil 
  • Cairn India 


Oil Pipelines

The midstream department is dealing with the transportation, storage and processing of oil and gas. The un-refined oil and gas are transferred from the rigs to the refineries. the refineries are usually situated in completely different geographical areas than rigs. The oil is transferred using different platforms that can include pipelines, ships, trains, trucks… Also, the midstream treats the products and removes the water and other wastes in them. 

Examples of mid-stream companies in India are 

  • Indian Oil Corporation 
  • Hindustan Petroleum Corporation Limited 
  • PetroNet LNG Limited 
  • Adani Enterprises Ltd 
  • Gail Limited 


The area where the crude oil is converted into different usable industrial, commercial and residential products such as gasoline, diesel, lubricants, kerosene, jet fuel, asphalt, heating oil, LPG (liquefied petroleum gas) as well as some other types of petrochemicals. All this is done in refineries. 

Examples of downstream companies in India are 

  • Indian oil corporation limited 
  • Bharath petroleum corporation limited 
  • Hindustan petroleum corporation limited 
  • Reliance industries limited 
  • Nayara energy limited 

35.4 billion barrels of crude oil is consumed per year globally. And the total workforce is in the millions. 

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