The Basics:

Crude Oil - A naturally occurring, unrefined liquid mixture of hydrocarbons found underground

Natural Gas - Primarily Methane, Gaseous form of HydroCarbos

How to invest in Oil & Nat Gas - via derivates market (direct) or via Cos. that work in Up/Mid or downstream (indirect)

What is Upstream/Midsteam and downstream?

Let’s understand the Value Chain - process of finding, drilling, extracting, refining, and distributing the commodity

Upstream:

This involves the exploration and production (E&P) of crude oil and natural gas. Activities include:

• Exploration: Searching for potential underground or underwater reservoirs using geological surveys, seismic imaging, and drilling exploratory wells.
• Drilling and Extraction: Drilling wells (onshore or offshore) to access the reservoirs. Modern techniques include horizontal drilling and hydraulic fracturing ("fracking") to enhance production.
• Production: Bringing the raw oil and gas to the surface. This often involves initial treatment to separate water and other impurities.