Upstream (petroleum industry)

The upstream industry has traditionally experienced the highest number of Mergers, Acquisitions (M&A) and Divestitures. M&A activity for upstream oil and gas deals in 2012 totaled $254 billion in 679 deals. A large chunk of this M&A, 33% in 2012, was driven by the unconventional/shale boom especially in the US followed by Russia and then Canada.

The aggregate value of upstream E&P assets available for sale (Deals in Play) reached a record-high of $135 billion in Q3 2013. The value of Deals in Play doubled from $46 billion in 2009 to $90 billion in 2010. With ongoing M&A activity, the level remained almost the same, reaching $85 billion in December 2012. However, the first half of 2013 saw approximately $48 billion of net new assets coming on the market. Remarkably, the total value of Deals in Play in Q3 2013 nearly tripled over 2009 to $46 billion, in less than four years.

Business

This categorization comes from value chain concepts, even before formal development of Value Chain Management.

• Drilling Contractor Company

A company that owns and operates drilling rigs that are contracted by an operator to drill wells. Examples include Patterson UTI, Trans-ocean, Nabors, Independence Contract Drilling and Cactus.

• Integrated Oil & Gas Company:

A company that has upstream as well as downstream operations. Examples include Saudi Aramco, ExxonMobil, BP, Shell, ChevronTexaco and SOCAR.

• Independent Oil & Gas Company:

A company that has either upstream or downstream operations, but not both. Examples include Anadarko Petroleum, Sunoco, Phillips 66, ConocoPhillips and Murphy Oil.

• Oil Service Company:

A company that provides products and/or services to the oil and gas industry. Usually a combination of labor, equipment, and/or other support services. Examples include Schlumberger, Halliburton, Saipem and Baker Hughes.

• Oil Equipment Manufacturer:

A company that specializes in the sale and distribution of equipment to the oil and gas industry. Examples include Siemens, Schneider Electric and ABB.

• Security

Many major security companies take part in securing the industry.