Exploration And Production (E&P)
Definition - What does Exploration And Production (E&P) mean?
Exploration and Production is the process that includes searching and extracting oil and natural gas under water or underground. It is generally known as Upstream Process. This sector of production process is concerned with the finding and extraction of raw materials and has nothing to do with the processing of those materials. This stage may also manifest itself as a supplier that provides raw materials to the manufacturers that finally process them.
Petropedia explains Exploration And Production (E&P)
Exploration and Production is the stage of production process in which the searching and extracting of raw materials takes place. The first step in this stage is to locate the underground or underwater oil reserves by conducting geological or geophysical surveys. After the location is determined an exploratory well is drilled with the help of oil rigs. In addition to finding and extraction of raw materials, this process also includes bringing oil and gas to the surface and gathering or storing them for a short duration. The raw materials are then handed over to the manufacturers for processing.