Offshore Oil: Definition

Image Offshore Oil: Definition

Used in the design of fuels, plastics and many other materials, oil generates billions of euros to the operating companies. Nicknamed the black gold, it plays a very important part in the world economy because it is an essential element in the supply of energy. Perceived as an alternative to onshore oil development, offshore mining has become a key element in global oil production.

The concept of offshore exploitation

The word "offshore" is an English term meaning "beyond the coasts"; offshore oil means that it is not on land but at sea.

The concept was created a few years after the Second World War. To improve their economies, oil-rich states monopolized farms, which encouraged private companies to exploit other horizons.

Although onshore oil retains the majority of production on a global scale, offshore oil has great potential. As a proof, the scientists estimate that it will own more than 50% of the production in the coming decade, if this one is to 20% today. These are promising numbers that make the biggest in this are dream. Now, oil is the main source of energy that is being exploited at sea.

High risk exploitation

The oil is deep, which means that if the company is looking to increase production, it must move away from the coast to dig deeper. It needs more equipment such as platforms, pipeline networks, etc. The measures are very expensive, because the amounts that revolve around this type of operation are more important than those in the onshore operation.

In addition, the depth of exploitation now exceeds 1000 m, which is 5 times more than at its beginnings. This leads especially to conditions that do not facilitate the operation at all, because the temperature is close to 300 ° C and the pressure reaches 1200 or 1500 bars. These are conditions that will increase production costs. With rising production costs, increasing the share of offshore exploitation on the market can have an impact on the price of a barrel of oil.

An operation for private companies

Offshore operations had a dark period in 2010 after the Mexican oil spill caused by Deep Water Horizon. It was an incident that caused a lot of talk and questioned the offshore operation. Despite the conditions and risks of this type of operation, there are now so many private offshore oil companies. They now have the means to overcome these constraints.

While taking into account the risks involved, Tarek Bouchamaoui, an entrepreneur from Tunisia and founder of HBS International, has found a place in offshore operations. By using hundreds of people, HBS International makes a significant contribution to Tunisia's economic development. In fact, Tarek Bouchamaoui has always thought that it is very important to contribute to the development of his country.