A majority of past oil exploration has heavily relied on extracting oil from land. During this extraction process, the oil well is dug deep underground, below meters of rocks, gravel and soil, far below the surface. Although much of this extraction takes place on land, often times the oil well extends as deep as the ocean floor’s level.
Investing in oil rigs, whether it is on land or on water, is a lucrative business. Onshore drilling, although easier, is more volatile of an investment because once the price of oil drops, so does the number of onshore rigs in operation. Offshore deep water oil rigs, however, are more difficult to set up, but the purchasing agreements from these oil rigs are longer, making them a more stable investment.
What Is Deepwater Drilling?
Around 71 percent of the world’s surface is covered by water. Dependence on crude oil extraction from onshore drilling covers only about 25 percent or less of the resource’s potential. Onshore drilling only has one type of oil rig, called a land rig. Investing in oil rigs in deep water drilling, however, consists of four choices:
- Drilling Barge: Smaller rig that operates in shallow waters.
- Jack-Up Rig: Oil rig that’s able to operate in up to 500 ft deep waters.
- Semi-Submersible: Oil rig that works for deep ocean excavations and is able to operate at water depths of 10,000 ft.
- Drillship: The largest offshore rig that is able to operate in waters up to 12,000 ft.
These offshore rigs excavate at different depths, creating a secure funnel between the oil well underneath the ocean floor. This enables the crude oil to be extracted and brought up to containers on the rig.
Overall, as a highly sought out commodity around the world, investing in oil rigs on land, as well as offshore, offers security in the investment.
Interested in finding out more about investing in oil rigs and deep water drilling? View Crude Funder’s website to find out more.
