WorldWide Drilling Resource

23 AUGUST 2022 WorldWide Drilling Resource® Onshore vs. Offshore Drilling in the Gas and Oil Industry Adapted from Information by TriStone Holdings Of course, the obvious difference between onshore and offshore drilling is one takes place on land, while the other is out on the waters; but these two types of gas and oil drilling differ in other ways too. Which Is More Prevalent? Onshore drilling makes up the majority of global crude oil production. This is unsurprising given how much more effort and cost must go into setting up an offshore site. Offshore production has consistently made up around 30% of annual global production for some years now, which is by no means a small percentage. This percentage ratio is expected to level out in coming years as known oil stocks diminish, and companies are forced to look to less accessible environments for production. Equipment Used: One of the main differences between onshore and offshore drilling is rig equipment; more specifically, the equipment used to support the rig. In onshore settings, the rig can be set up to support itself. It requires no anchoring to keep it at its location. Offshore drilling, on the other hand, brings a whole host of factors into play. It requires either anchoring supports linking the man-made drilling platform with the ocean bed, or a means of maintaining positioning in deeper waters where anchors are not feasible. There are many different offshore rig types to satisfy these criteria, ranging from fully anchored fixed platforms in shallower operations, to purpose-built drillships which maintain their location through dynamic positioning. Living Circumstances For Workers: Another difference is living situations. In most instances of onshore drilling, workers arrive in the morning and leave at the end of the day (or the week, at least). In contrast, offshore drilling setups are mostly isolated from the outside world. Save for relief teams coming in with new workers and supplies, these stations are self-contained for weeks on end. This means there must be a much greater emphasis on amenities for workers than there is for onshore drilling. Cost: When it comes to costs involved, many variables are at stake; not least of which is the size of the drilling project. A huge onshore operation, for instance, will invariably cost more than a tiny offshore operation. Land rigs typically cost less than their offshore counterparts. While larger onshore rigs usually cost somewhere in the tens of millions of dollars, offshore rigs can cost hundreds of millions of dollars. The flip side of this is offshore projects tend to present longer-term opportunities; the market is less volatile, at least relative to onshore drilling. Although they occupy the same industry, these two endeavors are far from identical. From the kinds of equipment used to the main resources welled, onshore and offshore drilling have as many differences as they do similarities. Photos courtesy of Schlumberger. G&O 257 Caroline Street Punxsutawney, PA 15767 800-927-0560 • 814-427-2555 Fax: 814-427-5164 SERVINGTHECONSTRUCTION INDUSTRY Serving the Drilling Industry