Oil is one of the important natural assets of the world. It is the backbone of the global economy. Many countries have large amounts of oil stored, while many countries have to buy oil. But there are many countries in the world which have to buy it despite having storage, the reason for this is the heavy consumption of oil in that country. But in the meantime a question arises that is it cheaper to extract oil from the sea or from the land. Let us try to know the answer to this question.
Where is oil extracted cheaper?
First of all, let us tell you that about the cost of extracting oil, the cost of extracting oil is different at different places. The process of extracting oil from the land is called onshore drilling, while extracting oil from the sea is called offshore drilling. There is a big difference in the cost of both. Extracting oil from the land means onshore drilling is usually cheaper because the cost of infrastructure and equipment is less in it. Whereas offshore drilling i.e. extracting oil from the sea is quite expensive. While the cost of an onshore well is $4 million, the cost of an offshore well is $100 million.
But why is this so?
Drilling sites on land are easily accessible. Whereas drilling in the sea requires special ships, platforms and deep-water technology, which increases the cost. Apart from this, technical challenges due to weather conditions in the sea also increase the cost.
These countries have the largest oil reserves
Venezuela ranks first in oil reserves. It has oil reserves of more than 303 billion barrels. This is the world's largest oil reserve. saudi arabia is at number two, which has 267 billion barrels of oil reserves. iran comes third in terms of oil storage, which has 209 billion barrels of oil reserves. Apart from this, canada has 163 billion barrels of oil reserves. After this, Iraq, United Arab Emirates, Kuwait, russia and America also have large reserves of oil.
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