Oil is one of the essential resources that human civilization requires to survive in its current form. Oil discovery has led to massive wealth and prosperity for many nations and uplifted technology and transportation throughout the world. While fracking and oil exploration is a controversial topic, it’s indisputable that oil and oil exploration have left an indelible print in world history.
Here are a few things you should know if you’re interested in oil exploration:
The Oil Industry is Massive
The oil industry is genuinely huge. Estimates indicate that millions and millions of miles of oil pipelines could stretch from the earth to the moon. The oil industry dominates many modern industries. For instance, about 40% of all seaborne cargo is oil, meaning there is more oil in the ocean than fish.
A byproduct of this is that the industry is practically invulnerable, as there is no way to disrupt the flow of oil.
Although many oil companies can be found in the Fortune 500, oil companies don’t make that much money. Sure, in absolute terms, they generate a lot of revenue just because the organizations are so large. However, the profit margins of oil companies are quite low, around 8–10% annually.
This is because crude oil is so widely traded and competitive. International bodies monitor the global oil price, and thus achieving high margins becomes virtually impossible. However, profit in the oil industry is almost guaranteed if you produce as much oil as you can below the market price.
Oil is (Still) the Future
Although many environmental activists bemoan the influence of oil, there is no alternative in the foreseeable future. Oil powers almost all of the transportation industry and generates around a sixth of the world’s GDP.
Without oil, you wouldn’t be able to travel around, operate a military, or run any form of a stable economy. In other words, without oil, the modern world as we know it will not exist. Oil exploration and extraction are sure to be important in the decades ahead as the world becomes increasingly interconnected.
Are you interested in the oil & gas industry? Proper drilling rig instrumentation is an essential part of oil exploration and extraction. At Contact Instruments, we provide high-quality products like electronic gauges, weight indicator systems, and trash pump parts. With over 90 years of experience, we’re well-equipped to handle your needs. Contact us for more information.