What's That Got to do With the Price of Oil?
Heating your home, travelling to work, choosing what to have for lunch. What do these things, along with almost any other aspect of modern life that you care to mention, have in common? The answer is that they are all directly affected by the price of oil, from which is derived the petroleum that feeds the world’ ever-growing hunger for energy.
Oil prices have been particularly low recently, affecting budgeting decisions on all scales from domestic to industrial - this has caused many important oil, LNG and shale projects to be postponed or even cancelled altogether. The news for the oil market is, however, definitely showing signs of improvement as the oil price starts to climb once again, a climb that is predicted to continue and enable such crucial projects - including the building and optimisation of crude oil extraction, refinement, storage and transport facilities - to recommence.
Where does oil come from?
It isn’t quite certain but one major theory suggests it is a fossil fuel - the remains of dead animals and plants from hundreds of millions of years ago. Another idea - known as the abiotic theory - states that oil is found near the core of the earth, from where it flows to its current position beneath the sea bed.
Where is it found?
All of the Earth’s continents have some oil, though it is far from evenly distributed. Australia, for instance, has very small reserves of oil whereas Saudi Arabia, the world leader in terms of oil possession, is estimated to hold over 250 BILLION barrels. The Middle East is the richest in oil, possessing over 55% of all the resources available on the planet (1 barrel = 42 gallons). Altogether, it is estimated that there are around 1.3 TRILLION barrels of oil on Earth, the largest reservoirs being located in:
- Canada
- Venezuela
- Indonesia
- Nigeria
- Mexico
- Libya
- Brazil
- China
Oil extraction and refining
Once extracted, refining of the oil must take place to make it usable. A relatively simple process yet one that is essential in order to create the various products we need, refining involves boiling crude oil and collecting the vapour, which is then distilled. Distillation temperature dictates what type of product will be formed, from gasoline to asphalt.
The vast, complex structures and machinery required for extracting and refining crude oil utilise extremes of heat and cold and so metal jacketing of many various types (along with stainless steel banding) is an important component in building oil plants, rigs and refineries. Now that such projects are becoming financially viable and recommencing, key decision-makers are looking out ever more keenly for a supplier where quality is absolutely guaranteed but also where cost-effectiveness is proven. This is where BS Stainless, with our brand new, unique metal jacketing and acoustic barrier manufacturing facility, step swiftly and surely up to the mark.
A long-established, successful UK company, BS Stainless have not only survived but have thrived throughout the changing face of the worldwide steel, oil and gas industries. We have continued to push forward with investment so that we can always provide the products, service and support our customers need and now is the perfect time to take advantage of our superlative skills, knowledge and equipment as oil prices become more stable and encourage essential growth.
Ready to find out more about how our 100% in-house bespoke metal jacketing and acoustic barrier fabrication service can make your budget-sheet a whole lot easier to manage? Call us NOW - our experts are ready to advise...