1. Unit 4 Primary Resource Activities
Economic Geography
Unit 4
Primary Resource Activities

2. Letting go of the Ocean Floor
In 1956 the first drill ship was built allowing drilling in deeper water. These types of drill ships allowed exploration off the shores of Newfoundland.

3. Modern Drill Rigs
We will investigate 4 different types of oil rigs used to recover oil from under the ocean floor. Figure 11.4 in your book shows all four rig types.
Submersible Rigs: fixed columns ground them on the ocean floor
Jack-up Rigs: extendable legs ground them on the ocean floor
Semi-submersible Anchored rigs: are anchored above the drill site.
Semi-submersible Dynamically Positioned: use thrusters to maintain position above the drill site.

4. Submersible Rigs
Submersible rigs are normally limited to ocean depths of 20 m.
For this reason they are limited to continental shelves, relatively close to shore.
The rigs are floated as they are towed to drill site.
Once in position ballast tanks are flooded until columns rest on ocean floor.

5. Submersible Rigs
Note that a submersible is supported by COLUMNS

6. Jack-Up Rigs
Jack-up rigs are able to drill in deeper water than submersible rigs.
However, jack-up rigs are limited to a maximum ocean depth of 100 m.
The jack-up is similar to the submersible in that it rests on the ocean floor.
However its steel legs (Not columns) rest on ocean floor.

7. Jack-Up Rigs
jack-up rigs are distinguishable by high X-braced steel legs which extend above the platform.

8. Semi Submersible Anchored Rigs
Semi-Submersible Anchored rigs float on the ocean.
Because they are anchored to the ocean floor they are are limited to a maximum ocean depth of 200 meters.
The rigs are built on land which is flooded upon completion so the rig floats.
Then the rig is towed to the drill site. Water is pumped in and out of Ballast tanks to help stability along with anchor lines.
Oil is stored in pontoons until shipped on-shore

9. Semi Submersible Anchored Rigs

10. Semi Submersible-Dynamically Positioned
Semi-Submersible Dynamically Positioned rigs are able to drill outside the continental shelf. However, they are still limited to a maximum ocean depth of 2000 meters.
Like other rigs they are towed to the drill site. Water is pumped in and out of Ballast tanks to help stability but there are no anchor lines.
Note: dynamic means changing or moving. Thrusters position the rig over the drill site.
Like the Anchored rigs oil is stored in pontoons until shipped on-shore.

11. Directional Drilling
Directional Drilling is depicted in figure 11.5 on page 187 of your text. This technique allows drill companies to reduce movement from one small oil pocket to the next. It also increases the drill holes exposure to source (porous) rock.

12. Directional Drilling

13. The Hibernia case study in your book serves as a great example of a number of the topics we are looking at. 
It is not important for you to remember every fact, detail, piece of technology at Hibernia as much as it is important for you to recognize this as an example of:
Types of drill rig platforms & reasons for using them
Stages and components of oil field development

14. There are several factors that affect the profitability of oil production.
Production can not proceed unless the company has a good expectation of making a profit.
The cost of production and the price of oil are the two sides of the equation.

15. Oil Price – Cost of Production = Profit
As we have seen in lesson one the cost of production is decreasing.
Oil exploration is more accurate so less money is spent finding the oil.
Recall our discussion of seismic (sound wave) testing over the ocean.
Production platforms are more efficient. Remember also our discussion of the history of production platforms.
Directional drilling has increased contact with source rock and reduced the need for movement of production platforms.

16. The aspect of the equation that we have not looked at is OIL PRICES.
Oil prices are controlled by the markets and OPEC (Oil Producing Economic Countries) When oil prices are high we complain at the pumps but the oil companies have a greater chance of making a profit. The case study of Hibernia shows this equation well.
While production costs were decreasing the price of oil was too low to make the project profitable.