How Fuel is Produced

While the global demand for crude oil continues to rise, supplies remain relatively constrained. Oil companies explore the world searching for new sources of oil, which are often located in areas that are increasingly challenging to develop, such as the deep water or oil sands.

 
Supply And Demand - graph of crude oil pricing history.

Production Supply Chain

Potential new energy sources are carefully researched, mapped and tested, using seismic technology to survey the earth below the surface. Computer-generated three-dimensional imaging helps scientists identify potential new sources of oil and natural gas located miles beneath the surface of the earth.

When a new source of oil or natural gas is located, and determined to be commercially viable, scientists work with engineers to plan the safest, most efficient path to tap the source. Elaborate production facilities must be constructed to house the drilling apparatus.

Deepwater locations are home to some of the world's largest free-standing structures that, on dry land, would dwarf structures like the Empire State Building and Eiffel Tower. These gigantic structures stand thousands of feet above the seafloor, enabling producers to drill miles into the earth to reach the energy source.

New drilling techniques enable wells to be drilled in previously inaccessible locations and allow multiple energy sources to be tapped from a single well.

These modern innovations not only allow the industry to be more efficient in producing crude oil and natural gas but also reduce the environmental impact on the surrounding area.

The produced crude is then shipped by tanker ship or pipeline to refineries, which, in some cases, are halfway across the globe. The Middle East is the world's largest oil-producing region, followed by Russia and the United States.