Extraction and transport

The costs of oil and natural gas fields in production vary significantly at this time. Extracting oil and natural gasses on land (onshore) is least expensive. It is significantly more expensive to perform extraction in deep water from platforms (offshore) and in Arctic conditions. Crude oil is transported from oil fields to shipping ports or refineries around the world via special pipelines. It is also easiest to transport natural gas in pipelines under high pressure. The investment costs for pipelines are large in comparison to other transport systems, which makes one condition for profitability that the capacity of facilities is built for large volumes and is utilised in full. Pipelines are primarily built around densely populated areas where the demand for oil and natural gas is high or to crude oil terminals where the oil is shipped to the global market.

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