Deep sea wells are drilled by a moveable rig and the extracted oil and natural gas is transported by riser or undersea pipeline to a nearby production platform.
the oil & gas industry is betting its future on deep water drilling.
Subsea systems, used at depths of 7,000 feet or more, don’t drill; they extract and transport the oil or gas.
Unlike traditional shallow water drilling, subsea systems actually process oil & gas on the sea floor.
These systems can separate unwanted elements from the oil & gas right on the seafloor: remove or re-inject water into wells, boost well fluids, remove sand and sediment, separate gas & liquid.
These are all activities that USED to have to happen above water which made deep-sea processing so expensive.
Basically subsea systems cut out an entire layer of traditional production simply by doing everything down on the seafloor.
That translates into lower production costs so it saves money and increases the profit margin on each well.
PLUS; subsea production also allows you to use a single platform to service multiple wells. In other words, it saves money while increasing production - a double winner for the industry.
So it’s no wonder the industry is looking to expand from $27 billion a year investment into subsea processing to $130 billion in 2020.
Source: Oil Price.com