The global oil industry serves the most vital sector in this driving modern civilization. It is one of the largest industries in the world since it is one of the stable needs in human life. Oil gives humans many benefits in their life. Ranging from powering vehicles and generating electricity, manufacturing important products and other essential products. Oil plays its important role as an indispensable resource.
There are parts of this industry playing the most crucial role, namely transportation of crude oil and its derivatives to many parts of this world. In this part, there is a vital role of oil tankers. By operating these massive vessels, the industry ensures the lifeline of the oil supply chain, the efficiency of petroleum distribution starting from production sites to refineries and finally to consumers.
Oil Tanker Description
Oil tankers are massive vessels with its special design in order to carry vast quantities of liquid cargo, especially crude oil or other refined petroleum products. They are two main categories of these ships, namely crude tankers and product tankers.
Crude tankers function to transport unrefined oil from extraction sites, like offshore drilling points or oil terminals, to go to the production sites. While product tankers have different functions namely to carry refined products such as gasoline, diesel, jet fuel, and lubricating oil to their distribution sites or ports in global areas.
Based on their size, there are various types of oil tankers. There are three most familiar, namely Aframax, Suezmax, and Very Large Crude Carriers (VLCCs). The largest ship is Ultra Large Crude Carriers (ULCCs). It has the capability to carry more than 4 million barrels of oil. These ships combine some aspects of the global production and distribution including strength, stability, and capacity to global transportation in safe and efficient bases.
The Vital Role in Global Oil Transportation
Many people realize the vital role of oil tankers in human life. These vessels currently transport approximately 60% of the global oil supply in the world. People certainly need these vessels since there is no other proper and credible global oil transportation, for example pipelines or other transportation methods. Certainly, oil tankers are the only method of meeting global oil demand.
By using oil tankers, it is possible to transport oil from any areas with abundant resources such as the Middle East, West Africa, and South America. Then, people in high-demand areas such as Asia, Europe, and North America can gain and consume these oil products.
Their existence enables the connection of producing countries and consuming nations. Their global transportation ensures some vital industries, transportation systems, and households to have a steady supply of energy.
Moreover, oil tankers serve flexibility and cost efficiency in the oil trade. When people build pipelines as fixed infrastructure, they have to spend more money and the pipelines have fixed routes. But, people can make new or other oil tanker routes based on market demand or geopolitical conditions. So, oil traders and companies can utilize this ability to quickly adapt to any changes in global prices, supply disruptions, or political instability.
Then, we can say that oil tankers are not just transportation tools. They serve strategic assets. They represent national strength and independence in controlling exports, for oil-exporting countries. Meanwhile, for importing nations, good operation of oil tankers can represent their energy security maintenance and economic stability realization.
Oil tankers also play a vital role in global trade economics. They also have influences on political conditions of a country. Oil tanker rate fluctuation is based on some issues such as their supply, demand, and global conditions. For some conditions such as geopolitical conflicts or disruptions in major shipping routes, tanker rates may often surge. This reflects the crucial role of these vessels in energy flow maintenance.
When any crisis comes, companies may utilize oil tankers as floating storage units. When oil prices decrease or demand drop, companies may sometimes store crude oil on tankers at sea and wait until better market conditions. People may find such conditions for example during the COVID-19 pandemic. At that time, global oil demand fell sharply and there were full land-based storage facilities.
Currently, the world tries to have and find cleaner and renewable energy sources. This makes the oil industry evolve. In such conditions, experts still agree with the use of oil as an essential part of global energy supply. This also means that consequently oil tankers still serve its vital role in meeting global energy needs.
Oil industry actors may likely focus on sustainability and digital innovation. They can design new-generation oil tankers with some advantages such as energy efficient engines, emission reduction, and alternative fuel use such as liquefied natural gas (LNG) or methanol.
Oil tankers certainly have a vital role in the oil industry. Their work ensures global economic stability and energy security.