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Economic Importance of Maritime to Oil

Dreg Media Team 0

The economic importance of oil transportation by sea to global maritime trade cannot be over-emphasized.

Imagine if producers or traders have to transport ten million barrels of petroleum by road? That would not only require several trucks but also, constitute road hazards to other road users.

Crude oil and petroleum products are usually transported in large volumes and that makes oil transportation by sea inevitable.

Also, without transportation by sea, it will be impossible to ship petroleum products from one continent to the other.

Crude oil is transported from the production site to the refineries, and then the finished products are moved in bits to the consumers.

In order to meet the global high demand for oil, it has to be moved in large quantities by sea via vessels or tankers around the globe.

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There are specific vessels for oil transportation by sea. They come in different sizes with provision for cargo and crew member’s safety.

Transporting oil by sea starts with initial agreement between oil producers and vessel owners.

This is to ensure that tankers are available for shipment of cargo to refineries or point of consumption.

The charter agreement prevents vessel owners from committing himself to other oil producers who are in need of vessels.

Safety and security standards are some of the important factors to consider when taking decision on vessel chartering.

Among others, the benefits of oil transportation by sea include:

• Cost Effectiveness
• Flexible Water Ways
• Large Capacities
• Multiple Barges or tankers Available

Disadvantages of Oil Transportation by Sea

• Longer Delivery Time
• Bad Weather
• Difficult to monitor goods in transit