40 



Figure 5. — Artist's impression of offshore oilfield development showing under- 

 water production, separation, and storage systems. Photo courtesy of British 

 Petroleum Company, Ltd. {1969). 



operations, and oifer a potential to perform at virtually unlimited 

 depths. It is estimated that technological capabilities for production 

 will be achieved within five years to the same depths of 1,300 or 1,500 

 feet already within the capabilities of exploration drilling. Even before 

 the middle of this decade it is expected that the Glomar Challenger will 

 be able to obtain a seabed core 5,000 feet long in 30,000 of water. 



Beyond the mid-seventies and toward the end of this decade, a total 

 of 500 offshore drilling rigs are expected to be in operation around the 

 world. Technology will have reached the point at which the water 

 depth is no longer the determining factor. Factors of economic and 

 political feasibility will then play the decisive role in formiilating 

 policy for offshore exploration and exploitation. 



SUPPLY AND DEMAND 



The "free world" consumption of liquid petroleum for 1969 totaled 

 37,192,000 barrels per day (b/d), representing an increase in demand 

 by 8.4 per cent over the previous year.^* During the first nine months 

 of 1970 it exceeded 40 million barrels per day (mb/d) , a growth of 

 more than 9 per cent. For the United States the demand for oil re- 

 corded a 5 per cent increase ; for the rest of the "free world" the demand 

 growth was almost 12 per cent.«^ Projections for the 1980's indicate 

 that, at an average rate of growth of 7 per cent annually, world con- 



«* Richard C. Sparling. Norma J. Anderson, and John G. Winger, "Capital Investment 

 of the World Petroleum Industry — 1969," (The Chase Manhattan Bank, December 1970), 

 pages 2, 19. 



86 John D. Emerson. "The Petroleum Situation in October 1970," Energy Division, The 

 Chase Manhattan Bank (November 30, 1970), pages 2-3. 



