FPSO (Floating Production Storage and Offloading)

AAA

DEFINITION of 'FPSO (Floating Production Storage and Offloading)'

Acronym for Floating Production Storage and Offloading. FPSO is a floating vessel located near an oil platform, where oil is processed and stored until it can be transferred to a tanker for transporting. FPSOs can be converted former supertankers or can be purpose-built. Such a vessel used for natural gas is known as a FLNG, for Floating Liquefied Natural Gas.

INVESTOPEDIA EXPLAINS 'FPSO (Floating Production Storage and Offloading)'

FPSOs are useful in newly established offshore oil regions where there is no pipeline infrastructure in place, or in remote locations where building a pipeline is cost-prohibitive. The use of FPSOs means that a tanker needn't sit idle while a production facility produces enough oil to fill it. Also, the advantage of FPSOs over pipelines is that once an oil field has been exhausted, the vessel can be moved to another location. Today, there are about 200 such vessels operating worldwide. (For more on this topic, see: A Primer On Offshore Drilling)

RELATED TERMS
  1. Control Of Well Insurance

    Insurance that provides coverage to companies operating a well ...
  2. 1979 energy crisis

    The 1979 energy crisis in the U.S. was an event of widespread ...
  3. Benchmark Crude Oil

    Benchmark crude oil is crude oil that serves as a pricing reference, ...
  4. Groundwater

    Water that is found underground rather than on the surface.
  5. Non-Hydraulic Fracturing

    Fracturing rock at depth without the use of fluid pressure. Non-hydraulic ...
  6. LPG Fracturing

    Fracturing rock at depth through the use of liquefied propane. ...
Related Articles
  1. Forex Education

    A Primer On Offshore Drilling

    Learn the important ratios and terms that you'll need to know to get involved in this trading sector.
  2. Active Trading Fundamentals

    Where And How To Trade Energy Stocks

    Energy futures set a high bar to entry for individual traders and investors, redirecting exposure into sector equities and exchange-traded funds.
  3. Professionals

    Is it Safe to Invest in MLPs Again?

    The best bet right now for investors seeking to play a rebound in the price of oil may very well be ETFs that invest in energy MLPs.
  4. Options & Futures

    Forecast Of Oil Production by Country in 2015

    Supply is still ahead of demand and looks to stay ahead for most of 2015. Until production noticeably weakens, that situation is unlikely to change.
  5. Mutual Funds & ETFs

    Want to Go Long Natural Gas? Eye the UGAZ ETN

    Is UGAZ the best way to play natural gas? Maybe not.
  6. Chart Advisor

    These Oil Service Stocks Are Ready For A Move Higher

    In the oil services sector, active traders have been trying hard to establish a floor and the double bottom pattern that is appearing on the chart suggests that a short-term reversal could be ...
  7. Economics

    Oil Investments Boost Egypt's Recovery Prospects

    Major foreign oil companies have provided a big boost to the Egyptian economy by agreeing to invest around US$17 billion in the country's energy sector.
  8. Economics

    Why The Russian Economy Rises and Falls With Oil

    The Russian economy depends on profitable oil production to pay for the cost of government, prop up the ruble, and provide most of it exports revenue.
  9. Economics

    How Oil Prices Impact the U.S. Economy

    Now that the United States has increased oil production through shale oil and fracking, low oil prices can harm the U.S. oil industry and its workers.
  10. Mutual Funds & ETFs

    Take Advantage of Cheap Oil, Invest in these ETFs

    With crude oil prices at record lows, investors should consider oil ETFs over oil company stocks as ETFs more closely mirror the price of oil

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center