The US Navy has come up with a radical, cost-effective idea to keep up with the latest security challenges in the troubled waters of the Pacific region. According to media reports, the country is mulling over converting its surplus oil rigs into mobile missile defence and resupply bases.

Although their feasibility and effectiveness are doubted by some, experts believe this could emerge as a cost-effective idea to enhance the USA’s naval capabilities in the wake of increased security challenges from China.

The ambitious plan was unveiled at the Sea Air Space 2024 expo in Washington DC and is led by Gibbs &amp; Cox, a Leidos company.

<h2>The idea</h2>

The plan, known as the Mobile Defence/Depot Platform (MODEP) concept, involved converting oil rigs into bases and then positioning them at strategic locations offshore.

These makeshift bases will be capable of operating on their own for a good 12 months.

These rigs would help the US Navy enhance air defence capabilities and aid strike missions.

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These platforms would be able to hold up to 100 large missile launchers and up to 512 vertical launch systems (VLS).

<h2>Strategic game changer</h2>

US officials have hailed the concept as a strategic game changer, with Heruningtyas Desi Purnamasari, an official at the US Navy, saying that such bases would substantially reduce risks and costs associated with land-based defence systems.

As per estimates, the converted bases will only cost 10 per cent of the newly-built Ballistic Missile Defence (BMD) system.

<h2>Concerns</h2>

But not everyone has lauded the idea.

Some have warned that such bases could become vulnerable military targets. They also raise concerns that these could prove to be ineffective when compared to the conventional capabilities of these semi-permanent offshore military bases.

However, overall, the project looks ambitious and reflects a broader shift in military strategy as the US adapts to new geopolitical realities and technological advancements in warfare.

(With inputs from agencies)

The US Navy has come up with a radical, cost-effective idea to keep up with the latest security challenges in the troubled waters of the Pacific region. According to media reports, the country is mulling over converting its surplus oil rigs into mobile missile defence and resupply bases.

The US Navy has come up with a radical, cost-effective idea to keep up with the latest security challenges in the troubled waters of the Pacific region. According to media reports, the country is mulling over converting its surplus oil rigs into mobile missile defence and resupply bases. Although their feasibility and effectiveness are doubted by some, experts believe this could emerge as a cost-effective idea to enhance the USA’s naval capabilities in the wake of increased security challenges from China. The ambitious plan was unveiled at the Sea Air Space 2024 expo in Washington DC and is led by Gibbs & Cox, a Leidos company. The idea The plan, known as the Mobile Defence/Depot Platform (MODEP) concept, involved converting oil rigs into bases and then positioning them at strategic locations offshore. These makeshift bases will be capable of operating on their own for a good 12 months. These rigs would help the US Navy enhance air defence capabilities and aid strike missions. Also read: US imposes sanctions on Chinese, Belarusian firms for aiding Pakistan's missile project These platforms would be able to hold up to 100 large missile launchers and up to 512 vertical launch systems (VLS). Strategic game changer US officials have hailed the concept as a strategic game changer, with Heruningtyas Desi Purnamasari, an official at the US Navy, saying that such bases would substantially reduce risks and costs associated with land-based defence systems. As per estimates, the converted bases will only cost 10 per cent of the newly-built Ballistic Missile Defence (BMD) system. Concerns But not everyone has lauded the idea. Some have warned that such bases could become vulnerable military targets. They also raise concerns that these could prove to be ineffective when compared to the conventional capabilities of these semi-permanent offshore military bases. However, overall, the project looks ambitious and reflects a broader shift in military strategy as the US adapts to new geopolitical realities and technological advancements in warfare. (With inputs from agencies)

US comes up with the radical idea of converting oil rigs into mobile missile bases to counter China

Most oil rigs around the world are temporarily idle and the&nbsp;situation could soon turn permanent.&nbsp;

Oil consumption has dropped as&nbsp;lines at fuel pumps remain&nbsp;thin amid&nbsp;travel restrictions due to the virus worldwide.

Global demand fell 30 per cent during the pandemic as oil prices touched historic lows in April. For the first time, US oil prices slipped into negative and&nbsp;there was panic in major oil-producing countries.&nbsp;So, the oil bloc got together and cut production to keep up the prices.

The move worked but it left a big hole in the income statement. Without sufficient revenue, it is becoming expensive to stay in business.

In the last quarter, Saudi Aramco's&nbsp;profit plunged over 70 per cent. Royal Dutch Shell profit was down by 80 per cent. BP's efforts to stay over the red line is failing.

British oil firm has reported a loss of $17 billion. Exxon Mobil too has turned into a loss-making entity.&nbsp;A depressed stock market has made&nbsp;fundraising difficult.

Also, companies have been trying to save&nbsp;money&nbsp;laying off staff and cutting budgets. At least one million oil and gas employees are out of work.

Many distressed oil firms&nbsp; have been shutting down rigs and refineries.

In recent weeks caps have been put on at least eight rigs in America alone. Oil refiners are permanently closing processing plants in Asia and North America.

High-cost refineries in Europe could be the next in line. Plants in Australia and New Zealand face the same fate.&nbsp;According to the IMF, Gulf oil-producing countries' fate is sealed too. Their financial wealth will be depleted in the next 15 years if non-oil revenues don't make up for the losses.

According to a case study, Marathon Petroleum is America's largest refiner by volume. It is planning to halt some operations in California and New Mexico and intends to use the larger plant as an oil-storage facility and in the future produce renewable diesel&nbsp;from industrial waste and used cooking oil.

Even before the pandemic, six oil majors - BP, Shell, Chevron, Total, Eni and Exxon were pumping billions into clean energy.

However, it was just one per cent of their combined wealth.&nbsp;BP, one of the earliest oil explorers says the pandemic has changed the industry dynamics and&nbsp;quickened the shift away from fossil fuels.&nbsp;

Most oil rigs around the world are temporarily idle and the situation could soon turn permanent. Oil consumption has dropped as lines at fuel pumps remain thin amid travel restrictions due to the virus worldwide.

Most oil rigs around the world are temporarily idle and the situation could soon turn permanent. Oil consumption has dropped as lines at fuel pumps remain thin amid travel restrictions due to the virus worldwide. Global demand fell 30 per cent during the pandemic as oil prices touched historic lows in April. For the first time, US oil prices slipped into negative and there was panic in major oil-producing countries. So, the oil bloc got together and cut production to keep up the prices. The move worked but it left a big hole in the income statement. Without sufficient revenue, it is becoming expensive to stay in business. In the last quarter, Saudi Aramco's profit plunged over 70 per cent. Royal Dutch Shell profit was down by 80 per cent. BP's efforts to stay over the red line is failing. British oil firm has reported a loss of $17 billion. Exxon Mobil too has turned into a loss-making entity. A depressed stock market has made fundraising difficult. Also, companies have been trying to save money laying off staff and cutting budgets. At least one million oil and gas employees are out of work. Many distressed oil firms have been shutting down rigs and refineries. In recent weeks caps have been put on at least eight rigs in America alone. Oil refiners are permanently closing processing plants in Asia and North America. High-cost refineries in Europe could be the next in line. Plants in Australia and New Zealand face the same fate. According to the IMF, Gulf oil-producing countries' fate is sealed too. Their financial wealth will be depleted in the next 15 years if non-oil revenues don't make up for the losses. According to a case study, Marathon Petroleum is America's largest refiner by volume. It is planning to halt some operations in California and New Mexico and intends to use the larger plant as an oil-storage facility and in the future produce renewable diesel from industrial waste and used cooking oil. Even before the pandemic, six oil majors - BP, Shell, Chevron, Total, Eni and Exxon were pumping billions into clean energy. However, it was just one per cent of their combined wealth. BP, one of the earliest oil explorers says the pandemic has changed the industry dynamics and quickened the shift away from fossil fuels.

Pandemic effect: Oil rigs face closure worldwide amid shift towards clean energy

Oil prices edged up early on Thursday, clawing back some ground after losses in the previous session.

Traders said the market was range-bound as falling crude inventories provided price support while high output was capping gains.

Brent crude futures, the international benchmark for oil prices, were at $50.43 per barrel at 0101 GMT, up 16 cents, or 0.3 per cent, from their last close.

US&nbsp;West Texas Intermediate (WTI) crude futures&nbsp;were at $46.88 a barrel, up 10 cents, or 0.2 per cent.

The slight gains followed a more than 1 per cent fall in the previous session.

Data published late on Wednesday by the Energy Information Administration (EIA) showed that commercial US&nbsp;crude oil stocks have fallen by almost 13 per cent from their peaks in March to 466.5 million barrels, well below this time last year.

&quot;If inventory declines continue at this pace, stocks will fall back below the five-year average in around two months,&quot; said William O&#39;Loughlin, investment analyst at Australia&#39;s Rivkin Securities.

&quot;The pace of the declines indicates that the OPEC production cuts are having an effect, although the current oil price suggests that the market is sceptical about the longer-term prospects for rebalancing of the oil market,&quot; he added.

ANZ bank said the market on Wednesday seemed &quot;to focus on the rise in (US) production&quot;, which jumped by 79,000 barrels per day (bpd) to 9.5 million bpd last week, its highest level since July 2015, and 12.75 per cent above the most recent low in mid-2016.

Some traders said that the soaring US&nbsp;output is eroding efforts by the Organization of the Petroleum Exporting Countries which, together with non-OPEC producers like Russia, has pledged to restrict output by 1.8 million barrels per day (bpd) between January this year and March 2018 to tighten the market and prop up prices.

Brent prices are down by almost 12 per cent since the start of the cuts in January.

Brent crude futures, the international benchmark for oil prices, were at $50.43 per barrel at 0101 GMT, up 16 cents, or 0.3 per cent, from their last close

Oil prices edged up early on Thursday, clawing back some ground after losses in the previous session. Traders said the market was range-bound as falling crude inventories provided price support while high output was capping gains. Brent crude futures, the international benchmark for oil prices, were at $50.43 per barrel at 0101 GMT, up 16 cents, or 0.3 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at $46.88 a barrel, up 10 cents, or 0.2 per cent. The slight gains followed a more than 1 per cent fall in the previous session. Data published late on Wednesday by the Energy Information Administration (EIA) showed that commercial US crude oil stocks have fallen by almost 13 per cent from their peaks in March to 466.5 million barrels, well below this time last year. "If inventory declines continue at this pace, stocks will fall back below the five-year average in around two months," said William O'Loughlin, investment analyst at Australia's Rivkin Securities. "The pace of the declines indicates that the OPEC production cuts are having an effect, although the current oil price suggests that the market is sceptical about the longer-term prospects for rebalancing of the oil market," he added. ANZ bank said the market on Wednesday seemed "to focus on the rise in (US) production", which jumped by 79,000 barrels per day (bpd) to 9.5 million bpd last week, its highest level since July 2015, and 12.75 per cent above the most recent low in mid-2016. Some traders said that the soaring US output is eroding efforts by the Organization of the Petroleum Exporting Countries which, together with non-OPEC producers like Russia, has pledged to restrict output by 1.8 million barrels per day (bpd) between January this year and March 2018 to tighten the market and prop up prices. Brent prices are down by almost 12 per cent since the start of the cuts in January.

Oil edges up on decline in crude stocks

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