Swire entered the offshore oil and gas industry at a time when the price of crude oil had risen dramatically, leading to a huge increase in offshore exploration. Industry demand for anchor handling tug supply boats - used to tow, secure and service offshore oil rigs – far outstripped supply. The company formed a joint venture supply boat company, Swire Northern Offshore, which was renamed Swire Pacific Offshore (“SPO”) in 1980, after Swire bought out its joint venture partner, Northern Offshore.