Gulf Of Mexico Decommissioning Trends And Operating Cost Report

Contract Publication NumberBOEM 2019-023  
Date of SummaryJuly 1, 2019
SubjectGulf of Mexico Decommissioning Trends and Operating Cost Estimation
Performing EntitiesEnergy Research Group, LLC
Principal InvestigatorMark Kaiser
Contracting AgencyBOEM
DescriptionReserves and resource assessments underlie all investment decisions made by oil and gas companies.  When the net revenue from production falls below operating cost for a sustained period there is no economic benefit derived and operators will eventually shut-in wells and idle structures. The study discusses the potential benefits, costs and risks associated with maintaining critical Gulf of Mexico (GOM) oil and gas infrastructure beyond its useful life.  The study conducts an in-depth look at GOM shallow and deepwater activity statistics through 2017 and provides an analytical framework to quantify costs and cost drivers in the context of operator business decisions.  The study analysis includes cost category estimates, rules-of-thumb and operating cost ranges.  A composite structure/well forecast and sensitivity cases are provided for the GOM shallow and deepwater basins.
Report
GOM Decommissioning Trends and Operating CostGulf of Mexico Decommissioning Trends and Operating Cost Estimation (May 2018)