A New Approach to Decommissioning Cost Estimation Using Settled Liability Data
Cost data in the oil and gas industry are proprietary and obtaining them is challenging; in addition, unless collected across a large and diverse sample, summary statistics are unlikely to be representative of the activity or process it is trying to inform. The purpose of this article is to apply settled liability data to infer private information on the cost of decommissioning in the Gulf of Mexico. The procedure avoids most of the traditional problems associated with cost studies but requires careful normalization and a clear understanding of the limitations of analysis. Using settled liability data from 17 public companies with operations primarily in the Gulf of Mexico, decommissioning cost is evaluated on a regional basis and by operator from 2008 to 2012. The average cost to decommission a structure between 2008 and 2012 is estimated to be $6.4 million in water depth less than 200 ft and $15.6 million in water depth greater than 200 ft. Average cost statistics are suggested as a market index for Gulf of Mexico decommissioning activity.
Quantifying Decommissioning Risk in the Deepwater Gulf of Mexico
Deepwater oil and gas structures are expensive to install and will be expensive to dismantle when the asset no longer serves a useful purpose. Deepwater structures present special risk because decommissioning expenditures are expected to cost tens to hundreds of millions of dollars to perform, and occur when the asset no longer generates revenue. An analytic framework is presented to quantify the decommissioning risk of offshore structures by comparing the value of an asset's reserves to its undiscounted asset retirement obligations. The procedure is applied to the deepwater fixed platform and compliant tower inventory in the Gulf of Mexico circa January 2013.
Watershed road network analysis with an emphasis on fire fighting management.
The aim of this study is fire hazard zoning the Chehel-Chay watershed and analysis of road network in order to fire-fighting management. Using effective factors on fire occurrence, the fire hazard ...