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.
Life-Cycle Stages
All oil and gas properties pass through the same life-cycle stages from discovery to depletion and are driven by strategic considerations specific to each stage. The capital expenditures associated with drilling wells, fabricating and installing infrastructure, and producing during the early years are gradually replaced by a decreasing revenue stream, higher operating costs, fewer upside opportunities, and, eventually, production that is worth less than the cost to operate and maintain the asset. The objective of this chapter is to provide a summary overview of the activities and logistical requirements involved in offshore development with special attention paid to work flows and the manner service and construction vessels are utilized. Differences in shallow water and deepwater development requirements are distinguished.
The role of forensic epidemiology in evidence-based forensic medical practice
Objectives This thesis is based on 4 papers that were all written with the same intent, which was to describe and demonstrate how epidemiologic concepts and data can serve as a basis for improved v ...