The US Gulf of Mexico is one of the largest and most prolific offshore hydrocarbon basins in the world with thousands of structures installed in the region and tens of thousands of wells drilled. Over the past decade, a significant number of structures in shallow water have been decommissioned, as operators can no longer kick the decommissioning can down the road. This has opened up new markets and additional regulatory oversight with far-reaching implications. This book describes future decommissioning trends and issues and provides guidance for operator budgeting, regulatory oversight, and service sector companies interested in participating in the field.
Decommissioning Forecasting and Operating Cost Estimation is the first of its kind textbook to develop models to forecast platform decommissioning in the Gulf of Mexico and to better understand the dynamics of offshore production cost. The book bridges the gap between modeling and technical knowledge to provide insight into the sector. Topics are presented in five parts covering fundamentals, structure inventories and well trends, decommissioning modeling, critical infrastructure issues, and operating cost estimation. Factor models and activity-based cost models in operating cost estimation conclude the discussion.
Decommissioning Forecasting and Operating Cost Estimation helps oil and gas professionals navigate through this complex and challenging field providing an invaluable resource for academics, researchers, and professionals. The book will also serve government regulators, energy and environmental engineers, offshore managers, financial analyst, and others interested in this fascinating and dynamic industry.
Part 1. Overview 1. Production and Active Inventories 2. Structure Classification 3. Installation and Decommissioning Activity 4. Economic Limit Factors 5. Reserves and Resources Part 2. Well Trends and Structure Inventory 6. Well Trends 7. Shallow Water Structure Inventory 8. Shallow Water Economic Limit Statistics 9. Deepwater Structure Inventory Part 3. Decommissioning Forecast 10. Methodology and Parameterization 11. Two Examples 12. Shallow Water Decommissioning Forecast 13. Deepwater Decommissioning Forecast 14. Critical Infrastructure Issues Part 4. Operating Cost Review 15. Offshore Production Facilities 16. Operating Cost Characteristics 17. Financial Statements and Other Methods 18. Field Examples 19. Factor Models and Production Handling Agreements 20. Activity-Based Costing
Mark Kaiser is Marathon Professor and Director of the Research and Development Division at the Center for Energy Studies at Louisiana State University. His areas of expertise include cost estimation, decommissioning, fiscal systems, offshore infrastructure and service industries, refining, and regulatory modeling.