Deepwater GoM production lower in 2012, unplanned downtime expenses higher

Offshore staff

HOUSTON – Total 2011 oil and gas production from the Gulf of Mexico fell as result of the Macondo tragedy. Deepwater GoM oil production in 2012 remained stable, but at volumes lower than before the incident, says the most recent edition of the Gulf of Mexico Deepwater Improving Field Performance study by Ziff Energy group.

Also, the study says gas production remained down, at 2 bcf/d, which is half that of the 2003/2004 peak.

The average operating cost in dollars/boe for deepwater GoM production is up 45% from 2010, but at less than $5/boe opex the oil netbacks are attractive.

The study indicates a range of uptime performance across deepwater operations, and accounts for deferred production in 2012 from planned and unplanned downtime. The value of unplanned deferred production was almost twice that of the total opex of those same assets, $1.7 billion for unplanned deferment costs versus $900 million for total opex.

7/15/2013

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...