In extreme weather, damage to offshore facilities is unavoidable and can take many forms. To better understand the scope of weather risk and catastrophic loss in the Gulf of Mexico, and the factors that impact the redevelopment decisions of operators, the value of lost production associated with the 2004 to 2005 hurricane seasons ist quantified under various price and model scenarios. It is estimated that the value of lost production from the 2004 to 2005 hurricane seasons range between 1.3 billions USD to 4.5 billions USD, depending upon the scenario assumptions employed. For a future average oil and gas price of 100 USD/bbl and 10 USD/Mcf, the total lost production is estimated to be 3.7 billion USD. A sensitivity analysis was performed, the maximum redevelopment cost per structure is described that will yield a specific rate of return, and the limitation of modeling is discussed.
Modeling Gulf of Mexico lost production - 3. Value of production losses tallied for 2004-05 storms
Oil and Gas Journal ; 106 , 27 ; 32-36
2008
5 Seiten, 4 Bilder, 6 Tabellen
Article (Journal)
English