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(EST-1852) Identifying Key Cost Drivers of Well Abandonment Utilizing Regression Analysis

Primary Author: Mr John R Parson CCT CCP
Co-Author(s): Mr Adam Pieknik

Audience Focus: Intermediate
Application Type: Application
Venue: 2015 AACE International Annual Meeting, Las Vegas, NV, USA

Abstract: Offshore, rigless, oil and gas well abandonment is a rapidly growing business. In the Gulf of Mexico, hundreds of millions of dollars are spent each year, with expectations of strong future growth. Although the magnitude of this work is substantial, it represents a relatively small portion of an oil producer’s annual budget. As such, scant benchmarking and data analysis is typically performed for these operations. Because this information is vital in planning future business, the authors collected, organized, and analyzed data that spanned 5 years and included over 400 well abandonments. They uncovered the main drivers of cost and confirmed/dispelled many preconceptions about what factors truly influence cost.