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(EST-809) Using Monte Carlo Analysis to Estimate Remediation Costs for Contaminated Oilfield Sites

Primary Author: Mr Randy D Horsak 3TM Consulting, LLC

Audience Focus: Basic
Application Type: Experience-Based
Venue: 2012 AACE International Annual Meeting, San Antonio, TX, USA

Abstract: Monte Carlo analytical methods may be used to prepare cost estimates for the remediation and restoration of contaminated oilfield sites. Such methods may be superior to the use of conventional deterministic cost models alone since site characterization studies for contaminated oilfield properties are seldom comprehensive efforts, resulting in a whole host of unknown values for many parameters which drive the ultimate cost of remediation and restoration. Monte Carlo analysis helps the remediation engineer to address statistically the wide range of parametric values, such as quantities, unit rates, duration of groundwater remediation efforts, cost of money, contingency, and similar factors.