Modelling offshore oil and gas decommissioning decision under oil price uncertainty and financial security obligations: a case study of the UKCS

Arturo Regalado; Alexander Kemp; Yakubu Abdul-Salam; Alisdair Macpherson

Modelling offshore oil and gas decommissioning decision under oil price uncertainty and financial security obligations: a case study of the UKCS

Arturo Regalado, Alexander Kemp, Yakubu Abdul-Salam, Alisdair Macpherson

Research output: Chapter in Book/Report/Conference proceeding › Published conference contribution

Abstract

Decommissioning of offshore oil and gas installations is becoming a central issue for the upstream industry in mature hydrocarbon basins such as the United Kingdom Continental Shelf (UKCS). The decision to begin decommissioning activity is determined by several economic and regulatory factors. One important challenge is the substantial amount of financial resources required. The annual average decommissioning expenditure in the UKCS is expected to be between £1.5 and £2 billion pounds during the next decade (OGUK, 2020). The Oil & Gas Authority
(OGA) estimates that the cost to decommission the full inventory of offshore installations could amount to £51 billion (OGA, 2020).

Original language	English
Title of host publication	1st The International Energy Economics Association (IAEE) Online Conference
Subtitle of host publication	Full Paper Proceedings
Pages	1-13
Publication status	Published - 1 Jul 2021

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Regalado, A., Kemp, A., Abdul-Salam, Y., & Macpherson, A. (2021). Modelling offshore oil and gas decommissioning decision under oil price uncertainty and financial security obligations: a case study of the UKCS. In 1st The International Energy Economics Association (IAEE) Online Conference : Full Paper Proceedings (pp. 1-13) https://www.iaee.org/proceedings/article/17044

Modelling offshore oil and gas decommissioning decision under oil price uncertainty and financial security obligations: a case study of the UKCS. / Regalado, Arturo; Kemp, Alexander ; Abdul-Salam, Yakubu et al.
1st The International Energy Economics Association (IAEE) Online Conference : Full Paper Proceedings. 2021. p. 1-13.

Research output: Chapter in Book/Report/Conference proceeding › Published conference contribution

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abstract = "Decommissioning of offshore oil and gas installations is becoming a central issue for the upstream industry in mature hydrocarbon basins such as the United Kingdom Continental Shelf (UKCS). The decision to begin decommissioning activity is determined by several economic and regulatory factors. One important challenge is the substantial amount of financial resources required. The annual average decommissioning expenditure in the UKCS is expected to be between £1.5 and £2 billion pounds during the next decade (OGUK, 2020). The Oil & Gas Authority(OGA) estimates that the cost to decommission the full inventory of offshore installations could amount to £51 billion (OGA, 2020).",

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Modelling offshore oil and gas decommissioning decision under oil price uncertainty and financial security obligations: a case study of the UKCS

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