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

Arturo Regalado* (Corresponding Author), Alexander Kemp, Yakubu Abdul-Salam, Alisdair Macpherson

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingPublished 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 languageEnglish
Title of host publicationEnergy, COVID and Climate Change
Subtitle of host publication1st IEAA Online Conference
PublisherInternational Association for Energy Economics
Number of pages13
Publication statusPublished - 9 Jun 2021
EventThe 1st IAEE Online Conference - Online Event
Duration: 7 Jun 20219 Jun 2021
https://iaee2021online.org/

Publication series

NameIAEE Conference Proceedings
PublisherInternational Association for Energy Economics (IAEE)
ISSN (Electronic)2707-6075

Conference

ConferenceThe 1st IAEE Online Conference
Period7/06/219/06/21
Internet address

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