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

^*Corresponding author for this work

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	Energy, COVID and Climate Change
Subtitle of host publication	1st IEAA Online Conference
Publisher	International Association for Energy Economics
Number of pages	13
Publication status	Published - 9 Jun 2021
Event	The 1st IAEE Online Conference - Online Event Duration: 7 Jun 2021 → 9 Jun 2021 https://iaee2021online.org/

Publication series

Name	IAEE Conference Proceedings
Publisher	International Association for Energy Economics (IAEE)
ISSN (Electronic)	2707-6075

Conference

Conference	The 1st IAEE Online Conference
Period	7/06/21 → 9/06/21
Internet address	https://iaee2021online.org/

Funding

This research project is funded by the OGTC and the University of Aberdeen, through their partnership in the UK National Decommissioning Centre

Funders
Net Zero Technology Centre
University of Aberdeen

Access to Document

https://www.iaee.org/proceedings/article/17044Licence: Unspecified

Cite this

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 Energy, COVID and Climate Change : 1st IEAA Online Conference (IAEE Conference Proceedings). International Association for Energy Economics. 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 (Corresponding Author); Kemp, Alexander; Abdul-Salam, Yakubu et al.
Energy, COVID and Climate Change : 1st IEAA Online Conference. International Association for Energy Economics, 2021. (IAEE Conference Proceedings).

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

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 Energy, COVID and Climate Change : 1st IEAA Online Conference. IAEE Conference Proceedings, International Association for Energy Economics, The 1st IAEE Online Conference , 7/06/21. <https://www.iaee.org/proceedings/article/17044>

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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

Abstract

Publication series

Conference

Funding

Access to Document

Other files and links

Fingerprint

National Decommissioning Centre

Cite this

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

Abstract

Publication series

Conference

Funding

Access to Document

Other files and links

Fingerprint

Equipment

National Decommissioning Centre

Cite this