Deepwater GoM production lower in 2012, unplanned downtime expenses higher

Total 2011 oil and gas production from the Gulf of Mexico fell as result of the Macondo tragedy.

Offshore staff

HOUSTON –Total 2011 oil and gas production from the Gulf of Mexico fell as result of the Macondo tragedy. Deepwater GoM oil production in 2012 remained stable, but at volumes lower than before the incident, says the most recent edition of the Gulf of Mexico Deepwater Improving Field Performance study by Ziff Energy group.

Also, the study says gas production remained down, at 2 bcf/d, which is half that of the 2003/2004 peak.

The average operating cost in dollars/boe for deepwater GoM production is up 45% from 2010, but at less than $5/boe opex the oil netbacks are attractive.

The study indicates a range of uptime performance across deepwater operations, and accounts for deferred production in 2012 from planned and unplanned downtime. The value of unplanned deferred production was almost twice that of the total opex of those same assets, $1.7 billion for unplanned deferment costs versus $900 million for total opex.

7/15/2013

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