Abstract
Net revenue during the last year of a structure’s productive life serves as a proxy for the economic limit of production and encapsulates all the relevant cost information publicly available. By reviewing a large group of decommissioned structures, economic limits are quantified and compared using structure attributes to gain insight into shallow-water operating cost thresholds and business practices. Summary statistics are tabulated by primary production, structure type, manned status, and water depth for 3054 decommissioned structures from 1990 to 2017. The P50-adjusted gross revenue the last year of production was $1.2 million for gas structures and $627,000 for oil structures. For gas structures, P20 and P80 economic limits are $282,000 and $3.97 million, for oil structures, $135,000 and $2.01 million, respectively. Factor models distinguish the impact of individual variables and show that majors have economic limits of $820,000 per structure greater than independents holding all other factors constant.
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