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GULF COAST ECONOMIC LIMITS—1: Economic limits estimated for US gulf coastal fields
06/07/2010
When the revenue generated from an oil and gas field is less than the cost of operation, the field is no longer considered an asset and production ceases. Capital investment may be made in an attempt to increase production or the field may be divested or abandoned.Economic limits are a common industry metric but are often considered from a conceptual perspective rather than as an object for empirical computation.The purpose of this four-part series is to compute the economic limits in Texas, Louisiana, and the Gulf of Mexico federal Outer Continental Shelf. This region contributed over half the oil and gas production in the US in 2009 and is the nation's largest oil and gas producing regi...
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