Decommissioning activity forecast high for Gulf of Mexico

Mark J Kaiser Center for Energy Studies Louisiana State University Baton Rouge A midyear update on decommissioning activity in the Outer Continental Shelf of the Gulf of Mexico provides early evidence that 2011 will have a record number of well abandonments and above average number of structure removals. For the first 6 months of 2011, the petroleum industry abandoned 671 wells and removed 62 structures from the OCS. If current trends persist, we expect the abandonment of 1,200-1,500 wells and removal of 220-280 structures by yearend. Decommissioning in the OCS has accelerated in recent years in response to notice to lessees and operators (NTL 2010-G05) requirements (see box on next page)...

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