Study of Gulf of Mexico operating costs, practices slated

What has been described as the first field-level comparison of operating costs and practices for Gulf of Mexico operations will get under way in first half 1998. Ziff Energy Group, Calgary, unveiled those plans not long after reporting results from a similar study conducted of Permian basin operating costs and practices (see related story, this page). The gulf study entails calls for detailed operating-cost analysis of 150 oil and gas producing fields in the Gulf of Mexico.

Jan. 12, 1998

What has been described as the first field-level comparison of operating costs and practices for Gulf of Mexico operations will get under way in first half 1998.

Ziff Energy Group, Calgary, unveiled those plans not long after reporting results from a similar study conducted of Permian basin operating costs and practices (see related story, this page).

The gulf study entails calls for detailed operating-cost analysis of 150 oil and gas producing fields in the Gulf of Mexico.

Participating producers will be able to identify individual line items on their cost statements where performance is significantly above or below average. Companies can also learn the best practices that peers are applying in similar fields to lower costs and increase production.

The Permian basin study, covering operations during 1996-97, showed that only 24% of producers increased field efficiencies. That survey also revealed that electricity and well-servicing costs could be reduced significantly to better rationalize operations.

The gulf study's scope and areas of focus will be discussed at a Jan. 14 meeting between Ziff Energy and participating companies at the Westin Canal Place, New Orleans.