A review of onshore and offshore pipeline construction and decommissioning cost in the USA - part 2. Offshore and deepwater decommissioning cost algorithms Online publication date: Thu, 29-Jul-2021
by Mark J. Kaiser
International Journal of Oil, Gas and Coal Technology (IJOGCT), Vol. 27, No. 4, 2021
Abstract: In the second part of this two-part review on the cost to construct and decommission oil and gas pipelines in the USA, summary data of offshore pipeline construction and decommissioning cost are described, along with hypothetical pipeline decommissioning cost algorithms for the deepwater Gulf of Mexico. Similarities and differences between design and construction trade-offs are described to better understand the cost differences that arise between projects. Over long periods of time, significant temporal impacts enter cost statistics due to inflation, market conditions, regulatory and technology changes, and spatial impacts are always present due to differences in geologic conditions, infrastructure, and terrain. Most factors are unobservable and not available for evaluation, but there are many similarities in processes and infrastructure that allow normalised cost to serve as a useful first-order benchmark. [Received: May 26, 2020; Accepted: June 3, 2020]
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