Marginal production in the Gulf of Mexico – II. Model results

In the second part of this two-part article on marginal production in the Gulf of Mexico, we estimate the number of committed assets in water depth less than 1000 ft that are expected to be marginal over a 60-year time horizon. We compute the expected quantity and value of the production and gross revenue streams of the gulf’s committed asset inventory circa. January 2007 using a probabilistic model framework. Cumulative hydrocarbon production from the producing inventory is estimated to be 1056 MMbbl oil and 13.3 Tcf gas. Marginal production from the committed asset inventory is expected to contribute 4.1% of total oil production and 5.4% of gas production. A meta-evaluation procedure is adapted to present the results of sensitivity analysis. Model results are discussed along with a description of the model framework and limitations of the analysis.