In part one of this article (Offshore May-June 2023), we showed how the valuation of reserves (known as the standardized measure, STM) and asset retirement obligations (AROs) for oil and gas companies were closely correlated with production.
Here in Part 2, we introduce two new unit cost metrics that normalize asset retirement obligations by production and well count, and tabulate these statistics for integrated, primarily onshore, and also primarily offshore producers.
News article on 9 August 2023 by Mark J. Kaiser from offshore-mag.com
For further reading, please visit offshore-mag.com >> New cost metrics can be used to help predict decommissioning liabilities