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The Opportune 2023 Study has been conducted to independently calculate the OCS plugging and abandonment (P&A) liability, assess the risk such liability poses to the U.S. taxpayer, and perform a cost-benefit analysis of how the Proposed Rule would economically affect the offshore oil and gas industry (the Industry), Gulf Coast and the United States.
Why you should be cautious about using today’s higher inflation rates in your asset retirement obligation calculation. This past year, the COVID pandemic has had a significant impact on our economy. We’ve seen supply disruptions, labor shortages, and increases in commodity prices that have combined to cause inflation to reach levels we haven’t seen since the late 1970s and early 1980s.
This past year, the COVID pandemic has had a significant impact on our economy. We’ve seen supply disruptions, labor shortages, and increases in commodity prices that have combined to cause inflation to reach levels we haven’t seen since the late 1970s and early 1980s. As most companies start to close out their year-end financials, it’s important to take time to think through the impacts higher inflation can have on your asset retirement obligation (ARO).
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