Economic Surprises of Late-Life Production
Dwayne Purvis, P.E.
Purvis Energy Advisors
Abstract:
For years, decommissioning costs were an after-thought to decision-making. They did not affect cash flows or business plans, and sometimes reserve reports did not even include them. Now, many legacy fields both within the U.S. and globally are declining to their final life stage. Even with many producing years remaining and a positive net present value, the total future cash flow can be – surprisingly – negative.
Operators may not be ready for the unexpected reality since our industry has spent too little forethought on quantifying the scope of decommissioning, estimating its costs, ensuring security for the long term, and especially preparing funds for the surprisingly early onset of those costs. Though the price boom of recent decades delayed and distracted from the inevitable, natural depletion and the outlook for declining oil demand bring the issue to front. Now the industry finds itself with insufficient nomenclature, knowledge, or practices to handle decommissioning well.
This presentation explains the unexpected late-life economic dynamics, the dangers they create, and how to foresee and avoid financial and environmental traps.
Biography:
Dwayne Purvis, P.E. has spent nearly 30 years in reservoir engineering and executive leadership as a consultant and operator. He has led or participated in hundreds of engineering and strategic studies over dozens of basins in the United States and abroad. Mr. Purvis leads Purvis Energy Advisors, and he frequently teaches, speaks, and writes for industry organizations and for Texas Christian University.
Dwayne is a registered professional engineer in the state of Texas, member of SPEE, AAPG, SEG, SIPES and an active, 25-year member of SPE. He has also recently completed a Master of Arts in sustainable energy at Johns Hopkins University.
Gathering around 6PM, delicious Italian food and networking
Talk 6:45PM - 7:15PM
Q&A and further networking till 8:30PM
Cost (for registration in advance): Members $35 / Non-members $50 / Students-retired-unemployed $25 Please register through this website so we record your name and email address. We only receive payment by Paynow or bank transfer.
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