Operating Cost Characteristics

A Review of Exploration, Development, and Production Cost Offshore Newfoundland

“…Labor costs in offshore oil and gas operations are a significant expense (Kaiser 2019 ). Labor costs include the salary of employees who are directly involved in production activities, services such as general repairs and maintenance, and supervision.…”

“…Unlike capital expenditures, operating cost is generally much less transparent, and public data come in widely different forms and quality (Kaiser 2019 ). Site-specific attributes need to be accounted for, most of which are not observable or known, and can only be inferred with a high degree of uncertainty.…”