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The impact of water depth on safety and environmental performance in offshore oil and gas production

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  • Muehlenbachs, Lucija
  • Cohen, Mark A.
  • Gerarden, Todd

Abstract

This paper reports on an empirical analysis of company-reported incidents on oil and gas production platforms in the Gulf of Mexico between 1996 and 2010. During these years, there was a dramatic increase in the water depths at which offshore oil and gas is extracted. Controlling for platform characteristics such as age, quantity of oil and gas produced, and number of producing wells, we find that incidents (such as blowouts, injuries, and oil spills) are positively correlated with deeper water. Controlling for these and other characteristics, for an average platform, each 100 feet of added depth increases the probability of a company-reported incident by 8.5%. While further research into the causal connections between water depth and platform risks is warranted, this study highlights the potential value of increased monitoring of deeper water platforms.

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  • Muehlenbachs, Lucija & Cohen, Mark A. & Gerarden, Todd, 2013. "The impact of water depth on safety and environmental performance in offshore oil and gas production," Energy Policy, Elsevier, vol. 55(C), pages 699-705.
    • Handle: RePEc:eee:enepol:v:55:y:2013:i:c:p:699-705
    DOI: 10.1016/j.enpol.2012.12.074
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    References listed on IDEAS

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    Cited by:

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    2. Georgia Charalampous & Efsevia Fragkou & Konstantinos A. Kormas & Alexandre B. De Menezes & Paraskevi N. Polymenakou & Nikos Pasadakis & Nicolas Kalogerakis & Eleftheria Antoniou & Evangelia Gontikaki, 2021. "Comparison of Hydrocarbon-Degrading Consortia from Surface and Deep Waters of the Eastern Mediterranean Sea: Characterization and Degradation Potential," Energies, MDPI, vol. 14(8), pages 1-18, April.
    3. Mendes, Pietro A.S. & Hall, Jeremy & Matos, Stelvia & Silvestre, Bruno, 2014. "Reforming Brazil׳s offshore oil and gas safety regulatory framework: Lessons from Norway, the United Kingdom and the United States," Energy Policy, Elsevier, vol. 74(C), pages 443-453.
    4. Acheampong, Theophilus & Phimister, Euan & Kemp, Alexander, 2021. "What difference has the Cullen Report made? Empirical analysis of offshore safety regulations in the United Kingdom's oil and gas industry," Energy Policy, Elsevier, vol. 155(C).
    5. Charles F. Mason, 2017. "Public Policy Towards Offshore Oil Spills," CESifo Working Paper Series 6584, CESifo.
    6. Botelho, Tatiana & Magrini, Alessandra & Schaeffer, Roberto, 2014. "Plumbing the depths: Utilizing O&G reserve profiles to develop forward-looking risk assessments for exploration and production activities," Energy Policy, Elsevier, vol. 69(C), pages 489-500.

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