Offshore pipeline construction cost in the US Gulf of Mexico

The oil and gas pipeline network in the U.S. Gulf of Mexico is the largest offshore pipeline network in the world, but construction cost statistics are not a frequent topic of investigation. Using data sources from the Federal Energy Regulatory Commission, industry publications and press releases, pipeline construction cost in the U.S. Gulf of Mexico from 1980 to 2014 are examined. The average inflation-adjusted cost to install FERC pipelines from 1995 to 2014 was $3.3 million/mi ($2.1 million/km), and industry publication pipeline cost average $3.1 million/mi ($1.9 million/km). Data sources vary in their scope and quality and need to be interpreted with an understanding of their limitations. A description of each data source and its limitations are provided.