Deepwater A Competitive Business Ethics Simulation Game

Quick Reference Guide for Students

Course Information

Instructor:

Course:

Term:

Simulation Game Parameters

Class Code:

Game Name:

Number of Practice Rounds:

Number of Regular Rounds:

BOP service life: rounds

Quick overhaul service life extension: rounds

Complete overhaul service life extension: rounds

Baseline Values

Production: 1,100,000 bbls per round (1,650,000 maximum)

Safety Spending: $1,200,000 per round ($20,000,000 maximum*)
Maintenance Spending: $8 per barrel ($50 maximum*)
Initial crew (all on-rig): 105
Minimum on-rig crew count: 50
Worker productivity: 180 bbls/worker-hour, 58 hours per worker per round
*Subject to change at instructor's discretion.

Schedule of Fees and Costs

Fine for safety violation: $250,000

Fine for worker injury: $500,000
Fine for worker fatality: $2 million
Fine for blowing out: $250 million
BOP overhaul cost: $25 million (quick); $40 million (complete)

© 2015 Wayne F. Buck | R2 Simulation Technologies 1

Deepwater A Competitive Business Ethics Simulation Game

Minimum rig operating expense per round: $4.0 million

Royalty Rate: 9% of revenues
Lifting Costs: $10/bbl
Hiring: $50,000 per worker
Firing: $75,000 per worker
Training: $80,000 per worker

Simulation Links and URLs

The Deepwater simulation website: www.deepwatersim.com

Crude oil prices (WTI Cushing spot crude oil price): http://www.bloomberg.com/energy/

Gulf of Mexico weather:

Current weather near your oil rig:

http://www.ndbc.noaa.gov/station_page.php?station=42040
Forecast weather in the vicinity of your oil rig (look for the forecast labeled "CENTRAL GULF FROM
22N TO 26N BETWEEN 87W AND 94W"): www.nhc.noaa.gov/text/MIAOFFNT4.shtml
Explanation of the Beaufort Scale: www.srh.noaa.gov/jetstream/ocean/beaufort_max.htm
Explanation of the Saffir-Simpson hurricane wind scale:
http://www.nhc.noaa.gov/sshws_table.shtml?large

Key Simulation Parameters and Assumptions

Rounds absent for training: 2 (including the round sent for training)
Rounds absent for injuries: 2 (after the round injured)
Rounds shut-in due to blowout: 3 (including the round of the blow out)
Rounds shut-in for quick overhaul: 1
Rounds shut-in for complete overhaul: 2
Beginning of Round Events:
Worker hires, fires, returns from injuries and training and new training requests.
Acquisition of new capital equipment such as pollution control equipment and BOP overhauls
Middle of Round Events:
Blowouts (i.e., rig only produces half of the oil it would otherwise have produced)
End of Round Events:
Worker injuries and fatalities.

Version: 5/26/15

© 2015 Wayne F. Buck | R2 Simulation Technologies 2