March 2008

Trends and Resources

HP Impact: HPImpact: Volatility impels update to rules of thumb for cost estimations

During the early stages of a project, engineers and estimators use rules of thumb to rapidly establish defensible cost estimates. These guidelines are usually based on historical breakdowns of cost co..

Weirauch, Wendy, Hydrocarbon Processing Staff

During the early stages of a project, engineers and estimators use rules of thumb to rapidly establish defensible cost estimates. These guidelines are usually based on historical breakdowns of cost components. The recent dramatic increases in downstream construction costs have prompted analysts with CERA to investigate whether the rules of thumb established in 2002 would still be valid in 2007. Their research revealed that: Project-level costs have increased 66% since 2000, as measured by the IHS/CERA Downstream Capital Costs Index (DCCI). However, the major cost categories have increased at differing rates, thus distorting the 2002 rules of thumb. If the 2002 rules of thumb were

Log in to view this article.

Not Yet A Subscriber? Here are Your Options.

1) Start a FREE TRIAL SUBSCRIPTION and gain access to all articles in the current issue of Hydrocarbon Processing magazine.

2) SUBSCRIBE to Hydrocarbon Processing magazine in print or digital format and gain ACCESS to the current issue as well as to 3 articles from the HP archives per month. $409 for an annual subscription*.

3) Start a FULL ACCESS PLAN SUBSCRIPTION and regain ACCESS to this article, the current issue, all past issues in the HP Archive, the HP Process Handbooks, HP Market Data, and more. $1,995 for an annual subscription.  For information about group rates or multi-year terms, contact email Peter Ramsay or call +44 20 3409 2240*.

*Access will be granted the next business day.

From the Archive

Comments

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}