It is no secret that capital costs of major projects have skyrocketed over the past decade. A July 2015 industry report noted that the average megaproject’s cost increase is 80% of its original value, with an average schedule slippage of 20 months.
It is no secret that capital costs of major projects have skyrocketed over the past decade. A July 2015 industry report noted that the average megaproject’s cost increase is 80% of its original value, with an average schedule slippage of 20 months.1
At first glance, these statistics, combined with the lower-for-longer oil environment, yield a poor outlook for moving capital investments forward in today’s oil and gas market. However, the lower-for-longer oil environment is a positive opportunity for owners and contractors to collaborate, reverse the trend and reshape the industry into one that is known for innovation, all while delivering certainty and capital efficiency.
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