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Lower prices demand a hard look at costs: Ensuring megaproject performance in oil and gas

Input cost inflation and project management indiscipline are undermining the oil industry’s ability to deliver complex projects successfully. Although prices may fluctuate, performance standards shouldn’t. 

Shell expert, Harry Benham explains why ensuring megaprojects performance in oil and gas is critical.

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There are two fundamental approaches whereby both owner operators and EPCs can benefit from standardized systems designed to address the major risks all megaprojects face:

  • Better project selection – achieved by implementing a robust framework for disciplined management of engineering, construction, and the contract itself.
  • Fit-for-purpose contract management approach – achieved by more closely understanding the nature of megaprojects and aligning the organization’s processes to respond to its unique needs.

Lower prices demand a hard look at costs: Ensuring megaproject performance in oil and gas.

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