AspenTech : Engineering & Construction
  • Updated on March 9, 2017
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  • Ron Beck

Rigzone: Is the Era of Oil and Gas Megaprojects Over?

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As oil prices hover around $50/barrel, owner operators are increasingly moving towards smarter, more cost effective project designs. One opportunity for driving down capital costs on projects is to take a more innovative approach to the bidding and estimating process.

Moving towards modular designs provides enormous opportunity to improve the profitability of capital projects.

A recent survey on bidding and estimating best practices in the energy and chemicals industries reveals that most estimating groups today are not satisfied with the methods used in their organizations. Many of these organizations rely on Excel and manual data transfers for estimating, even on large, very complex projects.

I recently spoke with Rigzone about the importance taking an innovative approach to the capital planning and estimating of major projects. The current downturn in capital projects workload is a critical time to implement better business processes across the EPC industry. By eliminating dependency on spreadsheets, increasing electronic transfers of data, standardizing estimating methods, and moving towards modular and template-based designs, there is enormous opportunity to improve the profitability of capital projects. However, while EPC executives understand this opportunity, they are facing resistance from estimating leadership.

Download the article from Rigzone below for more on the state of the capital projects market and ways to reduce CAPEX for maximum profits.

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