Editorial comment
A recent Ernst & Young report on the future for international oil companies (What is next for International Oil Companies?) states that worldwide capital spending on oil and gas projects could reach US$ 400 billion between 2008 and 2015, a large proportion of which will be spent on so-called ‘mega projects’.
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A recent Ernst & Young report on the future for international oil companies (What is next for International Oil Companies?) states that worldwide capital spending on oil and gas projects could reach US$ 400 billion between 2008 and 2015, a large proportion of which will be spent on so-called ‘mega projects’. These mega projects are ventures that cost upwards of US$ 5 billion each: complex, expensive, high risk, high profile and of strategic importance. Mega projects are no small undertaking for the parties involved, be they IOCs or NOCs, or a joint venture between both kinds of organisation, and therefore the incentive to maximise every part of the project, or value chain, is increased. A widening production gap, ever more costly transportation costs for steels and equipment, and increasing demands on pipeline services and labour means that an integrated, holistic approach is needed. It’s about seeing the bigger picture – answering energy demand with prudent production solutions and planning projects with strategic pipeline infrastructure and specific refining capacity in mind.
