2018 Advanced Automation & IT Report
Oil and gas capital project management
Respondents to the Oil & Gas Engineering 2018 Advanced Automation & IT Study identified five key findings to the oil and gas industry:
- Cost, scheduling overruns: Fifty-nine percent of engineering professionals’ companies or clients have experienced substantial cost and/or scheduling overruns when executing capital projects.
- Causes of overruns: The top causes of cost and scheduling overruns are poor or rushed planning (81%), overoptimistic assessments (71%), and unclear responsibility for strategic or operations decisions (65%).
- Technology integration: Fifty-four percent of engineers report technology being effectively integrated into capital project management systems at project inception. Of those not effectively integrated at project inception, the issues tend to revolve around unsuccessful collaboration efforts with design partners.
- Capital project management: Technologies or best practices that most contribute to more stringent capital project management are analytics, simulation, or modeling (37%) and a digital asset approach combining capital and operational expenditure phases in a common framework (36%).
- Challenges: Forty-two percent of engineers agree that front-end engineering and design is one of the most problematic or challenging capital project transitions, followed by forging initial design specifications (35%) and the transition from design to development (32%).