Cost Insights
by PowerAdvocate

Intelligence for energy companies seeking a data-driven approach to cost management

Midstream, Refining, and Petrochemical Project Forecast: 2016 through 2020

August 26, 2016 at 6:54 PM / by Energy Intelligence Group posted in Project Estimation, Cost Reduction, Midstream, Downstream

With the future of oil and gas prices still uncertain, many midstream and downstream firms are asking how much investment is still being planned for the coming years.

In today's project forecast update, we share how and where the market is planning projects in the midstream, refining, and petrochemical sectors over the next four years. Read on to view maps of the top areas of capital investment through 2020:

Billions are Planned in Gas Pipeline, LNG, and Energy Storage Projects

Midstream_Project_Forecast_2016-1.png

Sources: SNL, Oil & Gas Journal

This map of planned midstream investment suggests three important observations:

  • Large LNG projects will ramp up over the next 4 years
  • The Gulf Coast continues to be an area of some of the largest investments, with many pipeline projects still planned for the Northeast
  • Storage projects are not to be overlooked as an area of competing investment

Let's next take a look at the downstream market.

More than $100B of Downstream Projects Planned through 2020

Downstream_Project_Forecast.png

Sources: Oil & Gas Journal, Petrochemical Update, ICIS Chemical Business Magazine

Read More >>

Hot-Rolled Coil Preliminary Duties Are Out. How Will They Impact Your Project Costs?

March 17, 2016 at 3:24 PM / by Energy Intelligence Group posted in Project Estimation, Cost Reduction, E&P, Utility, Midstream, Downstream

After much anticipation, both the preliminary antidumping and countervailing duties on hot-rolled coil have been announced by the Department of Commerce.  This high profile trade case has the potential to send steel prices soaring for many items that energy companies purchase. So how will these developments impact you?

Read on to learn what’s happened with hot-rolled coil and to receive a list of suppliers that are most impacted by these new duties.

 

Read More >>

[Midstream Webinar] A Guide to Midstream Project Benchmarking

February 12, 2016 at 2:11 PM / by PowerAdvocate posted in Project Estimation, Cost Reduction, Midstream

With oil prices tanking and project competition rising, it's no secret that midstream projects are under pressure.

That's why we hosted a recent webinar, A Guide to Midstream Project Benchmarking, which shared how leading midstream firms are driving project competitiveness and capital efficiency.

In it, we share:

  • Why benchmarking is the key to competitiveness
  • Specific best practices for benchmarking your projects
  • Actual example outputs other midstream firms are building to

More than 65 midstream professionals registered to watch us live, and now we're bringing the recording directly to you: just scroll down to view. 

 

 

 

Questions? Just reach out to us directly at costinsights@poweradvocate.com

Read More >>

The Top 4 Midstream Trends to Watch in 2016

December 3, 2015 at 8:54 AM / by PowerAdvocate posted in Project Estimation, Cost Reduction, Midstream

The midstream landscape has drastically changed in the last year: with commodity markets plummeting and E&P investment declining, the industry's entered a new and uncertain world. As 2016 fast approaches, PowerAdvocate has rounded up the top 4 trends every midstream executive should be watching to make sense of the new environment:

Read More >>

[Webinar] Weathering the Storm in Steel

October 21, 2015 at 3:24 PM / by PowerAdvocate posted in Project Estimation, Cost Reduction, E&P, Midstream, Downstream

The steel market's been good to Oil & Gas firms in the last year, but a storm is brewing and prices could rise by 70+% over the next year. Are you prepared?

More than 20 of North America's largest Oil & Gas firms joined us live for our webinar: Weathering the Storm in Steel.

Now you can join them too and learn:

  • Why the steel market's in trouble
  • What leading O&G firms are doing to prepare
  • How you can develop a risk mitigation strategy

Click here to view the webinar

Read More >>

The 6 Most Important Cost Drivers You Aren't Accounting For

March 26, 2015 at 9:02 AM / by PowerAdvocate posted in Project Estimation

Snowy Pipeline
Estimating the cost of a pipeline project? You’re probably used to accounting for project cost differences like mileage, capacity, and diameter. But did you know that there’s more than 10 other cost drivers that can affect your project costs by an additional 150+%? 
 
Here’s 6 of the most overlooked cost drivers to consider in your next estimate:
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How to Forecast Project Costs without Seeing into the Future

March 12, 2015 at 8:08 AM / by PowerAdvocate posted in Project Estimation

This post is part of our "5 Steps to Preventing Cost Overruns" series. Click here to start from the beginning.

If you're anything like the rest of us, you can't see into the future.

So when you're creating a project estimate that requires you to predict future project costs, how can you ever get it right?

With a delicate balance between great data and a healthy dose of realism, it is possible to develop a scientific approach to accounting for changes in market conditions over time and ultimately creating more accurate project estimates.

Read More >>

5 Steps to Preventing Cost Overruns: Step 3, Account for Project-Specific Cost Drivers

March 5, 2015 at 7:49 AM / by PowerAdvocate posted in Project Estimation

What's the fundamental problem of accurate project estimation? New projects aren't like old ones.

Even when you have great historical project data and high-quality market data to inform your estimates, it's impossible to compare projects that differ from one another unless you have a systematic way to account for those differences in your estimates.

We've conducted rigorous statistical analyses and come up with 12 cost drivers that, when taken together, can affect project costs by >140% even after accounting for diameter, mileage, and escalation. In this week's post, we show you how to do that analysis yourself and come up with the cost driver variables that make sense for your company.

Read More >>

5 Steps to Preventing Cost Overruns: Step 2, Develop Market Data Assets

February 25, 2015 at 10:55 PM / by PowerAdvocate posted in Project Estimation

Curious about using market data to inform more accurate estimates? In this installment of our 5-step guide to improving project estimates, we'll show you how to use data to make your estimates reflect actual market conditions.
Read More >>

5 Steps to Preventing Cost Overruns: Step 1, Accurate Project Data

February 18, 2015 at 6:57 PM / by PowerAdvocate posted in Project Estimation

What’s the key to solving the cost overrun problem at its root? Improved project estimates.

Accurate estimates allow midstream companies to make investment decisions with full visibility into their consequences, when there’s still time to set clear expectations for expected rates of return or to deploy capital through more productive avenues. But when estimates are too low, the possibility of cost overruns remains hidden until significant amounts of capital have already been sunk into the initial phases of a project.

Read More >>

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