So you know that labor costs are rising sharply, that they’re one of the largest components of your projects, and that midstream companies have historically had low visibility into them. In this final installment of our Labor Deep Dive, we’ll arm you with the top 3 tools that you need to respond to the labor shortage.
Focus on Labor: The 3 Tools You Need to Respond to the Midstream Labor Shortage Crisis (3/3)
February 4, 2015 at 1:52 PM / by Wood Mackenzie Supply Chain posted in Project Estimation
Focus on Labor: The Threat of Rising Labor Costs (2/3)
February 4, 2015 at 1:51 PM / by Wood Mackenzie Supply Chain posted in Project Estimation
It was April, 2014, and Peter Cella, CEO of Chevron Phillips Chemical Co., faced the impossible challenge of announcing a $1B cost overrun on the company’s latest plastics plant.
Solving the Cost Overrun Problem: A 4 Step How-To Guide
February 4, 2015 at 1:50 PM / by Wood Mackenzie Supply Chain posted in Project Estimation
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 in 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.
In this piece, we outline 4 ways to leverage data to achieve a more fact-based, consistent, and most importantly, accurate, approach to estimating project costs.
Our energy experts recommend 4 ways to begin improving your estimates today:
Focus on Labor: The Hidden Cost Driving Midstream Projects (1/3)
February 4, 2015 at 1:50 PM / by Wood Mackenzie Supply Chain posted in Project Estimation
Labor: it’s the greatest expense for any midstream project (55% of total costs) and the most difficult to predict. In this 3-part deep dive, we’ll give you the tools to understand and respond to the rising labor costs that are driving the midstream market in 2015. You’ll learn:
The 3 Ways Project Misestimates Threaten Midstream Companies
February 4, 2015 at 1:46 PM / by Wood Mackenzie Supply Chain posted in Project Estimation
The 4 Most Common Ways Project Estimates Go Wrong
February 4, 2015 at 1:45 PM / by Wood Mackenzie Supply Chain posted in Project Estimation
In this first installment of our project estimation deep dive series, we show you the most common reasons midstream companies end up with inaccurate estimates. By the end of the series, we'll provide you with specific tips, tools, and strategies for addressing every one of those challenges.
Wondering why project estimates are so important? Click here to learn why accurate estimates are the cornerstone of any robust investment strategy.
The 3 Biggest Challenges the Midstream Industry Faces in 2015
February 3, 2015 at 4:13 PM / by Wood Mackenzie Supply Chain posted in Project Estimation, Industry Insights, Oil & Gas