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 º£½Ç³Ô¹ÏÍø˜mega projectsº£½Ç³Ô¹ÏÍø™.
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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 º£½Ç³Ô¹ÏÍø˜mega projectsº£½Ç³Ô¹ÏÍø™. 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. Itº£½Ç³Ô¹ÏÍø™s about seeing the bigger picture º£½Ç³Ô¹ÏÍø“ answering energy demand with prudent production solutions and planning projects with strategic pipeline infrastructure and specific refining capacity in mind.
