Capital Projects Suffer Significant Cost and Schedule Overrun
EY Spotlight on Megaprojects explores performance of capital projects in the oil and gas industry. They researched the performance of 365 oil and gas megaprojects and found that 64% experienced cost overruns and 73% reported schedule delays. The average cost overruns across all regions was an astonishing 59%.
EY analysed projects with a proposed capital investment of above US$1b in the following industry segments: Upstream, LNG, Pipelines, Refining and reviewed project performance in the oil and gas industry across the project life cycle, before and after the final investment decision.