The oil and gas industry may have finally turned around from “always delivering upstream projects behind schedule and over budget.”
Poor capital discipline and over-confidence in pursuit of large-scale, and extremely complex upstream projects before the oil price plunge in 2014 would lead to projects being delivered late and over budget. However, this has started to change.
This is according to energy intelligence group Wood Mackenzie which has identified signs of improved execution which suggest companies are “getting it right after a period of dismal performance on project returns.”
The successful execution of capital projects has become of crucial importance to an upstream industry adapting to lower prices.