Oil & gas costs reach new highs

Costs of constructing new oil & gas upstream and downstream facilities have reached record highs, according to indexes compiled by IHS/Cambridge Energy Research Associates (CERA).

Upstream costs have climbed 6% in the past six months and have doubled since 2005. The latest increase raised the Upstream Capital Costs Index (UCCI) to 210 points from its previous high of 198. The values for the UCCI are indexed to the year 2000, meaning that a piece of equipment that cost $100 in 2000 would cost $210