Oil & gas construction costs reach new high

Costs associated with constructing new oil & gas facilities have surged to a record high, says Cambridge Energy Research Associates (CERA).

In the last six months, the IHS/CERA Upstream Capital Costs Index (UCCI), a measure of project cost inflation, has risen 11% to a new high of 198 points, according to a report released this week. This is nearly double the costs observed as recently as 2005 when the index measured 106 points. However, the index does find a slight decline in one critical cost, the daily rate for off-shore drilling rigs.

Construction costs began their dramatic rise in 2005 driven by a sudden, sustained increase in

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here