The oil and gas industry continued to increase capital spending over the past two to three years, especially but not exclusively in the exploration and production segment of the industry. For the future, IEA forecasts over $20tn in global oil and gas capital spending to 2035. According to Barclays Global, E&P spending is set to reach a record $723bn in 2014, up 6.1% on the $682bn spent in 2013. This creates an even greater need for improved processes and technologies to manage capital projects, which often overrun in budgets and schedules. Multiple studies have indicated that on average less than 20% of projects end on time, and less than 35% on budget.
With so many stakeholders involved in these extremely complex projects, the handover to operations becomes a very critical process, requiring executive attention and the right IT solutions to be properly managed. Experts estimate that around 4% of total annual capital budget is related to inefficiencies incurred in relation to data handover. Even a small improvement on that percentage would represent a significant economic benefit, without even considering the additional benefits in terms of safety of operations, an absolute priority for all oil and gas companies.
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