Elevating the Success of Oil and Gas Capital Projects

Deloitte Oil, Gas & Chemicals

​As oil and gas capital projects become increasingly complex and unpredictable, the tools and procedures used to plan and execute them should evolve. Certain traditional planning methods often result in poor project performance, and outside intervention is required to get back on track.

The next wave of petrochemical investments in the US

As the United States prepares for the next wave of petrochemical investments, companies must take steps to not repeat mistakes of the past, and overcome challenges that may lie ahead.

The geographical focus of global investments in the petrochemical industry is going through a flux over the past few years. Earlier, the Middle East was the primary recipient of petrochemical investments. But preferable investment destinations have shifted over time, with the United States and China now receiving an increasing share.

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Riding the next wave of investments in the US petrochemical industry

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Improving capital project delivery

Deloitte has developed and implemented interventions on many of the world’s largest and most challenging projects to improve outcomes and reduce costs. Our targeted interventions focus on:

  • Enhancing collaboration between owners and contractors
  • Serving as a driver and catalyst for identifying and implementing improvements to the engineering, procurement, fabrication, construction process
  • Enhancing project controls
  • Developing a tax efficient supply chain
  • Improving reporting capabilities, productivity, and the ability to manage and mitigate risks

Deloitte’s oil and gas capital projects specialists can help significantly reduce your capital project costs and improve capital project delivery.

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Download the brochure to learn more about our specific service offerings.

A project integrator can help meet your goals

As a project sponsor, are you comfortable that you have the right people in the right places at the right times doing the right things? If not, Deloitte can help.

Deloitte’s industry leading combination of multidisciplinary experience means we are distinctly qualified to serve as your project integrator. 

As an integrator, Deloitte’s role is to work with you to help identify issues and develop a plan to help you fix what is not working by bringing you unbiased, actionable information—coupled with effective interventions—to help you, your people, and your project meet your goals. Deloitte can also assist in your efforts to continuously analyze your capital projects complexity profile across the lifecycle, to help reduce costs and improve performance.

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Typical capital project

Complicated projects

Complicated projects are highly technical, such as duplicating an offshore platform, and are generally suited for a traditional stage gate process. The results are typically predictable and foreseeable, despite the fact there are many interfaces between stakeholder groups.

An example of a complicated project is building a second offshore platform in an area

  • High degree of certain outcome
  • Similarities between projects
  • Require variety of expertise
  • Past projects indicative of future
  • Reliance on formulae

Complex projects

Complex projects are also highly technical, but they have a high degree of variability, such as first-of-a-kind plant technology or geography. Prescriptive (stage gate) processes are traditionally used to manage these types of projects; however, the unforeseeable nature and interactions of events make the outcomes unpredictable.

An example of a complex project is an upstream and downstream project in a set of new frontiers—environmental, geopolitical, technological

• Uncertain outcome

• Interventions may contribute to outcome

• Individual and unique

• No “cookie-cutter” recipe of success

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Complicated projects
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Complex projects

The challenge of renaissance

For a more in-depth view of what Deloitte is doing for capital projects, read the report The challenge of renaissance: Managing an unprecedented wave of oil and gas capital projects.

This report reveals the insights of Deloitte capital projects specialists on the variety and magnitude of the key challenges the industry needs to address to capitalize on the opportunities of their successes.

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Oil rigs in the moonlight

Key contacts

For more information about Deloitte Oil, Gas & Chemicals, please contact either of the listed Deloitte professionals:

Mark Smith
US Capital Projects Consulting leader
Deloitte Transactions and Business Analytics LLP
+1 212 313 1942
Mike Whalen
US Capital Projects Consulting leader
Deloitte Transactions and Business Analytics LLP
+1 214 840 1461