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RE: Cost Slide Prompts Wave of Project Delays

Home Forums Refining Community Refinery News Global Oil Collapse May Halt Refinery Construction RE: Cost Slide Prompts Wave of Project Delays

#6453

Charles Randall
Participant

Here is update on Raw Material cost slide that Saudi’s are using to delay projects to capture savings in large refining projects where the cost had been increased by 2X-3X between the concept/planning stages & EPC bid stages and now that the drivers of raw material cost & large number of projects competing for labor have  ~ disappeared.
 
Several views on refining project cancellation have been overlooking this factor as reason for delays & cancellation of projects that are ~ only re-negotiating a speculated price increase on their project that is no longer valid……especially for large majors or government phased projects like the Saudi’s, ect.
 
Regards
 
PS – may need have Woodmac types look past obvious for real reasons on project views.

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