IHS CERA Capital Cost Analysis Forum – Downstream
The IHS CERA Capital Costs Analysis Forum - Downstream features our advisory service to help clients effectively monitor, forecast and manage downstream portfolio project costs. This forum is used by clients in the regional industry, as well as end-users, service providers and financial companies.
The IHS CERA Capital Costs Analysis Forum - Downstream is our new advisory service responding to the needs of downstream industry clients who seek to control costs in the an era of rising project expenditures. The Forum serves mainly to evaluate downstream project development costs through the application of a Downstream Capital Cost Index (DCCI), which is designed to capture the precipitating elements behind the modern cost environment. The DCCI tracks the purchase price for a representative set of project portfolios and calculates weighted values for various inputs that have recently caused downstream project costs to skyrocket. The indexes account for such factors as:
- Engineering, procurement and construction labor scarcity
- Record number of current projects
- Tight raw materials supply-limited availability of premium steel, cement, copper and diesel fuel
- Competition with upstream industry for resources
Armed with this knowledge, clients can achieve a clear picture of how specific inputs affect their portfolio's total costs. IHS CERA analysts can use the indexes to show how certain costs are interrelated and where savings can occur in specific areas to offset increased fees in others. Forum members are privy to comprehensive cost data and participate in semiannual workshops, during which they receive the IHS CERA latest research and play a vital role in guiding future adjustments to the DCCI.
Subscribers to this service receive:
- Quarterly reports
- access to the IHS CERA secure website
- Telephone and email access to research staff
Who uses the service? How? The Forum is open to producing firms only Use as a tool to benchmark internal project costs and project future costs via scenario
IHS CERA’s Capital Costs Analysis Forum – Downstream membership gives clients access to unique, timely insights concerning project costs, their direction, and the strategic implications associated with changes in the global cost environment. By building on and monitoring a set of indicators that reflect the critical issues in upstream project development, this service helps forum members to develop strategic responses to issues such as
- How do construction costs vary around the world?
- What drives regional construction costs?
- What factors influence current and future construction costs?
- How are vendors and engineering contractors responding?
- Are there constraints on the local workforces?
- What is the real versus estimated rate of inflation for large projects?