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Abstract
The costs are tracked by IHS/CERA for its Downstream Capital Costs Index (DCCI). The DCCI is a proprietary measure of project cost inflation similar in concept to the Consumer Price Index. It provides a benchmark for comparing costs around the world and draws upon proprietary IHS and CERA databases and analytic tools.
"The latest increases have been driven by continued high activity levels globally, continued tightness in the equipment and engineering markets, as well as historically high levels for raw materials," said Jackie Forrest, lead researcher for the Capital Costs Analysis Forum for Downstream, an on-going research project of CERA.
"As a result of all of this activity, lead times for engineered equipment has increased up to 50% percent in the last 6-12 months for some items, and as expected, prices have increased," Forrest added. "Further compounding the problem is the raw materials and shipping situation. Both of these sectors have experienced recent increases, ultimately passing through costs to projects."