February 2020

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Project Management: How human intelligence and AI are driving project planning in the oil and gas industry

The science of project planning has something of a tenuous reputation. How often do large oil and gas capital expenditure (CAPEX) projects really come in according to plan? Almost never. Indeed, 30% of respondents to a 2018 PWC survey said they had experienced cost overruns of 10%–50% on their Middle East capital projects.

Patterson, D., InEight

The science of project planning has something of a tenuous reputation. How often do large oil and gas capital expenditure (CAPEX) projects really come in according to plan? Almost never. Indeed, 30% of respondents to a 2018 PWC survey said they had experienced cost overruns of 10%–50% on their Middle East capital projects.1 Even during this era of digital transformation, project schedule and cost overruns are still the normal course of business, not the exception. Arguably, the reason for this is less about poor execution and more about how the industry still struggles to accurately forecast how long these complex CAPEX projects will actually take to complete. According to a 2017 McKinsey

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