Development and implementation of cost control strategies in oil and gas engineering projects
1 Shell Nigeria.
2 Shell Petroleum Development Company of Nigeria Ltd., Nigeria.
3 Shell Petroleum Development Company, Nigeria.
Review
Global Journal of Advanced Research and Reviews, 2024, 02(01), 001–022.
Article DOI: 10.58175/gjarr.2024.2.1.0028
Publication history:
Received on 23 July 2024; revised on 31 August 2024; accepted on 03 September 2024
Abstract:
This review delves into the development and implementation of cost control strategies in oil and gas engineering projects, an area critical for maintaining project viability and profitability amidst fluctuating market conditions. Effective cost control is essential in the oil and gas sector, where projects are often capital-intensive and subject to economic and operational uncertainties. This review examines various cost control methodologies and their application throughout the project lifecycle, from initial planning and budgeting to execution and closure. The paper highlights key cost control strategies, including detailed project cost estimation, budget forecasting, and variance analysis. It discusses the use of advanced project management tools and technologies, such as software for real-time cost tracking and predictive analytics, which enhance decision-making and financial oversight. The review also covers the importance of risk management practices in identifying and mitigating potential cost overruns, emphasizing the role of contingency planning and risk assessment in maintaining financial control. Case studies demonstrate how successful implementation of these strategies can lead to significant cost savings, improved project efficiency, and enhanced financial performance. The challenges associated with cost control, including dealing with unexpected price fluctuations, scope changes, and regulatory compliance issues, are also addressed. Solutions to these challenges, such as adopting flexible budgeting techniques and leveraging data-driven insights, are discussed. The review concludes with recommendations for refining cost control practices in oil and gas engineering projects, including the need for continuous monitoring and adjustment of cost control measures, integrating cost management with overall project strategy, and fostering collaboration among project stakeholders to ensure alignment and accountability.
Keywords:
Cost control; Oil and gas engineering; Project management; Budget forecasting; Cost estimation; Risk management; Financial oversight; Predictive analytics
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0