Scandinavian Working Papers in Economics
UiS Working Papers in Economics and Finance,
University of Stavanger
No 2016/10: Cost performance on the Norwegian continental shelf
Sindre Lorentzen and Petter Osmundsen ()
Additional contact information
Sindre Lorentzen: UiS, Postal: University of Stavanger, NO-4036 Stavanger, Norway
Petter Osmundsen: UiS, Postal: University of Stavanger, NO-4036 Stavanger, Norway
Abstract: The oil and gas sector plays a crucial role in the Norwegian economy. It accounts for a very large proportion of gross domestic product, government revenues, investment and exports. A sharp fall in oil prices has had a significant impact on the economy and focused great attention on the cost side of the sector. Enhancing cost efficiency and curbing cost overruns now top the agenda. It is not difficult to find examples of projects suffering extensive cost overruns. What factors underlie these overruns? Media coverage might easily give the impression that Norway’s oil and gas sector is suffering from a lack of ability and competence to plan and execute projects to budget. Is this reputation deserved? Does the oil sector perform more poorly in Norway than in other producer nations? Can we see learning effects? How do the Norwegian and the international oil industry compare with other industries with respect to cost performance?
Keywords: cost overrun; petroleum industry; experience; comparison
15 pages, October 17, 2016
Full text files
uis_wps_2016_10_lorentzen_osmundsen.pdf
Questions (including download problems) about the papers in this series should be directed to Bernt Arne Odegaard ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:stavef:2016_010This page generated on 2024-09-13 22:17:13.