(3a) Effective Capital Project Management to Support the Resurgence of the U.S. Petrochemical Industry

The U.S petrochemicals industry is back … and this resurgence is based upon the availability of cheap feedstock derived from shale gas.  This follows closely behind the innovative technological efforts of our colleagues in the U.S. oil & gas industry, who have effectively tapped the massive U.S. reserves of natural gas previously just out of reach.  As a result, a long list of U.S. ethylene cracker projects has been announced, and there is a spirit of optimism within our industry that we have not seen for some years.

To get these projects right the first time, however, will require that we overcome a number of challenges - some old, some new.  In this presentation, we will begin with a look at the characteristics of today’s mega projects and then move to a discussion of how and why some of these projects fail.  The latter part of the presentation will then address the question, ‘So what do you do about it?’  In sharing our thoughts on this question, we will present what we see as leading practices on such things as project management leadership and an effective operating model for the capital project management life cycle.  We will conclude with our thoughts on what success looks like in the world of capital projects.