Published September 2012
As part of the integration of the Process Economics Program (PEP) into the S&P Global family of services, and due to performance issues, we are changing the basis of our historical PEP Cost Index starting in late 2012 to reflect the trends derived from our Downstream Capital Cost Forum service from 2000 forward. As discussed in this review, the performance of the PEP Cost Index from 2004 to 2008 did not fully capture the increases in cost that were realized in the industry, which were captured in our Downstream Capital Cost Index (DCCI). Based on our observations and discussions with our clients, it is clear that this change is needed and welcome. This review provides a brief explanation of:
- The current situation
- Why the PEP Cost diverged from reality over the last 10 years
- How clients can apply the revised PEP Cost Index to their current and future analysis
- The methodology used to generate the DCCI
