Cover: Understanding Cost Growth and Performance Shortfalls in Pioneer Process Plants

Understanding Cost Growth and Performance Shortfalls in Pioneer Process Plants

Published 1981

by Edward W. Merrow, Kenneth Phillips, Christopher W. Myers


Download eBook for Free

FormatFile SizeNotes
PDF file 4.9 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.


Purchase Print Copy

 Format Price
Add to Cart Paperback114 pages $25.00

Misestimation of the capital costs and performance of innovative energy and chemical process plants creates fundamental problems in planning the development and commercialization of advanced technologies — including synthetic fuels. This report presents an empirical analysis of the following questions: What factors are responsible for inaccurate cost estimates found to be typical of pioneer process plants? How well do pioneer plants perform and what factors are responsible for poor performance? What are the implications of the answers to these questions for energy planning by industry and the government? Detailed proprietary information on 44 process plants built by 34 oil, chemical, and mineral companies sustain the quantitative analysis. The report draws implications for planning and estimating innovative projects, for comparing advanced technologies in different stages of development, and for commercializing new technologies in pioneer plants. Also mentioned are some promising avenues for research and development.

This report is part of the RAND report series. The report was a product of RAND from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.