The latest update of the IHS/CERA Upstream Costs Index shows that while costs are still increasing, the rate of increase has begun to decelerate. This may indicate that a plateau in costs is approaching, but they still will be quite high compared to what they were in 2000. In this interview, CERA Senior Director Richard Ward discusses the factors contributing to the continued growth in capital costs for oil and gas development projects, and why they are now moderating.