Indexes for selected equipment items
Continuing a trend starting in 1983, the Nelson-Farrar refinery construction index rose slowly from 1,522.2 in January 2000, to 1,596.9 in December 2001. The labor component of the index rose at a rapid rate while the material component fell.
The labor index rose from 1,938.4 to 2,082.6 over the 2-year period, while the materials index declined 29 points, from 897.9 to 868.3.
The miscellaneous equipment index varied 36 points in the 2-year comparison. The category includes pumps and compressors, electrical equipment, heat exchangers, instrument, and engines. They are thus manufactured items, and their costs are a measure of manufacturing efficiency.
The Nelson-Farrar refinery operations index rose 25 points during 2000 and then fell 50 points in the year 2001 period. The process unit index also showed the same rise and fall scenario during the 2-year period, starting at 501.5 and ending with 454.9.
These two indexes varied somewhat randomly, increasing for 2000 and then falling during the year 2001. Changes in the cost of refinery fuel accounted for much of the oscillation. Continuing increases in refinery operating efficiency helped stabilize values of both indexes.
Itemized Refining Cost Indexes
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