Gary Farrar
Contributing Editor
The Nelson-Farrar refinery construction index rose quickly from 2,281.6 in January 2010, to 2,378.1 in December of the same year. Then continued upward ending with 2,475.6 in December two years later.
The labor index rose from 2,865.4 to 3096.8 over the 2-year period, while the materials index started with 1,405.8 increased to 1,639.8 and then decreased to 1543.8.
The miscellaneous equipment index varied a modest 35 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 manufac-turing efficiency.
The Nelson-Farrar refinery operations index varied during the 2 year period. It settled with a very mild increase The process unit index fell and then rose during 2010 and then ended with a near 100 point loss during the 2012 year period, increasing from starting at 882.6 and then falling to 798.1.
These two indexes varied during 2010 and then rose slightly during 2012. Changes in the cost of refinery fuels accounted for much of the oscillation. Continuing increases in refinery operating efficiency helped stabilize values of both indexes.
