Continuing a trend starting in 1983, the Nelson-Farrar refinery construction index rose quickly from 2,159.2 in January 2008, to 2,329.3 in August that year. Then it struggled and ended with 2,264.9 in December 2009.
The labor index rose to 2,863.4 from 2,662.0 over the 2-year period, while the materials index decreased to 1367.2 from 1405.0.
The miscellaneous equipment index varied a modest 33 points in the 2-year comparison. The category includes pumps and compressors, electrical equipment, heat exchangers, instruments, and engines. They are thus manufactured items, and their costs are a measure of manufacturing efficiency.
The Nelson-Farrar refinery operations index varied during the 2 year period. It settled with a mild decrease. The process unit index rose and then fell during 2008, then ended with more than a 100-point loss during 2009, increasing from starting at 928.1 and then falling to 799.8.
These two indexes varied during 2008 and then rose slightly during 2009. 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.
