Gerald L. Farrar
Contributing Editor
Costs for six selected equipment items used in refinery construction and operation have been surveyed for the three-year time period, 1989-1991. The accompanying table shows Nelson-Farrar equipment indexes for these items of equipment.
Valves and fittings showed the greatest increase in cost, rising from 1138.8 in the first quarter of 1989 to 1293.1 in the fourth quarter of 1991.
Four other items showed more modest increases. The tanks and pressure vessels category rose from 652.3 to 690.2 during the 36-month span. Non-metallic building materials increased from 603.5 to 633.2, or a difference of 29.7 index units. Bubble trays showed an index gain from 903.4 to 928.4. Fractionating towers showed a 2.5% gain in cost, increasing from 903.4 to 928.4 over the three-year time period.
The one equipment category that showed a cost decrease was tube stills, which registered a 6.3 index drop, from 370.9 to 364.6.
These trends reflect a drop in inflationary tendency, coupled with a drop in the labor force and a slight increase in labor productivity during the three-year period.
Copyright 1993 Oil & Gas Journal. All Rights Reserved.
