NELSON-FARRAR QUARTERLY
ITEMIZED REFINING COST INDEXES
The cost indexes may be used to convert prices at any date to prices at other dates by ratios to the cost indexes of the same
date. Item indexes are published each quarter (first week issue of January, April, July, and October). In addition the Nelson
Construction and Operating Cost Indexes are published in the first issue of each month of Oil & Gas Journal.
R AR
Indexes for selected equipment show varied results
Gary Farrar
Contributing Editor
Costs for six selected equipment
items used in refning construction
operations have been surveyed for the
3-year period 2014-16. The accompanying table shows Nelson-Farrar
equipment indexes for these equipment items.
Non-metallic building materials
showed the greatest increases in cost,
rising to 1,265.3 in the fourth quarter
of 2016 from 1,192.0 during the frst
3 months of 2014.
Three other items showed more
modest increases. The category valves
and fttings showed an index gain to
2,490.8 in fourth-quarter 2016 from
2,431.0 in frst-quarter 2014. While
the index value for tanks and pressure
vessels posted gains during the 3-year
period, by fourth-quarter 2016, the
value returned to 1,174.1, unchanged
from frst-quarter 2014. Fractionating towers ended fourth-quarter 2014
Operating cost
(based on 1956 = 100.) 1954 1972 2014 2015 2016
Nov.
2016 *References
Index for earlier year in
Costimating and Questions
on Technology issues
Power, industrial electrical 98.5 131.2 1,077.8 1,098.1 1,051.8 1,043.6 Code 0543 No. 13, May 19, 1958, p. 181
Fuel, refnery price 85. 5 152.0 1,211.5 857.4 819.3 894.4 OGJ No. 4, Mar. 17, 1958, p. 190
Gulf cargoes 85.0 130.4 3,403.2 3,403.2 3,403.2 3,403.2 OGJ No. 4, Mar. 17, 1958, p. 190
NY barges 82. 6 169.6 3,460.4 3,460.4 3,460.4 3,460.4 OGJ No. 4, Mar. 17, 1958, p. 190
Chicago low sulfur — — 3,238.2 3,238.2 3,238.2 3,238.2 OGJ July 7, 1975, p. 72
Western US 84. 3 168.1 4,176.7 4,176.7 4,176.7 4,176.7 OGJ No. 4, Mar. 17, 1958, p. 190
Central US 60. 2 128.1 3,368.3 3,368.3 3,368.3 3,368.3 OGJ No. 4, Mar. 17, 1958, p. 190
Natural gas at wellhead 83. 5 190.3 3,912.8 2,173.2 1,986.4 2,355.3 Code 531-10-1 No. 4, Mar. 17, 1958, p. 190
Inorganic chemicals 96.0 123.1 1,083.7 1,089.2 1,018.9 1,019.1 Code 613 Oct. 5, 1964, p. 149
Acid, hydrofuoric 95.5 144.4 414.9 414.9 414.9 414.9 Code 613-0222 Apr. 1, 1963, p. 119
Acid, sulfuric 100.0 140.7 439.1 439.1 439.1 439.1 Code 613-0281 No. 94, May 15, 1961, p. 138
Platinum 92. 9 121.1 1,098.4 978.4 955.7 1,012.7 Code 1022-02-73 July 5, 1965, p. 117
Sodium carbonate 90. 9 119.4 714.0 717.6 671.4 671.7 Code 613-01-03 No. 58, Oct. 12, 1959, p. 186
Sodium hydroxide 95.5 136.2 978.6 983.6 920.1 920.2 Code 613-01-04 No. 94, May 15, 1961, p. 138
Sodium phosphate 97.4 107.0 844.2 844.2 844.2 844.2 Code 613-0267 No. 58, Oct. 12, 1959, p. 186
Organic chemicals 100.0 87. 4 1,002.4 796.1 757.4 804.2 Code 614 Oct. 5, 1964, p. 149
Furfural 94.5 137.5 1,446.5 1,148.8 1,092.3 1,160.6 Chemical Marketing No. 58, Oct. 12, 1959, p. 186
MEK,tank-carlots 82. 6 87. 5 625.0 625.0 625.0 625.0Reporter
Phenol 90. 4 47. 1 500.3 500.3 500.3 500.3 Code 614-0241 No. 58, Oct. 12, 1959, p. 186
INDEXES FOR SELECTED EQUIPMENT ITEMS
Fraction- Tanks, Non-metalic
Bubble ating Tube Valves, pressure building
Quarter trays towers stills fttings vessels materials
2014
1st 1,812.8 1,446.4 689.2 2,431.0 1,174.1 1,192.0
2nd 1,823.2 1,455.3 690.7 2,437.5 1,179.5 1,202.2
3rd 1,833.1 1,462.1 696.1 2,456.2 1,185.5 1,209.2
4th 1,839.2 1,467.8 695.1 2,457.2 1,187.9 1,215.7
––––––– –––––– ––––– ––––––– ––––––– –––––––
Year 1,827.1 1,457.9 692.8 2,445.5 1,181.8 1,204.8
2015
1st 1,815.1 1,461.9 676.2 2,461.9 1,186.1 1,228.6
2nd 1,769.2 1,447.7 644.6 2,465.6 1,181.9 1,232.9
3rd 1,764.0 1,445.7 635.3 2,471.2 1,175.9 1,235.6
4th 1,744.1 1,442.7 614.3 2,470.3 1,173.5 1,237.3
–––––––– ––––––– –––––– –––––––– –––––––– ––––––––
Year 1,773.10 1,449.50 642.60 2,467.20 1,179.30 1,233.60
2016
1st 1,721.7 1,435.8 599.7 2,473.1 1,171.7 1,251.3
2nd 1,776.5 1,454.9 628.7 2,496.5 1,172.9 1,256.7
3rd 1,802.5 1,464.1 644.8 2,497.4 1,175.3 1,263.7
4th 1,797.2 1,463.4 638.4 2,490.8 1,174.1 1,265.3
––––––- ––––––– –––––– ––––––– –––––– –––––––
Year 1,774.5 1,454.6 627.9 2,489.4 1,173.5 1,259.2
with a 17-point gain at 1,463.4 vs. its
frst-quarter 2014 value of 1,446.4.
Tube stills fell to 638.4 during the
last quarter of 2016 from 689.2 in
frst-quarter 2014.
The fnal category, bubble trays,
showed a mild loss during the period,
falling to 1,797.2 in fourth-quarter 2016
from its beginning index value of 1,812.8
in the frst quarter of 2014.
