Construction costs continue slow increase
Oil-pipeline construction costs for third quarter 1985, as measured by the OGJ-Morgan Pipeline Cost Index, continued the moderation evident in the year's first half. Although some cost elements showed signs of moving ahead at a faster clip during the quarter, the primary forces holding down inflation, especially moderate labor increases and competitive material prices, appeared stronger than ever. The worldwide oil glut, which had been keeping a cap on oil energy costs, was expected to continue. And some economists in the quarter were even then predicting a major crude oil price cut by the end of 1985. Furthermore, the cost of borrowing construction funds remained at its lowest level in years. The composite cost index for building oil pipelines showed a minor increase of 0.45% during third quarter 1985.
- OSTI ID:
- 5836911
- Journal Information:
- Oil Gas J.; (United States), Vol. 84:13
- Country of Publication:
- United States
- Language:
- English
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