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U.S. Department of Energy
Office of Scientific and Technical Information

Pipeline construction costs flatten

Journal Article · · Oil Gas J.; (United States)
OSTI ID:5647487

The pipeline cost moderation trend that started in 1983 continued through third quarter 1985. During this period the composite construction cost rose only 3.6%, as compared to an increase of 6.7% in the previous 2 years: 1981-1983. Perhaps the strongest force contributing to the stagnation of construction costs in 1985 can be found in the labor market. Unions grappling with open-shop competition generally settled for moderate wage increases. Competition in the pipeline construction materials market also prevailed through the summer, helping to keep the materials components of the OGJ-Morgan cost index to a 0.27% annual gain in third quarter 1985. In addition, the cost of financing pipeline projects in the 3-month period has remained stable, with many rates on various loan instruments at their lowest level in years. For example, yields on high-grade municipal bonds at the end of September stood at 9.2%, well below 1984's level.

OSTI ID:
5647487
Journal Information:
Oil Gas J.; (United States), Journal Name: Oil Gas J.; (United States) Vol. 84:19; ISSN OIGJA
Country of Publication:
United States
Language:
English