Pipeline construction costs flatten
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
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29 ENERGY PLANNING, POLICY, AND ECONOMY
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BUILDING MATERIALS
COMPETITION
CONSTRUCTION
COST
DOCUMENT TYPES
ENERGY SOURCES
ENERGY SYSTEMS
FINANCIAL ASSISTANCE
FINANCIAL INCENTIVES
FINANCING
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
LABOR
MARKET
MATERIALS
NATURAL GAS
NATURAL GAS DISTRIBUTION SYSTEMS
PIPELINES
REVIEWS
TRANSPORT
WAGES