BakerRisk operates and maintains the Nelson-Farrar Cost Index service. This service provides industry-leading cost escalation data for various operating and construction cost factors including:

  • Equipment (by class)
  • Fuel
  • Labor
  • Raw Materials

The Nelson-Farrar Cost Index (NFCI) is one of the longest running cost indices specific to the Oil and Petrochemical industry.  Created in the 1940’s, The NFCI was originally developed by Dr. W. L. Nelson and Dr. Gerald L. Farrar. From the 1970s until 2017, the Oil & Gas Journal (OGJ) published the indices monthly, with quarterly summaries featured in the January, April, July, and October issues.  For more on the history of the NFCI, click here.

Updates of the NFCI Construction Cost and Operating Cost indices will be provided monthly to subscribers.   More detailed breakdowns by asset-class, cost of raw materials, and labor elements, are produced and issued quarterly to subscribers.

Industry estimators, project planners, project managers, and appraisers can use the NFCI Construction Cost Index data to develop reliable estimates for current or future project costs.

Operating company risk managers, insurance underwriters, and brokers, can use the NFCI data to determine rebuild costs and to be sure that the reported Replacement Cost Values are properly adjusted over time, without relying on costly insurance appraisals.

BakerRisk also maintains a historical archive of past reports for prior years back to 2004 and can provide historical data as requested.

**Please allow up to 10 business days to process your subscription request.**

Changes are coming, BakerRisk will be offering access to NFCI reports using a new on-demand web portal.

For more information on NFCI, or to inquire about purchasing historical reports, please contact us at

Example of Monthly NFCI report
Figure 1. Example of Monthly NFCI report

For more information on NFCI, or to inquire about purchasing historical reports, please contact us at

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