Capital Budgeting in the Chemical Industry

 ExxonMobil Chemical Baytown Olefins Plant

Background Modules for ChE473K
Process Design and Operations

at the
University of Texas at Austin

Gerald G. McGlamery, Jr., Ph.D., P.E.

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ChE473K Site

Useful Web Links

U. S. Energy Information Administration

The U.S. EIA site contains a wealth of information about historical and projected energy prices. Frankly, I think it is an outstanding example of your tax dollars at work and how the Internet has reduced the cost of delivering government statistics to the public. One of the more useful sources of information for capital budgeting is the Annual Energy Outlook.

U. S. Bureau of Labor Statistics

The U.S. BLS publishes the U.S. Producer Price Indices (PPI). Industrial sales contracts are frequently indexed to one or more PPI, so some knowledge of past trends in a PPI (particularly its year-to-year variability) can be useful in capital budgeting stochastic modeling.

U. S. International Trade Commission

The U.S. ITC publishes the latest tariff information for imports of chemical products.

U. S. Internal Revenue Service

The IRS publishes a comprehensive document on asset depreciation, Publication 946, How to Depreciate Property, which contains everything you need to know about tax depreciation for purposes of capital budgeting.

Updated: Saturday, March 19, 2011

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Gerald G. McGlamery, Jr.
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