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<br />31
<br />
<br />A TJA{)H)~tJvT
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<br />. What's Driving Asphalt Pri~es U}2r
<br />
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<br />
<br />unprecedented cost of crude oil. As a
<br />
<br />for gasoline and diesel, much of the
<br />
<br />off, he said. Bul until that happens, as
<br />
<br />, . " 1'.1 t"
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<br />R
<br />iliiliiIlilill
<br />
<br />period that the price of a ton of East
<br />Coast bin<1cr went irom ~JISU to $4L!,
<br />the spot price for benchmark West Texas
<br />
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<br />
<br />the refining process, arc designed to
<br />YIeld morc 01 the lighter, (Jficjer distil-
<br />lates from each barrel of crude.
<br />
<br />\lJithout signifk.,~,;}t in(;re:t'~~:; 111 high.
<br />way funding, [;:WCl bile lililcs will be
<br />COtl:;ilUcit;u Vf I cC\JI1.,lruetcJ. III light
<br />
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<br />is not great news for the highway con-V its highways, roaus and streets
<br />~tructien iridu:;try. stretching ~tv'i_ll~iltIc dol1af5.
<br />
<br />.
<br />
<br />
<br />the U.S. Energy Infonnation Agency.
<br />
<br />But the high co~t of 3~phalt these day~
<br />
<br />cannot be attributefl solely to the cost
<br />of crude. New processing technologies
<br />al';; affr.dil1t Ill" !'!HI"ml of "~ph'1lt hl~-
<br />i no nroflllf'pfl AI In" r"finprip~
<br />
<br />Less Asphalt, less Road Work
<br />"When a I:oker i~ added to the retin-I
<br />-inCJ nrnf"p('(" mnn-" It~hf fHflol(' ~~n ,,-",A
<br />processed from the lower, heavier, as-
<br />phalt ends," said James Andrews, one
<br />oU~e asp?~1t experts ,at RASF Corpo-
<br />fllti6n. "Arid that has a negative impact
<br />on the asphalt market by reducing sup-
<br />ply, which ultimately raises prices."
<br />Adding cokcrs makes good economic
<br />sense to refiners, he said, citing a report
<br />by Argus Media, independent energy
<br />news and price repOIting agency, that
<br />1',~timl1te~ :l rr.ll1m on investment for a
<br />$ I-billion coker is just over four years.
<br />Eventually asphalt supply and de-
<br />mand will equalize and prices will level
<br />
<br />Prices Stili Climbing
<br />Sinee data was collected in May
<br />'1nnQ fAr th;€- I2Irr;r-I.-:lo ,...."A.... .....;1 ......~............
<br />---~-- _n.~___, ~---- ~.~ t~........"""--"
<br />
<br />While asphalt does occur naturally,
<br />asin some lake deposits in Trinidad and
<br />Venezuela, most of the world's supply
<br />comes from the fractional distillation' .
<br />of crude oil. A series of processes at the
<br />refinery separate raw petroleum into its
<br />various components, from lighter hy-
<br />drocarbons such as naphtha, gasoline
<br />and diesel fuel to heavier fractions in-
<br />cluding asphalt. There has not been a
<br />new refinerv huilt in the n.s. ~ince the
<br />~ -- . - .
<br />late 1970s, but there have been expan-
<br />sions and upgrades at existing refineries.
<br />However, due to the growing demand
<br />
<br />have continued to surge. On July 14,
<br />the spot price for West Texas Interme-
<br />diate peaked at $145.16 befl?re ret~eat-
<br />ing slightly for the rest of the month.
<br />Prices for performance-graded as-
<br />phalt rase even more precipitously.
<br />BASF Corporation's Jill1 Andrews
<br />provided the following price-per-lon
<br />ranges for PG 64-22 asphalt at different
<br />locations on August 1 (prices within
<br />e<'.ch region can vary by plus or minus
<br />$25 per ton):
<br />. Northeast $725
<br />· Soulhwl'.~t $675
<br />· Northwest $775
<br />. Southeast $700
<br />
<br />
<br />onservlng sp a
<br />avement Preservation
<br />One way to accomplish this is by us-
<br />ing maintenance applications includ-
<br />ing micro surfacing, chip seal, slurry
<br />seal, and thin lift overlays that employ
<br />asphalt emulsions fortified with poly-
<br />mers, said Andrews. Such polymers
<br />iinprove resistance to rutting and ther-
<br />mal cracking and protect a~phalt from
<br />oxidation. This extends pavement life,
<br />thereby reducing asphalt bindcr con-
<br />sumption and hence saving money.
<br />"These and other pavement preserva-
<br />tion techniques arc the key to managing
<br />reduced asphalt supp,ly and increasing
<br />costs," he concluded. .
<br />
<br />. For information on asphalt
<br />products, go to acppubs.com.
<br />
<br />N6 October 2008
<br />
<br />acppubs.com
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