Price of asphalt increases with oil


Wednesday, June 18, 2008 | No comments posted.

Font Size: Shrink Font Enlarge Font | Submit your news
SALEM (AP) — Oil prices may be affecting not just the gas you put in your car, but the roads you drive on as well. Oil topping $135 per barrel is driving up the price of asphalt, which is oil-based.

The costs are already affecting some projects in Oregon, the Salem Statesman Journal reports.

Salem will put off work planned on six streets this summer because of recent price increases, said Mark Becktel, the city’s transportation services manager. The asphalt involved would have cost about $22,000 at current prices.

A year ago, the going rate for hot mixed asphalt was $44 per ton. But the cost to the city now is about $50 per ton, and next month, it will be $56 per ton.

A combination of higher prices for asphalt, fuel and steel will also eat into the 2008 construction budget of the Oregon Department of Transportation, although the exact amount is unknown.

ODOT contracts contain cost-escalation clauses, which are intended to compensate contractors for increases in the three materials between when a project is bid by a contractor and when it is finished. Because bidding is staggered, estimates are hard to come by.

Asphalt remains the preferred material for paving and patching city streets, although concrete is used on some stretches of state highways because it bears more weight.

But the oil byproduct used to make asphalt may grow scarcer as refineries use more efficient technologies to squeeze higher-value products out of every barrel.
Tags »
Previous
Next

Have you checked out The World Link Forums?

Comments

The comments below are from users of theworldlink.com and do not necessarily represent the views of The World or Lee Enterprises. Participation Guidelines

Note: There is a maximum of 200 words per comment. If you wish to post more, please visit our forum.
Comment Policy

The World welcomes your comments about stories, and we encourage a robust dialogue on this site. All comments must meet reasonable standards of decency and civility.

Please follow these basic rules:

  • No defamatory comments about individuals or businesses.
  • No deliberately false information.
  • No obscenity or racially offensive language.
  • No harassment, verbal abuse, threats or personal attacks.
  • No information that invades another person's privacy.
  • No business solicitations or charitable solicitations.
Comments that violate these standards will not be posted. Users with repeated violations may be banned from future posting.

Comments will be approved throughout the day during business hours. After hours and weekend comments may not appear until the following business day. It may take a couple of hours before comments are approved.

The World generally does not edit comments, but we reserve the right to edit any comment that does not meet our standards.

Close Guidelines

No comments posted.


*Member ID:
*Password:
 

Not already registered?

Do not use usernames or passwords from your financial accounts!

Note: Fields marked with an asterisk (*) are required!



*Create a Member ID:
*Choose a password:
*Re-enter password:
*E-mail Address:
*Year of Birth:
 

(children under 13 cannot register)

*First Name:
*Last Name:
Would you like to be added to our mailing lists?
Daily Headlines
Breaking News
Special Offers
 
Advanced Search
Web Search powered by YAHOO! SEARCH

Blogroll

Most Popular

Polls

» View Past Poll Results
» Suggest a Poll

Marketplace

Special Sections

More Special Sections