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Peakoil.com :: View topic - Colorado has run out of high-grade asphalt
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Colorado has run out of high-grade asphalt
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Hogan
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Joined: Oct 25, 2004
Posts: 1298

PostPosted: Tue Jul 15, 2008 8:39 am    Post subject: Colorado has run out of high-grade asphalt Add User to Ignore List Reply with quote

Colorado has run out of high-grade asphalt
Quote:
A shortage of high-grade asphalt is hammering the state transportation department, forcing crews to delay or revamp nearly three dozen road projects around the state, including one on Highway 82 at Basalt.
The shortage is so severe, it means almost no asphalt at all that meets the grade for CDOT road projects.
“The only thing worse than expensive asphalt is no asphalt at all,” said Joe Elsen, resident engineer for CDOT in Glenwood Springs.
CDOT officials said the Basalt project is likely to be delayed because of the asphalt absence, but they couldn’t say how long it would be delayed because it’s not clear when the asphalt will be available again. Elsen said the Basalt project would likely have to wait until next year.

Quote:
European supplies of a chemical that forms the base of the polymer have been disrupted, Stegman said, limiting the ability of plants to manufacture the asphalt. Meanwhile, soaring oil demands are stressing asphalt supplies as refineries shift from asphalt production to making fuels like gasoline and jet fuel.

Quote:
“When you say a shortage, it’s a shortage that’s gone to zero,” Gould said.

link
Not sure what to make of this. Polymer supply has been 'disrupted'?

*edit* I changed the headline. Don't want to sound too doomerish. Rolling Eyes


Last edited by Hogan on Tue Jul 15, 2008 7:38 pm; edited 2 times in total
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Hogan
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PostPosted: Tue Jul 15, 2008 8:46 am    Post subject: Re: Colorado has run out of asphalt Add User to Ignore List Reply with quote

And then I found this:
Quote:
The Colorado Department of Transportation(CDOT) said Monday that many state projects may be delayed due to a national shortage of asphalt.

link
A national shortage of asphalt?! I don't want to jump to any conclusions, but could this mean that there isn't enough oil nationally to meet asphalt production demands?
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RonMN
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PostPosted: Tue Jul 15, 2008 8:53 am    Post subject: Re: Colorado has run out of asphalt Add User to Ignore List Reply with quote

You've heard of "metal theft"?

Now we're going to have road theft Shocked
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Dan1195
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PostPosted: Tue Jul 15, 2008 9:11 am    Post subject: Re: Colorado has run out of asphalt- as in ZERO Add User to Ignore List Reply with quote

Perhaps someone with a better handle on the refineries could give a reason for this. I suspect its due to what they are doing with their inputs.
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FoolYap
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PostPosted: Tue Jul 15, 2008 9:14 am    Post subject: Re: Colorado has run out of asphalt Add User to Ignore List Reply with quote

RonMN wrote:
You've heard of "metal theft"?
Now we're going to have road theft Shocked

Maybe that explains the huge potholes in some of my local roads? Shock Razz
--Steve
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Hogan
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PostPosted: Tue Jul 15, 2008 9:14 am    Post subject: Re: Colorado has run out of asphalt- as in ZERO Add User to Ignore List Reply with quote

Dan1195 wrote:
Perhaps someone with a better handle on the refineries could give a reason for this. I suspect its due to what they are doing with their inputs.

Domestic gasoline demand in the US is actually down. And I would guess that asphalt uses lower-grade crude oil in production.


Last edited by Hogan on Tue Jul 15, 2008 9:17 am; edited 2 times in total
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Specop_007
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PostPosted: Tue Jul 15, 2008 9:16 am    Post subject: Re: Colorado has run out of asphalt Add User to Ignore List Reply with quote

FoolYap wrote:
RonMN wrote:
You've heard of "metal theft"?
Now we're going to have road theft Shocked
Maybe that explains the huge potholes in some of my local roads? Shock Razz --Steve
If pot holes are a sign of asphalt shortages Missouri has been running a severe shortage for about the past decade. Mad
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calluna
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PostPosted: Tue Jul 15, 2008 9:24 am    Post subject: Re: Colorado has run out of asphalt- as in ZERO Add User to Ignore List Reply with quote

Colorado is welcome to some of ours. They seem to re-asphalt our roads here in Virginia every six months or so. Very Happy
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burtonridr
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PostPosted: Tue Jul 15, 2008 9:31 am    Post subject: Re: Colorado has run out of asphalt- as in ZERO Add User to Ignore List Reply with quote

To quote Happy Trails slogan

"Paved roads... A classic example of wasted tax money"
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Hogan
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PostPosted: Tue Jul 15, 2008 9:44 am    Post subject: Re: Colorado has run out of asphalt- as in ZERO Add User to Ignore List Reply with quote

Well, I checked the EIA's total U.S. asphalt refinery yield % stats and total asphalt refinery yield percentages did fall slightly in 2007 for the first time since 1993 to 2.9% yield. link
Total US gasoline refinery yields are down and most other refinery yields are flat or down. Not sure what is going on. link
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denverdave
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PostPosted: Tue Jul 15, 2008 9:49 am    Post subject: Re: Colorado has run out of asphalt- as in ZERO Add User to Ignore List Reply with quote

Thanks
We'll just tell the authorities that Calluna said it was alright.
calluna wrote:
Colorado is welcome to some of ours. They seem to re-asphalt our roads here in Virginia every six months or so. Very Happy

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Hogan
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PostPosted: Tue Jul 15, 2008 9:57 am    Post subject: Re: Colorado has run out of asphalt- as in ZERO Add User to Ignore List Reply with quote

Quote:
And new refining techniques may lead to an asphalt shortage, Simonson said.
"Refineries have invested as much as $1.5 billion on cokers, which are giant drums that further refine that bottom-of-the-barrel residual into gasoline and other high-value fuels."

link
This might be part of the problem, but total US asphalt oil yields are still close to average.
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Hogan
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PostPosted: Tue Jul 15, 2008 10:09 am    Post subject: Re: Colorado has run out of asphalt- as in ZERO Add User to Ignore List Reply with quote

This is an Australian article, but this might be the cause of asphalt shortages in the US, too:
Gas crisis hits asphalt production, roadworks
Quote:
WA’s gas crisis could cripple the State’s roadworks program, with major asphalt manufacturers forced to scale back production because of an inability to get sufficient gas supplies.
Boral and Pioneer Road Services have both been at the mercy of Alinta’s 4pm daily gas allocations, which have affected supply deadlines and construction timetables.

The Master Builders Association of WA yesterday warned of ongoing disruption to roadworks, carpark construction and subdivisions.
Asphalt shortages have disrupted construction on the Perth to Bunbury Highway and major roadworks at Perth Airport.

Pioneer sales manager Don Secomb said late yesterday the company was told it would not have any gas supplies today. Production at its Hazelmere plant was operating at between 25 and 50 per cent capacity each day, depending on allocations.
The company was installing diesel burners in the next week to bring production back to full speed, but it would add an extra $12 a tonne to costs to produce an asphalt mix.
link

Asphalt Manufacturing
Quote:
The dryer operation is the main source of pollution at hot mix asphalt manufacturing plants. Dryer burners capacities are usually less than 100 mmBtu/hr, but may be as large as 200 mmBtu/hr. Natural gas is the preferred source of heat used by the industry, although oil, electricity and combinations of fuel and electricity are used.
link

I don't know much about asphalt production, but it sounds like most asphalt plants use natural gas burners to 'dry' the asphalt during production. Perhaps there isn't enough natural gas for many US asphalt plants to run at full speed?
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bobaloo
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PostPosted: Tue Jul 15, 2008 3:50 pm    Post subject: Re: Colorado has run out of asphalt- as in ZERO Add User to Ignore List Reply with quote

Three years ago we paid $21 per ton delivered for asphalt, two years ago it was $40, last year it was $65, we didn't even buy any this year so don't know how high it has been.
Cities have fixed amounts of money for street work, many don't get any significant amount of the gas tax money which goes to the states and feds.
I anticipate a lot of now-paved roads will be gravel 5-10 years from now as cities are unable to keep up with maintenance.
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burtonridr
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PostPosted: Tue Jul 15, 2008 4:48 pm    Post subject: Re: Colorado has run out of asphalt- as in ZERO Add User to Ignore List Reply with quote

bobaloo wrote:
Three years ago we paid $21 per ton delivered for asphalt, two years ago it was $40, last year it was $65, we didn't even buy any this year so don't know how high it has been.
Cities have fixed amounts of money for street work, many don't get any significant amount of the gas tax money which goes to the states and feds.
I anticipate a lot of now-paved roads will be gravel 5-10 years from now as cities are unable to keep up with maintenance.

Thank goodness! Very Happy
Unfortunately it wont mean a reduction in taxes, just an increase in their personal pay check....
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