SETTING THE RECORD STRAIGHT

In response to a recently publicized AP article we would like to set the record straight on behalf of the asphalt industry.

This article appears to be based on pricing information that was current a few months ago.  The writer also seems to assume that shortages experienced in 2008 will become a permanent part of the scene.

The price of oil has declined from $147 a barrel to around $65.  Most oil industry analysts predict that the price will range from $50 to $80.  Worldwide demand for petroleum products has also declined.  Based on historical data, it is very reasonable to assume that asphalt prices will also decline, and that availability of asphalt will be sufficient for America’s transportation needs.

But even if prices had stayed at their 2008 level, it is our belief that most DOT’s and public works agencies would continue to build most roads out of asphalt.  Why?  Because asphalt makes better pavements than concrete.  It’s faster to construct, easier and less expensive to maintain, more cost-effective over its entire life-cycle, more reusable/recyclable, smoother, quieter, and more durable.

Asphalt is America’s most reused and recycled road material, and the amount of recycling is expected to double within the next five years.  When an asphalt pavement is reclaimed, the liquid asphalt in it is reactivated.  It can be reused over and over again.  Consequently, the asphalt roads we build today are the renewable road-building resources of tomorrow.

Many people don’t know that liquid asphalt is only about 5.5% to 6% of the pavement mix, and that often 20% or more of this binder is obtained from reclaimed asphalt.  This means that the price of liquid asphalt could increase, but the cost of the road material would not increase proportionately.