Oil raising cost of Utah roads
Asphalt — byproduct of refining — getting scarcer and pricier
And that could have an impact on maintenance work and construction projects scheduled by the Utah Department of Transportation.
Jim McMinimee, director of project development for UDOT, predicted that completion of 10 percent to 15 percent of its projects may be in jeopardy if the cost for asphalt products continues to increase.
"We're remaining optimistic we'll be able to deliver projects," McMinimee said. "We may have delays, but we're hopeful the department will be able to pave everything this year."
In Utah, 97 percent of roadway surfaces are asphalt-based, but McMinimee said if prices continue to rise, UDOT in coming years may consider alternatives such as concrete.
Asphalt products are preferred because they are quicker for crews to lay and typically dry fast enough that traffic can begin crossing on the same day. While concrete is relatively cheaper, the curing times force longer road closures.
This year UDOT has about 120 projects on the books that require asphalt or asphalt-based surfacing. To complete this work, about 1.1 million tons of hot-mix asphalt, a product consisting of an asphalt binder and aggregate, will be required. In 2007, UDOT bid for 900,000 tons of hot-mix asphalt.
McMinimee said refineries are hesitant to predict the amount of asphalt they will be able to supply because production is directly linked to the demand for other petroleum products, such as gasoline and diesel fuel.
"They want to keep the supply flexible so they can make the decisions on what to produce," McMinimee said. "It's worrying we're having to compete for a product that has historically been available."
The binder used to create asphalt is a byproduct of the refinery process for gasoline, diesel fuel and jet fuel, said Larry Larson, vice president of SemMaterials, an asphalt producer and marketer in the United States and Mexico. As the demand for fuel has increased with rising prices, he said, refineries have improved the production process to get more fuel.
"Very few refineries made asphalt intentionally in the past. It came with the process," Larson said. "Refineries are opting to produce less asphalt than they historically have because of other demands on the market."
Larson said the demand on refineries for more fuel products has encouraged many of them to install cokers, distilling devices that further break down asphalt binders into smaller materials so products such as kerosene, diesel and petroleum coke are produced. The result is a lower supply of asphalt, and the effect can be seen nationally, he said.
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