Asphalt shortage delays road repairs nationwide -- AP

[IrateCitizen]

I don't think it matters much what kind of alternative automobiles we can come up with if we can't maintain the roads. Unless, of course, we create hovercars or private jetcars that collapse into a briefcase when not in use, as in The Jetsons....

Asphalt shortage delays road repairs nationwide
By MANUEL VALDES, Associated Press Writer

SEATTLE – Expect a bumpier drive. An asphalt shortage is delaying road maintenance projects in communities nationwide. Asphalt is becoming scarce as U.S. refiners overhaul their equipment to maximize output of highly profitable fuels such as diesel and gasoline, using inexpensive — and hard to process — crude oil.

To make things worse, refiners are also cutting back on the production of a petrochemical that many states mix into asphalt to make roads more durable.

Dozens of road repairs were delayed last summer and municipalities around the country may face another shortfall next summer. Road-maintenance projects that have gone forward cost significantly more as the price of asphalt nearly tripled over the past year.

The dearth of asphalt compounds the challenges states, counties and cities already face in fixing bridges, highways, local streets and other critical infrastructure at a time when budgets are squeezed by falling income, sales and real-estate tax revenues — not to mention higher costs for fuel, steel and other raw materials....

READ THE REST HERE

Thoughts? Comments?

[theophilus]

1. Uh oh! The free market seems to be letting us down....

I guess if the corps won't step up then we need some NATIONAL REFINERIES constructed so that we can repair our infrastructure at an affordable price. Or else find a substitute for asphalt that doesn't involve petroleum. These corps are so un-American. With "friends" like them, who needs enemies......

[Billy Burnett]

2. A GREAT excuse for the private firms so many turnpikes and expressways have been sold/leased to...

... in the rush to privatization, to not be able to maintain them. Plausible deniability.

Alligator Alley tolls could jump to $3.75 in July
http://www.miamiherald.com/news/miami-dade/story/760981.html

Cash tolls on Alligator Alley could jump from $2.50 to $3.75 starting July 1 under the state's controversial plan to lease the 78-mile highway to a private contractor for 50 years in return for a lump-sum cash payment.

SunPass customers would pay $3, up from $2, under the proposed toll hike, which will be the subject of public hearings next week in Davie and Naples.

Starting Jan. 1, 2011, the tolls would rise each January by 3 percent or the rate of inflation -- whichever is greater -- over the life of the proposed 50-year lease.

[Turbineguy]

3. Residuals have gone from

25% to half that in refinery output due to efficiency improvements. That's a primary reason.

[LiberalEsto]

4. Can't they recycle OLD asphalt?

Just asking.

[happyslug]

5. Yes, but still need new oil to process the asphalt

Anyway, can this be one of the reasons for the recent drop in oil prices i.e. Asphalt producers STOP buying oil do to the price, which reduced the demand for oil and thus its price. i.e. another reason (With reduced oil purchased by the Federal Government) to reduce demand for oil and thus the recent price reduction (i.e. to get McCain elected).

More me trying to find out why the recent drop has been so fast and so deep. Speculators may have forced up the price over the last two years, but it should have taken as long, if not longer, for the price to drop if speculators where the main cause for the price to go up (and speculators will also add to any drop).

[kristopher]

6. The stock market collapse triggered a wave of selling in the oil market as speculators

sold their assets to cover margin calls. Their selling led to a decline in the oil price which, in turn, triggered further flight and falling prices.

Notice the price stabilized briefly in the 80-90 range - which is where it probably should be taking into account production price plus legitimate speculation on increasing world demand and static production. However, the economic downturn led to declining demand which triggered another round of selling when the downturn showed that it would probably last longer than most recent ones have.

Refineries have been running at approximately 95% capacity, and if some of them shut down temporarily or reduce production 10-20% while demand is down, you won't feel it at the pump.