Denver Asphalt Paving News
Beginning in 2008, the asphalt industry has been thrown on its ear due to rising oil prices. Since asphalt cement is a derivative of crude oil, as the price per barrel increases, which it has in an unprecedented fashion this year, so goes the price of asphalt. To make matters worse, since asphalt cement is basically what’s left over after refining crude into gasoline and diesel fuel, as the price of those products rises, it makes sense for refineries to refine their stock further, which leaves less at the end for asphalt cement. As a result, supplies have been reduced, which is another force driving prices up.
With that as background, one of the three major providers of asphalt cement in the US has felt it necessary to declare bankruptcy to allow itself to invalidate its contracts to provide future product to the market at stable prices, since their rising costs were shrinking or reversing their margins. That event caused further shrinkage in asphalt supply, and it has taken time for new and other competitors to replenish the pipeline.
On the positive side, Black Gold Paving Solutions/Citywide Enterprises largest asphalt supplier is in the process of building tank storage facilities which will hold “winter fill” (product available at lower prices during colder months which is the slow paving season), They are attempting to have enough asphalt cement to satisfy demand for the spring, summer and fall months at lower prices for next year. At Black Gold/Citywide this is very positive for our customers since it should enable us to hold our prices fairly steady for 2009.
Also, for driveways, walkways, and patios, we offer options for commercial and residential solutions that do not involve petroleum based materials. Pave stones are natural, virtually permanent and require no maintenance.
Contact Black Gold Paving Solutions/Citywide Enterprises for a free, accurate, expert assessment of your Denver paving project, or call (303) 791-8300
