The Ultimate Secret Of Driveway Sealing
The Ultimate Secret Of Driveway Sealing
By February 1st, asphalt prices have shot up 20% since December 31st, 2009. This fact is hard to believe because most paving and roofing contractors across the nation use hardly any asphalt in the winter season. Demand for a specific product usually dictates how much it costs. Liquid asphalt is a byproduct of refining petroleum. In plain English, it's the stuff remaining after gasoline, diesel, and jet fuels are produced. Since the mid 1970s, oil refineries have already been extracting more fuel out of every barrel of crude oil through developments of coker units. Coker units can maximize fuel production from crude oil.
What this implies is that the oil companies have near complete control over what products they make. This gives them the ability to manipulate prices anyway they want. They are able to simply slow production of any given material and raise the prices; citing more demand for the material. Consequently, oil refineries that also Driveway Sealing have complete control over markets that utilize asphalt products. At anytime they may start producing more liquid asphalt from crude oil, nevertheless they choose not to. Through the 1970s, as much as 40-50% of all refined petroleum was left as liquid asphalt material. Now, with the ability of selection, fuels are the principal focus of production, leaving only about 5-20% of each barrel of oil refined into liquid asphalt. Throughout all this, the oil companies continue to create more profits while regular people struggle.
Why are prices so high in the midst of recession and the "down" season? Several explanations have already been written by one oil producer positioned in Wood River, Illinois (small town north of St. Louis): Since the American economy is in recession and inflation is up, sales of goods are down and people are spending less money. Because people are doing less and buying less, less fuel has been consumed. Since less fuel has been produced, less asphalt has been made as result. Therefore they've less liquid asphalt to sell. This has all happened over the course of the winter.
Another speculation for the next rise in liquid asphalt is major resellers of liquid asphalt have obtained large quantities this winter; leaving the supply low. They try this to try and maximize profits in the spring, in the event of an amount spike. I asked about decreasing the production amounts of fuel to simply help balance the general petroleum market. The representative for the oil producer did have no informative data on if that actually would be implemented, but he did agree that it would stabilize the situation. The information on the determining force behind the refining process is limited. Another possible scenario why big oil companies charge so much for liquid asphalt is because of the focus on infrastructure today. Much of President Obama's arrange for stimulating the economy is focused on improving roads and highways. So instead of making money from the motorists, they'll have it from the comfort of the us government through the sale of asphalt material. Again, this really is speculation, but it's not far-fetched.
Unfortunately, this season is going to be much like 2008; volatile and inconsistent. Unless the big oil companies start being more fair and ethical in how they price fuel and other petroleum products, more negative effects will be prevalent in the private sector and for the general economy.
Regardless of how the values fluctuate, projects utilizing asphalt pavements and roofing materials will always have to be completed. Simply "waiting" for the marketplace to stabilize is not a realistic stance to take. Even throughout a recession it could be best to attempt to get asphalt projects done sooner rather than later. In 2008 we were headed for a recession. The best analysts couldn't predict what might happen then. In 2009, prices receded slightly, but remained overall consistent. By today the price of liquid asphalt is a couple of dollars significantly less than where they peaked in 2008.
When you have a project planned for 2010 that involves using asphalt related materials, please keep a couple of tips in mind. Paving contractors, roofing contractors, etc don't have any control of material prices. Since 2008 costs are given on a regular basis. There's no ability to lock in your price. When your project happens will determine how much you pay for material. Try to accomplish your project in the spring time. Most contractors start the growing season slow, and progressively get booked as the growing season gets near the end of the year. If your project is residential, try to get a neighbor to possess work done as well to make the most of a multi-discount.
If you should be constructing an asphalt surface such as road, parking lot, or driveway, keep your design simple and focus on the foundation of the surface. Rock is relatively inexpensive and can help improve the general strength of a paved surface. Doing this may enable you to use less asphalt with respect to the scenario. If you should be selling a property, try to emphasize aesthetics over functionality. You might be able to do simple maintenance rather than replacement to enhance appearances. When choosing a company, make sure to research your options before building a decision. Check for almost any information regarding them on the internet. Look to see if they've an internet site which lets you actually consider the type workmanship they're capable of. Actually seek advice from any references they give you. You need to try this regardless of state of the economy, but today it is increasingly important.