The Alaska Contractor - Summer 2008
The Alaska Contractor - Summer 2008
The Alaska Contractor - Summer 2008
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Asphalt oil is almost as<br />
valuable as fuel oil<br />
BY JOHN MACKINNON<br />
I had always been under the impression<br />
that asphalt oil was the bottom of<br />
the barrel in the refining process, almost<br />
a waste product that the refiners were<br />
happy to get rid of. This may have been<br />
the case years ago, but today it is almost<br />
as valuable as fuel oil.<br />
<strong>The</strong> end product or base material that<br />
is used for asphalt road oil can be further<br />
refined with minor effort and sold as<br />
“Bunker C” oil, the fuel that powers most<br />
of the world’s merchant fleet. In Puget<br />
Sound, there is a good market for Bunker<br />
C. Asphalt oil markets there are competing<br />
with the market for fuel for the merchant<br />
fleet.<br />
Some refineries have installed new<br />
coking towers that can take the asphalt<br />
oil material and refine it into fuel oil and<br />
market it for heating oil for the commercial<br />
market. In areas where coking towers<br />
are refining the product further, they<br />
Fairbanks International Airport<br />
R/W 1L-19R Reconstruction<br />
• Bids Opened – July 18, 2007<br />
• Contract Amount - $32,987,400<br />
– Electrical - $10,816,000<br />
– HAP – 112,000 tons – $4,699,350<br />
– Asphalt Cement and Tack Coat – 6,248 tons<br />
– $5,072,627<br />
• <strong>Alaska</strong> Asphalt Material Price Index at Bid Opening<br />
– $376.67<br />
• Paving during summer of 2009<br />
• Bid Opening to Paving – 2+ years<br />
• Average (65% Increase)<br />
– Increase - $238.99/ton<br />
– Total Increase for 6,248 tons – $1,493,181<br />
• High Increase (260% Increase)<br />
– Increase - $979.34/ton<br />
– Total Increase for 6,248 tons – $6,118,891<br />
• Low (36% Decrease)<br />
– Decrease - $135.60/ton<br />
– Total Decrease for 6,248 tons – $847,229<br />
Annual Crude Oil Price<br />
June <strong>2008</strong>