The Asphalt Industry
Associated Asphalt Keeps Your Wheels Moving
Approximately 94% of all roads in the U.S. are paved with asphalt. Asphalt demand in the United States has experienced a decline since 2007 due to the economic downturn and the tightening of federal, state and local government budgets.
While construction spending has been affected by recent economic cycles, we believe that there is a basic level of maintenance needed on U.S. highways to keep them safe and that they are at or near that basic level now.
Crude oil supply and demand dynamics can vary by region, creating differentiated margin opportunities depending on a given refinery's location.
Many of the refineries we source our asphalt from are located in the strategically advantageous PADD II region and have the ability to source a variety of crude oils, including heavy Canadian crude oils that are highly asphaltic. These refineries have historically purchased their crude oil at a discount to the benchmark NYMEX WTI as a result of their close proximity to plentiful sources of crude oil in Western Canada.