Repercussions of High Oil

The Oregonian carries a story, Soaring costs throw Oregon road projects a curve, by James Mayer outlining the rapidly increasing costs of highway construction and repair since 2004, up 13%. However, in some cases the increases are staggering:

The average price the state paid for liquid asphalt in Portland jumped 61 percent in the first seven months of this year, from $207 a ton to $333 a ton. The asphalt bill on some projects has doubled.

Bottom line higher oil prices have added $100 million or more to state highway projects on the books.

Officials say money to complete current work will have to be diverted from future projects, upsetting plans to repave aging freeways, repair or replace crumbling bridges and relieve traffic jams.

But, the government tells us there is no inflation!

James Mayer Oregon Highways Mover Mike

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