1. 1 How High Will Virgin Asphalt Go? What You Can Do About It! What You Can Do About It! 3 rd Asphalt Recycling Forum November 1-2 2007 Chicago Illinois

2. 2 Price trends

3. 3 Oil Industry Views   "The time when we could count on cheap oil…is clearly ending." – David O'Reilly, Chairman, Chevron (February 2005)   "The era of cheap hydrocarbons is over." – Viktor Khristenko, Russian Energy Minister (June 2006)   "Peak oil does not exist for easy-to-drill oil." – Jeroen van der Veer, Shell Chief Executive (January 2006)

4. 4 Peak Oil

5. 5 World oil discovery peaked 40 years ago 0 10 20 30 40 50 60 1930195019701990201020302050 Gb per year 0 10 20 30 40 50 60 Past Future Production

6. 6 Oil and gas

7. 7 250 years of coal? It's the maximum flow rate, not the stock

8. 8 When? Now - 2012   T. Boone Pickens: oil/gas investor   Matt Simmons: largest energy banker   A.M.S. Bakhitari: Iranian oil exec.   Ken Deffeyes: retired Shell geologist   Colin Campbell: ret. Texaco/Amoco geologist   E.T. Westervelt: US Army   7 other analysts

9. 9 What Can You Do!

10. 10 Using Roofing Shingles Roofing shingles, especially those from manufacturers’ waste, have many of the same ingredients as hot-mix asphalt. This includes high quality asphalt binder, hard fine aggregate, mineral filler, polymers, and fibers. Many state agencies allow up to five percent of recycled shingles in HMA. With an asphalt binder content of 20 percent, the use of five percent shingles in your mix could reduce the HMA binder content by one percent. This would mean, for instance, instead of adding 5.5 percent liquid asphalt, you would add only 4.5 percent. For each 10,000 tons of mix, this would save 100 tons of liquid asphalt and at $250/ton this would save about $25,000 on mix cost. Dave Newcomb, P.E., Ph. D., is the Vice President–Research & Technology for National Asphalt Pavement Association.

11. 11 Shingle Ecomomics

12. 12 Advantages   Longer Term price stability for producer and customer.   Makes your pricing more competitive.   Fits in with project that are seeking green credits.

13. 13 Shingle Grinding Operation

14. 14 Recycling Benefits: Energy, Economic, & Greenhouse Gas Savings 20062011Difference BTU savings46 trillion65 trillion19 trillion Energy savings (equiv households) 410,000573,000163,000 GHG savings CO2 (MTCE) 6.4 million9.4 million3 million GHG reduction (equiv cars) 1.2 million1.7 million400,000 Dollar savings$539 million$762 million$223 million

15. 15 Contact Information Wayne Gjerde Recycling Market Development Coordinator Enviromental Economic Development MPCA Ph 651-215-0270 Email wayne.gjerde@state.mn.us