Talley Oil Inc. markets and manufactures asphalt emulsions, road oils, and dust palliatives. Talley Oil’s construction division performs asphalt pavement maintenance such as chip seals and other surface treatments. Talley Oil maintains a fleet of Bearcat computer-controlled distributor trucks which are dispatched throughout California and into western Nevada.
The polymers used to make polymer-modified emulsions (PME) are in short supply and is negatively impacting the industry. Styrene and butadiene are the two most prevalent materials used to make polymer. As the demand for PME’s reaches its peak in August and September in California, three of the top five butadiene suppliers have declared “force majeure” this month indicating forces beyond their control are leading to shortages. During the winter, styrene suppliers also declared force majeure following the freeze in Texas that impacted production. Additionally, chlorine (one of the key chemicals for manufacturing cationic PME) has also been in very short supply. This has created a perfect storm for contractors and suppliers trying to deliver projects and manufacture PME’s heading into the busiest part of the construction season.
The other factors contributing to this situation are: