Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

U.S. propane shortage hits millions during brutal freeze
Reuters ^ | 24-January-2014 | y Sabina Zawadzki and Edward McAllister

Posted on 01/24/2014 9:12:31 AM PST by topher

(Reuters) - Millions of Americans are feeling the pinch of a propane shortage this week as brutal cold exposes the supply vulnerabilities of a fuel that heats homes, schools and businesses across wide swathes of the United States.

Prices of the fuel, a liquefied petroleum gas, have rocketed to all-time highs in Midwestern states, distributors are rationing supplies, and some schools have shut due to a lack of the fuel during this year's second bout of Arctic weather.

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Extended News; News/Current Events
KEYWORDS: energy; midwest; propane; propaneshortage; winter
Because production skyrocketed earlier this year, it became profitable to export propane to Japan and Latin America.

Some interesting points:

o US DOT has relaxed rules for propane drivers (regionally only) to allow them to drive more hours.

o Texas has waived registering trucks for hauling propane (long lines have formed at the largest producer in Mount Belvieu, TX -- Houston area). o Schools have closed due to the shortage

Reading the whole article would give one a better picture of this situation...

1 posted on 01/24/2014 9:12:31 AM PST by topher
[ Post Reply | Private Reply | View Replies]

To: topher

It’s Bush’s fault...


2 posted on 01/24/2014 9:14:22 AM PST by Paul46360
[ Post Reply | Private Reply | To 1 | View Replies]

To: topher

meanwhile coal, oil and natural gas remain undisturbed under the feet of a nation whose leader are too dumb (or bought off) to know when it is being taken to the cleaners in more ways than they could ever dream of.

Herd abuse haPPens.


3 posted on 01/24/2014 9:17:21 AM PST by NormsRevenge (Semper Fi)
[ Post Reply | Private Reply | To 1 | View Replies]

To: topher
There are these two Freerepublic discussions on this from yesterday:

U.S. propane shortage deepens as cold snap reaches Midwest

Local Poultry Farmers Say Propane Shortage Could Be Devastating

Additionally, there is this US Energy Information Agency article from yesterday:

Midwest propane markets tighten further on cold weather

4 posted on 01/24/2014 9:17:28 AM PST by topher (Traditional values -- especially family values -- which have been proven over time.)
[ Post Reply | Private Reply | To 1 | View Replies]

Comment #5 Removed by Moderator

To: topher

I heard this from a vendor the other day here in IN.

They are sending their semis clear to Kansas to get propane.
They service a lot of homes and farms in the area.

I just use several of the 20# tanks for various things, but their filling station tank was down to <5% and they didn’t know when it would be available again when that ran out.

Local UHaul dealer had plenty though. Going back there today.


6 posted on 01/24/2014 9:22:20 AM PST by digger48
[ Post Reply | Private Reply | To 1 | View Replies]

To: digger48

Propane trucks out of St. Louis are lifting gas in Mississippi, according to the local paper.


7 posted on 01/24/2014 9:38:20 AM PST by Eric in the Ozarks ("Say Not the Struggle Naught Availeth.")
[ Post Reply | Private Reply | To 6 | View Replies]

To: Eric in the Ozarks

Thank God for this cool weather.
My A/C just crapped out. Lot$ to fix.....

Keep the vortex going as long as possible.

63 is the perfect temp outside.
(SFL)


8 posted on 01/24/2014 9:42:03 AM PST by bicyclerepair (TERM LIMITS TERM LIMITS TERM LIMITS)
[ Post Reply | Private Reply | To 7 | View Replies]

To: topher

Obama: I'll make energy prices “skyrocket.”

http://hotair.com/archives/2008/11/02/obama-ill-make-energy-prices-skyrocket/






9 posted on 01/24/2014 9:45:13 AM PST by preacher (I am not a global warming hoax denier.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: topher

The left, that hates fossil fuels, is to blame for this.


10 posted on 01/24/2014 10:21:29 AM PST by I want the USA back (Media: completely irresponsible traitors. Complicit in the destruction of our country.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: topher

Just had a delivery yesterday..........$3.70/gallon. When I got my previous delivery in October it was something like $2.40. Lady at the propane office mentioned something about a propane shortage and I had no idea what she was talking about. Well, until now that is.


11 posted on 01/24/2014 10:26:11 AM PST by FAA
[ Post Reply | Private Reply | To 1 | View Replies]

To: topher

She don’t lie
She don’t lie
She don’t lie

propane.


12 posted on 01/24/2014 10:58:19 AM PST by TurboZamboni (Marx smelled bad and lived with his parents .)
[ Post Reply | Private Reply | To 1 | View Replies]

To: topher

None of this is helping my natural gas stocks.


13 posted on 01/24/2014 11:03:23 AM PST by STJPII
[ Post Reply | Private Reply | To 1 | View Replies]

To: FAA

Wow...I locked my price in last July. 2.04 per gallon.


14 posted on 01/24/2014 11:23:34 AM PST by VRWCarea51
[ Post Reply | Private Reply | To 11 | View Replies]

To: VRWCarea51

I’ve been buying smaller loads throughout the year but I may just switch to one large one in the middle of the summer when demand is way down.


15 posted on 01/24/2014 11:33:08 AM PST by FAA
[ Post Reply | Private Reply | To 14 | View Replies]

To: STJPII
There is an abundant supply of Natural Gas in US. Enough to keep the price at a steady $4. And that is easily recoverable Natural Gas.

Ironically, one of the factors that helped cause the propane shortage was that the price went down on propane that made it possible to export since the US price was well below the price elsewhere.

Free market system of supply and demand.

16 posted on 01/24/2014 11:44:13 AM PST by topher (Traditional values -- especially family values -- which have been proven over time.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Eric in the Ozarks
May mean barge traffic on the Mississippi. Trains can have trouble this time of year with the demand for their cars plus any problems with cold weather...

That would be the cheapest and easiest way to get it to Saint Louis -- if refineries in Baton Rouge/New Orleans are producing propane...

17 posted on 01/24/2014 11:46:54 AM PST by topher (Traditional values -- especially family values -- which have been proven over time.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: topher

I’m east of Kansas City and filled my tank a week or so ago at about $2.20. It’s gone up about 30 cents since then.


18 posted on 01/24/2014 11:47:47 AM PST by DoodleDawg
[ Post Reply | Private Reply | To 1 | View Replies]

To: FAA

My supplier has several programs to sign onto.

One is Prepay. I think you have to purchase 600 gallons minimum to get that price. It was 1.99 for this years supply.

The other is Lock In price. I sign that every year. It’s a nickel more a gallon but I don’t give them any money until I call for a delivery. There is no annual min. or maximum amount. I just sign an agreement that I won’t purchase my propane from any other supplier for the year. They do have a minimum delivery of 200 gallons. I think that is fairly normal now.


19 posted on 01/24/2014 11:49:17 AM PST by VRWCarea51
[ Post Reply | Private Reply | To 15 | View Replies]

To: FAA
Unfortunately, there was a glut in the summer.

Then there was a record corn crop that was very wet and needed drying (propane was used).

When the glut occurred, price where went down such that it was feasible to export, so we started exporting.

Now the very cold winter. When I-10 closes due to cold weather in the Gulf states, that is cold.

That is happening yesterday and probably the next few days to come...

20 posted on 01/24/2014 11:50:31 AM PST by topher (Traditional values -- especially family values -- which have been proven over time.)
[ Post Reply | Private Reply | To 11 | View Replies]

To: topher
Did somebody say there is a Propane shortage?!?


21 posted on 01/24/2014 12:44:59 PM PST by Yo-Yo (Is the /sarc tag really necessary?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bicyclerepair

Braggart !


22 posted on 01/24/2014 12:50:14 PM PST by Eric in the Ozarks ("Say Not the Struggle Naught Availeth.")
[ Post Reply | Private Reply | To 8 | View Replies]

To: topher
Bloomberg News has chimed in about this:

- 15 governors are taking action on the propane shortage

- Bloomberg talks about a Polar Pig -- that froze pipelines...

Here is a direct link to the Bloomberg article:

Polar Pig Deserves Little Blame for Propane Shortage

The article says that there needs to be better planning and store for the future.

We have HUGE underground facilities for Natural Gas (which can be significantly depleted in winter).

Probably some of the states that normally have cold winters (Minnesota, Wisconsin, Michigan, etc) should have some of their storage... At least the article talks about this, and this would make sense rather than having folks having to fork over 3 times the price of propane in the winter...

23 posted on 01/24/2014 4:49:38 PM PST by topher (Traditional values -- especially family values -- which have been proven over time.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: I want the USA back
"The left, that hates fossil fuels, is to blame for this."

And middle class lefties are invested in all kinds of energy production.


24 posted on 01/24/2014 5:13:52 PM PST by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: familyop

Never let a crisis go to waste...


25 posted on 01/25/2014 4:37:03 AM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
[ Post Reply | Private Reply | To 24 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson