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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
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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
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To: topher

It’s Bush’s fault...


2 posted on 01/24/2014 9:14:22 AM PST by Paul46360
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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)
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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.)
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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
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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.")
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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)
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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.)
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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.)
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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
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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 .)
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To: topher

None of this is helping my natural gas stocks.


13 posted on 01/24/2014 11:03:23 AM PST by STJPII
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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
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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
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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.)
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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.)
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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
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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
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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.)
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