A market outlook for propane

April 8, 2016 By    

Mike Sloan’s industry outlook presentations are typically among the most highly attended at propane events. Sloan’s presentation Friday was no different at the Southeastern Convention & International Propane Expo in Nashville, Tenn., where marketers packed a room to capacity within the Music City Center.

Mike Sloan

Mike Sloan

Sloan, the principal at ICF International, offered perspective on general market conditions and a propane supply outlook. He also discussed opportunities and risks in domestic propane markets.

Among the takeaways Sloan offered the industry:

  • ŸTargeted consumer education and marketing are critical. “At least for the next couple of years there’s a chance to get the message out about what an attractive product propane can be,” says Sloan, referring to the opportunity the Propane Education & Research Council has with its consumer education campaign. “There are also significant opportunities in other markets that have become much simpler to address and grow with lower propane prices.”
  • Ÿ The largest growth opportunities are with internal combustion engines. “That’s [both] on-road and off-road markets,” he says. “The change in fuel prices changes the economic balance and makes it a harder sale, but the technology and the economics are there. It does require a little bit more work to explain the benefits.”
  • Ÿ The propane supply balance is shifting – again. “We’re much less likely to see these high-price periods and low-price periods that we’ve seen in the past,” Sloan says.
Kevin Yanik

About the Author:

Kevin Yanik is the senior editor of LP Gas Magazine. Contact him at kyanik@northcoastmedia.net or 216-706-3724.

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