A market outlook for propane

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.

Headshot: 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.