In the Know: What does the 2024 election mean for the propane industry?

In the Know is a monthly partnership between LP Gas and Propane Resources. This month, Allan Degenhardt and Shawn Treat outline what to expect this winter.

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QUESTION: What does the 2024 election mean for the propane industry?

ANSWER: As the dust settles on the election, the propane industry faces both challenges and opportunities.

With Donald Trump returning to the presidency, the energy sector is bracing for a shift in regulatory, market and workforce dynamics. For the propane industry, the implications of this administration could be significant.

Electrification pressures

President Joe Biden’s administration has been characterized by aggressive promotion of electrification. These efforts may slow or even reverse under Trump, whose previous administration emphasized energy independence and supporting fossil fuels. While this plan could alleviate immediate pressures on propane businesses, the industry cannot ignore the long-term trend toward electrification. The propane industry must keep advocating for its role as a low-carbon, reliable energy source.

Regulatory relief

A Trump administration is likely to bring regulatory relief to the industry. Trump’s record suggests a rollback of regulations that propane marketers often see as overly burdensome. For example, emissions requirements for storage and transportation infrastructure could be eased, reducing compliance costs for businesses.

But regulatory relief comes with risks. Critics say reduced oversight could erode public trust in the industry. The industry must demonstrate its commitment to safety, environmental stewardship and innovation to counteract any negative perceptions that could arise from relaxed regulations.

Workforce challenges

One pressing issue is the shortage of qualified drivers and technicians. But Trump’s focus on deregulation and infrastructure investment may improve conditions for transportation and logistics businesses, including propane distributors. His administration could push for reforms in the Department of Transportation, potentially making it easier to recruit and retain CDL drivers.

Opportunities and threats

A Trump presidency could present opportunities for the propane industry to grow and reassert itself in the energy landscape. Deregulation, coupled with a favorable stance toward fossil fuels, may reduce operational barriers and open doors for expanded use cases, such as propane-powered vehicles or renewable propane applications.

However, the industry must also be prepared for potential challenges. The global energy market is shifting toward decarbonization. Even with a more favorable federal administration, propane businesses must continue to adapt, innovate and advocate for their role in a sustainable energy future.

Looking ahead

The results of the 2024 election underscore the importance of a resilient and forward-thinking propane industry. While a Trump administration may provide short-term relief from electrification mandates and regulatory burdens, long-term success depends on the industry’s ability to address workforce challenges, embrace innovation and position propane as a key player in the nation’s energy mix. By continuing to invest in renewable propane, workforce development and public education, the industry can ensure its relevance and growth, regardless of who occupies the Oval Office.

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Allan Degenhardt, left, is the vice president of wholesale supply at Propane Resources. Reach him at allan@propaneresources.com or 816-813-1956. Shawn Treat is director of operations and safety at Propane Resources. He can be reached at shawn@propaneresources.com or 417-631-8595.

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