In the Know: Winter of 2024-25
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.
QUESTION: What new and unique challenges does this winter heating season pose to propane marketers?
ANSWER: Currently, the not-so-new-and-unique challenges fall under possible propane supply and pricing issues. But not to worry – we have a few suggestions to help you avoid operational challenges this coming winter.
On the supply front
Unexpected arctic fronts, pipeline issues and transportation issues are common concerns as the propane season ramps up. Yet, this year, there are intensified geopolitical events that top concerns as we head into the cold winter months.
The “What if?” factor remains large, with major issues in the Middle East along with the ongoing war in Ukraine. It seems like almost daily updated reports show missiles either being shot into or out of Israel. Meanwhile, warfare methods have changed drastically. Exploding pagers, radios and cellphones prove that the lethal warfare methods have changed, and new technologies will only increase wartime tensions and deaths.
Of course, an all-out war between Israel and Iran could produce several factors that would affect crude oil prices in extreme ways. For example, the Strait of Hormuz, which sees oil flow averaging approximately 21 million barrels per day, has been noted as the world’s most important oil flow point. It is the main export route of crude oil from the Middle East to Asia. An Iranian blockade, or even an attempt at such, of the narrow strait between Oman and Iran could easily send oil prices soaring well above $150 per barrel, reaching an all-time high.
On the operations front
To avoid hiccups in service during the busy winter months and the challenges they produce, it’s always good to take care of the following tasks before the cold of winter.
- Complete all the required annual truck inspections before winter hits: visual, leak, Department of Transportation, fire extinguishers, etc.
- If your truck has a hydro due in December or January, do not wait for winter to hit. Get it done early.
- Complete proper and regular preventative maintenance early. This maintenance will help promote a challenge-free delivery season for your vehicles.
- Ensure all CETP and hazmat training is up to date. Complete all recurring education in the summer months.
- Complete duty-to-warn early – do not wait until winter. Doing so will spark your customers to start thinking about propane and not wait until the last minute to make an order.
As we prepare for the upcoming winter season, the propane industry must remain vigilant to both geopolitical risks and operational demands. With conflicts in the Middle East and Ukraine intensifying, the “What if?” scenarios surrounding oil and propane supplies could lead to significant disruptions. However, by taking proactive measures – completing essential vehicle maintenance, updating required training and encouraging early propane orders – businesses can mitigate the impact of these uncertainties. Ensuring that both supply lines and operations are secure will not only safeguard service delivery but also help navigate the unpredictable months ahead with greater confidence. Preparedness is key to overcoming potential disruptions this winter.
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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