Map leads back to Atlanta
May 1, 2008 By Brian Richesson
One year makes all the difference when it comes to the propane industry
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One year makes all the difference when it comes to the propane industry
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This winter’s rampaging propane prices spared no marketers from lost customers, crimped cash flow and mangled margins.
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A few months ago I wrote an article called To sleeve or not to sleeve. It generated a great response.
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The practice of a trial lawyer is carried out from a unique vantage point. I have an ability to see the problems that face the industry that result in real conflict. There is enough conflict that people are driven to involve a lawyer to address the matter. In fact, I have a steady diet of problems that face members of?this industry on my desk at all times.
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The propane industry’s four-year push to tap into the lucrative indoor cabinet heater market came to a screeching halt when the National Propane Gas Association’s (NPGA) board of directors on Feb. 12 voted 88-1 to suspend any further expenditure of resources to move the contentious issue forward.
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With the price of oil topping $100 per barrel amid a sputtering overall economy, propane marketers and customers alike spent much of the 2007-08 winter heating season struggling to cover their costs. And while some regions saw record-setting snowfalls, bitterly cold temperatures, crippling ice storms and widespread power outages, other parts of the country experienced way too much warmth to pump appropriate amounts of propane.
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For seven years propane has steadily gained strength in the minds of consumers throughout the United States. Once a fuel virtually unknown outside rural America, 73 percent of people now say they are aware of propane, according to national survey results supplied by the Propane Education & Research Council.
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Retailers and state association directors who have been working with homebuilders for years say they believe the time is right to approach builders and pitch propane.
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Gerry Misel’s roots are strong in Georgia. He grew up in Sandy Springs, about one mile from the office he oversees as president of Georgia Gas Distributors Inc.
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There appears to be growing dissention in the ranks regarding the industry’s aggressive pursuit of the untapped indoor cabinet heater market.
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