Midwest grapples with propane supply, distribution issues
November 19, 2019 By Brian Richesson
Propane demand in the Midwest has soared, as farmers face an extremely wet harvest combined with an early blast of winter-like weather.
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A wealth of propane-specific information came out of this year’s Winter Fuels Outlook, released by the U.S. Energy Information Administration.
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For the week ending Sept. 20, the U.S. Energy Information Administration reported a major jump in U.S. propane demand of 743,000 barrels per day.
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A big change in the U.S. propane supply demand balance between 2018 and 2019 has driven prices sharply lower.
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Petrochemical companies have been choosing ethane over propane. See what the propane demand decrease means for domestic demand and prices.
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Combined domestic demand and export volumes are not keeping up with increases in propane production. This results in building inventory and falling prices.
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Propane’s relative value to WTI crude has been falling this year. Comparing propane’s value to crude’s value is…
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ICF’s Mike Sloan offers a rundown on propane supply and demand issues in 2018 at the National Propane Gas Association’s 2018 Propane Expo.
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The EIA reports the United States exported 905,000 bpd of propane, with the largest volumes going to supply petrochemical feedstock demand in Asian countries.
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This year, domestic demand has remained high due to a long winter heating season, when compared to recent winters.
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