PERC OKs propane infrastructure and deliverability study
February 19, 2009 By LP Gas
PERC has agreed to pay consulting firm Purvin and Gertz $155,000 for an in-depth analysis of the U.S. propane industry’s infrastructure.
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PERC has agreed to pay consulting firm Purvin and Gertz $155,000 for an in-depth analysis of the U.S. propane industry’s infrastructure.
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Answers are needed as Northeast experiences major propane distribution problems.
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Yep, things are a mess. Looking back, retailing sure was easy before overwhelming regulation and sky-high insurance took the fun out of the business. Sure, you worried about what weather Mother Nature would be throwing at you any given year. Sure, you spent a sleepless night or two, wondering whether you’d made the right decision about adding a bobtail despite a new retailer invading your territory. But global economic crisis? Where did this come from? Yep, things are a mess.
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An expanded directory of the propane industry’s top product sources
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Amassive expansion in liquid natural gas production had propane experts earlier this year forecasting a record boost in supply and a resulting drop in prices for propane marketers gearing up for the 2007-08 winter.
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Just as propane marketers nationwide had given up hope of squeezing a profit from yet another warm winter, a ferocious St. Valentine’s Day Blizzard punctuated a solid month of cold temperatures that saved a dismal heating season but wreaked havoc on the front lines.
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Slightly over 35 percent of the participants in this year’s State of the Industry survey offered comments beyond the questions asked. It would be an understatement to say the comments implied that the situation was nearly untenable, and that no improvement was in sight.
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Wicked winter weather and supply chain bottlenecks in the Northeast have again focused attention on the ability of propane’s infrastructure to promptly deliver the product. As tankers waited in long lines, restrictions on hours of service for truck drivers presented added difficulties despite extensions granted by government authorities.
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I hope you’ll agree that one of the most exciting aspects of our industry involves the commodity side of the business and its unpredictability of both disruptions in supply distribution and wholesale propane price spikes.
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