• 4 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 7 minutes Oil prices forecast
  • 11 minutes Algorithms Taking Over Oil Fields
  • 14 mintues NIGERIAN CRUDE OIL
  • 5 hours UK, Stay in EU, Says Tusk
  • 2 hours Socialists want to exorcise the O&G demon by 2030
  • 5 hours Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 15 hours German Carmakers Warning: Hard Brexit Would Be "Fatal"
  • 50 mins Nuclear Power Can Be Green – But At A Price
  • 2 hours Venezuela continues to sink in misery
  • 3 hours What will Saudi Arabia say? Booming Qatar-Turkey Trade To Hit $2 bn For 2018
  • 12 mins Chevron to Boost Spend on Quick-Return Projects
  • 17 hours WSJ: Gun Ownership on Rise in Europe After Terror Attacks, Sexual Assaults
  • 15 hours How Is Greenland Dealing With Climate Change?
  • 1 min Maritime Act of 2020 and pending carbon tax effects
  • 1 day Solid-State Batteries
  • 18 hours Trump inclined to declare national emergency if talks continue to stall - Twitter hides this as "sensitive material"
  • 23 hours Orphan Wells
Oil’s Traffic Light Turns Yellow

Oil’s Traffic Light Turns Yellow

Oil prices started to stabilize…

Propane Shortages Leave Many Without Heat

Shortages of propane around the country have left many with sky-high energy bills, or worse, without heat at all. Propane prices have jumped from a national average of $2.31 per gallon at this time last year, to $3.89 in January 2014. Inventories of propane are half of what they were at this time last year, even though production of propane is up 15% on the year. And as a stretch of cold weather continues over much of the eastern half of the country, many people are having to make difficult choices about how to heat their homes and businesses.

The causes of the shortage are not entirely clear, especially considering natural gas production continues to rise, but there have been several factors. Propane, a product obtained during oil and gas drilling, usually experiences consistent demand. However, the cold winter has driven demand to unusual highs, and inventories have been drawn down as a result. Another reason is that farmers used five times the normal amount of propane this past year in order to dry out corn. The farm belt had a banner year, but much of the crop was wet from heavy rains, and propane is used to dry out corn.

Energy analysts also believe that exports have played a part. With the U.S. producing surpluses in natural gas and refined products, companies have moved to ship more overseas. Since 2010, exports of refined petroleum products have surged 60%. For propane, those numbers are even more staggering. In October 2013, propane exports surpassed 400,000 barrels per day for the first time ever, up from 150,000 barrels per day in January 2012.

Local price spikes have deviated from the national average as well, reaching as high as $5 per gallon in Missouri. Several states, including Iowa and Illinois, have issued disaster declarations, and some are calling on the White House to do the same at the federal level.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment
  • Leo curcuro on February 14 2014 said:
    Nothing but a bunch of low life lieing scumbags knowing that over half of working people can't afford these insane gas prices and all the government wants to do is sit on there lieing ass and leave people out in the cold and say they can't do nothing about it.They don't care because it's not effecting them.They are doing the same thing with propane as they do with gas prices blame it on hurricanes and oil spills LOL Now the bad weather is the culprit for propane prices.and when the good weather gets here they will drop it 5cents a gallon to$4.95 cents a gallon and question peoples intelligence like they are really doing something great When God sends you to Hell I want all that are responsible for this to have plenty of gas and oil because I want your asses to burn and not run out of fuel.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News