Author

Pat Thornton

Pat Thornton is a 25-year veteran of the propane industry, with 20 years at Propane Resources and five years at Butane-Propane News. He has served on the Propane Education & Research Council (PERC) Safety & Training Advisory Committee and the Missouri PERC board of directors.

 

  • Feature Articles

    Truck Sales Rolling High With Tax Incentives, Cold Winter

    “This is another one of those years where the calendar turned over without any lull,” said Tim Schweppe, Arrow Tank & Engineering Co.’s general manager for the propane division (Minneapolis). “Running wide open for consecutive years takes its toll on the crew but we also know the flip side all too well.” After several years of warmer-than-normal winters, colder temperatures that started last fall, and new tax benefits beginning in early 2018 with the Tax Cuts and Jobs Act, kept sales strong. “The deduction limit for qualifying equipment and software went from $510,000 in 2017 to $1 million in 2018 and it will stay there for 2019 and likely beyond,” said John Hawkins, CEO of H&H Sales Co . (Huntertown, Ind.). “We’ve never slowed down.”...

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  • Feature Articles

    Mariner East 2, OPEC and U.S. Crude Production All Affect Propane Pricing

    As 2019 began, crude oil was trading around $45/bbl, Mont Belvieu propane was at 65 cents/gal., and Conway propane was at 58 cents/gal. Looking ahead, a contract for propane for delivery in January 2020 or January 2021 was approximately 68 cents/gal. at Mont Belvieu for both years and 65 cents/gal. and 63 cents/gal., respectively, for 2020 and 2021 at Conway. These were not unfavorable price points in a market where many advisors had encouraged locking in some gallons for future years even as out-month prices were higher earlier in the season. Several factors have been bouncing propane prices around during the past year and there are a few factors to watch as we move through 2019. Indeed, prices are down significantly from crude oil topping...

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  • Feature Articles

    MOPERC “Inspiration Home” Showcases Propane’s Whole-Home Benefits

    Last spring, members of the Missouri Propane Education & Research Council (MOPERC) began developing an integrated, statewide marketing campaign. Using the theme “Welcome Home,” the goal was to highlight the whole-home benefits that propane provides in a residential setting. “We wanted Missouri consumers to be aware of all the ways propane can be used in their homes,” said Steve Ahrens, MOPERC president. “We often focus on just the main appliances—the furnace and water heater—but because they operate in the background, the benefits are less visible. We believe that the visual appeal of other important burner tips, from fireplaces to cook stoves, clothes dryers to outdoor living, can create an aspirational appeal for a propane lifestyle.” A component in that decision was the opportunity to partner...

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  • Feature Articles

    Tier 4, Farm Incentives Move Irrigation from Diesel to Propane

    Tier 4 emission standards are now fully implemented by the Environmental Protection Agency (EPA) and put the most stringent restrictions yet on diesel engines that require deep reductions in pollutants and particulate matter. With Tier 3 diesel engines now illegal, there are many options involving propane that allow farmers to cost-effectively continue with important farm processes such as irrigation. The Propane Education & Research Council (PERC) started to work with engine manufacturers nine years ago as it became clear Tier 4 emission standards would make diesel engines much more expensive. From dual-fuel systems to engines designed and optimized for industrial applications, PERC has helped fund research and development involving several companies to help ensure alternatives to the Tier 4 diesel engine would be available in...

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  • Feature Articles

    State Propane Gas Associations Rank Growing Gallons and Workforce Development As Top Priority in 2019

    As 2018 drew to a close, BPN reached out to state propane executives to discuss their plans for 2019. While addressing lost revenue and Volkswagen Settlement opportunities were high on many 2018 priority lists, growing gallons and workforce development were two of the highest priorities in many states for 2019. Among the common themes reported by state executives were the following: a colder winter was helpful to the industry after two previous warm winters and the polar vortex that resulted in huge supply shortages in early 2014; state associations made necessary adjustments in 2018 budgets caused by the loss of dues’ revenue; and gaining results from the Volkswagen Settlement has been a slow process. Growing Gallons Pennsylvania is typical of many states in planning to...

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  • Feature Articles

    NPGA Outlines Top 2019 Priorities; Sets Agenda For New Congress

    With the 116th Congress taking office this month, National Propane Gas Association (NPGA) leaders have a lot of work to do to introduce the propane industry and its many concerns to 100 new members of Congress. With three new Democrats and six new Republicans in the Senate and 60 new Democrats and 31 new Republicans in the House of Representatives, NPGA leaders would like to meet with the offices of all new members with key propane interests prior to Propane Days in June 2019. The majority in the House has shifted to the Democrats and the new Congress is the most racially diverse and has the most females in history. Meanwhile, with only two years remaining in President Trump’s term, just two years remain to...

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  • Feature Articles

    PERC Launches New Website, Embarks On 2019 Priorities

    Meeting in Savannah, Ga. last November, the 21-member Propane Education & Research Council (PERC) gathered to discuss many ongoing PERC initiatives, the market outlook for propane, and plans for moving ahead in 2019 with numerous outreach programs to boost propane sales in multiple areas. On the first day of the two-day meeting, councilors heard from Ashley Petersen of Stratas Advisors, an advisory and consulting firm, who shared a wide range of data on market trends and how they will likely affect propane demand levels in the future. In a look at details regarding the residential sector, it was noted that younger home buyers are postponing home purchases. “Millennials have a homeownership rate of 37% versus 45% for Gen Xers at the same age,” Petersen said....

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  • Technology

    Improved Technology Allows Propane Owners to Work Remotely

    When Michelle Bruno, owner of Cleburne Propane LLC (Granbury, Texas), discussed remote business operations with her 81-year-old father recently, he commented that the fax machine back in the ’90s allowed him to have three houses in three different states and still run his chemical business. “Even now, he uses a fax and cell phone to stay in touch with his staff. I told him he is in the dark ages. I’m on my laptop working remotely, especially in the slow summer season,” Bruno said. “I live on my family ranch in Weatherford, Texas, and my commute to my office, should I choose to accept it, is about 40 minutes each way. I also travel for vacations a few times a year. Don’t get me wrong,...

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  • Beyond the Mains

    Propane Education & Research Council CEO Discusses 2019 Priorities

    Nearly a year and a half into his role as president and CEO of the Propane Education & Research Council (PERC), Tucker Perkins isn’t shy about trying new approaches in a dynamic and ever-evolving marketplace. His commitment to “rethink” everything when taking the top job at PERC has resulted in many changes. For instance, a new IT strategy is being implemented; a new auditing firm is being hired; a new cultural change is taking place to make PERC staff more consultative; new events such as the first “Can-Do Conference” held in July are being introduced; a more regional focus to marketing is being implemented; and the concept of “thought leadership” to improve propane’s story in the national energy conversation is being introduced. These are probably...

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  • Feature Articles

    Concerns About Natural Gas Expansion Ease As OSHA Crane Concerns Persist

    The Petrash File… Jeff Petrash, National Propane Gas Association (NPGA) vice president and general counsel, handles multiple issues affecting the propane gas industry at any given time. Recently, BPN spoke with him about priorities he is working on as the end of 2018 approaches. OSHA Crane Rule “It’s all hands on deck regarding the OSHA Crane Rule. We’re pressuring the agency [OSHA], Congress, and the White House,” he explained. “This has the potential to really affect marketers financially. If we can’t get propane exempted by Congress or the agency, this will go to court and that’s one way I could get more involved as general counsel.” NPGA has been fighting the obstacle of the added OSHA certification for nearly 10 years, Petrash noted. “This type...

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