Eastern Propane & Oil Fuels Growth in Wolfeboro New Hampshire

(Wolfeboro, NH) January 9, 2020 — Eastern Propane & Oil, family owned and operated since 1932, continues to grow with the recent acquisition of Wolfeboro Oil Company in Wolfeboro, New Hampshire.
Eastern Propane & Oil Acquires Wolfesboro Oil in NH reports BPN the propane industry's leading source for lpg news since 1939
“Over the last six decades, the Bean family has built a successful business based on exceptional customer service. We are honored they have chosen Eastern to continue to serve their customers. Like Eastern, Wolfeboro Oil is a company that values being a part of, and giving back to, the communities it serves. We look forward to continuing that commitment to community involvement. We are pleased to welcome the Wolfeboro Oil family to Eastern,” said Tom Manson, CEO of Eastern Propane & Oil.

For 87-years, Eastern has worked to ensure that its customers’ fuel and service needs are not only taken care of, but that they feel like part of the Eastern family. Wolfeboro Oil has always been dedicated to their customers and that dedication is a major reason they have been so successful. Eastern is excited to welcome aboard Wolfeboro Oil’s team to continue serving both current and future customers.

“For nearly 60 years, Wolfeboro Oil has been serving the local community and with their support the business has grown steadily. To meet the future needs of our customers, we feel that the resources of a company like Eastern are essential. Eastern is a company that cares as deeply as we do about the customers, employees, and communities we serve and we are excited to join the family,” said Howie Bean, Owner & President of Wolfeboro Oil Company.

As the weather gets colder, Eastern Propane & Oil looks forward to connecting with and serving Wolfeboro Oil customers and making sure that they feel at home with Eastern. For more information visit www.eastern.com.

Propane Products "In The News"

Propane Products in the news Marshall Excelsior propane dist new regulators reports BPN LPG industry leading source for news 1939(January 8, 2020) — REGULATOR VENT ADAPTER. Marshall Excelsior Co. has introduced the MEP960 vent adapter that allows universal installation of the ME960 series flex ventTM kits into the 3/8-in. FNPT vent port of MEC Excela-Flo TM compact regulators. The vent adapter features brass construction and a 3/8-in. MNPT x 3/4-in. FNPT adapter configuration. The MEC ME960 Flex-VentTM Kit provides a safe, easy solution to vent LPG regulators away from openings, sources of ignition, or other potential fire hazards. It meets all requirements of the flexible material allowance in the 2017 NFPA-58, section (4). Its durable hose is constructed of flexible PVC material suitable for use with LP-gas vapor, and it is UV stable for maximum resistance to outdoor exposure. The flex ventTM features a 3/4-in. NPT swivel inlet for easy installation; a standard 90-degree vent assembly with screen; and has crimped ends for maximum durability. Mounting clamps and masonry screws are included. marshallexcelsior.com

MOBILE SOFTWARE. Propane Management Systems has released a Real-Time version of its PMS Mobile Software. The real-time functions allow constant communication between an office and a tablet in the truck. When any changes happen in the office, the tablet will automatically pick up the changes (cellular connection required); any invoices or changes made by the driver or service tech will immediately be posted on the customer’s account in the office. The economical, user-friendly system is designed for Windows tablets; an Android version will be released shortly.

Midwest Propane Tight Heading To Peak Winter Demand Months

(January 7, 2020) — The Energy Information Administration (EIA) reviews that propane inventories in the U.S. Midwest totaled 20 MMbbl as of Dec. 13, a total 4.7 MMbbl, or 19%, below the previous five-year average. The agency notes that lower-than-average stocks were driven by both higher consumption and lower supply. A late and wet corn harvest in the region resulted in increased agricultural propane demand while supply was lower because of disruptions to rail shipments from Canada. The situation is similar to the events of winter 2013-2014 when extremely tight propane supplies in the Heartland led to record spot and retail prices.

Midwest Propane Inventory Tight Heading To Peak Winter 2020 Demand Months reports industry expert John Needam of BPN the propane industry's leading source for news since 1939. 01-06-2020In the Midwest, or Petroleum Administration for Defense District (PADD) 2, propane is used for both agriculture and heating homes and businesses. Regional propane demand generally has two peaks: in the late summer and early autumn for grain drying in the agricultural sector and again during winter for space heating. In some states, such as Iowa and Minnesota, propane consumption during the grain harvest typically nears or exceeds consumption in the peak of the winter heating season.

However, the infrastructure to supply propane to the Midwest from other regions, and to distribute the fuel within the region, is currently scaled to provide steady flows throughout the year—not to meet high seasonal peaks in propane demand. Intra-regional pipelines, originating in the processing and storage hub at Conway, Kan., account for most of the capacity to distribute propane within the Midwest. In addition, rail shipments from western Canada and some limited pipeline capacity bring supplies from other regions. As a result, local inventories, which build in low-demand summer months and draw down in high-demand fall and winter months, act to balance the market.

Retail propane markets in the Upper Midwest, such as Iowa, Minnesota, Wisconsin, and Michigan, especially rely on supplies shipped in from other areas. As such, local storage at the secondary and tertiary levels—such as storages operated by small retail distributors and end-user storage tanks—determine immediate availability of propane to the local market. Therefore, inventory refilling activity during the summer is just as important to the region’s ability to meet heating-season demand as winter weather patterns.

Further, the corn harvest is one of the largest drivers of agricultural demand for propane in the Midwest. For corn to be stored it must first be dried, either by leaving it in the fields to dry naturally or by using large-scale dryers that are often fueled by propane. If corn harvests are large and the weather is wet, propane demand may surge. If local propane inventories are lower than normal going into the second period of peak propane demand for residential space heating, the supply chain can become strained, resulting in shortages and higher prices.

In 2019, corn planting was delayed as a result of cold, wet weather in the spring. Thereafter, cooler summer weather resulted in a later-than-normal harvest and grain that had a high moisture content. According to the U.S. Department of Agriculture, this year’s corn crop was postponed by about three to four weeks compared to normal and only reached maturity in northern Midwest states by about the first week of November, which was the latest since 2009. Wet, cool temperatures during the harvest required accelerated drying in commercial dryers, rather than drying in the field.

The late harvest, which in late December was still ongoing in some states, meant demand for propane from grain drying overlapped propane demand for space heating. This resulted in larger-than-normal drawdowns of propane in the Midwest late last year. Between the week ending Oct. 4 and the week ending Dec. 13, Midwest propane stocks fell by 7.0 MMbbl, compared with the five-year average draw of 2.6 MMbbl for the same time period.

Furthermore, a strike by unionized workers at Canada’s largest rail operator, CN, put additional pressure on Midwest propane markets in November. The strike halted rail movements of propane from western Canada into the Midwest between Nov. 19 and Nov. 27 when harvest-related propane demand was highest. Although the trains are now moving, the one-week delay in real shipments impeded the ability of Midwest retailers to rebuild local inventories after the steep harvest draws earlier in the season.

(SOURCE: The Weekly Propane Newsletter, January 6, 2020. Available by subscription. Map courtesy U.S. Energy Information Administration.)

Oil Producers Brace for Post-Election Policy Shift

(January 2, 2020) — Democrats are still months from naming a candidate in next year’s U.S. presidential campaign, but oil producers are already preparing for a policy change that threatens to disrupt nearly one-quarter of daily crude output and throw thousands of federal leases into legal limbo, reports S&P Global Platts.
Oil Producers Brace for Post-Election Policy Shift if White House adminsitration changes in 2020 election reports BPN the propane industry's leading source for news since 1939
All Democratic presidential candidates have pushed some policy aimed at slowing U.S. oil production, which the Energy Information Administration (EIA) forecasts will average a record of nearly 13.4 MMbbld by the end of 2020, up more than 40% in just four years. These candidates have pledged to ban drilling on federal lands, and analysts expect that any potential election of a Democrat to the White House will likely lead to stricter limits on hydraulic fracturing and flaring, and increased scrutiny under the National Environmental Policy Act, all contributing to a significant reduction in output.

“It’s a significant hit,” said Dan Naatz, a senior vice president with the Independent Petroleum Association of America. “We think it’s a mistake on several different levels.” Analysts with Rapidan Energy Group said new prohibitions on drilling in federal acreage, both onshore and offshore, could disrupt up to 2.9 MMbbld of existing crude oil output, and new federal regulations would “severely dampen” production in the Permian, Bakken, and Alaska’s National Petroleum Reserve.

“While only a fraction of production is on private lands, federal land crude production is roughly equivalent to the total production of Kuwait, and policies that disrupt output on them would ripple through the global market,” Rapidan analysts wrote. “In addition to limiting current production, policies would negatively impact investor sentiment and plans for future growth on private lands.”

While a hydraulic fracturing ban on private lands would require a change in law, the U.S. president has “vast control” over development on federal lands and waters, according to analysts with ClearView Energy Partners. A ban on leasing on federal lands and suspension of drilling permits could cause a decline of about 650,000 bbld of crude oil output per year, the analysts said.

In a Nov. 1 earnings call, Neil Hansen, an ExxonMobil vice president, said a ban on hydraulic fracturing would slow development of the Permian and other basins. “I think any efforts to ban fracking or restrict supply will not remove demand for the resource,” Hansen said. “If anything, it will shift the economic benefit away from the U.S. to another country and potentially impact the price of that commodity here and globally.”

On an earnings call in late October, Concho Resources CEO Tim Leach said his company was prepared to move operations from federal lands in New Mexico to private lands in Texas if a federal hydraulic fracturing ban is put in place. While a ban on shale development on federal lands would be a detriment to producers in Colorado and Wyoming, the biggest impact is seen hitting New Mexico, said Robert Erickson, an energy analyst with S&P Global Platts Analytics. Some New Mexico producers with federal acreage “are responding to this proposed policy shift by planning to develop these plays to [just] before the election takes place and a Democratic president has the chance to block them,” he said.

Offshore federal leasing may be at greater immediate risk, ClearView analysts said. Oil output in the U.S. Gulf of Mexico averaged nearly 1.96 MMbbld in August and is forecast to average 2.1 MMbbld by the end of next year, according to EIA. The Trump administration is in the middle of developing a five-year offshore leasing plan that is expected to open more areas in Alaska’s offshore and, potentially, new acreage in the Atlantic and eastern Gulf of Mexico to drilling.

But a Democrat in the White House would likely revoke, or ignore, the Trump administration plan, potentially halting all offshore leasing, even in the central and western Gulf. The impact of this policy change may not be clear for years since numerous projects in the Gulf are sanctioned through starts into 2026. “It would take several years to see the impact,” said Rene Santos, an analyst with Platts Analytics, “but after that the impact could be significant.”

Any action to limit oil production on federal lands and in federal waters will face numerous legal challenges from industry. “If such a ban were issued by executive order…we would be in court the next day challenging it,” said Kathleen Sgamma, president of the Western Energy Alliance. “Since Congress has mandated, via the Mineral Leasing Act, quarterly lease sales in states where there is interest, we feel very good about our chances in court, including with a preliminary injunction to stop the order immediately.”

Analysts with ClearView said a Democratic president may attempt to limit oil development by declaring a national climate emergency, similar to President Trump’s national security emergency proclamation in February intended to fund the wall along the U.S.-Mexico border. ClearView analysts said a Democratic president could use such a declaration to shut down U.S. crude oil exports, suspend offshore drilling, and limit oil shipments by pipeline, rail, and marine transport using emergency powers in the Energy Policy and Conservation Act, Outer Continental Shelf Lands Act, and Aviation and Transportation Security Act.

“We are skeptical that such uses of emergency authorities might survive the scrutiny of strict constructionist judges, but we believe the topic deserves serious consideration, not least because a future Congress might seek to create climate emergency authorities that could survive in court,” ClearView analysts wrote.

(SOURCE: The Weekly Propane Newsletter, Dec. 30, 2019. Available by subscription. PHOTO: David Everett Strickler/Unsplash)

Propane People "In The News"

Propane People in the news Rich BPN 122019(December 31, 2019) — Paul Bolduc has joined RegO (Elon, N.C.) as its Midwest business development manager for LPG and industrial gas markets, based in the Chicago area. Bolduc has been part of the propane industry for more than 26 years and has extensive experience in all aspects of the LPG industry including bulk, transportation, installations, and training. Bolduc was most recently with LPG & NH3 Supply as a sales manager for the Midwest. Propane People In the News announces Paul Balduc joins Rego Products reports BPN the propane industry's leading source for news since 1939  12-2019
Propane People in the news announces that John Sells has joined Rego PRoducts reports industry leading media BPN 12-2019
John (J) Sells has been named as RegO’s new Southeast business development manager for LPG and industrial gas markets, based in Jacksonville, Fla. He has been in the industry for more than 25 years and has worked in various capacities for marketers and distributors in sales and marketing. Sells has been involved in the Florida Propane Gas Association as a 601 Qualifier safety instructor, and is recognized as an industry expert in propane autogas.

In Memorium:
Propane People in the news sadly reports the death of long-time propane industry professional Patricia Mulligan12-2019Patricia (Patti) Mulligan, 59, passed away Oct. 8 in Jacksonville, Fla. She began her career in the propane industry at Wilford Propane, and later owned Mulligan Propane. When her company was acquired by Sams Gas, she became one of that company’s employees. Mulligan was a member of the Florida Propane Gas Association board of directors and led the Marketing and Autogas Committee as chair for a number of years. In addition, she was directly appointed by the Commissioner of Agriculture to serve on the Florida Propane Education and Research Council.

Jessie Weldon Taylor passed away Sept. 6 in Fort Worth, Texas. He began his long career in the propane industry in 1965, working for Arrow Gas Co. as a district salesman and supervisor until 1977. He was appointed as the Commissioner of the Liquid Petroleum Bureau and served from 1976 until 1979. In 1979, he went into private business and founded wholesale petroleum companies such as Petro Fuels, TMI Inc. and later NGL Transport. Taylor also started a retail propane company, AAA Propane, in Pagosa Springs, Colo. He was an active industry voice and marketer until his retirement in 1999.