The “Great Shut-in” Hits North America
Wednesday, May 27, 2020
IHS Markit expects U.S. oil producers to halt production by 1.75 MMbbld, while Canada is projected to cut production by 500,000 bbld as the “Great Shut-in” takes hold. A result of the collapse in oil prices, the consultancy projects these cuts due to operating cash losses, lack of demand and storage capacity, and an unwillingness to sell resources at the very low prices available since the onset of the COVID crisis.
Active Atlantic Hurricane Season Predicted for 2020
Wednesday, May 27, 2020
According to forecasters with NOAA’s Climate Prediction Center, a division of the National Weather Service, an above-normal 2020 Atlantic hurricane season is expected. The outlook predicts a 60% chance of an above-normal season, a 30% chance of a near-normal season, and only a 10% chance of a below-normal season. The Atlantic hurricane season runs from June 1 through November 30.
OSHA Publishes New COVID-19 Enforcement Guidance
Wednesday, May 27, 2020
The Occupational Safety and Health Administration (OSHA) has revised two enforcement memorandums: (i) increasing in-person inspections at all workplaces; and (ii) reinstating workplace illness recordkeeping and reporting requirements for COVID-19. OSHA stated that the revisions were appropriate as states and localities reopen, reports the National Propane Gas Association (NPGA).
FMCSA Begins Crash Preventability Determination Program
Wednesday, May 27, 2020
The Federal Motor Carrier Safety Administration (FMCSA) has announced the start of the Crash Preventability Determination Program (CPDP). Under this program, if you have an eligible crash that occurred on or after August 1, 2019, you may submit a Request for Data Review (RDR) with the required police accident report and other supporting documents, photos, or videos through the agency’s DataQs website.
Canadian Propane and Butane Inventories Soared In April
Wednesday, May 27, 2020
Canada’s primary underground propane inventories increased 59.9% in April to 659.4 Mcm, the equivalent of 4.2 MMbbl, according to the Canada Energy Regulator (CER). The total represented a month-to-month gain of a whopping 247.1 Mcm. Compared to a year earlier, stocks increased 1.5 Mcm, or 0.2%.
Offen Petroleum and Bosselman Agree to Terminate Acquisition Agreement
Wednesday, May 20, 2020
Offen Petroleum (Commerce City, Colo.), an independent fuel distributor, Bosselman Energy (Grand Island, Neb.), a fuel distributor, and Bosselman Carriers LLC, a fuel transportation company, announced May 19 that they have mutually agreed to end their agreement pursuant to which Offen would have acquired Bosselman.

The pending agreement was announced March 11, 2020, and was set to close in April 2020.
Annual PERC Retail Propane Sales Report Due
Wednesday, May 20, 2020
Time is running short for propane marketers to submit their 2019 Retail Propane Sales Report. Due on June 1, the sales report is conducted by ICF on behalf of the Propane Education & Research Council (PERC). It is undertaken to determine the odorized propane sales to end-use sectors for the calendar year 2019 and is the only source of state-level end-use sector sales information for odorized propane.
Record Liquid Fuels Inventory Builds Expected
Wednesday, May 20, 2020
As efforts to contain the 2019 novel coronavirus disease (COVID-19) pandemic continue to lead to rapid declines in petroleum consumption around the world, the production of liquid fuels globally has changed more slowly, leading to record increases in the amount of crude oil and other petroleum liquids placed into storage in recent months. In its May Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) projects global inventory builds will be largest in the first half of 2020.
U.S. Gas Production Thought to Hit Bottom in November
Wednesday, May 20, 2020
The COVID-19 pandemic has forced oil and gas producers to slash budgets and reduce drilling activity, which in the U.S. always affects future hydrocarbon output as existing fields naturally decline. Operators also shut some producing oil fields, halting in turn their associated gas output. Rystad Energy estimates that U.S. gas production (Lower 48 States excl. Gulf of Mexico) will reach its lowest point in November, at 82.5 billion cubic feet per day (Bcfd) before a gradual slow recovery begins in 2021.
Latest Crop Report Shows Promise
Wednesday, May 20, 2020
The U.S. Department of Agriculture (USDA) crop progress report for the 2020 planting season continues to show cause for optimism. As of May 17, 80% of the corn had been planted compared to 44% in 2019. The current year’s planting is 9% ahead of the five-year average of 71%.

Emerged corn percentages are also increasing compared to 2019. The total percentage of emerged corn was at 43% as of May 17, a strong 19% above the prior week’s 24%, and bettering the five-year average of 40%.
Drivers’ Hours Of Service (HOS) Final Ruling
Wednesday, May 20, 2020
The Federal Motor Carrier Safety Administration (FMCSA) has revised the hours of service (HOS) regulations to provide greater flexibility for drivers subject to those rules without adversely affecting safety.
Interactive Site Offers Educational Games, Activities For Children
Wednesday, May 20, 2020
The Propane Education & Research Council (PERC) is sharing an interactive online activity center for parents and caretakers of preschool and young school age children looking for fun learning opportunities while much of the country is keeping safe at home.

The site, PropaneKids.com, includes games, activities, and science experiments for children that are designed to reinforce the importance of propane safety and education with a focus on the farm.
Mid-Month to Mid-Month: May Nudges Propane Prices Upward
Thursday, May 14, 2020
Nearly half of global demand for butane and propane comes from the residential and commercial sectors, with more than one-third of the supply of these fuels being sourced from oil refineries, according to Btu, writes Natural Gas Daily. But, following a sharp drop in crude oil demand tied to the coronavirus pandemic, refinery runs have dwindled and, by extension, so has production of butane and propane. Unlike oil, though, demand persists for the NGLs and is supporting prices.
Largest U.S. Rig Count Collapse is Already Here—When Will It Bottom Out?
Wednesday, May 13, 2020
The COVID-19 pandemic has caused the largest horizontal rig count collapse ever recorded in the U.S., according to a Rystad Energy analysis of Baker Hughes data. The total horizontal oil rig count fell below 270 rigs last week, a 57% decline from the peak of 624 rigs seen in mid-March 2020. Horizontal gas drilling was down to 70 rigs last week, which is 54% below the previous peak seen in June 2019.
Global Oil Production Cut May Hit 17 MMbbld in Second Quarter 2020
Wednesday, May 13, 2020
The three-month period of April through June 2020 will see the largest volume of liquids production cuts, including shut-in production, in the history of the oil industry, according to IHS Markit, a global information provider. It expects as much as 17 MMbbld total liquids output, which includes nearly 14 MMbbld of crude oil production, to be cut or shut-in during the quarter, and oil demand to be 22 MMbbld less than a year ago.
Decline in Global Demand Leaves Oil Companies Searching for Storage
Wednesday, May 13, 2020
The sudden decline in demand amid the COVID-19 pandemic is bringing new challenges for oil companies, says GlobalData, a data and analytics company. Distant storage locations increase costs as transportation fees get factored in with storage fees. The limitations of storing light crude alongside heavy crude, add further difficulties for these companies.
NPGA’s Propane Days, Eastern Energy Expo Set New Venues
Wednesday, May 13, 2020
The National Propane Gas Association (NPGA) has modified this year’s Propane Days and its annual board meeting due to the uncertainty around the restrictions placed on this type of gathering due to the COVID-19 pandemic. The association is modifying this year’s activities scheduled for June 14-17 as noted.
FEMA Posts Reopening Considerations Regarding COVID-19
Wednesday, May 13, 2020
The Federal Emergency Management Agency (FEMA) recently published guidance to assist public and private sector organizations resume normal operations while maintaining safety procedures for employees and customers, reports the National Propane Gas Association (NPGA).
ASHRAE Offers COVID-19 Building Readiness/Reopening Guidance
Wednesday, May 13, 2020
The ASHRAE Epidemic Task Force has developed guidance on mitigating potential health risks during reopening of buildings closed during the COVID-19 pandemic.
“We have reached a time where planning for a safe return to normal activities has become a priority,” said 2019-2020 ASHRAE president Darryl K. Boyce, P.Eng.

“Safe operation of HVAC and building water management systems are critical components of building readiness and reopening, and ASHRAE’s resources provide a framework for developing plans in a variety of building types.”
ROUSH Forms New Task Force to Deal with COVID-19 Needs
Wednesday, May 13, 2020
Roush Enterprises (Livonia, Mich.) has joined the ranks of companies repurposing their people, equipment, and materials to help during the COVID-19 outbreak. The company has formed a Medical Task Force that works with healthcare providers to design and manufacture desperately needed items, including: face shields; intubation protective equipment; portable high-volume oxygen supply units; field hospital bed design; ventilator wire harnesses; 3D printed ventilator adaptors; and filter components.
Dixie Pipeline to Undergo Hydrotest
Wednesday, May 6, 2020
The Dixie Pipeline Co. will conduct a pipeline hydrotest of the Opelika, Ala., to Milner, Ga., pipeline segment, beginning on May 11 and ending on May 29. During the hydrotest, product will be available at the Apex terminal via its cold storage tank. However, product will only be available for the first few days until tank inventories are depleted at the Milner, Lexington, Bethune, and Cheraw destinations. The Opelika, Alma, and Albany terminals will remain open for loading during the hydrotest.
PERC Launches New Grain Drying Calculator
Wednesday, May 6, 2020
The Propane Education & Research Council (PERC) has launched a new Grain Drying Calculator tool that, by utilizing just three simple data points, will help producers determine the number of propane gallons needed each season. The tool will enable users to estimate the amount of propane each operation will require, making it easier to fill tanks early and prepare for supply needs prior to a seasonal increase in demand.