New OPEC+ Cuts Point to Crude and Condensate Supply Deficits Through 2021
Wednesday, June 10, 2020
A Rystad Energy (Oslo, Norway) analysis on June 8, confirms the forced oil production shutdowns and the extension of the generous OPEC+ voluntary cuts into July will not only balance the COVID-19-hit global crude and condensate demand, but are also deep enough to create a monthly deficit starting from June 2020 and continuing uninterrupted until at least the end of next year.
Propane Grain Drying is Popular with Midwest Producers
Wednesday, June 10, 2020
According to a new survey from the Propane Education & Research Council (PERC), a vast majority of Midwest producers are choosing propane for grain drying compared with other energy options. The findings were gathered from a survey of corn and soybean growers in the Midwest and fruit and vegetable growers in California, conducted by PERC in the first quarter of this year. The survey also revealed the widespread use of propane among producers on their farm and in their homes.
Winter 2019-20 Propane Consumption Slides
Wednesday, June 10, 2020
During the winter period 2019–2020 (October through March), U.S. propane supplied averaged 648,000 bbld, the lowest level since winter 2016-17, according to EIA’s recently released May Petroleum Supply Monthly. Propane inventories typically build from April to October and then draw down as temperatures begin to drop. In some years, when the corn harvest is delayed or corn grain moisture is too high, an early seasonal spike in demand may occur.
Paycheck Protection Program (PPP) Extension, Increased Flexibility Legislation Moves Forward
Wednesday, June 10, 2020
The National Propane Gas Association (NPGA) reports that on June 5, President Trump signed H.R. 7010, Paycheck Protection Program Flexibility Act (PPPFA), which will increase access for small businesses as well as expand the program’s flexibility. Congress approved the bill on an overwhelmingly bipartisan basis with the House voting in favor 417-1. The Senate quickly followed suit, passing the bill under unanimous consent on Wednesday evening.

The PPPFA makes several modifications to the program, including:
Canada Remains the Largest Source of U.S. Energy Imports
Wednesday, June 10, 2020
Canada is the largest source of U.S. energy imports and the second-largest destination for U.S. energy exports, behind only Mexico, according to a recent report from the U.S. Energy Information Administration (EIA). Energy is an important component of trade between Canada and the United States. Based on the latest annual Standard International Trade Classification (SITC) data from the U.S. Census Bureau, in 2019 energy accounted for $85 billion (U.S.), or 27%, of the value of all U.S. imports from Canada.
April Heating and Cooling Equipment Shipments Released
Wednesday, June 10, 2020
The Air-Conditioning, Heating, & Refrigeration Institute (AHRI) reports U.S. shipments of residential gas storage water heaters for April 2020 decreased 15.1%, to 311,683 units, off from 367,028 units shipped a year earlier. Residential electric storage models shipped fell 5.7% in April 2020 to 322,258 units, down from 341,834 units shipped in April 2019. Year-to-date U.S. shipments of residential gas storage water heaters are off 4.6% to 1,473,757, compared to 1,544,800 shipped during that same period in 2019.
National Forklift Safety Day Reinforces Industry Safety
Wednesday, June 10, 2020
The Industrial Truck Association (ITA; Washington, D.C.) celebrated its seventh annual National Forklift Safety Day on June 9 as a virtual event. The occasion gives forklift manufacturers an opportunity to highlight the safe use of forklifts, the value of operator training, and the need for daily equipment checks.
COVID-19 Causes Largest Fall In Global Energy Investment
Wednesday, June 3, 2020
The COVID-19 pandemic has set in motion the largest freefall in global energy investment in history. The International Energy Agency (IEA) said in a May 27, 2020 report that spending is expected to plunge in every major sector this year—from fossil fuels to renewables and efficiency.
FMCSA Publishes Start Date for Hours of Service Modifications
Wednesday, June 3, 2020
The Federal Motor Carrier Safety Administration (FMCSA) officially published modifications to Hours of Service (HOS) regulatory provisions on June 1, the National Propane Gas Association (NPGA) reports. Motor carriers and drivers can implement the modifications starting September 29, 2020.
2020’s Oil Demand Recovery Slower; 2021 Demand Downgraded
Wednesday, June 3, 2020
Rystad Energy (Oslo, Norway) continues to update its weekly COVID-19 reports that calculate the effect of the novel coronavirus on global fuel markets. Its more frequent updates have resulted from recent developments, with travel restrictions, quarantine obligations, and new government policies being announced daily around the globe.
U.S. Customers Experience Longer Power Outages in 2017, 2018
Wednesday, June 3, 2020
Interruptions in electricity service, caused by many factors including weather, vegetation patterns, and utility practices, vary in frequency and duration across the nearly 3000 electric distribution systems in the U.S., the Energy Information Administration (EIA) reports. In 2018, power outage durations for these electricity users averaged 5.8 hours per customer.
U.S. Rig Count Continues to Decline
Wednesday, June 3, 2020
According to the latest Baker Hughes rig count, the U.S. rig count has declined by 17 rigs from last week to 301 rigs. Oil rigs fell by 15 to 222; gas rigs lost two to fall to 77; and miscellaneous rigs were unchanged at two.

The current U.S. count is down 683 rigs from last year’s 984, with oil rigs down 578, gas rigs down 107, and miscellaneous rigs up two to two.
The U.S. offshore rig count is unchanged from last week, at 12, but is down 11 year-over-year.
PPP Loan Forgiveness Application and Guidance
Wednesday, June 3, 2020
The National Propane Gas Association (NPGA) recently reported on the U.S. Department of the Treasury and Small Business Administration’s (SBA) release of the Paycheck Protection Program (PPP) loan forgiveness application and clarifying guidance on the process. The application and guidance include measures to reduce compliance burdens for borrowers, which include:

• Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles.
NAHB Sees Promising Signs For Housing
Wednesday, June 3, 2020
As parts of the U.S. reopen while the country is still struggling to mitigate the COVID-19 virus, the National Association of Homebuilder’s (NAHB) chief economist Robert Dietz foresees that some sectors of the U.S. economy will have a greater potential to rebound faster than others. The NAHB forecast is based on housing being a leading sector in the recovery because housing was underbuilt entering into this government-imposed recession and low interest rates will help support demand.
Gault Family Cos. Acquires Fellow Connecticut Operation
Wednesday, May 27, 2020
The Gault Family Cos. in Westport, Conn., has acquired the full-service energy business of Quinoco Energy Services in Bristol, Conn. Terms of the acquisition were not released.

Quinoco, founded in the late-1800s, is a marketer of propane, fueloil, and HVAC services. It operates 32 vehicles from its three operating locations in the western half of Connecticut.
MAN to Supply Engines to Hartmann LPG Tankers
Wednesday, May 27, 2020
MAN Energy Solutions has won the contract to supply individual liquid gas injection propane (LGIP) dual-fuel engines for three 5000-m3 LPG tankers currently under construction by CIMC Sinopacific Offshore & Engineering in Shanghai for Hartmann Carriers, a German shipping company. Each newbuilding will receive a propulsion package with one 5S35ME-LGIP engine, an alpha controllable pitch propeller, PTO, and propulsion control system.
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.