Propane Council Boosts Business Fleet Incentives
Saturday, November 29, 2014
The Propane Council of Texas (ProCOT), a nonprofit organization dedicated to promoting the use of cleaner burning, domestically produced propane, is offering incentives to Texas businesses that upgrade their fleet vehicles to autogas. ProCOT now offers up to a $7500 incentive per new propane vehicle purchased or converted by a private fleet. The program cap is $15,000 per private fleet. In return for the incentives, recipients will be required to provide data on their business fleet.
Production Remains Resilient Amid Lower Crude Oil Prices
Saturday, November 29, 2014
The vast majority of potential U.S. tight oil production growth remains economical in the current lower crude oil price environment, according to a new report by IHS, a global source of information and insight in the energy industry. About 80% of potential gross U.S. tight oil capacity additions in 2015 would remain resilient at West Texas Intermediate (WTI) prices as low as $70/bbl, the report maintains. The report examines the outlook for U.S. tight oil in light of the recent drop in crude oil prices, which have fallen by nearly one-third since summer.
Nestlé Waters Beverage Trucks Running on Autogas in Los Angeles
Saturday, November 29, 2014
Five medium-duty beverage trucks fueled by propane autogas have begun operation at Nestlé Waters North America’s Los Angeles location. The trucks will deliver Arrowhead Mountain Spring Water to area businesses and residents. Reasons cited for the purchase of the trucks include an alternative fuel system that maintains full factory warranty, ease of fueling, and low infrastructure cost. Nestlé Waters operates more than 2000 trucks nationwide, primarily fueled by diesel.
IC Bus Showcases New Propane-Fueled CE Series
Saturday, November 29, 2014
IC Bus LLC (Lisle, Ill.) in November was showcasing its new CE Series school bus at the National Association for Pupil Transportation’s 40th annual Summit in Kansas City, Mo. IC Bus will manufacture the propane-fueled CE Series at its assembly plant in Tulsa. Deliveries will begin this summer, and buses will go into service at the start of the 2015-2016 school year.
Conway Spots Rise, Mont Belvieu Dips
Saturday, November 29, 2014
Spot propane at Conway, Kan. Tuesday, Nov. 25 was sustaining its strengthening and climbed another 1.25 cents compared to the Monday email Update as the nation headed into the Thanksgiving holiday weekend. Monday saw Midwest spots rise 1.626 cents, this after the market plunged nearly a dime late the previous week. Meanwhile, the most recent gain has stretched Conway’s premium to Mont Belvieu out to 3 cents. That advantage had shrunk to 1.25 cents Monday.
Texas Leads Nation in Energy Production Jobs
Saturday, November 29, 2014
Texas added more than 19,000 new private-sector jobs in oil and natural gas production in 2013, almost six times the number added in New Mexico, the next highest state for energy production jobs added last year, reports the Energy Information Administration (EIA). The extraction, drilling, and support jobs categories are a measure of on-the-ground production jobs and do not reflect the many jobs at oil and natural gas corporate headquarters based in Texas.
Oil, Currency Markets Reflect Lower Global Economic Growth
Saturday, November 29, 2014
Since August, both crude oil and currency markets have been influenced by lower economic growth expectations in countries outside the U.S., notes the Energy Information Administration (EIA). Prices in both markets recently broke out of established trading ranges, driven by concerns about weaker future global demand. The current situation, with the dollar index and oil prices moving in opposite directions, presents a sharp contrast to one in which crude oil supply disruptions or geopolitical risks would cause both the dollar index and crude prices to rise.
Future of LPG Shipping Hinges On North American Weather
Saturday, November 29, 2014
LPG exports are so dependent on the severity of winter in North America that all eyes are now on the weather, this because severe weather hit demand for very large gas carriers (VLGCs) last year, according to the latest edition of the “LPG Forecaster,” published by the shipping consultancy Drewry (London).
RRC Adopts Amendments for Disposal Wells in Seismic Areas
Saturday, November 29, 2014
Railroad Commission of Texas (RRC) commissioners have unanimously adopted disposal well rule amendments designed to address operations in areas of historical or future seismic activity. Disposal wells are permitted by RRC to safely dispose of non-hazardous produced water (saltwater) and hydraulic fracture flow-back fluid from oil and gas wells.
COMMENTARY Postings Mixed
Saturday, November 29, 2014
While principal postings were mixed Tuesday, Nov. 25, gains outnumbered losses, although many prices were unchanged compared to the Monday email Update. Most Dixie Pipeline postings trended higher and Midwest prices either lost ground or held firm.

Postings on the Dixie at Apex, N.C. climbed a half cent to 2 cents or remained the same, and prices shifted to a low of 89.64 cents and a high of 91.00 cents/gal. At Conway, Kan., postings shed a penny or did not move, and prices were from 82.82 to 85.51 cents.
Tesoro to Provide Line Item Assessment for LPG Sales
Saturday, November 29, 2014
Tesoro Corp. (San Antonio, Texas) has released a plan for a cap-and-trade assessment line item on all invoices for LPG sales in an effort to provide greater transparency, reports the Western Propane Gas Association. The amount will be linked to the prior-day OPIS California cap-at-the-rack assessment.
ARRO Autogas, Expo Propane Open 24/7 Station Near LAX
Saturday, November 29, 2014
Propane fuel provider ARRO Autogas (Paso Robles, Calif.), in partnership with Expo Propane (Bellflower, Calif.), has opened the first public refueling station open 24 hours a day in the Los Angeles International Airport (LAX) area. Located in Inglewood—six minutes from the main Century Boulevard entrance of LAX and near the 405 and 105 freeway corridors—the ARRO Autogas-branded station provides shuttles, ride share vans, and other alternative fuel autogas fleets in and around the airport with convenient, all-hours propane refueling.
Enterprise Invokes Allocation On MAPL East and West Legs
Saturday, November 29, 2014
Enterprise Products will place the Mid-America Pipeline’s east and west legs on allocation effective Dec. 1 at 7 a.m. In a notice to shippers Nov. 20, Enterprise noted that recent December nominations exceeded pipeline capacity. Currently, allocation is not terminal-specific nor is it a daily allocation. Enterprise is asking shippers to, as much as possible, lift their volumes ratably through December to assure all gallons can be delivered. The company is also encouraging weekend and evening liftings during off-peak times to minimize wait times.
U.S. Propane Inventories Rise 0.1 MMbbl
Monday, November 24, 2014
U.S. propane stocks the week ended Nov. 14 increased by 0.1 MMbbl to stand at 81.2 MMbbl, according to the Energy Information Administration (EIA) in its Nov. 19 “This Week in Petroleum” report. As of that reporting period, the nation’s inventories stood 22.8 MMbbl, or 39%, higher than a year ago. Gulf Coast volumes rose by 0.4 MMbbl, while the Midwest declined by 0.3 MMbbl. East Coast and Rocky Mountain/West Coast supplies remained unchanged. Propylene non-fuel-use stocks represented 3.7% of total inventories, up from 3.1% the previous week.
Topping Off November 2...
Monday, November 24, 2014
…To showcase propane’s versatility and benefits to landscape contractors, the Propane Education & Research Council has released a new online video about landscaping in the “Straight Talk” series of case studies at propane.com/straight-talk. Charles and Kelly Reid, owners of Sodfather Landscape Contractors (Spartanburg, S.C.), transitioned to propane-powered mowers and they provide a testimonial about their experience using clean, American-made propane…
Daesung Tankless Water Heaters Recalled Due to Fire Hazard
Monday, November 24, 2014
Challenger Supply Holdings (Fort Worth, Texas), in cooperation with the U.S. Consumer Product Safety Commission and Health Canada, is recalling about 29,000 tankless gas water heaters in the U.S. and 2200 units in Canada. The water heaters can overheat, posing a fire hazard. The manufacturer is Daesung Celtic Enersys Co. Ltd. of Chungbuk, South Korea.
Energy Transfer, Regency To Construct NGL Pipeline
Monday, November 24, 2014
Dallas-based Energy Transfer Partners LP and Regency Energy Partners LP said Nov. 17 that their joint venture, Lone Star NGL LLC, has board approval to construct a 533-mile, 24-in. and 30-in. NGL pipeline from the Permian Basin to Mont Belvieu. A second project will convert Lone Star’s existing West Texas 12-in. NGL pipeline into crude oil/condensate service.
PERC Approves $36.1-Million Spending Plan for 2015
Monday, November 24, 2014
The Propane Education & Research Council (PERC), meeting in Sarasota, Fla. Nov. 6-7, approved a $36.1-million budget for 2015 that will fund safety and training programs and the research and development of new appliances, equipment, and vehicles. The spending plan includes $20.9 million for program activities, allocating 60% to research and development, 15% to safety efforts, and 25% to training. The council’s fourth major program area, consumer education, has been restricted since August 2009.
Global Energy Markets’ Strife Escalates
Monday, November 24, 2014
Oil prices recently hit a four-year low after Saudi Arabia, OPEC’s leading member, slashed its contract price for U.S. customers in a further sign of an escalating war for control of global energy markets.

Brent crude, the benchmark against which nearly half of the world’s petroleum is priced, fell almost 3% to around $82 (U.S.) per barrel in London before recovering slightly.
September Exports Climb 9.5%, Imports Jump
Monday, November 24, 2014
Propane exports from the U.S. in September reached 13,725,905 bbl, up 9.5%, or 1,193,164 bbl, from August’s 12,532,741 bbl, reports the U.S. Department of Commerce (DOC). Compared to September 2013, exports were higher by a steep 36.7%, with volumes adding 3,683,238 bbl.

Propane imports to the nation also climbed month over month. September imports, at 3,135,816 bbl, improved 35.7% compared to August, rising 824,894 bbl. In a year-over-year comparison, imports jumped 79.8%, or by 1,392,055 bbl.
Conway Spots Drop Nearly a Dime, Belvieu Lower
Monday, November 24, 2014
Spot values at Conway, Kan. and Mont Belvieu took another hit Thursday as Midwest propane plunged nearly 10 cents and trading at the Texas hub fell 4.626 to 4.75 cents compared to the Monday email Update. The losses follow the markets moving down 3.75 cents at Conway and 2.25 cents at Mont Belvieu Monday. Even as arctic air sweeps three-quarters of the nation and snowfall is being measured in feet, spots since early November have dived 20.875 cents at Conway and 15.375 cents at Belvieu.
New York Issues Draft Permit For Finger Lakes Cavern Storage
Monday, November 24, 2014
New York State’s Department of Environmental Conservation (DEC) has issued a draft permit for Crestwood Midstream Partners’ long-delayed Finger Lakes initiative, a project that would see 2.1 MMbbl of propane and butane stored in salt caverns in Schuyler County, N.Y. However, DEC emphasizes that release of the draft permit does not signal approval, or even a timely decision on the project, which has been under review for five years.