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.
COMMENTARY Postings Plunge
Monday, November 24, 2014
Principal postings in the Midwest were in freefall Thursday as prices plunged 10.5 cents to as much as 13.75 cents compared to the Monday email Update. Elsewhere, losses, although not as severe, nonetheless in many cases were a nickel to 7 cents lower. The moves down follow many postings giving up 3.75 to 4.5 cents early in the week.
Canadian Inventories Barely Changed
Monday, November 24, 2014
Canadian underground inventories increased just 0.5%, or 9.3 Mcm, in October to stand at 1905.9 Mcm, the equivalent of 12 MMbbl, as of Nov. 1, according to the National Energy Board (NEB). The slight build followed inventories rising 6.7% in September. Compared to October 2013, Canada’s propane supplies were 50%, or 634.9 Mcm, higher.
November Topping Off...
Sunday, November 23, 2014
…Yellowstone National Park is the latest national park to partner with the Propane Education & Research Council (PERC) to help the National Park Service meet its sustainability goals. Yellowstone is providing performance feedback on propane-powered equipment donated by PERC, which is being used to improve and promote the technology. A video on PERC efforts is available at www.propane.com/about-perc/partnering-with-organizations/...
Sunoco Logistics to Invest $2.5 Billion for Mariner East 2
Sunday, November 23, 2014
Sunoco Logistics Partners LP (Philadelphia) has completed a successful open season for Sunoco Pipeline LP’s Mariner East 2 project, the second phase of the company’s broader plan to provide pipeline transportation from the Marcellus and Utica shales.
ONEOK Completes Projects Serving Bakken and Niobrara
Sunday, November 23, 2014
ONEOK Partners LP (Tulsa) has completed more than $500 million in capital growth projects, including the 100-MMcfd Garden Creek III natural gas processing plant and related infrastructure in McKenzie County, N.D. Also complete is the expansion of the Bakken Natural Gas Liquids Pipeline and the Niobrara NGL Lateral. The projects are part of the company’s $8.3-billion to $9-billion capital growth program through 2016.
Enterprise, Oiltanking Partners Enter Subsidiary Merger Agreement
Sunday, November 23, 2014
Houston-based Enterprise Products Partners LP and Oiltanking Partners LP have entered a merger agreement under which Oiltanking would merge with a subsidiary of Enterprise in a unit-for-unit exchange. Approval and adoption of the merger requires approval by holders of a majority of the outstanding Oiltanking Partners common units.
Midmonth to Midmonth: Expect the Unexpected
Sunday, November 23, 2014
Heading into the winter heating season, the market has produced some very unexpected pricing swings. As the Saudis decided to set in place a new pricing strategy, coupled with a downturn in the Chinese economy and a reduction in demand, the energy complex was put into turmoil. This resulted in price moves that had not been foreseen.
Lone Star to Construct 3rd Fractionator at Mont Belvieu
Sunday, November 23, 2014
Dallas-based Energy Transfer Partners LP (ETP) and Regency Energy Partners LP said Nov. 5 that their joint venture, Lone Star NGL LLC, is constructing a third 100,000-bbld fractionation facility at Mont Belvieu. The fractionator is fully subscribed by multiple long-term contracts and is necessary to handle increasing NGL barrels delivered via Energy Transfer’s and Lone Star’s raw-make pipeline systems that gather NGLs from the Permian, Eagle Ford, and North Texas production areas.
Inhofe Praises EPW Report On Hydraulic Fracturing
Sunday, November 23, 2014
U.S. Sen. Jim Inhofe (R-Okla.), senior member of the Senate Environment and Public Works (EPW) Committee, is praising a committee Republican report he asserts dispels the falsehoods perpetuated by the Obama administration and environmental extremists about hydraulic fracturing. He adds that environmental activists insist that the well-stimulation technique has a devastating impact on the environment, but decades of studies and empirical evidence have debunked these claims.
U.S. Seen Achieving Energy Independence by 2025
Sunday, November 23, 2014
The U.S. will achieve energy independence by 2025, which will mark the first time since 1952 that the nation will export more energy than it imports, according to an outlook by Wood Mackenzie’s (Edinburgh, Scotland) Global Trends Service. The outlook underscores that higher production and lower demand are the forces driving U.S. energy independence.
More Up and Down for Spot Propane Markets
Sunday, November 23, 2014
Spot propane at the nation’s two major trading hubs Thursday shed the fractional gains seen Monday to shift into an up-and-down pattern for the week. Just prior to the Energy Information Administration (EIA) releasing its inventory report, delayed a day because of the Tuesday Veterans Day holiday, Mont Belvieu spots showed losses of 3.25 to 3.5 cents compared to early in the week, while Conway was down a more moderate 2.25 cents. The declines uncharacteristically accompanied winter weather moving into many regions.
PERC Offers Incentive on Generac EcoGen Generator
Sunday, November 23, 2014
The Propane Education & Research Council (PERC) is offering a $2000 incentive to buyers of Generac’s (Waukesha, Wis.) new propane-powered 15-kw EcoGen standby generator. The generator is the latest product to be included in PERC’s Propane Heat & Power Incentive Program, which encourages construction professionals, homeowners, and businesses to adopt new propane-fueled products for residential and commercial uses.
COMMENTARY Postings Gain
Sunday, November 23, 2014
Reversing a weeks-long pattern, most principal postings were on the rise Thursday and climbed a half cent to as much as 4.5 cents compared to the Monday email Update. Exceptions included a single seller holding firm at Mont Belvieu, while in the West some Los Angeles postings gave up 1 to 2 cents.

Postings on the Dixie Pipeline at Apex, N.C. were up a half cent to 2.5 cents, shifting prices to a low of 98.29 cents and a high of 100.75 cents/gal. At Conway, Kan., postings jumped 2 to 3 cents, and postings were from 96.00 to 99.01 cents.
Blue Bird Employment Rises; Bus, Vehicle Demand Increases
Sunday, November 23, 2014
Blue Bird Corp. (Fort Valley, Ga.) reports that its school bus production and demand have substantially increased due to market share growth and greater industry demand over the last four years. As a leading bus manufacturer, the company has experienced growth in all vehicle segments and has expanded its alternative-fuel leadership position, led by the Propane Vision school bus. Blue Bird is the second-largest automotive manufacturer in Georgia and the largest manufacturing employer in central Georgia.
MFA Oil Expands Propane Operations Into Georgia
Sunday, November 2, 2014
MFA Oil Co., a farmer-owned cooperative based in Columbia, MO, acquired Georgia LP Gas Company, a family owned propane retailer based in Manchester, Ga. The purchase of Georgia LP Gas, which services customers in east central Georgia, is MFA Oil’s first propane operation in the state. The company supplies fuels, lubricants and propane to customers in Missouri, Arkansas, Oklahoma, Kansas, Indiana, Kentucky, Iowa, Colorado, Nebraska, North Carolina, Wyoming, Tennessee, Georgia and Virginia.
Energy Institute Kicks Off Keystone Lost Opportunity Tour
Monday, September 29, 2014
After six years, communities along the Keystone XL pipeline route are still waiting for the jobs, opportunities, and revenue that the pipeline will bring, comments the U.S. Chamber of Commerce. To help share their stories and build support for the pipeline, the Chamber’s Institute for 21st Century Energy was touring the pipeline route the week of Sept. 14.
Southland Transportation Adds 101 Propane Buses
Monday, September 29, 2014
Southland Transportation Ltd. (Calgary) has added 101 propane-fueled Blue Bird Vision buses to its existing autogas school bus fleet. Districts in Canada are specifying the environmentally friendly technology due to superior cold weather operation, reduced maintenance, and cleaner emissions. The new buses will transport students under the authority of the Calgary Board of Education and Medicine Hat School District No. 76.