LP Gas, March 2014
WINTER PRICING AND SUPPLY Continued from page 30 in 2013 to 628 million barrels in 2025 Much of the excess production is destined for export and petrochemical markets analysts say This new domestic supply of propane also has impacted wholesale prices Pergallon prices went from about 160 in 2011 12 to 70 cents in 2012 13 and then the world changed said Braziel recounting prices in January skyrocketing to 170 at Mont Belvieu and about 5 at Conway High demand from fall crop drying cold weather and exports in addition to various capacity constraints all tightened supplies and sent prices upward When Braziel presented on Feb 2 in Clearwater Beach Midwest inventories had plummeted to about 9 million barrels compared to 17 million barrels at the same time last year according to EIA data As of Feb 7 inventories still hovered around 9 million barrels Meanwhile Gulf Coast inventories dropped to 156 million barrels on Feb 7 compared to 35 million barrels at the same time last year Steps have been taken since then to boost supplies especially in the Midwest The Federal Energy Regulatory Commission directed Enterprise to prioritize propane shipments on the TE Products Pipeline to the Midwest and Northeast through Feb 21 The Northeast also has supplemented its supplies with ironically propane imports from the high seas And state and regional hours of service exemptions have enabled companies to source propane from other locations The winter of 2013 14 has left industry leaders to ponder the future in a new energy environment NPGA has created a supply task force to examine the issues and determine a direction Studies have been commissioned to examine the effects of propane exports and infrastructure changes This appears to be only the beginning As Sloan said These factors will still be in play next year and the year after that LPG The Legacy of Your Business is Important to Us When your company changes hands the way your employees are treated and how customer service is handled can be almost as important as the financial outcome Energy Distribution Partners is focused on the propane industry Our management team is made up of operators who have been in the industry since the 1980s and we are excited about the future of Americas energy industry and propanes role in it From many years of experience we know there are matters of critical importance to an owner when it comes time to consider a sale With Energy Distribution Partners you may be assured that Your employees will be treated with fairness and respect Your customers will receive a long term commitment to customer service and operational excellence Your business legacy and identity will be preserved Your transaction will be structured to create a win win outcome Contact Brett Krause for a confidential conversation at 312 254 5954 or bkrause@ edplp net 32 LPGas March 2014 www LPGasmagazine com
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