Sign up for news & specials:

Thoughts on the EIA’s March 2013 Short-Term Energy Outlook

Every month the U.S. EIA (Energy Information Administration) releases their Short-Term Energy Outlook (STEO).  The March edition of the STEO report was released on March 12th with this highlight specifically called out:

Total U.S. liquid fuels consumption fell from 20.8 million barrels/day (bbl/d) in 2005 to 18.6 million bbl/d in 2012. EIA expects total consumption to rise slightly over the next two years to an average of 18.7 million bbl/d in 2014, driven by increases in distillate fuel and liquefied petroleum gas consumption, with little change in gasoline and jet fuel consumption.

The propane component of that increase is estimated to be about 20,000 bbl/d.  As of March 1st this year, propane demand is already up 329,000 bbl/d, an additional 20,000 bbl/d represents 6% more demand growth.  So where is this additional demand coming from and how does it affect pricing and supply?

First supply – we’ve detailed much of the growth in new propane sources previously, but the summary is that about 50% or so now comes from natural gas versus oil, specifically from “wet” shale basins.  That is a good thing for a number of reasons including that propane becomes more of a domestic fuel rather than relying on imported oil in terms of energy security but also for price.  As anyone who has to fill up the tank of their car knows, oil prices are volatile, seemingly rising and falling on a whim.  So by having more propane come from natural gas instead of oil, some of that volatility that could lead to shocks in propane prices is removed.  So ideally propane prices should be more stable, but it’s not just the inputs that drive propane prices.

As the EIA noted, demand for propane is higher, however the reason for this isn’t home or commercial heating.  Rather, demand has increased mostly for its uses as a petrochemical feedstock.  Propane in these cases is turned into industrial chemicals, plastic products, and synthetic rubber.  Petrochemical producers that can switch to propane from other petro-feedstocks (oil, natural gas, etc.) also see the lack of volatility in pricing as a very good thing.  For them consistent pricing, not necessarily wild swings between being the lowest then higher priced, helps to manage their processes within budget.  And with this demand not forecast to let up, prices will mostly likely slowly, slightly increase or even stay stable, but we definitely do not expect decreases.

This entry was posted in Commercial Propane Bookmark the permalink. Tags: , , , , ,


  1. Posted November 30, 2016 at 6:24 pm | Permalink

    buy Oxycodone online no prescription oxycodone picture oxycodone pain medication [url= ]dosage oxycodone[/url]. oxycodone er endone painkiller side effects oxy 30 oxy blue . buy pain pills without prescription purchase pain pills online . what is oxycodone for medicine oxycodone purchasing oxycodone online oxycodone 10 mg endone pain killers oxycodone 10

  2. Posted December 1, 2016 at 2:56 am | Permalink

    clonazepam recreational clonazepam 1mg cost of clonazepam [url= ]clonazepam schedule[/url]. buy zolpidem clonazepam side effects depression generic clonazepam lonazep tablet uses . what is coladapin clonazepam addiction symptoms . clonazepam 1mg high buy adipex order clonazepam without prescription buy clonazepam no prescription clonazepam brand name rivotril generic

  3. Posted December 3, 2016 at 6:12 pm | Permalink

    oxycodone 10mg side effects order pain meds online oxycodone withdrawal side effects [url= ]oxycodone overnight delivery[/url]. oxycodone mail order 5mg roxy order opiates online roxicodone 5mg . online pharmacy next day delivery purchase pills online . best place to buy pills online where to buy pain pills online oxycodone overnight delivery oxycodone 30 mg immediate release buying oxycodone online legally oxycodone brand

  4. Posted December 6, 2016 at 8:33 am | Permalink

    clonazepam uses and side effects clonazepams rivotril 0.5 mg side effects [url= ]high dose clonazepam[/url]. does clonazepam cause depression clonipine side effects diazepam online buy clonazepam online canada . rivotril 2mg buy online clomazapam . rivotril overdose clonazepam anti anxiety is clonazepam a narcotic clonazepam headache clonazepam anxiety disorder clonazepam tablets 0.5mg tab

  5. Posted December 6, 2016 at 7:01 pm | Permalink

    15 oxycodone oxycodone high roxicodone online pharmacy [url= ]oxycodone extended release[/url]. ordering painkillers online oxy drug side effects does percocet have codeine in it 30mg oxycodone for sale . dosages for oxycodone oxycotton 10 . can you buy oxycodone in mexico 20 oxycodone buy oxycodone uk oxy 15 mg generic oxycodone 30mg oxycodone half life

  6. Posted December 7, 2016 at 2:15 am | Permalink

    Now I am going to do my breakfast, afterward having my breakfast coming yet again to read additional news.

Post a Comment

Your email is never published nor shared. Required fields are marked *