Propane shortage

[Knife Lady]

I'm sorry to hear that. If I were in Greenfield, I would bring my tractor over and try to help. Maybe there is someone in Greenfield that can help a fellow INGOer out. Is there something that can be done with a big snowblower? I do have one of those.

Thank you so much but it seems to be the ice which is under the snow that is presenting the problem. I just wish they had tried to come up the drive. WE have no problems using the driveway even without 4WD . The drive way has been plowed already.

 

[GodFearinGunTotin]

Thank you so much but it seems to be the ice which is under the snow that is presenting the problem. I just wish they had tried to come up the drive. WE have no problems using the driveway even without 4WD . The drive way has been plowed already.

That stinks. Have you thought about calling a competitor? I'm not sure what kind of lease or contract agreements you have with that guy but if I were afraid of running out, I'd at least threaten to get somebody not afraid of the snow out there to sell me their $5/gal propane.

 

[RobbyMaQ]

Co-Alliance sent us a letter about the 'shortage'. They asked customers to reduce heating, and limit it to homes and business that were essential, etc...
I was at 50% when i received this letter. A week later, i was at 85%... so they're still filling. I am on a year contract/budget system with them. This is my second year with them.

 

[The Keymaster]

We filled both our tanks in Michigan last week at $3.49. Today it was $3.76. The price has gone down in both Illinois and Wisconsin in the last week...up in Indiana, and Michigan.

 

[Cameramonkey]

My mom is on Propane. She has seen the alerts that the cost has doubled in our area. She was topped off in December at about $2 per gallon. This last week they came out again and it was almost $6. everybody else is saying the cost doubled, but her cost TRIPLED. ugh.

 

[__Doc_]

I've shut my heater off and bought 2 infrared heaters. $1.28x2 cost per day. Shut them off at night and turn them on in the morning. Each heat 1200sq ft -- Might end up using this for the foreseeable future

 

[Hoosier8]

Simple supply and demand economics.

 

[The Keymaster]

Simple supply and demand economics.

Yeah, but why the wildly fluctuating geographical difference in price? Why is propane in southern Indiana $1.00+ higher than it is in northern lower Michigan. I keep hearing that it's a transportation issue.

 

[snapping turtle]

5.33 a gallon is what I was quoted when I called last Monday. Mother in law called later in the week same company and 4.22 a gallon.

I told them where they could stick their propane hose. I did it nicely. I also was told min fill was 150 gallons and max fill was 150 gallons. So I figure the 20-15 percent will just have to last. Resolving to stay a little cooler and use some alternative heating methods.

 

[bwframe]

Wonder if you can even find a kerosene heater at all now?

 

[Hoosier8]

Yeah, but why the wildly fluctuating geographical difference in price? Why is propane in southern Indiana $1.00+ higher than it is in northern lower Michigan. I keep hearing that it's a transportation issue.

A lot of it depends on where the refineries are and production. Propane costs in Indiana has spiked as in doubled this month due to demand.

 

[The Keymaster]

A lot of it depends on where the refineries are and production. Propane costs in Indiana has spiked as in doubled this month due to demand.

So you are saying there is more demand in central/southern Indiana than there is in northern lower Michigan? I find that hard to believe. Where my property in Michigan is everyone heats with propane.

 

[Hoosier8]

So you are saying there is more demand in central/southern Indiana than there is in northern lower Michigan? I find that hard to believe. Where my property in Michigan is everyone heats with propane.

Like you just said, everyone there heats with propane. Demand is high, supply is low and production is strained along with logistics.

A U.S. federal regulator ordered the country's largest propane pipeline operator to prioritize supplies on its line from the Gulf Coast to the North East, as one of the coldest winters in memory drags on and inventories of the heating fuel dwindle.

The pipeline runs from Mont Belvieu, in the Gulf Coast and the country's largest propane storage hub, to the Northeast and parts of Midwest.

http://www.reuters.com/article/2014/02/08/us-usa-congress-propane-idUSBREA1620R20140208

 

[The Keymaster]

Like you just said, everyone there heats with propane. Demand is high, supply is low and production is strained along with logistics.





U.S. orders priority propane supplies to ease shortage | Reuters

My point is propane is $1.00 cheaper per gallon in Michigan than it is in Indiana. I am trying to figure out why. The above statement would indicate that it should be more expensive in Michigan.

 

[Landon]

So you are saying there is more demand in central/southern Indiana than there is in northern lower Michigan? I find that hard to believe. Where my property in Michigan is everyone heats with propane.

I think maybe the demand in southern Indiana is a lot higher this season than it is in a typical Winter. Where Lower Michigan with lake effect snow every season the demand this season may not be all that different then a typical winter. Therefore the companies in Michigan had more supply to start the season and were better prepared for the shortage than southern Indiana. So if you look at regional supply and demand and what forecast need was going to be then yes, Southern Indiana's demand vs supply can be higher.

 

[The Keymaster]

I think maybe the demand in southern Indiana is a lot higher this season than it is in a typical Winter. Where Lower Michigan with lake effect snow every season the demand this season may not be all that different then a typical winter. Therefore the companies in Michigan had more supply to start the season and were better prepared for the shortage than southern Indiana. So if you look at regional supply and demand and what forecast need was going to be then yes, Southern Indiana's demand vs supply can be higher.

Now this makes sense. I also understand that a lot of propane was used to dry corn crops this year, and that would have reduced supplies in Indiana more than in Michigan. Yes, they do grow corn in Michigan, but I'm sure not at the same level as Indiana.

Thanks for the insight!

 

[CountryBoy19]

I think maybe the demand in southern Indiana is a lot higher this season than it is in a typical Winter. Where Lower Michigan with lake effect snow every season the demand this season may not be all that different then a typical winter. Therefore the companies in Michigan had more supply to start the season and were better prepared for the shortage than southern Indiana. So if you look at regional supply and demand and what forecast need was going to be then yes, Southern Indiana's demand vs supply can be higher.

+1 Because this seems to be a logistics/infrastructure problem, MI already has the infrastructure to support a lot of LP use and this winter is likely not that much worse than most. But So IN doesn't have as much infrastructure and this winter is a LOT worse than most. Just for example, in years past I've burned 2.5-3.5 cords of wood to heat my house through the entire winter. This year I've burned 4 cords and we're only in Feb. with daily highs still predicted to be below freezing for a week or more and likely further out. I will probably burn 5+ cords this winter.

 

[The Keymaster]

I just read an article in the local paper. They say that some dealers in the area are bringing in loads from Texas. That will certainly affect the price.

 

[45fan]

Wonder if you can even find a kerosene heater at all now?

Last weekend I saw a stack of the larger round style kerosene heaters at the Rural King in Muncie. Lots of stores have already started changing inventory over to spring, getting ready for that big rush. It has been difficult finding winter work gloves in recent weeks because of this as well.

The shortage has finally hit me too, even though I have supplemented my heat with the wood furnace and kerosene all winter. My job was considered "non-essential", and the distributor that supplied the jobsite with propane has cut them off. No propane to heat the concrete after a pour, no concrete gets poured until it warms up, I have been laid off. Its something that is inevitable in the construction industry, especially when working outside. I was prepared, but the financial repercussions of work stoppages and missed deadlines (or serious increase in overtime costs to meet unrealistic deadlines) will cause a ripple effect through the next year or so.

This is a great example as to why it is important to have things in like before you need them, 2 is 1, one is none. Have alternatives to back up anything that could be considered vital to living through whatever the environment might throw at you.

 

[ghitch75]

My job was considered "non-essential", and the distributor that supplied the jobsite with propane has cut them off. No propane to heat the concrete after a pour, no concrete gets poured until it warms up, I have been laid off. Its something that is inevitable in the construction industry, especially when working outside. I was prepared, but the financial repercussions of work stoppages and missed deadlines (or serious increase in overtime costs to meet unrealistic deadlines) will cause a ripple effect through the next year or so.

off topic......they been pouring down here for the bridges for 69 even in -F temps....i don't much about bridge building but when every section of a piers concrete is a different color don't look right to me....