23 Oct The Price of Propane
I don’t understand, I guess How the world works. From every report I read they all say the same thing there is a glutton of NGL’s ( Natural Gas Liquids) That have come from the Balkan Oil fields in North Dakota. NGL’s are where we get a number of different liquids we use, Propane being one of them. This new find of natural gases and production of propane has our supply of not only propane but various other useful liquids at an all time high. For any one that has ever studied economics you know that when there is more supply than demand the price goes down. When there is a shortage the price goes up. The big oil companies that own the refineries and the fields where the gas comes from are in control of everything, so even though we should see a drop in our propane prices all we see is prices rising. I know there is an economist out there that can explain this to me.
We have added a couple of new tanks to our storage facility in Springville, Our goal is to have enough storage to offset the price rise in the winter with gas we have purchased and stored in the summer months when theoretically it is cheaper, this doesn’t always work but most years it does. The problem that we run into in the winter is when we have heavy snow fall or extremely cold weather the gas plants that we buy from freeze up or roads are closed and we can’t get propane. We always have enough to take care of all our customers during these periods, but it cuts into our storage thus making it hard to offset the higher prices with our storage. Sorry I may be rambling, but I just want all of you our good customers to know we are constantly working to save you money.