koolrayz Posted March 16, 2014 Report Share Posted March 16, 2014 We all are aware of the insane price increases this winter in the price of propane. I heard many rumors, but thought I would see if any hard data was available. I went to this website (http://www.eia.gov/) and found some good data showing the increase in exports that I had heard about were in fact true. As you can see by the three charts directly from the EIA website, production is at an all time high. Exports are at an all time high, in fact exports tripled in the last year. Prices have also reached an all time high. I reviewed the consumption data and saw there was nothing unusual in our usage this year. I exported the data and created the fourth chart showing the three lines together over the last year and a half. It appears that there has been an artificial shortage created and subsequent price fixing. With the increased propane shipping capacity, our domestic resource will continue to be exported at ever growing rates. This resource can be sold at global rates instead of the old domestic rates. The scraps that are left for the domestic markets will be at elevated rates. Compounding the issue is the increased oil production has put a premium on the existing pipeline infrastructure. By monopolizing the pipelines schedules to bias oil transportation, they can export and sell more oil at global market prices instead of the lower domestic oil price. This in the end can help them drive up the domestic market oil and propane prices. The products with the highest profit margins will get the pipeline priority. Given that assumption the only way propane will get pipeline time is if it can generate more profit than oil and be sold at a higher rate than the global propane export pricing. http://i212.photobucket.com/albums/cc122/koolrayz/EPSON003_zps3b405d91.jpg http://i212.photobucket.com/albums/cc122/koolrayz/propaneexports_zpseae4df4b.png http://i212.photobucket.com/albums/cc122/koolrayz/propaneprices_zpsb04fb36d.png http://i212.photobucket.com/albums/cc122/koolrayz/propaneproduction_zps658e71b4.png Quote Link to comment Share on other sites More sharing options...
Mojoe Posted March 16, 2014 Report Share Posted March 16, 2014 I have watched this from a distance. Propane is what runs the backup generator for the house, and the heater in the shop. Although we don't use much, I try to follow the best time to top it off. The pricing in the last 6 months is retarded. I'm waiting to see a similar discovery of price gouging with ammo. Last I got propane was at $1.79 a gal, to top off a 500 gal tank. seeing current pricing, I should have got a second tank at that time, and topped that one off too. Quote Link to comment Share on other sites More sharing options...
ImUrOBGYN Posted March 16, 2014 Report Share Posted March 16, 2014 This definitely seems to be an issue from what I've been reading elsewhere. I can't imagine with the notice it seems to be getting how much longer it will go on... Probably until the cold weather is over. What a coincidence. Quote Link to comment Share on other sites More sharing options...
Sam1647545489 Posted March 16, 2014 Report Share Posted March 16, 2014 In the past 3 years, I have went from paying just over 900$ to fill up my 500 gallon tank to my last fill up was 2100$. It truely is getting outta hand. Quote Link to comment Share on other sites More sharing options...
BrianZ06 Posted March 16, 2014 Report Share Posted March 16, 2014 In the past 3 years, I have went from paying just over 900$ to fill up my 500 gallon tank to my last fill up was 2100$. It truely is getting outta hand. That is just plain ridiculous . I know someone else that paid close to that also and they are just a few miles away from me. I know someone else that paid 4.98 gal. My last fill was 2.09 but I am locked in at that price from last year. Quote Link to comment Share on other sites More sharing options...
87GT Posted March 16, 2014 Report Share Posted March 16, 2014 Why are oil prices rising? Because fuck you that's why. Quote Link to comment Share on other sites More sharing options...
koolrayz Posted March 16, 2014 Author Report Share Posted March 16, 2014 The scary part for me is from what I have read there are more tankers being constructed. As the export capacity increases the price will continue to rise. I fear it won't come back down. I'm glad I only use 250 to 300 gallons a year. My wood stove is my friend. Quote Link to comment Share on other sites More sharing options...
Jewtoys Posted March 16, 2014 Report Share Posted March 16, 2014 Glad I'm all electric. Quote Link to comment Share on other sites More sharing options...
dakotart Posted March 16, 2014 Report Share Posted March 16, 2014 The scary part for me is from what I have read there are more tankers being constructed. As the export capacity increases the price will continue to rise. I fear it won't come back down. I'm glad I only use 250 to 300 gallons a year. My wood stove is my friend. I only used 20% (50 gal) from end of December through yesterday. But if this cold keeps up, I'm going to have to split more firewood. Quote Link to comment Share on other sites More sharing options...
Troy2285 Posted March 17, 2014 Report Share Posted March 17, 2014 I locked in at $1.69 last summer. Our price jumped to 2.80 out of lock in. Quote Link to comment Share on other sites More sharing options...
xlr8tn Posted March 17, 2014 Report Share Posted March 17, 2014 the gas companies definitely saw an opportunity this year and jumped all over it. It's borderline criminal. I don't burn propane here except in the camper and to heat the garage so I only go through about 300 lb's a year but I feel for the people that heat their homes with it. Quote Link to comment Share on other sites More sharing options...
evil8 Posted March 17, 2014 Report Share Posted March 17, 2014 1000 gallon tank and that fucker can run dry at these elevated prices. It may be time for a new heating system this summer. Quote Link to comment Share on other sites More sharing options...
mrs.cos Posted March 17, 2014 Report Share Posted March 17, 2014 "Mom" is on a fixed income from dads retirement (rip) propane to heat her house has been astronomical. What's worse is when she ran out of fuel when it was too cold they wouldn't come back in full it till the following week because of limited availability supposedly and so their house was out without heat for an entire week and they had to borrow care electric heaters from family and friends to keep the house until they would come out and put propane in the tank. She came from home from the hospital one night and all of the CO2 detectors were going off in the house because the tank had run out of fuel- they had just had it filled the month -half before. This all happened while Brother was in the hospital for the diabetes issues. She can't afford to pay 2100 dollars every two months to fill up- that's her entire monthly income. there is no gas option where she lives either. I feel so frustrated I can't offer much help Quote Link to comment Share on other sites More sharing options...
coltboostin Posted March 17, 2014 Report Share Posted March 17, 2014 Do a lot of you guys in the sticks no have Natural Gas? I would get a wood burner set up stat! And,find a friend with some land. There are down trees everywhere. Quote Link to comment Share on other sites More sharing options...
mrs.cos Posted March 17, 2014 Report Share Posted March 17, 2014 Nope city of beavercreek. Quote Link to comment Share on other sites More sharing options...
Rustlestiltskin Posted March 17, 2014 Report Share Posted March 17, 2014 Do a lot of you guys in the sticks no have Natural Gas? I would get a wood burner set up stat! And,find a friend with some land. There are down trees everywhere. This. I installed a wood furnace years ago when I bought my house and never looked back. Downside is cutting wood every year but look at it as getting exercise! It has definitely saved me HUNDREDS of dollars each month in winter time since my electric furnace doesn't ever kick on when the wood furnace is roaring. Everybody should look into it if you have access to good hard wood trees and don't mind putting in the work to save during the winter months. Quote Link to comment Share on other sites More sharing options...
coltboostin Posted March 17, 2014 Report Share Posted March 17, 2014 This. I installed a wood furnace years ago when I bought my house and never looked back. Downside is cutting wood every year but look at it as getting exercise! It has definitely saved me HUNDREDS of dollars each month in winter time since my electric furnace doesn't ever kick on when the wood furnace is roaring. Everybody should look into it if you have access to good hard wood trees and don't mind putting in the work to save during the winter months. I think taking the chain saw out and going to town is fun! Especially when its snow covered- take the chain saw, a thermos of hot chocolate, and a long sled and you feel like you’re in the middle of Appalachia auditioning for Mountain Men. That+an HF log splitter and your good to go. I have gas-a newer "high efficiency" home, and I have a fire almost every night. I don’t have a wood burner, just actual fire places. My home also would not work well for a wood burner do to the extreme ceiling height in the great room and living room. A friend with a wood burner uses it exclusively in the winter. He has a smaller ranch, but its stays HOT-we actually usually have to open windows to cool it down! If I havd a large detached garage, I would get a wood burner for sure. I would say if you had to buy wood (unless you can get it in bulk for cheap) the wood burner would get expensive in a hurry. Quote Link to comment Share on other sites More sharing options...
coltboostin Posted March 17, 2014 Report Share Posted March 17, 2014 Nope city of beavercreek. Thats crazy- basically everyone has gas hookup from downtown to south of Canton (1.5 hours out of the city) Quote Link to comment Share on other sites More sharing options...
mrs.cos Posted March 17, 2014 Report Share Posted March 17, 2014 Thats crazy- basically everyone has gas hookup from downtown to south of Canton (1.5 hours out of the city) Most of beavercreek is gas, but there are a few neighbhorhoods that popped up in the late 80's early 90's that stuck with propane because it was so cheap (if you are familiar with beavercreek) i think most of grange hall offshoots are propane. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.