Remember last month when I was talking smack about winter being over? I wasn’t ready to accept it and when I heard a blizzard was raging in the upper peninsula of Michigan the first week of March, I decided to go there for a snowmobiling trip with a buddy. Don’t run out of gasoline in the U.P. in below zero weather at night. That’s a really bad thing to do. And don’t ask how I know.
Although it’s now April and we’re still delivering a fair amount of propane, the team has already begun planning for the next heating season. We are working on our supply plan to ensure that we have propane when and where we need it next fall, going through our assets to request replacements where needed and we’re preparing for the contracting season.
Once again, if you contracted your propane, you came out ahead this year. I feel like a broken record when I say that because it’s been several years since folks who contracted paid less during the winter than those who did not. I think locking in the price of your propane is a no-brainer. And anyone who knows me will agree that I am a no-brainer expert.
Check your mail and emails for correspondence if you signed up for propane contract auto renewals. If you don’t receive anything, don’t worry. You’ll receive a contract in the mail by mid-June as usual. Autorenewal is a great way to get your propane contracted. You won’t have to worry about missing deadlines or misplacing your contracts and you’ll be the first group to get your propane contracted for the next heating season. If you submit a paper copy this year, there is a place to request auto-renewal.
Here is my propane market report. We’re sitting on less propane supply in the U.S. than we had last year, which are keeping markets a little strong. The elephant in the room is the export market. If traders can get more money from propane in other countries, they’ll load it on ships and send it. If we get tight on supply in the U.S. and the price goes up, they’ll sell it here. It’s kind of like a pressure relief valve and gives stability to the market. While exports are increasing annually, so is propane production. Barring a cataclysmic event, I think prices will be reasonable again this year.
Soon, farmers will be in the fields planting crops. If you are a farmer and would like to lock in a price for your diesel, contact Shane McCully at 608-504-6281. We’ve got flexible options.
Before the farmers hit the fields, we’ll be able to start trenching propane lines, installing propane tanks, replacing regulators, and doing tank maintenance. If you notice that your tank is getting out of level, please call your local Premier Energy location and we’ll reset it. It’s not only safer but it makes your gauge read more accurately. Also, if you have a leased tank from us and you feel it’s looking kind of rough, give our folks a call so we can decide whether to paint or replace it. There’s never a dull moment in the Energy Division.
Thank you for the business and I hope you have a chance to spend some quality time with your family on Easter.
