August Energy News

Aug 07, 2023

Propane Tank

August 2023.

I hope you all had a great July. We finally got some much needed rain. I actually had to mow my lawn once during July. I don’t understand why the grass goes dormant yet the weeds thrive. I guess that’s why I’m not an agronomist. Fortunately, I found my niche in the energy field. I guess even a blind squirrel finds a nut once in a while. 

We have had another great propane contracting season. So far we have contracted over 8 million gallons of propane with our customers out of our projected total sales of approximately 16 million gallons. This year, propane contract prices are about half of what gasoline prices are. Propane inventories are looking pretty good at the moment but a high number of exports can turn things around in a hurry. If you haven’t sent your contract back in yet and would like to, contact your local Premier energy office to see if you can still get the same price.  
Here are a few fun propane facts. Today, close to 70% of propane comes from natural gas processing facilities. When I first started in the propane industry, the vast majority of propane came from the refining of crude oil. Of the propane produced in the U.S., over 50% is exported to other countries. To me, that is crazy when we could be using it here. I really wish the government would get behind propane powered vehicles the way they are pushing electric vehicles. Propane has the lowest carbon content of any fossil fuel. If the goal is electric or hydrogen powered vehicles, propane is the best bridge fuel available today.

As if it wasn’t enough for the administration to target gas stoves, they’ve now set their sights on gas water heaters. By requiring more stringent efficiency requirements for water heaters, they are attempting to regulate gas water heaters out of existence when the new rules go into effect in 2029. They won’t require you to rip your old one out but you may be forced into using electric heat pump technology after that date. 
If you have an old clunker of a water heater, gas stove, fireplace or clothes dryer that you’d like to replace, the Wisconsin Propane Education and Research Council has incentives available from $300 to $500 per propane appliance. Call one of your Premier energy locations to find out more or visit their website. 

As a part of our commitment to safety, you may see our folks on your property recording regulator manufacture dates or inspecting the tank and related equipment. You may be contacted if we do not have a leak test documented in our records as well. You would be amazed at the number of times we find small leaks on systems. Most are quite small but it’s easy to find if there is a leak and then our employees can do the detective work to find out where it’s coming from. Better safe than sorry. 

August is our last full month of summer so get out and enjoy it. Thank you for your business.  

I hope you have a safe July and thank you for your business. 

Tim Lease

Division Manager

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