Energy Update

Jan 05, 2020

Happy New Year! I hope all of you have a great 2020. 
I’ve got some good news for 2020. For years we’ve talked about ending our dependence on foreign oil. Well, it looks like that may be happening in 2020. Projections show that 2020 may be the first year that the United States will be a net exporter of crude and fuel on an annual basis. 
What does that mean for the average consumer? Because oil trades on a world market, our prices here will still be reflective of worldwide events and prices. With production in the U.S. at all time highs, the influence that OPEC has on prices will have less effect. This should keep prices relatively low and stable. Of course, that could end with a crisis in the Middle East. Some of you can recall the Arab Oil Embargo in 1973. Since we can consume what we produce, an embargo would be a moot point.  
Now that we’ve talked about 2020, I’d like to share some numbers from our 2019 fiscal year which ended in September of 2019. For fiscal year 2019, we saw an increase of a little over 900,000 gallons, which put us at 16.5 million gallons of propane sold, another record at your cooperative. This fiscal year we are up 750,000 gallons over last year in the first two months due to the wet crop and cold weather. 
We’ve been experiencing that kind of growth due to a couple of factors. The first is the incredible support we get from our customers. I can’t tell you the number of times that we have been recommended by our customers. That means a lot to us. Thank you. 
The second is the dedicated energy team that we have developed over the years. These folks work some long, cold days to make sure we provide the energy our customers need. I’m very proud of the teamwork displayed by the staff at our seven branches to get the job done. 
In helping us continue to provide the service you have come to expect from us, please keep your driveways in good condition. If we have a stuck truck, it may take several hours to get it back on the road, which means the driver will have to work longer hours to get caught up. Icy paths and driveways also create slip hazards that could injure our delivery personnel or you. Clearing a path to the tank when there is a lot of snow on the ground helps immensely because our drivers can’t see what’s hidden under the snow. After losing the hide over my shin on one occasion because of a farm implement buried under the snow, I can speak from experience.
Here is your propane supply update. We have our 800,000 gallons of storage capacity full as it has been all fall. The pipelines and railroad terminals are still unable to keep up with the demand. Since we have developed relationships over the years with several suppliers, we have been able to keep our storage full and have been selling excess propane to other companies. That’s a good situation to be in. Projections are for tight supply in Wisconsin through January but the warm weather at the end of December may change that. 
Don’t forget that there is a water heater rebate of $200 available if you install a new propane water heater. It can be a replacement for an old water heater or new construction. Propane water heaters cost less to operate than electric models. For more information on the rebate, go to and type in ‘Safe Appliance Installation’ in the search bar. Click on ‘2019 Safe Appliance Installation Rebate Program _FINAL_rev102719. If you have any questions, call your local Premier energy office.
Thank you for your business in 2019 and we’re looking forward to serving you in 2020.

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