Happy birthday, America! We’ve come a long way in 250 years. I’ve traveled to or lived in 14 countries during my lifetime, and I haven’t found anywhere I’d rather live. If you get this newsletter before Independence Day, here’s my safety briefing. After you light the fuse, Mr. Explosive is no longer your friend. Get rid of him. If you read this after the 4th of July and did not follow this golden rule, I hope you retained all your body parts.
I know we all get in a hurry to get our projects done. If you are going to be doing those honey-do chores that your significant other has been after you to get completed, be safe. If you are planting a tree or shrub and it’s in a direct line between the propane tank and your regulator on the house, I guarantee you’re going to hit the propane line. Have us come out and mark it so that doesn’t happen. If we mark it and you’re within 18 inches of the mark, dig cautiously. A shovel can go directly through a plastic propane line. Don’t ask me how I know this.
The energy markets continue to be directed by the latest headlines. Sooner or later markets will stabilize based on supply and demand. Expect higher gasoline and diesel prices in the Madison, Milwaukee and Chicago markets than elsewhere. The Whiting refinery in Indiana is still not producing at full capacity due to a strike and ensuing lockout. Once the strike is settled, we should see these markets return to normal.
If you haven’t returned your propane contract, it’s not too late. Prices now are stable but I wouldn’t wait too long. Ever since a propane pipeline in Iowa that brought propane in from Canada was reversed several years ago, the current pipelines feeding Wisconsin can’t keep up in the fall and winter. To make up for the additional gallons of propane needed, we utilize rail terminals. Rail is a more expensive method of transporting propane than pipelines, which is why you can expect an increase in propane prices in the fall and winter.
In another month, Farmers Union Cooperative in Ossian, IA will become the latest addition to Premier Cooperative. I’ve met most of the energy staff and I’m really looking forward to working with them. They will be bringing several million gallons of propane, diesel, and gasoline sales to the table. There are a lot of similarities to our organization, which will make the transition easier. With this group joining us, I’m convinced that the Energy Division of Premier has never been stronger, and we are in a great position to grow the business over the next several years. I’m very grateful to be a member of this organization.
Have a great July and thank you for your business.
