Yes, we will be the first to mention that last winter was a very difficult season for propane providers, propane distributors and propane customers. As any historian, football coach or businessperson will attest, you must learn from the past in order to improve the future. So, what steps have the propane industry taken to ensure the upcoming cold months are friendly to all propane customers? What are experts predicting about the price and supply of propane through next spring? Let’s investigate.
Why Was There A Propane Crunch Last Winter?
There is a misconception that the propane industry failed to produce enough propane to fully service customers leading up to the winter months of 2013. This was not the problem. What occurred is best described as a perfect storm:
- In some areas of the country, the cold season ran from late 2012 right up to May of 2013. On average, residential propane for heating tapers off much earlier than this.
- With over 14 million residential propane customers and growing, users and providers experienced a spike in demand.
- As the fall months of 2013 approached, the agricultural industry experienced a record-breaking corn harvest that was also unusually damp. Propane is utilized to dry the crop prior to storage.
- On the heels of the corn harvest, several areas of the Untied States experienced inclement weather very early in the winter season.
On their own, each of these issues would be considered irrelevant to the overall propane picture. When they all occurred sequentially, several problems arose including propane delivery and pricing issues.
What Do The Experts Say About This Winter’s Propane Outlook?
We’re proud to say the propane industry, ThompsonGas as well as state and federal officials have pulled together to ensure propane customers will not experience the same inconveniences that were cause for concern last winter.
- The U.S. Energy Information Administration believes many residential propane customers will spend up to 34% less than last winter as prices are expected to be 24% cheaper and consumption 9% less than last year.
- Overall, propane production is up 12% from last year.
- Focus has been shifted to year round propane inventory demand, not just during the months leading up to winter.
- Some states are being proactive, taking preventive measures to ensure propane will be readily available this year.
ThompsonGas Is Doing Our Part. You Can Too!
As a valued ThompsonGas client, you know we are dedicated to keeping our propane supply steady year round. Based on our close proximity to the propane rail terminal in Baltimore, we are able to provide you with propane quickly, safely and affordably.
You, too, can help ensure your home is prepared for the upcoming winter season. Contact us today to schedule your propane delivery. We will be happy to discuss your expected needs and provide a convenient payment option to help your winter be as safe and warm as possible.