Front & Center
Butane-Propane News & LP Gas Magazine
Ray Energy's propane rail and truck terminal in New York was recently featured on the cover of two national industry magazines, Butane-Propane News and LP Gas (Propane Supplier’s Guide). We’re honored and humbled by the compliment. We understand that with greater attention comes greater responsibility to our customers. You deserve the best, and as your propane supplier, we’ll continue to work hard to earn your trust.
You’re Growing.
We’re very excited that your retail propane gallons have been growing! That’s a testimony to the hard work and on-going efforts that you and the regional propane gas associations put into making propane the “Clean American Energy Choice.”
In the table below, you can see that propane sales in your market have increased over the past five years -- with each year higher than the most recent low point in 2012. (Data is drawn from EIA Supplier Annual Sales Volumes charts, updated in April).
We’re Growing, Too.
To meet your growing demand, we’re growing too. A core principal of our strategic supply growth has always been the diversification of supply distribution points to ensure that you’ll always receive the propane supply you need, where and when you need it.
It’s not always easy … especially when you’re dealing with the unexpected from pipelines, gas plants, refineries, marine terminals, and multiple railroads … but we have the experience to turn these challenges into smooth sailing for you.
A copy of our new supply points map is below.
What’s Happening with Propane Prices?
The monthly averages for December (.6796) and January (.6658) were within 1.5 cents per gallon of each other. We’ve seen the month-to-date average trend a little lower in the first few weeks of February, so we’re projecting a closing month average of .6585. Propane has also been trending lower as a percentage of crude, dropping this month from 55% towards 50%. This range seems likely to continue until export levels start to outpace the growth in propane production.
EIA Weekly Numbers
Largely due to a surprising build in the Gulf Coast, total US propane inventories showed a build of .651 mmbbls. for the week ending 2/08/19. That brings national inventory levels (excluding propylene) to 52.033 mmbbls., nearly 19 percent higher than last year at this time.
PADD 2 (Midwest/Conway) inventories showed a draw of 1.54 mmbbls. They currently stand at 14.670 mmbbls., roughly 19 percent above last year’s level.
PADD 3 (Gulf Coast/Belvieu) inventories built by 2.733 mmbbls. They currently stand at 30.971 mmbbls. (excluding propylene), about 16 percent higher than last year.
The Skinny
I met my Valentine in a crowded restaurant on the seacoast of New Hampshire in 1988. I hope that everyone reading this has a Valentine that they care about; It will help keep your heart young.
In the spirit of Valentine’s Day, we truly care about you and your business and we’re looking forward to growing together in the years to come.
Get Stephen's insights on propane delivered to your inbox every month.
Sign up for our monthly newsletter here.
NOTE: The views and opinions expressed herein are solely those of the author, unless attributed to a third-party source, and do not necessarily reflect the views of Ray Energy Corp, its affiliates, or its employees. The information set forth herein has been obtained or derived from sources believed by the author to be reliable. However, the author does not make any representation or warranty, express or implied, as to the information’s accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any buying decision and it has been provided to you solely for informational purposes.
© 2011-2019 Ray Energy Corp. All rights reserved. Any reproduction, representation, adaptation, translation, and/or transformation, in whole or in part by whatsoever process, of this site or of one or several of its components, is forbidden without the express written authorization from Ray Energy Corp.
