Renewables and Propane
Math is Math.
The British physicist, David MacKay, gave a speech in Warwick, England, in 2012 titled, “A reality check on renewables.”
Renewable energy sources are naturally replenishing, but flow-limited. They are practically inexhaustible but limited in the amount of energy that is available per unit of time.
MacKay argued that while he loves renewable energy, he’s also pro-arithmetic and renewable energy sources would need to cover nearly 25% of England’s land mass to keep up with the country’s energy demands.
That would require 8 million acres of land (the size of Maryland) covered completely with wind, solar, hydro, and biomass infrastructure.
The chart below shows the energy consumption pattern in the US.
A reality check doesn’t mean that society should stop reducing its carbon footprint. But we do need practical changes regarding energy solutions -- not oppressive taxes.
In any realistic scenario, low-cost and low-carbon propane should play a prominent role in complementing renewable energy and satisfying the energy requirements of the future.
Bill Gates
Bill Gates also shares some thoughts on renewables.
What’s Happening with Propane Prices?
The price of propane is at its lowest level in three years, and it’s been trading at a low value (35%) relative to crude oil. Why? More supply than demand.
Most indicators point towards the supply imbalance continuing for a little while, but use caution as propane rarely trades under 35% of the value of crude oil for too long.
EIA Weekly Numbers
Total US propane inventories showed an increase of 2.9 mmbbls. for the week ending 6/7/19. That brings national inventory levels (excluding propylene) to 66.3 mmbbls., 39.9 percent higher than last year at this time.
PADD 2 (Midwest/Conway) inventories showed a build of 3.1 mmbbls. They currently stand at 18 mmbbls., 9.1 percent above last year’s level.
PADD 3 (Gulf Coast/Belvieu) inventories decreased by 0.7 mmbbls. They currently stand at 42.3 mmbbls. (excluding propylene), 65.9 percent higher than last year.
The Skinny
Propane complements renewable energy and should play a prominent role in satisfying the energy requirements of the future.
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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.
