The cost and availability of propane didn’t take the spotlight this year with such a warm fall. Not to mention, the warm, dry weather helped with grain drying. This is making propane prices favorable. That’s according to Michael Newland, the director of agriculture business development at the Propane Education Research Council. He says inventories are at their highest levels in the last 5 years.
“This surplus supply is anticipated to yield a favorable pricing landscape as the sector gears up for the upcoming heating season,” explains Newland. “This surplus directly correlates with stable pricing, a boon for consumers and businesses alike.”
The traditional correlation between crude oil prices and propane markets has experienced a notable change in recent years. This has contributed to enhanced stability in propane pricing.
“Supply remains the primary driver behind the unprecedented stability within the propane fuel sector,” Newland says. “With over 60% of propane produced earmarked for export, the focus on expanding domestic markets and fostering cleaner fuel initiatives is key.”
He adds that the industry is actively pursuing innovative avenues, such as renewable propane derived from various sources including renewable diesel production and unique agricultural crops like camelina. This diversification aims to further bolster the sector’s environmental sustainability.
“Our commitment to innovation and sustainability remains unwavering,” says Newland. “The clean energy conversation is pivotal, and propane’s position as a low-carbon fuel, especially in transportation like school buses, remains a compelling narrative.”
Looking ahead to 2024, Newland anticipates continued innovation, particularly in agricultural applications, with projects underway to introduce groundbreaking steam-based technologies that leverage propane, promising more sustainable practices.
