Tag: Agricultural Propane Demand

Propane Demand Soars in Cold Weather

Blue River Propane Responds to Winter Surge in Propane Needs In Mayfield, KY, the onset of cold winter weather has triggered a surge in propane demand, pushing local suppliers like Blue River Propane Company to ramp up their delivery efforts. Amidst this spike, the company notably provided crucial emergency propane to a Paducah nursing home… Continue reading Propane Demand Soars in Cold Weather

Blue River Propane Responds to Winter Surge in Propane Needs

In Mayfield, KY, the onset of cold winter weather has triggered a surge in propane demand, pushing local suppliers like Blue River Propane Company to ramp up their delivery efforts. Amidst this spike, the company notably provided crucial emergency propane to a Paducah nursing home in dire need.

Amanda Baumgartner, the office manager at Blue River Propane, explained the situation’s intensity, stating that over 20 routes are actively being managed to meet the soaring demand. “We have five drivers continuously on the road, and this pace is expected to continue throughout the week,” she said.

Under normal conditions, the company uses about 9,000 gallons of propane. However, the recent cold snap has doubled this requirement, with over 18,000 gallons needed to keep up with customer needs. “We’re receiving daily shipments at both our Mayfield facility and our secondary location to keep up,” Baumgartner added.

The company’s propane delivery caters to a diverse clientele, including residential, commercial, and agricultural sectors, primarily for heating purposes. Shane Whitlock, yard manager and driver, noted a significant increase in daily service calls, with stops ranging from 12 to 22 per day.

Whitlock was instrumental in the emergency delivery to the nursing home, impacting about 100 residents. “They were not our regular customers, but we knew it was crucial to assist them. The relief on their part was palpable, and we were glad to be of service,” he shared.

The propane demand is not just a local phenomenon; Southern Illinois is also experiencing a similar trend. Jason Older, co-owner of Metroplosit Hardware, reported a tripling in propane demand since winter began. “We’re now getting three to four deliveries weekly, each bringing in 400 to 500 gallons, which is significantly higher than our usual summer schedule of one delivery every two weeks,” Older said.

Anticipating the demand will only grow with more cold weather expected, Older shared a recent interaction. “Just this morning, a woman from Paducah visited, stating her usual propane supplier had run out. It’s clear the demand is not subsiding anytime soon,” he concluded.

Propane Demand for Crop Drying in the U.S. Faces Variability Amid Dry Conditions

Propane demand for crop drying in the U.S. is expected to show variability this year due to prevailing hot and dry conditions, which have reduced the moisture content of corn and soybean crops. According to Michael Newland, Director of Agricultural Business Development at the Propane Education and Research Council (PERC), eastern U.S. states will likely… Continue reading Propane Demand for Crop Drying in the U.S. Faces Variability Amid Dry Conditions

Propane demand for crop drying in the U.S. is expected to show variability this year due to prevailing hot and dry conditions, which have reduced the moisture content of corn and soybean crops.

According to Michael Newland, Director of Agricultural Business Development at the Propane Education and Research Council (PERC), eastern U.S. states will likely witness average propane demand for crop drying. Ohio is expected to experience the highest usage level. However, North Dakota and South Dakota should see average needs. At the same time, states such as Illinois, Iowa, Nebraska, and Minnesota are projected to have below-average demand due to the persistently hot and dry weather.

One contributing factor to this scenario is that favorable spring conditions led to early crop planting, putting the harvest ahead of its usual schedule. This early harvest reduces the need for crop drying, typically when crops are harvested later.

This summer’s unprecedented heatwaves exacerbated drought conditions across much of the upper Midwest. In Minnesota, for example, a September 2023 crop report by the USDA revealed that 63% of pastures were in poor to poor condition as of September 3rd. Similarly, rangeland and pastures in Kansas, Iowa, and Missouri were nearly one-half poor to poor on the same date.

By September 3rd, 18% of U.S. corn crops had fully matured, and 53% of U.S. corn acreage was rated in good to excellent condition. However, the hot, dry conditions also stressed immature crops, with at least a quarter of U.S. corn rated as poor to very poor in Missouri (40%), Kansas (33%), Minnesota (25%), and Nebraska (25%), surpassing the national average of 18%, according to USDA data.

Currently, weather conditions will not impact the maturity of the corn crop, but significant rainfall could hamper farmers’ ability to harvest sooner, warned Keith Barnett, President of Energy Strategies International. “The record level of propane means the U.S. is in great shape going into the home heating season and livestock season,” Newland added.

With U.S. propane stocks now exceeding 100 million barrels and propane levels well above average in the Gulf Coast and Mid Continent regions, crop drying is unlikely to have a substantial impact on Mont Belvieu or Conway prices, according to Peter Fasullo, Principal at EnVantage Consulting.

Propane usage for crop drying can vary significantly from year to year, depending on harvest size, timing, location, corn moisture content, and weather conditions. On average, propane demand for crop drying could increase by an estimated 200,000 barrels per day during the six-to-eight-week period, primarily from mid-September to mid-November in the Corn Belt, Fasullo explained.
“In conclusion, propane crop drying demand is not expected to impact prices significantly,” Fasullo emphasized. “And if there is any impact, it will likely be brief due to the ample propane supply.”