MCMINNVILLE PROPANE GAS COMPANY MONTHLY NEWSLETTER 11.1.2013

MCMINNVILLE PROPANE GAS COMPANY MONTHLY NEWSLETTER 11.1.2013

Dear Customer,

   The American Gas Association (AGA) estimates that more than half-million housing units in the northeast switched from fuel oil to natural gas for their primary fuel from 2000 to 2010.  At the same time, AGA estimates show propane and electricity also gaining, with propane adding 46,000 housing units over the 10-year period and electricity 245,000.

   Nationwide customers who heated their homes with natural gas during the 2011-2012 winter heating season saw average savings of 70% compared to those using fuel oil, and more than 40% compared to homes heated with propane.  We are seeing a lot of new customer making the switch from fuel oil to propane in McMinnville Gas service region.

   The international consulting wood Mackenzie says North America will become energy independent by 2020 and subsequently become a net energy exporter.  The consultancy comments that the Middle East is the most sensitive to changes in oil flows.  Under pressure to maintain oil revenues, and with Asia importing ever-greater volumes, the relationships between China and the key players of OPEC will become increasingly bilateral.  As a result, the strategic interests of China and the U.S. in the Arabian Gulf will become more aligned.  Tight oil will not divorce U.S. foreign policy from the Middle East.

   In addition, the dramatic change in Russia’s gas export positions, forced by North American shale, has led to a revolution of the strategic need to open Pacific Basin markets to gas exports.  Russia is already pivoting toward China in a development that reverses the historic trend of limited engagement between the two countries.

   Wood Mackenzie emphasizes that energy independence does not imply a North American entirely detached from global markets.  On the contrary the region as a whole will be dependent on others to clear excess production, and the U.S. will be an importer of oil for the foreseeable future.  This alone will moderate the geopolitical impact of the changing North American trade position, ensuring there is no chance of an energy isolationist, rather than an energy independent, continent.

   A note of additional use of propane are propane powered clothes dryers that offer operational savings of 20 percent annually compared with electric dryers.  Propane produces a moister heat and dries loads faster, leading to lower costs and gas-powered dryers can lower a home’s carbon footprint compared to electric models.  You will never see a commercial establishment such as a hotel or Laundromat using electric dryers.  Electric dryers would dry to slow and would cost too much to operate.  Switch your electric dryer to propane now!

   I want to inform our customers that we’ve had a small blimps in pricing because of increased demand for propane motor fuel in the industry and also because the U.S. refineries are exporting propane overseas to foreign countries.  The U.S. is the largest exporter of propane in the world.  Our drivers are finishing up the routes on first fills and will be completing them the second week of November.  Some customers because of their usage will only need fills two or three times per year.  The regular heating accounts will be filled in a 5 to 6 week schedule.  Please pay your fills promptly so we can keep your tank filled full by the expected cold winter season.

Thank you for your business this October.

Cordially,

John J Buller and Sons, Owners

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