MCMINNVILLE PROPANE GAS COMPANY MONTHLY NEWSLETTER 9.1.2013

MCMINNVILLE PROPANE GAS COMPANY MONTHLY NEWSLETTER 9.1.2013

Dear Customer,

   Autogas for America, a coalition of autogas experts, transportation industry specialists, and environmental advocates seeking to establish a sustainable propane auto gas market, has posted on its website a brief comparison of implementation costs and environmental impacts of autogas versus natural gas.  Propane autogas for America points out that 15 auto gas fueling stations can be built for the price of just one CNG fueling station, with one CNG facility costing between $400,000 and $1.7 million and a comparable autogas station costing between $45,000 and $175,000.

   In addition, two light-duty autogas vehicles can be converted for the price of one vehicle to CNG.  An average CNG vehicle conversion costs $15,000 while an average auto gas conversion costs $8,000.  More-over, CNG driving range compared to that of gasoline stands at about 50%, while autogas achieves 90% of gasoline’s range. Compared to gasoline, both autogas and CNG reduce harmful emissions by more than 20%.

   The American Petroleum Institute (API) has launched an advertising campaign promoting the facts about hydraulic fracturing.  “This campaign reflects API’s commitment to addressing the public’s concerns about hydraulic fracturing, because safe oil and natural gas development means thousands of reliable, well-paying jobs to families across the country”, said Erik Milito, API director of upstream and industry operations.  “The United States if becoming a global energy leader because of our abundance of energy from shale, which is also making a significant contribution to the economy and reducing our carbon emissions to near 20-year lows”.

  API comments that shale energy production has created tens of millions of dollars in additional revenues for federal, state, and local governments, and has helped American consumers save an average of $926 annually per household.  Shale energy also supported more than 1.75 million jobs in 2012. “Whether you drive a car on gasoline or heat your home with propane or natural gas virtually every American is participating in this new energy revolution”, said Milito.

   Spot propane prices at Mont Belvieu and Conway, Kansas were up again Thursday, sustaining an August run-up from the lower June & July prices.  Market watches note ramped-up exports may be contributing to the summertime rally, as propane, which is now trading at about 40% the value of crude at both trading hubs, just keeps climbing higher despite this being the traditional low- demand warm-weather season.  And it’s not as if the nation is product-starved.  Inventories, although 10% below last year’s record-breaking volume, are now above 60 mmbbl as the building season progresses, well within the heating-season comfort level and five year average.

   Fall season is approaching and now is the time to plan for your heating needs this coming winter.  We have great looking freestanding fireplaces which do a good job of providing extra heat in a great room or party room.  We also have 80% efficient direct vent Rinnai heaters which are excellent for heating smaller homes or offices.  There are also 80% efficient Modine unit heaters used in shops that make work bearable during the cold weather months.  The Rinnai and Modine unit heater are eligible for rebates from the propane association.  Call the office for bids on the particular heating needs you have.

Thank you for your business this past summer of 2013.

Cordially,

John J Buller and Sons, Owners

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