Many of you may have noticed the price of propane is higher than its been the last couple years. There are a few factors that we can blame for this sudden increase. First, the price of oil has been low over the last couple of years which had kept gas prices down and propane has followed, but this has led to lower domestic production of both of the commodities. 100% of propane is produced in North America and this lack of production in the mid-west has led to less supply. The second major factor is the increase in exportation of propane overseas. Since we have had an abundance of supply over the last couple of years refiners have been able to get a better price on propane overseas. This increase in exportation has led to lower domestic supply which has increased the price. The good news this price increase may be short lived, because with the administration change many of the environmental restrictions and fees are being lifted on the shale producers in the mid-west. This means more natural gas and propane being produced which should mean more supply for next winter. For the mean time we are just going to have to live with some higher prices especially if we have a colder winter.
On a lighter note, we are currently re-building our office in McMinnville. Our old office was built in 1952 and was in desperate need of a makeover. We are working out of a temp office in the back of our property, so don’t worry about any disruption in service. We hired another driver and added a 5th route to better serve all of our customers. Our storage facility is still the largest in Oregon, so you need not worry about us not having propane no matter how cold the winter is this year. Thank you for your business and here’s to staying warm this winter.
Cheers, John Buller and sons.