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No propane shortage

B

BIG RUH

Member
Talked to the dealer I buy my propane from. He said that he can buy all the propane he wants, but it'll really cost him. Right now he's getting $3.49 a gallon.
 
We typically use on average 900 gallons of house propane per year. Last summer I contracted 1,000 gallons at $1.40 per gallon. So we're OK there.

On the other hand, I buy propane for my shop tank off the truck. But, it appears I have enough in the tank to take me till spring.
 
Propane just like gas in the 70s is a big hoax and is all just a way to drive the price up just like in the 70s with gas. In Jan of 1974 gas was $00.199 per gal but by Jan 1975 it was up to around $00.859 per gal. Remember the long lines to get gas and it was because of a shortage well it was not a shortage it was a way to up the price nothing more nothing less
 
read a article in the wis state farmer paper today in response to their propane shortage article last week where they said one of the reasons for the shortage was the pipeline repair coming out of Canada. a rep fron the pipeline company took offence to the article and contacted the paper saying the repair happened or scheduled late nov into December 18. said the line has been running since then, but not at full capacity becaue the suppliers that rent the line to ship to Montana dacotas minn and wis don't keep it full. said the suppliers knew of the scheduled repair and should have planned around it
 
Where was gas you could buy for 19 a gallon in 74 I worked in a station in 54 and it was 29.9 then and it sure didnt go down from there ETHYL was a few pennies higher. I did get gas on base in the ARMY in 58 cheap because of no taxes then.
 
There is no propane shortage here, for sure. I am looking out the window at a gas drilling rig, right now. I can just see the top lights.

It's the 3rd rig I have been able to see from the farm. Here's the closest one.

sassorig_zps84d7e35b.jpg



Getting the gas to the places that need it the most seems to be the problem, and subsequently, the price I have to pay for the gas is the same as what everyone else is paying, even though the shipping expense is virtually non-existent.
 
(quoted from post at 21:59:13 02/08/14) Propane just like gas in the 70s is a big hoax and is all just a way to drive the price up just like in the 70s with gas. In Jan of 1974 gas was $00.199 per gal but by Jan 1975 it was up to around $00.859 per gal. Remember the long lines to get gas and it was because of a shortage well it was not a shortage it was a way to up the price nothing more nothing less
Click to expand...

Actually if you take a close look and do a little research there was indeed a shortage. It started with the industry not planning for more grain dryers being operation than ever before. Then we started out OK until the southern US got hit with the cold that they have seen this year and the northern states have more -0 days than normal. They have upped production over the last few weeks buy a local gas supplier for smaller distributers is running tankers as far as TX from MN to meet demand. My SIL has been hauling out of TX with a truck to MN. That's because the rail roads have been struggling to meet the demand for pressurized tankers to carry LP. You have to pay for the trucking too.

Rick
 
As long as prices are allowed to rise with demand, there will never be a "shortage" of anything. Of course just because a product is available doesn't mean you can afford to buy it.
 
While we could have plenty of propane today you are just using it faster than we can produce or transport it to you.
Is that your fault for using it to fast or our fault for not reading the future and upping production soon enough to meet future demands.

In the 70.s there was no shortage of oil. We were under a embargo (partial or complete prohibition of commerce and trade with a particular country) from another country.
They had control of what we wanted and would not send it to us. Isn't that considered a shortage on your end.

The funny part is while you complain and complain you still buy the product playing right into their hand.
 
I stopped at the co-op yesterday to get gas for my truck in SW WI. They are hauling propane from Texas to meet demand. Current price 4.09 a gallon.

2 weeks ago price was 4.69 and they were limiting customers to 20 gallons.

Tim
 

Old, I'm 72 years old,born and raised in NNY state and liveing there now.Traveled a good part of the world and the only times I've seen gasolene prices any where near that low were on a military installation.The lowest price I can remember paying and I was 11 or 12 at the time was 29 cents per gallon.In 1970 where were you buying gas at 19.9 a gallon?
 
When I was in high school, late 60's I worked at a full service gas station ( remember those? ) after school. We sold regular and premium gas. Regular was 19 cents gallon and during a gas war it got as low as 12 cents. I have lived in Illinois, St. Louis area all my life. So yeah gas was that cheap.
 
Getting the gas to the places that need it the most seems to be the problem supports what our local news reported. They said propane is transported in the same gas lines that natural gas is shipped in. No shortage of natural.

Think someday we will hear of a propane gas line being built? XL 2 pipeline!
 
When in undergraduate school in the early 1970s, I worked at a Standard oil station in Terre Haute, IN when I was in undergraduate school in the early 1970s. I saw gasoline at the Gulf station across the street sell at .139 and at ,119 at the gravel parking lot cut rate station next door. We were a couple of cents higher.

The gas war lasted several months in 1971 or 1972 and it DID sell for the prices above for a couple of weeks.

Dean
 
I have 2 1000 gallon tanks and buy my LP in June/July for the whole year when the price bottoms. If I expand my shop I will add a third tank. I am burning $1.09 LP right now. I get a volume and also a cash discount. Last year I got it for $.92. I thought that this year they were gouging me but...

Jerry
 
Old, what country were you living in in 1974 where you could buy gas for less than 20 cents a gallon? It sure wasn't the US.

For the record, 1974-1975 wasn't a period where gas prices went up significantly. The first big jump was in '73 due to the oil embargo. (Yes, there really WAS an OPEC oil embargo in 1973, it wasn't a "hoax". The embargo was triggered by US support for Israel in the '73 Yom Kippur war.) The next big spike occurred in 1979, triggered by the Iranian revolution.
Historical gasoline prices in the US
 
I think last year California got 5 inches instead of 60 inches of rain. Need more than a pipeline to solve that problem.
 
This is fact. Cleveland MS Jan 5th the day I got the one and only new car I fill the tank which was 23 gal and it cost me less then $5 an I got change back. Gas was in fact $00.199 per gal. A month later gas was up to $00.50. Sorry but I know 1000% sure I am right I did it
 
They say "if you can remember the sixties, you weren't there." It seems the same might be true of the early seventies.
 
The date was Jan 5th 1974 the day I got my bran new dodge van and I filled it with a 5 dollar bill and got change back and gas was in fact $00.199 per gal. Was I was in Athens TN I filled my motorcycle tank many many times with gas at $00.159. So a lot depends on where your at.
 
Many factors come into play with gas prices. In the 70s I got many a gal of gas for $00.159 that would have been like 1970 or 71. That was in the south as in MS and TN up north yes prices where higher and if you watched for the good old gas wars it was easy to get gas cheap
 
I remember 23.9/gal in the late 60s in Conn. I thought nothing of pulling into a gas station and asking for $1.50 worth of reg. cause thats all I had in my pockets and the attendent would wash your windshield and rear window then bring your dip stick to your window and ask if you wanted it topped off they always had glass quart jugs with metal pour spouts with motor oil. I don,t even remember if they charged for a small amount of oil.
 
John, if you're talking about piping water from the midwest to the great plains, it ain't gonna happen. Western farmers would be happy to use water from "back east"*, but only as long as it's nearly free. No way would they pay the pumping costs to get water from the Mississippi to the High Plains, which are two or three thousand feet higher than the River. And that's assuming they got somebody else to come up with one or two trillion to build the pipeline.

*On the High Plains, "back east" is any part of the country east of Omaha.
 
John, propane has to be refined, just like gasoline. So even though there's a glut of natural gas, that doesn't translate to a limitless supply of propane; you're still limited by refinery capacity.
 
I don't recall mentioning anything in this thread about piping water from anywhere.


As for the refinery capacity, I am well aware. google markwest midstream, Houston, PA. It's only a few miles away.

They keep up just fine now. It's the lack of infrastructure for delivery on the scale they are capable. Like I said, transport from well site to compressor station, to stripping plant is negligible. (Maybe a total distance of 5-10 miles through pipelines running 60,000 barrels per day through the plant)

It's loading onto rail cars, and availability of rail cars, and time to transport by rail and truck that is the problem. If you are sitting directly on top of the source, you never felt any kind of shortage.
 
All they would need is a long garden hose. Have a politican suck on the other end. Get plenty of water. No pumps required.
 
Mark, In a state that would be directly effected by such a proposal we hear a lot about this on the local news or talk radio.

I will agree with you that western farmers will not pay the cost to pump water to the front range.

But the new talk is to get it over the divide and into the Colorado. Then the cost could be spread over millions of households.
If I remember correctly they are talking about pumping enough water out the Missouri around Leavenworth, Kan. to serve about 1.25 million households in western states.
The cost of pumping when spread over that many people becomes small.
 
(quoted from post at 11:31:12 02/09/14) Mark, In a state that would be directly effected by such a proposal we hear a lot about this on the local news or talk radio.

I will agree with you that western farmers will not pay the cost to pump water to the front range.

But the new talk is to get it over the divide and into the Colorado. Then the cost could be spread over millions of households.
If I remember correctly they are talking about pumping enough water out the Missouri around Leavenworth, Kan. to serve about 1.25 million households in western states.
The cost of pumping when spread over that many people becomes small.
Click to expand...

Ain't goin' to happen.
 
I farm in Smith Twp, Mt. Pleasant Twp, and Cross Creek Twp in Washington County. My home farm is in Smith Twp.
 
John, if anyone was serious about diverting eastern water to the Colorado River, the first thing we would do would be to STOP diverting Colorado River water to the Front Range. Yep, that's right: Since 1947, water has been diverted from the Colorado River and pumped over the Continental Divide to the eastern slope of the Colorado Rockies. This is practical only because the project generates more power than it consumes.

Understand that those folks who promote the idea that the western states will "steal" eastern water probably have some agenda. We have the same here in Michigan: people who claim western states will take water from the Great Lakes. I'm not sure what they hope to accomplish by their fearmongering, but if you know the facts its obvious they're blowing smoke.
Alva B. Adams Tunnel
 
I have a theory. The cost of propane went through the roof, and will come down in price, but nowhere near where it was. No different than gasoline or diesel for vehicles. These days, we have been so conditioned that $3.00 per gallon is a great deal. Run it up way higher than you want, then back it down to what you want and make everyone sigh relief at the still much inflated prices.

Just a theory I have.

Mark
 
Mark; I would like to thank you for taking the time to educate me a little more on this subject.

Its kinda funny that never has one "expert" guest on the talk radio show or news report has ever said anything about the Alva B. Adams Tunnel.
It does make it a stupid idea to pump water east to west when you know the fact that they are already pumping it west to east.
 
I agree. That is exactly what I was thinking as well. I never thought $2.00 gasoline would be cheap. I dont doubt this next year it will be the "reason" of we are still catching up to last year. So if we dont have to dry corn and have a mild winter....the demand will be down, but will the price?...
 
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