Who supplies the US with propane?
Where does propane come from? Today, propane primarily comes from domestic natural gas processing, especially since shale gas extraction has increased in recent decades. Today, close to 70 percent of the U.S. propane supply comes from natural gas processing here and in Canada.
Propane is a byproduct of natural gas processing and crude oil refining, with almost equal amounts of production derived from each of these sources. Most of the propane consumed in the United States is produced in North America.
Most U.S. imports of propane and butanes are received by rail from Canada into the Midwest and Northeast regions of the United States. These imports are highly seasonal, with two-thirds of imports occurring in October through March.
As we all know, propane supply is a byproduct of natural gas production and crude refining. The U.S. just banned crude and refined fuels from Russia.
Approximately 90 percent of the United States' propane supply is produced domestically, while 70 percent of the remaining supply is imported from Canada and Mexico.
Is there a propane shortage this winter (2022-2023 season)? Thankfully, no—at least there shouldn't be [9]. In recent years, the U.S. had to dip into its emergency stockpiles to avoid a shortage—but this year, supply should be enough to meet the demand.
Exporters and Importers
Propane, liquefied are the world's 41st most traded product. In 2021, the top exporters of Propane, liquefied were Qatar ($25.5B), United States ($20.4B), United Arab Emirates ($3.76B), Canada ($3.19B), and Saudi Arabia ($1.6B).
Propane Inventories
The beginning of the 2022 conflict between Russia and Ukraine spurred worldwide increases in energy prices across the board, meaning that projected propane prices are trending higher as domestic producers strive to regulate inventory and ensure they keep enough product at home.
In the latest Weekly Petroleum Status Report, the Energy Information Administration reported the U.S. exported 1.845 million barrels per day (bpd) of propane. That rate of exports was a record high.
PROPANE MARKET METRICS
Texas produces the most energy of any state due to its expansive crude oil industry.
Who has the largest gas reserves in the world?
# | Country | Gas Reserves (MMcf) |
---|---|---|
1 | Russia | 1,688,228,000 |
2 | Iran | 1,201,382,000 |
3 | Qatar | 871,585,000 |
4 | United States | 368,704,000 |
Rank | Country | Consumption (Thousand Barrels per Day) |
---|---|---|
1 | United States | 2,301.00 |
2 | China | 767.00 |
3 | Japan | 536.00 |
4 | India | 506.00 |
About. Exports In 2021, Russia exported $1.07B in Propane, liquefied, making it the 10th largest exporter of Propane, liquefied in the world. At the same year, Propane, liquefied was the 48th most exported product in Russia.
Propane inventories are at a dangerously low level of 21% below the five-year average. This is almost unheard of for supplies of propane to be this low at this time of year, and this is a real danger, especially to rural America, which depends on propane.
Availability of Renewable Propane
According to data from U.S. EPA, 4.6 million gallons of renewable propane were produced in 2021. However, within the next few years, 100 million gallons of renewable propane will likely be available with a total potential of 300 million gallons in the next decade.
While the cost per gallon is less for natural gas, you'll use more of it to heat the same appliances. If you get two times the heat from propane, naturally, you'll use less fuel. In this combined round, propane wins for efficiency and overall cost.
Unlike diesel's one-year shelf life and gasoline's three- to six-month shelf life, propane can be stored indefinitely so it is highly effective and convenient for both residential and commercial sectors, and the ideal partner in emergency preparedness plans.
It's all on top of higher demand for heating homes in regions with lower temperatures, along with more exports to Asia. The CEO of Suburban Propane said the industry will have enough supply to meet demand due to higher domestic production, but the pandemic has led to stretching in new ways.
MULTI-STATE INDEPENDENTS | ||
---|---|---|
Company | Location | 2018 Gallons |
1. Growmark Inc. | Bloomington, Ill. | 282,344,098 |
2. CHS Inc. | Inver Grove Heights, Minn. | 245,562,488 |
3. Superior Plus Propane | Rochester, N.Y. | 202,000,000 |
The Propane Home
Of the 4,000 propane companies throughout the United States, more than 70 percent are independent, family-owned businesses, employing more than 57,000 people.
Who exports the most gas to the US?
Import sources | Gross imports | Exports |
---|---|---|
Canada | 4.34 (51%) | 0.84 |
Mexico | 0.71 (8%) | 1.16 |
Russia | 0.67 (8%) | < 0.01 |
Saudi Arabia | 0.43 (5%) | 0.01 |
The cheapest time to buy propane lies between late September to early October. The reasons that propane becomes inexpensive during this time are: Stable weather conditions.
US Residential Propane Price is at a current level of 2.671, down from 2.68 last week and down from 2.975 one year ago. This is a change of -0.34% from last week and -10.22% from one year ago. US Residential Propane Price measures the price in USD per gallon of propane.
The answer to this isn't as straightforward as you might think. Propane is more expensive than natural gas but natural gas burns much faster than propane. In fact, it burns at a rate of two to one. This means that to heat two spaces of the same size, you'll use twice as much natural gas than propane.
In 2021, about 99% of U.S. total annual natural gas imports were from Canada and nearly all by pipeline.
If we compare propane vs natural gas and other fuels, propane is the more eco-friendly option. It's efficient, non-toxic, and produces fewer emissions.
Is Propane Bad for the Environment? Propane is an environmentally-friendly choice. While it does emit a low level of carbon dioxide, it's relatively clean burning when compared to gas or diesel. It does not emit sulfur dioxide, methane, nitrogen oxides, and other wastes.
Chemical Compositions. Propane is the cleanest burning fossil fuel available, and it produces about half the carbon dioxide and other emissions of gasoline. It also doesn't harm water or soil. Natural gas is mostly made up of methane, a greenhouse gas that's about 84 times more potent than carbon dioxide.
Russia has the largest proved natural gas reserves in the world.
The world's largest oil field, Saudi Arabia's Ghawar Field, for instance, produces around 4 million barrels of oil per day, accounting for well over 1/3 of Saudi Arabia's total production.
Does the US have large gas reserves?
Gas Reserves in the United States
The United States has proven reserves equivalent to 11.9 times its annual consumption. This means it has about 12 years of gas left (at current consumption levels and excluding unproven reserves).
Con: It Produces Fewer BTUs Per Gallon Than Oil
When you measure how hot propane burns alongside other fuels, it's a little disappointing. Propane doesn't produce as much heat as oil. That means that although the cost of propane might beat oil, you're going to have to use more to get the same cozy indoor temperature.
Supplies are unusually tight, still depleted by last year's long, late winter and a wet fall that forced farmers to dry their crops with propane. And demand is stronger than ever, driven by early winter storms and the Far East's yen for exports.
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Questions about European & Asian Natural Gas
- Does the UK rely on Russian gas?
- Who does Russia export gas to?
- Which countries depend on Russian gas?
- Does Ukraine produce oil and gas?
- The top five sources of U.S. total petroleum (including crude oil) imports by percentage share of total petroleum imports in 2021 were:
- Canada51%
- Mexico8%
- Russia8%
- Saudi Arabia5%
- Colombia2%
"In 2023, Europe will likely, for the first time, need to survive a full calendar year with only minimal volumes of Russian pipeline gas," S&P Global analysts Michael Stoppard and Alun Davies said in a recent report.
America produces more than enough propane to meet demand. In fact, the U.S. is propane's leading producer. Propane is an abundant "bridge fuel," making it a clean-burning alternative to gasoline and diesel that can address energy challenges while long-term renewable technologies are developed.
Safety concerns
Propane burns quite easily, making it an ideal fuel but also an easily combustible fuel. If you leak, it can build up. In an enclosed situation, an ignition will result in a catastrophic explosion.
Limited of autogas fueling stations
One reason is the development of fueling stations throughout the country. Most have been built around delivering gasoline, and as a result has driven the bulk of the automobile market toward gasoline.
Propane is imported by land (via pipeline and rail car from Canada) and by sea (in tankers from such countries as Algeria, Saudi Arabia, Venezuela, Norway, and the United Kingdom). American energy since 1946.
What is the largest market for propane gas?
Asia Pacific market registered largest revenue share in terms of revenue in 2021. With an estimated 20% market revenue, China consumes more propane than any other country.
In fact, nearly half of all U.S. households use natural gas to heat their homes, and another 5 percent of households use home heating oil, while 5 percent of homes use propane.
California to phase out gas powered heater by 2030.
Efficiency/Environmental Friendliness:
Propane is an extremely efficient and versatile fuel source. Propane furnaces typically have a 90% to 98% efficiency rating. Also, unlike oil, you can use propane to run your space heating, clothes dryer, water heating, appliances, backup power generators, and more.
A cubic foot of propane = 2,516 BTUs, compared to a cubic foot of gas = 1,030 BTUs. This means propane gas burns longer, lasts longer, and is technically cheaper! LONGER SHELF LIFE: Unlike gasoline, propane fuel is more stable and won't degrade over time.
- Cheniere Energy: It's the leader in producing and exporting LNG in the U.S.
- Chevron: The U.S. giant has a large and growing LNG portfolio.
- ExxonMobil: The U.S.-based supermajor has interests in LNG projects around the world that produce 23 million tons annually.
Availability of Renewable Propane
According to data from U.S. EPA, 4.6 million gallons of renewable propane were produced in 2021. However, within the next few years, 100 million gallons of renewable propane will likely be available with a total potential of 300 million gallons in the next decade.
Does propane expire? Another way you get peace of mind with propane delivery from Bottini Fuel is that propane doesn't have a shelf life or an expiration date. That's because propane doesn't go bad! Other fuel sources can degrade over time, like kerosene, diesel, heating oil and gasoline.
The U.S. is the world's leading supplier of liquid petroleum gas (LPG), exporting nearly half of the country's two million barrels per day (bpd) of propane production to Asia, Latin America and Europe. Propane fundamentals have shifted dramatically in the U.S. in less than a decade.
Propane's Indefinite Shelf Life
Propane storage is the only thing that limits its shelf life. Still, that 30 years shelf life is a considerably long time for gas to remain viable, given that other gases have a short shelf life.
Why is propane out of stock?
LOS ANGELES (NewsNation Now) — Outdoor dining restrictions caused by the coronavirus pandemic have become a factor linked to propane cylinder shortages and a significant surge in demand. Higher prices for propane gas has cut into the bottom line for restaurant operators like Roberto Espinoza.