Just got a fill-up on our propane tanks at home. Cost is now up to $1.55 in our locality (Rockbridge Co., VA), and the guy who delivered says it's likely to go up even higher next week.

The reason? They can't find enough supply to serve their customers. Our propane man stated that the snow had been a blessing, providing an excuse to delay delivery to some customers when no gas was available.

He mentioned that a pipeline had broken at one of the refineries that supply to them, which might account for the shortage, but I also received the impression that supplies were short period.

Got wood?

-- CD (cdokeefe@firstva.com), February 01, 2000

Answers

CD,

Thanks for the post. Any further info available on the pipeline break your gas dude mentioned? I'm wondering if it's one of the ones already reported here.

Thanks, Jimmy

-- Jimmy Splinters (inthe@dark.com), February 01, 2000.

CD, I think it's more than just one pipeline, and your delivery man knows what he's talking about. This is the second OPIS (Oil Price Information Service)I've seen that mentions a shortage of brine.

You in Lexington? I live just over the hill in WV. ~~~~~~~~~~~~~~~~~~~~~~~~~ 2000-02-01 12:42:47 EST ***PROPANE SUPPLY PROBLEMS HIT THE MIDWEST Mid-America Pipeline has notified its propane shippers that it is having meter rate issues and possible brine problems and is reducing the flow rate on all propane shipments out of Conway. MAPCO also said that it expects to impose an allocation shortly. Outages are cropping up in some Midwest markets, including Kearney, sources said, and the east leg of the MAPCO is reportedly loading off the line, with terminal storage depleted. Meanwhile, Dixie Pipeline has gone back on allocation, marketers report. Dixie did not set a timeframe on how long the allocation will be in place. In the spot markets, propane at Belvieu was done from 58.5-60cts gal this morning for any February with wets done as high as 60.75cts gal. Conway propane was done from 46.25-47.75cts gal for MAPCO with Bushton done from 49-50cts gal. It's highly unlikely that there will be much in the way of relief from spiking propane prices, and tight supply in the key producing/distribution areas in next four-to-six weeks. At least that's what Dan Lippe, President of Petral Worldwide, Inc., and one of the NGL industry's foremost experts on NGL pricing and supply trends predicts.

In fact, Lippe says that price spikes are very likely going to be "a way of life," at least through the early part of March. Lippe notes that brine inventories are "at their lowest levels in the last several years." What that means is that it will be much more difficult for producers, manufacturers and distributors to extract ample amounts of propane to meet demand that has swung higher because of the unexpected cold weather conditions that have blanketed much of the United States. Brine supplies are so critical, stresses Lippe, that "the industry has now reached the practical limits of its own distribution system."

-- rocky (rknolls@no.spam), February 01, 2000.

According to my local dealer, propane is now $1.25 a gallon here, up 20 cents since December. Must be just a coincidence, though; I'm sure it's not related to Y2K.

-- Steve Heller (stheller@koyote.com), February 01, 2000.

The oil futures markets must be aware of some kind of problem since March Crude Oil futures closed up 61 cents today at $28,25 a barrel.

Ray

-- Ray (ray@totacc.com), February 01, 2000.

Jimmy,

Don't know if it's the same pipeline break. This delivery guy wasn't into the Y2K thing, so I didn't get that far with him. The company that supplies us is Dixie Gas & Oil.

Rocky,

Yup, Lexington, or more accurately west of Lex going toward WV. We're less than an hour from the state line near White Sulpher Springs. Gorgeous country over there!

-- CD (cdokeefe@firstva.com), February 01, 2000.

Central New York near Rochester

10 22 99 $1.19/gallon 01 27 00 $1.19/gallon

Perhaps our rural supplier has big tanks and has not yet passed on any price increases.

But, based on propane prices, we have absolutely no hint of any problems,,,,,yet.

-- thom gilligan (thomgill@eznet.net), February 01, 2000.

There is a major pipeline break in KY

What is especially interesting is none of the major media have reported on this story on a massive oil spill (could be close to a million gallons). I had to go through all of the Kentucky Dailies to even find this update. By comparison the Rio oil spill earlier this month was about 400,000 gallons. From the Ledger Independent, Maysville, KY

Crews continue cleanup at Clark County pipeline break

Associated Press

WINCHESTER, Ky.  A 24-inch underground pipeline that ruptured in Clark County was back in operation at a reduced rate Saturday, a statement from Marathon-Ashland Petroleum said.

So far, 319,200 gallons have been cleaned up following Thursdays break and some of the residents who voluntarily left their homes are returning, the company statement said.

Cleanup work continued through the weekend.

Marathon Ashland said Friday the rupture spilled 500,000 to 900,000 gallons of crude oil before the pipeline was sealed. Five families living near the pipeline voluntarily left their home and stayed in hotels after the break.

The pipeline carries oil from Owensboro, in western Kentucky, to a refinery in Catlettsburg in eastern Kentucky.

The cause of the rupture remains under investigation, the company said Saturday.

link to story:

http://www.maysville-online.com/News/News5.html

-- Carl Jenkins (Somewherepress@aol.com), February 01, 2000.

In eastern Iowa....

Just checked my local supplier. Cash price for quantities of 250 gallon (or more) delivered is $0.799/gallon.

This is up a bit from the start of the year but nowhere near the east coast price.

-- Arnie Rimmer (Arnie_Rimmer@usa.net), February 01, 2000.

Thom, if your supplier is LEVEL you won't see much of a problem. their business model is effectively to buy in summer and store in caverns, and truck to customers in winter.

Chuck

-- Chuck, a night driver (rienzoo@en.com), February 01, 2000.