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Headlines lost in the cold

If it's news, but not politics, then it goes here.

Headlines lost in the cold

Postby Mad Howler » Mon Jan 27, 2014 1:57 am

Perhaps I missed a more relevant event that pushed these headlines down at WISC. The first came out pretty early yesterday morning and is the first to go.

http://www.channel3000.com/walker-decla ... index.html

"It's not that the country is out of propane," Fiene said. "It's just getting it where it needs to be is the biggest challenge. There's only so many trucks, the pipeline is only so big, you can only push so much through the pipelines."

But it's unclear why wholesale prices are spiking, Scholz said. Many retail distributors have locked their customers into contracts that set their prices, creating shortfalls between their revenue and rising wholesale costs.

"There could be propane dealers who go out of business," Scholz said. "Your mom-and-pop propane dealers aren't making any money this year."

An NPGA spokeswoman said she had no explanation for rising wholesale costs. Sen. Chuck Grassley of Iowa has asked the Federal Trade Commission to investigate what may behind the increases.


And this? I thought we were now flush with hydrocarbons in the USofA.
http://www.channel3000.com/news/Xcel-as ... index.html

I find this odd.
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Re: Headlines lost in the cold

Postby Sandi » Mon Jan 27, 2014 4:55 am

It seems that the production methods are hard to adjust for an increased demand.

The supply of propane cannot easily be adjusted to meet increased demand, because of the by-product nature of propane production.
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Re: Headlines lost in the cold

Postby peripat » Mon Jan 27, 2014 10:48 am

Sandi wrote:It seems that the production methods are hard to adjust for an increased demand.

The supply of propane cannot easily be adjusted to meet increased demand, because of the by-product nature of propane production.


Well, that would be fine, but unless the industry is lying through it's teeth they are saying the supply is adequate, it is just the transporting it to places it needs to be that is a problem...so which is it do you think? Are they lying about the supply or is it just that someone can make a bloody fortune by withholding the supply?
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Re: Headlines lost in the cold

Postby Sandi » Mon Jan 27, 2014 11:49 am

peripat wrote:Well, that would be fine, but unless the industry is lying through it's teeth they are saying the supply is adequate, it is just the transporting it to places it needs to be that is a problem...so which is it do you think? Are they lying about the supply or is it just that someone can make a bloody fortune by withholding the supply?


I suppose it is transportation too: especially initially. My usage has about doubled from last winter. Assuming the same with propane users, and expand that to the entire Midwest and northeast, and that is a lot of trucking needed.
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Re: Headlines lost in the cold

Postby snoqueen » Mon Jan 27, 2014 12:24 pm

Well, the country has a lot of trucks and a lot of truckers. Transporting propane requires some special certifications, though. Maybe -- just maybe -- that's part of the issue. i'd like to see proof, though. Historically, we know fuel and energy tend to mysteriously get expensive at just the wrong times., just when people need them the most and have the fewest alternatives.
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Re: Headlines lost in the cold

Postby green union terrace chair » Mon Jan 27, 2014 12:38 pm

snoqueen wrote:Historically, we know fuel and energy tend to mysteriously get expensive at just the wrong times., just when people need them the most and have the fewest alternatives.

There's no mystery there.
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Re: Headlines lost in the cold

Postby Michael Patrick » Mon Jan 27, 2014 12:40 pm

I hope Hank Hill isn't going to lose his job.
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Re: Headlines lost in the cold

Postby O.J. » Mon Jan 27, 2014 12:50 pm

peripat wrote:
Sandi wrote:It seems that the production methods are hard to adjust for an increased demand.

The supply of propane cannot easily be adjusted to meet increased demand, because of the by-product nature of propane production.


Well, that would be fine, but unless the industry is lying through it's teeth they are saying the supply is adequate, it is just the transporting it to places it needs to be that is a problem...so which is it do you think? Are they lying about the supply or is it just that someone can make a bloody fortune by withholding the supply?


According to the EIA, supply has dropped substantially from last year.

U.S. propane stocks fell by 3.8 million barrels to end at 38.7 million barrels last week, 25.3 million barrels (39.6%) lower than a year ago.
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Re: Headlines lost in the cold

Postby minicat » Mon Jan 27, 2014 1:49 pm

By crying about transportation problems, they're trying to drum up support for things like Keystone XL.
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Re: Headlines lost in the cold

Postby Mad Howler » Mon Jan 27, 2014 10:16 pm

Pesky Demos ,
Where is the Kratos?

There could be propane dealers who go out of business," Scholz said. "Your mom-and-pop propane dealers aren't making any money this year.


MH
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Re: Headlines lost in the cold

Postby Mad Howler » Mon Jan 27, 2014 11:49 pm

Petro welfare - seems too much.
Given the call to avoid 'social' issues,
I am now very confused about where the 'good' lies.

“While we cannot produce more propane ourselves, I have directed additional funds be made available to help our most vulnerable citizens pay for the fuel they need, and ensure propane dealers are able to obtain and deliver the supply we do have,” Walker said.

To assist propane dealers the governor is making $8 million available to help those distributors obtain temporary lines of credit. When the propane prices tripled some propane dealers found themselves unable to pay upfront for shipments of propane. The temporary lines of credit will help get propane into the state.

“There’s a concern that suppliers are requiring cash in large, upfront payments that makes it difficult, particularly for some of our small businesses that provide propane in the state. We don’t want to have propane somewhere and not be accessible to the end user, and so we’re going to have $8 million provided to help assist in temporary lines of credit,” Walker said.

The propane supply shortage is being blamed on a series of issues. The region has experienced an unusually cold winter. A major pipeline that supplies propane to Wisconsin, Minnesota and Iowa was temporarily closed in December for maintenance and the wet fall increased propane demand for grain drying.

Walker plans to look into improvements to infrastructure for the delivery of propane.

He is also asking the Federal Trade Commission to look into the propane price spike to ensure no anti-competitive activity occurred.

http://www.channel3000.com/news/walker- ... index.html
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Re: Headlines lost in the cold

Postby Mad Howler » Tue Jan 28, 2014 12:02 am

If'ng governance was my day job,
I might have objected to this plan for this time of year...
A major pipeline that supplies propane to Wisconsin, Minnesota and Iowa was temporarily closed in December for maintenance and the wet fall increased propane demand for grain drying.


Is this 'gotcha' politics or just an expectation that the Kratos might share a common interest with the Demos?
Old problem, today's extreme imbalance is something to behold.
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