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A high demand for propane in 2013

With this year’s late, wet corn harvest additional stress was placed on the US propane industry.  Jeff Solberg, president and CEO of Illinois based Growmark says they knew in advance propane would be in high demand this year.

But, he says, the issue isn’t the supply, it’s the limitations of the pipeline to move the product into the Corn Belt.  “In a year when you’ve got a lot of grain drying going on the logistics just don’t keep things running as smoothly as you would like,” he says.  “You go into it with full storage and you get your supply plans and distribution plans made.  There are allocations, there are shortages, and people may be out for a day or two.  But it’s really kind of the nature of the beast when you have a large, wet harvest and we need to dry a lot of grain.”

With harvest wrapped up and the majority of the crop in the bin, Solberg says now their focus moves to home heat.  “Cold days outside, like we have today,” he says, “Create a lot of movement as well; but not the spike that there is with grain drying.”

According to a recent release from US Energy Information, propane production in the United States has set record highs on a weekly basis in 2013 as a result of increased oil and natural gas drilling.

AUDIO: Jeff Solberg, president and CEO Growmark (1:30mp3)