North Dakota, Propane Supply Is Heading To Armageddon (SOURCES)
Bloomberg has the biggest armageddon story!
News 19 proclaims propane armageddon!
NXT Mine is calling for propane armageddon!
Sportsfinding reports propane armageddon (my favorite)!
Are you getting it?
Yes, Im'a getting it!
Def Leppard reference y'all...
But wow in the last week have a lot of stories included the word "armageddon" in their recent propane-related headlines. So, I daresay things look to be interesting for propane in the future?
Let's look into the hype.
U.S. propane prices have almost doubled this year and are on course for the strongest rally since 2009. North American propane touched a 7 1/2-year high of more than $1.50 a gallon earlier this month, according to DTN Energy.
Above-average snowfall is also in the forecast along a track from eastern Montana southward through the western halves of the Dakotas and into northeastern Colorado. While temperatures in this midcountry strip will be relatively normal, snowfall will be abundant, with several storms predicted throughout the winter.
IHS Market from the NXT Mine Link offered up this
In a separate report, the Energy Information Administration (EIA) expects households that use propane and heating oil this year will spend much more than last. This could strip out some of their spendings in other areas of the economy, such as eating out.
Not very interesting, yet I dare say...is there another alarmist that can strike fear in our souls? Sure it's sportsfinding.com
The price of Brent crude oil (the price of crude oil most relevant to determine the prices of petroleum products also in the US) is close to 85 dollars per barrel, almost 60% higher than last winter’s average, which is contributing to rising propane prices and retail heating oil prices.
In addition, “Propane inventories have been increasing at slower rates than historical averages for this time of year. We expect the US retail price of propane to average $ 3.10 per gallon (gal) this winter (49% higher than last winter) “, they assure from the EIA.
OK, now you've got my attention the currently inflated height of $1.50 a gallon will be up to $3.10 a gallon?
Obviously, it's all speculation...but why is everyone proclaiming armageddon?
Headlines I guess. But doubling propane costs would be the story of the winter for most and a budget breaker for many.
Have any of y'all seen any movements in your propane bills that could signal your provider bracing for future price hikes?
Clearly, the drumbeats are being sounded for a possible shortage of propane resources going through winter. Is armageddon a rise in prices? Or less forgivable, a shortage in propane? I just saw many of these like-minded stories and thought maybe those in the propane market here in North Dakota could chime in and set our minds at ease.
Or possibly prepare us better for armageddon.