"Federal and state officials are pushing emergency measures to get propane to people who need the gas to heat their homes in the Midwest and other regions of the country beset by persistent frigid temperatures," Ana Campoy reports for The Wall Street Journal. "The measures, which include extending working hours for truckers and ordering a pipeline company to prioritize shipments to areas with tight supplies, are meant to alleviate a propane crunch that has sent prices for the fuel to record highs in some parts of the country." The Federal Energy Regulatory Commission order to Enterprise TE Products Pipeline Co., "to give priority to shipments going from Texas to the Midwest and the Northeast," was "the first time the agency issued such an order," Campoy reports.
The propane crisis was caused by a perfect storm of very cold weather, rising exports, pipeline problems and a wet corn crop, Alan Blinder and Clifford Krauss report for The New York Times, with the help of two other reporters; the four were in Texas, Alabama, Iowa and Nebraska.
"Five times as much propane was used to dry corn in recent months because of a bumper crop of wet corn last year, the result of heavy rains at the end of the growing season. Meanwhile, American propane exports exceeded 400,000 barrels a day for the first time in October, according to a recent report by the consultants RBN Energy."
The Times reports that 20 or more states "have declared emergencies or suspended certain transportation regulations, including limits on how long propane delivery drivers can remain on the road. Some states are opting for — or are at least weighing — more aggressive tactics," such as an Indiana plan to forgo sales taxes on bulk purchases at over $2.50 a gallon.
"There are also signs that the industry’s answer could soon become more forceful," the Times reports. "Oneok Inc., the pipeline giant, told federal regulators last week that it could reverse the flow of a propane pipeline to bolster supplies at a Kansas storage hub with supplies from Oklahoma. The company, however, did not say when it might act." Meanwhile, some hog and poultry farmers worry if they will be able to keep their stock warm or at least alive. (Wall Street Journal graphic)
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| Mark Burger delivered propane near Clinton, Iowa. (NYT photo by Scott Wilson, Getty Images) |
"Five times as much propane was used to dry corn in recent months because of a bumper crop of wet corn last year, the result of heavy rains at the end of the growing season. Meanwhile, American propane exports exceeded 400,000 barrels a day for the first time in October, according to a recent report by the consultants RBN Energy."
The Times reports that 20 or more states "have declared emergencies or suspended certain transportation regulations, including limits on how long propane delivery drivers can remain on the road. Some states are opting for — or are at least weighing — more aggressive tactics," such as an Indiana plan to forgo sales taxes on bulk purchases at over $2.50 a gallon.
"There are also signs that the industry’s answer could soon become more forceful," the Times reports. "Oneok Inc., the pipeline giant, told federal regulators last week that it could reverse the flow of a propane pipeline to bolster supplies at a Kansas storage hub with supplies from Oklahoma. The company, however, did not say when it might act." Meanwhile, some hog and poultry farmers worry if they will be able to keep their stock warm or at least alive. (Wall Street Journal graphic)
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