Local Poultry Farmers Say Propane Shortage Could Be Devastating

WHNT19NEWS ^ | 1/23/2014

[Karl Spooner]

DEKALB COUNTY, Ala. (WHNT) — A nationwide propane fuel shortage is having a trickle down effect on local poultry growers. Many of them depend on propane to keep their chicken houses warm so their chicks don’t freeze to death.

“About three weeks ago is when everything started,” said a local grower who did not want his name used. “They started rationing the gas. They got it down to where we could only get 50% in a 1,000 gallon tank.”

But now, he says the fuel shipments have completely stopped. Many propane companies, fed by the same supplier, have cut off farmers and industrial customers so they can keep supplying homes.

“If I don’t get any gas from what I’ve got right now, I’ll have 98,000 birds dead. That’s a lot of chickens.”

Local Poultry Farmers Say Propane Shortage Could Be Devastating

[Karl Spooner]

The graph below indicates that they are EXPORTING record levels of propane gas at the exact time of the "fall shortage" and continues increasing to the present crisis. They wouldn't do that on purpose just to get the price up, would they?

[jaydubya2]

I thought chickens could handle cold weather?

[JRandomFreeper]

Who is 'they'?

Welcome to Free Republic.

/johnny

[Justa]

They is capitalists, speculators and hoarders. Counter-revolutionaries all. Bourgeoisie scum!

[rottndog]

Supply and demand in a free market...don’t you think suppliers have the right to get the highest price they can for their product?

Have you ever negotiated for your salary?

[Karl Spooner]

I think it is the baby chicks that need heat.

[tet68]

I think he’s talking about chicks.
The full grown chickens I have seem to do just fine.

[lysie]

We have 14 chickens. Yesterday morning it was minus 22. Real temperature not wind chill. The chickens were outside their coop/ barn. They rarely are inside except nighttime.

[lysie]

Yes. Chicks need heat.

[Arkansas Tider]

I live in N Alabama and this winter has been rough to say the least. If the current trend continues through next week it will be the coldest winter ever recorded.

TVA is running at max power output and they are telling us to turn down the thermostats to 60 to avoid blackouts.

Expect the price of poultry to skyrocket.

[Revolting cat!]

In before picks of hot chicks!

[Karl Spooner]

You are correct, but why can’t they be honest about it instead of blaming it on the farmers for drying their crops?

[ZirconEncrustedTweezers]

I’m only surprised that you weren’t the first to post any.

[thackney]

Propane is getting exported because the production from our wet shale gas is climbing higher than our domestic demand is climbing.

[DannyTN]

"In before picks of hot chicks!"

[Bloody Sam Roberts]

Exactly the first question that popped into my head.

[DannyTN]

Okay that was a cheap shot, and somewhat revolting. So this will make up for it....

[Revolting cat!]

And I thought you growed chickens, not farmed them! What did I know?

[DouglasKC]

I use propane for heating my home. Glad locked the price in for the season....

[thackney]

In the Midwest, propane is used for both drying agricultural crops and heating homes and businesses. For corn to be stored, it first needs to be dried, using large-scale heaters that often use propane for fuel. A late-2013 corn harvest, along with cold, wet weather, resulted in strong demand for propane at distribution terminals in the Upper Midwest. For the week ending November 1, 2013, Midwest propane inventories dropped more than 2 million barrels, the largest single-week stock draw in any November since 1993. This demand prompted a strong upward price response, and propane at Conway moved to a 3-cent-per-gallon (gal) premium over Mont Belvieu during the first week of November, the first such premium in almost three years.

After the harvest, logistical problems prevented the region from fully replenishing inventories before the onset of winter. The Upper Midwest is supplied with propane by pipelines (Mid-American and ONEOK) flowing north from Conway (home to 30% of the nation's propane storage), the Cochin Pipeline coming south from Canada, and from rail deliveries. The Cochin Pipeline, which delivers ethane and propane from Canada to the Upper Midwest, was out of service for maintenance from late November to December 20 and unavailable to deliver supplies. Rail transportation disruptions, both due to weather and other factors, curtailed deliveries from Mont Belvieu and Conway, as well as from Canada.

The most recent cold weather increased space-heating demand at a time when markets were already tight. As demand outpaced supply, inventories dropped further, by 1.5 million barrels and 1.2 million barrels for the weeks ending December 6 and January 3, respectively. Since the week ending October 11, Midwest propane inventory levels have dropped by 12.8 million barrels, compared with a drop of 7.3 million barrels for the previous five-year average for that period. By January 21, prices at Conway had vaulted to a 95-cent/gal premium to Mont Belvieu.

Strong demand surges, low inventories, and supply challenges have led several Midwest states to implement emergency measures to provide propane to heating customers, including suspensions of limitations on hours of service for propane-delivery truck drivers.

Midwest propane markets tighten further on cold weather
http://www.eia.gov/todayinenergy/detail.cfm?id=14711