Conclusion

• Propane inventories are expected to begin the heating season somewhat low -- especially in the Midwest

• Propane supply likely to remain above prior year

  • high co-production of propane as refineries continue to meet strong petroleum demand
  • high gas plant production of propane as surging crude oil prices keep gas plant margins in positive territory.

• However, propane exports and demand also may be high

  • higher U.S. exports of propane are uncertain
  • Residential heating demand likely to increase if weather returns to normal following warm weather during the past two winters.

• Consumers will continue to pay more due to higher world oil prices

Previous slide

Back to first slide

View graphic version

• In conclusion, propane inventories are recovering from very low levels, but the Midwest is still quite low.

• Propane supply should remain strong this year.

• But cold weather could give demand a boost this winter.

• Exports are also uncertain.

• Consumers are likely to be paying more this winter, both due to high prices and higher volumes consumed if we have normal weather.