US has been the dominant propane producer (and exporter) for five years now.
See this video, from minutes 10:00 to 12:00
https://www.youtube.com/watch?v=WMgXUtldhbo
I think at this point, more than 50% of US propane production is exported. That means that world markets actually impact prices more than domestic. I.e. cold snap in Asia more important than in Michigan.
The little thing about China-specific supply is not so critical. What matters is overall supply and demand, not specific countries (that is where TV news can be silly). Who cares if China gets their LPG from ME or from US. When US just sends it to rest of Asia instead. What matters is total supply and demand.
So many great points raised. My coming of age years were during the OPEC embargo in the early 70s. To the best of my memory, no one ever thought the US would be where it is today regarding energy. I think it's amazing.
US has been the dominant propane producer (and exporter) for five years now.
ReplyDeleteSee this video, from minutes 10:00 to 12:00
https://www.youtube.com/watch?v=WMgXUtldhbo
I think at this point, more than 50% of US propane production is exported. That means that world markets actually impact prices more than domestic. I.e. cold snap in Asia more important than in Michigan.
The little thing about China-specific supply is not so critical. What matters is overall supply and demand, not specific countries (that is where TV news can be silly). Who cares if China gets their LPG from ME or from US. When US just sends it to rest of Asia instead. What matters is total supply and demand.
So many great points raised. My coming of age years were during the OPEC embargo in the early 70s. To the best of my memory, no one ever thought the US would be where it is today regarding energy. I think it's amazing.
DeleteYeah, agreed. And people forget how natural gas has been even more impressive.
DeleteWow, isn't that the truth!
Delete