More than 9 billion gallons of propane were delivered to U.S. consumer markets in 2024, primarily for residential heating and cooking. The final step in propane’s pathway to the retail market is managed by a large group of companies known as retailers, which range in size from “mom and pop” operations that run only a couple of cars serving a local market to companies with fleets of cars and multiple supply points. As we detail in today’s RBN blog, the propane business requires a huge focus on logistics and personal relationships.
This is the third blog in our series about propane markets. In Part 1, we outlined the journey of propane from wellhead to burner tip and discussed the various segments of the domestic propane market, including industrial, petrochemical, commercial, residential and agricultural demand. We also introduced the role of wholesalers (middle column in Figure 1 below) and retailers (right column). In Part 2, we detailed the role of wholesalers, whose primary function is to aggregate supplies, operate logistics networks, trade propane and integrate midstream operations. Recently, in Should I Stay Or Should I Go?, we reviewed some issues facing wholesalers today. In today’s blog, we will review retailers’ role and purpose in the market.
To get to the retailer, propane travels from the wholesaler (see RBN’s Propane Infrastructure Map for details about propane terminals, pipelines and rail) via transport trucks with a capacity of between 5,600 gallons and 20,950 gallons, with an average truck carrying 11,600 gallons. (For more on the propane molecule’s journey, check out The Long and Winding Road.) Propane is moved on these trucks to smaller bulk and retail store sites. From there it is picked up by bobtail trucks (see photo below) with a specialized design: a) a roughly 2,500-to-3,500-gallon tank (though both bigger and smaller-sized tanks are available), b) an onboard delivery system, and c) safety equipment, including but not limited to electrical grounding, pressure-relief valves and emergency gear. Bobtail trucks deliver propane into tanks at homes usually ranging from 100 gallons to 1,000 gallons, with larger tanks at some businesses. Some of the propane is delivered to sites where it is transferred into 20-gallon and other small tanks, such as those used for home grilling.
About the song
“Do You Realize” was written by Wayne Coyne, Steven Drozd, Michael Ivans and David Fridmann and appears as the ninth song of The Flaming Lips’ 10th studio album, Yoshimi Battles the Pink Robots. Released as a single in August 2002, it has become one of The Flaming Lips’ most popular songs and has been certified Gold by the Recording Industry Association of America (RIAA). In 2009 it was adopted as the Official Rock Song of Oklahoma. The song’s lyrics deal with the precarious balance of the cycle of life and death. The video for the song was shot in the colorful neon glare of Fremont Street in Las Vegas. It features Flaming Lips singer Wayne Coyne surrounded by female dancers in baby doll lingerie, people wearing rabbit and pig heads, and an elephant. Another typical day in a Flaming Lips video shoot. Willie Nelson recorded a version of the song that was included on his Last Leaf on the Tree album, released in November 2024. The Nelson album was produced by Willie Nelson’s son, Micah Nelson, who has also done time playing bass in The Flaming Lips. Wayne Coyne has said Nelson’s cover of their song was “an utter joy and probably brings more meaning to it.” Personnel on the record were: Wayne Coyne (vocals, guitar), Steven Drozd (guitar, bass, drums, keyboards), and Michael Ivans (bass, keyboards).
Yoshimi Battles the Pink Robots was recorded between June 2000 and April 2002 at Tarbox Road Studios in Cassadaga, NY. Produced by The Flaming Lips, Dave Fridmann and Scott Booker, the album was released in July 2002. It went to #50 on the Billboard 200 Albums chart and has been certified Gold by the RIAA. Four singles were released from the LP.
The Flaming Lips are an American psychedelic rock band formed in Oklahoma City in 1983 by Wayne Coyne. Their live shows are visual extravaganzas reminiscent of Pink Floyd and Grateful Dead shows of the past with perhaps more psychedelics involved. They have released 16 studio albums, 18 EPs, 10 compilation albums and 15 singles. The band has won three Grammy Awards. Eighteen members have passed through the band since its beginnings, with founder Wayne Coyne the only original member still in the group. They continue to record and have tour dates scheduled for Germany, Portugal and Spain through June.