The domestic U.S. propane market annually accounts for roughly 9 billion gallons of demand. The pathway from the wellhead to an end user is complex, involving pipelines, railcars, trucks and tankers, and wholesalers are essential in moving all that propane from fractionators and refineries to propane terminals. A wide variety of players fulfill this role, from large publicly traded companies to smaller private ones, but as we detail in today’s RBN blog, they all do one thing — move propane one step closer to its retail destination.
This is the second 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 and retailers. In today’s blog, we will review wholesalers’ role and purpose in the market in more detail.
What Do Wholesalers Do?
Wholesalers — companies that sell propane to retailers — have four primary functions. The first is supply aggregation, which includes acquiring propane from multiple sources. These are usually midstream companies that operate fractionation facilities and refiners that produce propane as a byproduct.
The second function is operating logistics networks (middle section of Figure 1 below) to ensure the timely delivery of propane across regions. Many wholesalers maintain large fleets of propane transport trucks to handle short-haul deliveries to retailers. They also operate (and sometimes own) truck fleets or railcars to handle long-distance transport to terminals. Wholesalers also secure capacity on key propane pipeline systems that connect production areas to major markets. Additionally, they operate propane terminals that are strategically located near demand centers, where propane can be stored and distributed to meet seasonal and peak usage.
Figure 1. Wholesale-to-Retail Propane Value Chain. Source: RBN
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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.
