Do You Realize? U.S. Propane Market Requires a Delicate Balancing Act

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With more than 9 billion gallons of propane delivered to U.S. customers each year, moving those volumes to their final destination is a complex task involving pipelines, rail cars, storage and, ultimately, trucks. Several major factors help determine the quantity and price of propane delivered to end-use customers, including the seasonality of demand versus the steady nature of production.

The goal of our new Drill Down Report is to illustrate in some detail the complex nature of the domestic propane market and highlight the many steps that are required to get propane to its final home, including the difficult task of balancing seasonal demand with steady production and the differences in contract structures and pricing, all of which makes managing the market a real challenge.

Key takeaways from the report include:

  • Market delivers more than 9 billion gallons of propane annually to U.S. consumers
  • Wholesalers play an essential role in moving volumes to propane terminals
  • Retailers can be ‘mom-and-pop’ firms or larger companies with their own fleet
  • Seasonal demand, steady production brings unique set of challenges
  • U.S. propane pricing reflects seasonality, contract provisions and transport costs

Do You Realize?” is included in RBN Energy’s 2025 Drill Down report series, a suite of reports covering many of the key issues expected to impact the markets for crude oil, natural gas and natural gas liquids. Drill Down reports are part of RBN Backstage Pass™ premium resources that also include Blog Archive Access, Spotcheck Indicators, Market Fundamentals Webcasts, Get-Togethers and more. By subscribing to RBN’s Backstage Pass™ Premium Services, you plug into our network and get direct access to our premium resources.

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