What is one of the biggest variables that could impact propane prices in ‘near’ future?
In my opinion, it could be the 38-year ban on crude oil exports…as in it coming to some sort of an end or be relaxed to some extent. You can give this item a read and here is one highlight worth sharing:
– “ConocoPhillips and ExxonMobil did it (lobbied Washington) first, with executives telling a Houston audience and the Wall Street Journal that it was time to end the export ban. Then, last month, Energy Secretary Ernest Moniz suggested that the crude export ban deserves re-examination “in the context of … an energy world that is no longer like the 1970s.”
Here is another article I came across, with more momentum for this change:
-“ In an event today, Senator Lisa Murkowski (R-Alaska), ranking member of the Senate Committee on Energy and Natural Resources, called for “ending the prohibition on crude oil and condensate exports,” saying that the export ban is “not beneficial to the American people.”
Just like every storm begins with a few bits of water vapor coming together to form a cloud and every wave begins as a minor disturbance on the surface of calm waters, this is how things begin in Washington.
What happens if the United States lifts its bans on exports like this? I have one educated guess; energy prices don’t go down. At some point, we are going to be awash in light grade crude in this country, which could create some downward pricing pressure across the energy complex. This is why investments continue to be made in things like propane export terminals, as we discussed yesterday.
By the way, I am always interested to hear your thoughts to some of the emails I send out. I will always keep your thoughts confidential but sometimes would love to use different opinions to seed more debate and discussion as we all look to manage and prepare our business the best ways we can. As always, thanks for reading.