Propane Prices and the "Energy Independence" Fraudsters

[hue]

http://stellareport.blogspot.com/

"The Midwest pipeline supply situation may be worse next winter, when Kinder Morgan plans to have reversed its Cochin pipeline to carry light condensate to Alberta, Canada." said Joe Rose, president of Propane Gas Association of New England, by phone yesterday.

“That will be next year’s catastrophe,” Rose said.

Many of us in the Midwest heat our homes with propane. Last year it was available for about $1.10/gallon. Now it's pushing $5 in areas. (Reported to be $6 in Woodruff on January 24th) If you fill up a thousand gallon tank twice a year - something many folks do -- you're looking at $10-12K instead of $2200 if these prices hold!

So why is this happening? A lot has to do with poor energy policies brought on by politicians buying into the oil and gas drilling industry's promises of jobs and energy independence. We are told that fracking and pipeline projects like the XL from Canada to the gulf will provide jobs and have us swimming in gas and oil. Production is so huge, they tell us, that not only do we need more pipelines, we also need terminals so we can ship the excess overseas.

So here are a few of bonehead policies that are costing us each thousands:

1) Ethanol production is promoted and subsidized. It's supposed to be a "greener" fuel. But many studies shows it takes more energy to make a gallon of ethanol than you get out of it. And it takes PROPANE to dry the corn that makes the ethanol (not to mention it takes more propane to process the corn). This year the corn was wetter than usual, and a lot more propane was used to dry it. That was part of the reason for the original shortage.

So, we are each subsidizing ethanol ourselves, now, by paying $5 for propane!

2) Tar sands in northern Canada need distillates to process them so they can be transported through pipelines, like the XL Pipeline. As a result, a pipeline that brings propane down from Canada is being converted to a pipeline that brings distillates UP to Canada to process tar sand oils. That pipeline was shut down for several weeks so that it could be retrofitted to reverse flow direction. That pipeline supplies 40% of Minnesota's propane, and much of ours. It will be back online for a while, but then will be permanently converted to ship distillates to the tar sand fields of Canada.

So, we will all be subsidizing tar sands and the XL pipeline with our huge propane bills!

[doc03]

1. I never thought it made sense to to use corn for fuel

it drives food prices up too. But you will find many on DU that defend the practice.
Here propane is over $5.00 a gallon and #2 fuel oil is $3.89.
Propane only has about 2/3 to BTU value of #2 fuel oil but costs about 30% more.
It's $5.00 a galon here right in the Marcellas and Utica shale area any shortage is bullshit.