Propane Promotes Energy & Economic Security

Ongoing conflict in the Middle East has resulted in oil refineries and natural gas processing facilities in the region scaling back operations or going offline altogether. In addition, cargo traffic via the Strait of Hormuz – through which 20% of global oil and liquefied natural gas stocks transit – has been brought to a standstill. Although propane is indeed a product of refining crude oil and processing natural gas, the unfolding military and geopolitical situation in Iran and Persian Gulf will not impact domestic propane inventories, as the entire value chain is a domestic endeavor.

The United States is the world’s premier producer and supplier of propane, and domestic production is at record levels. America has been a net-exporter of propane for 15 years and produces vastly more product than is consumed in the retail marketplace. In fact, we have been a net-exporter of propane for a longer period of time than either oil or natural gas. Propane is extracted on U.S. soil and then separated at domestic oil refineries and natural gas plants. It is then stored at primary and secondary storage sites wholly within the country.

While the U.S. is awash in propane, the country does import a small amount of product each year, with the lion’s share of that coming from Canada. But this isn’t due to a shortage of domestically produced propane, rather it’s simply due to geographic and infrastructure factors.

America does not rely on the Middle East for propane production, supply, or infrastructure. And there is tremendous economic, energy security, and national security benefits to using domestically sourced and produced propane, especially when global energy traders are spooked because of regional conflicts, geopolitics, and market uncertainly.

While propane is invisible, if any energy molecule was colored red, white, and blue, it undoubtedly would be C3H8. For more information, contact NPGA’s Senior Director of State Advocacy & Affairs, Jacob Peterson.