U.S. Propane Shortage Provides Lessons For Debate Over Oil and Gas Exports

As the nation charges toward energy independence, many Americans learned an important lesson this winter: Just because the country is awash in domestic fuel doesn't mean it will be there when they need it most.  

From December into February, when winter temperatures plummeted to record lows across much of the country, residents in the Midwest and Northeast struggled to stay warm amid propane shortages and price spikes. Propane, also known as autogas or liquefied petroleum gas (LPG), is vital because it heats more than six million homes, fuels equipment and vehicle fleets, and is instrumental on farms for drying grain for storage and keeping livestock-filled barns warm in the winter.

This happened despite several years in a row of soaring domestic propane production—calling into question the commonly held belief that an abundance of American-made energy will automatically provide energy security and lower fuel prices for consumers. The nation's supply of propane—a byproduct of natural gas drilling, oil drilling and oil refining—has been surging alongside the oil and natural gas being pulled from shale formations from North Dakota to Texas and from Ohio to New York.

read more