July Energy Update
Jul 03, 2019
I hope you had an enjoyable 4th of July. I have lived in 4 different countries in my lifetime and visited several others. This country isn’t perfect but I’d rather live here than anywhere else.
I wrote this article on June 25th and the propane contracts were coming in fast and furious. If it was available to you I hope you took advantage of contracting your propane. Propane contracts are a really good value this year. You can almost set your watch by when propane prices strengthen. Typically it’s when the first bushel of corn comes off of the fields in the fall.
The highest I’ve seen our propane is almost $5 per gallon during the polar vortex a few years ago. If you take an average delivery of 300 gallon and use the highest price from a few years ago vs the prepay price this year, it would cost you over $1,000 more for that 300 gallons if prices went haywire this winter and you’re not locked in. Now, doesn’t it make sense to contract?
Contracts are a way to minimize risk. How low can it go? We know it can’t go below zero, right? How high can it go? Today, it’s a lot closer to zero than it is to $5 so it makes sense to lock your price in. Historically, prices are very reasonable. Call our nearest energy location if you’ve still got your contract. They would love to help.
This summer we are continuing to perform leak tests on propane systems that we don’t have a leak test record for. If we ask to do a leak test on your propane system, please allow us to do so. We have found several leaks while doing these tests. Most of them inside buildings.
Also, regulators need to be replaced if they were built before 1996. They have working parts inside and like any machine they can fail over time. The expected life of a new regulator is 25 years. If we tell you your regulators are outdated and need to be replaced, we’re not doing it because we want to make a few bucks. We’re doing it to protect you and your family.
Enjoy the rest of July and thank you for your business.
I wrote this article on June 25th and the propane contracts were coming in fast and furious. If it was available to you I hope you took advantage of contracting your propane. Propane contracts are a really good value this year. You can almost set your watch by when propane prices strengthen. Typically it’s when the first bushel of corn comes off of the fields in the fall.
The highest I’ve seen our propane is almost $5 per gallon during the polar vortex a few years ago. If you take an average delivery of 300 gallon and use the highest price from a few years ago vs the prepay price this year, it would cost you over $1,000 more for that 300 gallons if prices went haywire this winter and you’re not locked in. Now, doesn’t it make sense to contract?
Contracts are a way to minimize risk. How low can it go? We know it can’t go below zero, right? How high can it go? Today, it’s a lot closer to zero than it is to $5 so it makes sense to lock your price in. Historically, prices are very reasonable. Call our nearest energy location if you’ve still got your contract. They would love to help.
This summer we are continuing to perform leak tests on propane systems that we don’t have a leak test record for. If we ask to do a leak test on your propane system, please allow us to do so. We have found several leaks while doing these tests. Most of them inside buildings.
Also, regulators need to be replaced if they were built before 1996. They have working parts inside and like any machine they can fail over time. The expected life of a new regulator is 25 years. If we tell you your regulators are outdated and need to be replaced, we’re not doing it because we want to make a few bucks. We’re doing it to protect you and your family.
Enjoy the rest of July and thank you for your business.