The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding
Issue link: http://read.dmtmag.com/i/443276
FUELS By Keith Reid Propane Outlook Going into 2015 FON Interviews Joe Rose, PGANE A s we start the New Year, Fuel Oil News interviewed Propane Gas Association of New England President Joe Rose for a run down on the state of this indus- try segment, the organization's ongoing initiatives and some of the issues it will be facing in 2015. PGANE exists to serve the propane industry in the six New England States by promoting safety, education and public awareness of the uses of propane. Its membership includes the nation's largest propane companies, and many small compa- nies who are often family owned and operated, in many cases for several generations. PGANE was incorporated in 1950 and roughly 80% of the association's members are also oil dealers. FON: What are your feelings about the propane supply situation as we enter into the heating season? Last year was a tough one for a variety of reason, from a damp harvest season (propane is used for crop drying) to a range of supply issues (not limited to propane). Rose: I feel much more confident this winter than I did last winter. The industry has worked hard to get the storage we have filled. And, in getting our customers tuned in to having their tanks filled. And, nationally inventories are at all-time highs. We feel at this point that most of the crops are out of the field, and we did not get blasted with that huge demand and the big price run-up from that. In New England, the two import terminals in Providence and Newington, N.H., both have supply in them that mar- keters bought that either came from Northwest Europe or northern Africa. We feel good about that. Those resources did not exist last year. So, I think overall our members are in good shape, and here we are [at the end of November] and were still floating in propane. So supply wise I'm pretty comfortable. FON: Tell us a little bit about the Finger Lakes development. Houston-based Crestwood Midstream wants to store 88 mil- lion gallons of propane and butane in former salt mines along Seneca Lake near Watkins Glen. Environmentalists, local busi- ness owners and elected officials oppose the project because they are worried about pollution to the lake. Rose: Finger Lakes has finally received preliminary approval. We'll see how fast and how far it moves, but at least it's moving. We were hoping that would happen once the election was over, and lo and behold that seems to be the case. We are in the process of filing to be a friend of the court to have status, so we can participate in the hearings going forward. We want to make sure that all of the parties concerned really understand how important this is. FON: What is your perception of the commitment at the state level to move this forward? Is there any enthusiasm, or they just going through the motions? Rose: I think they owe it to Crestwood to make a decision. That's really how I'm looking at it. How can five years go by and you don't make a decision? Let these guys move on, one way or the other. It was a storage facility for 25 years, and no one has ever been able to give me a very good reason why it shouldn't be a storage facility again. They have done all the environmental work. I understand the concerns of those who have opposed it, but there is another storage facility right across the street that has been operating for 30 or 40 years without an incident. And, there's no reason to think that this one would be any different. Forget about the fact that I'm in the propane business—to me it's the biggest no-brainer on Earth. 16 JANUARY 2015 | FUEL OIL NEWS | www.fueloilnews.com Joe Rose We're not in an emergency situ- ation yet, but now is the time to get out there and be talking to young people about what the industry has to offer.