Why Propane Costs are Increasing - 47% from Crude Oil Refining

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link: http://www.propanegas.com

What is Propane?

Propane, or liquefied petroleum gas (LP-gas), is one of the nation's most versatile sources of energy and supplies 3 to 4 percent of our total energy. Propane is an approved, alternative clean fuel listed in the 1990 Clean Air Act as well as the National Energy Policy Act of 1992.

Propane can be either a liquid or a gas. At normal atmospheric pressure and temperature, it is a non-toxic, colorless and odorless gas. Just like natural gas, an identifying odor is added so it can be readily detected. Under moderate pressure, propane becomes a liquid that vaporizes into a clean-burning gas when released from its storage container. Propane is 270 times more compact as a liquid than a gas, making it economical to store and transport as a liquid.

As opposed to relying on foreign sources, approximately 90 percent of the United States propane supply is produced domestically. Seventy percent of the remaining supply is imported from Canada and Mexico. Natural gas production accounts for 53 percent of our domestic propane supply, while 47 percent is produced from the refining of crude oil.

Propane is called a fossil fuel because it is composed of the remains of plants and animals that inhabited the Earth millions of years ago.

-- Nadine Zint (nadine@hillsboro.net), January 30, 2000

Answers

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