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Thursday, January 30, 2014

Midwest faces propane shortage, increase in prices

A recent propane shortage in the Midwest has led to a fivefold increase in prices. The Midwest has the nation’s highest share of propane users, many of which are in rural areas. Responding to this volatile situation, the governors of Illinois, Minnesota, Ohio, and Wisconsin have declared state of emergencies.

One explanation being offered for the shortage is exportation. While domestic propane production has actually increased over the past five years, the amount of barrels exported has grown significantly.

Click here for a further analysis of the Midwest’s propane shortage.

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