Propane production in the United States has set record highs on an almost weekly basis in 2013 as a result of increased oil and natural gas drilling and high refining utilization rates, reports the Energy Information Administration (EIA).
Propane is produced from oil and gas wells and also as a byproduct of oil refining. Propane produced directly from wells, which has been the fastest-growing component of overall U.S. propane supply, is often separated from the production stream at natural gas processing plants.
Agricultural demand for propane in the central United States is up because of a record corn harvest, EIA reports.
According to the U.S. Department of Agriculture, corn production is forecast to be a record 14.9 million bushels in 2013-14. Corn must be dried to a moisture content of 15% before it can be stored to avoid mold and other quality problems. Because propane is used for crop drying, a wet growing season in the Midwest combined with the largest corn yield in U.S. history has greatly increased the demand for propane. Thus far, Indiana, Iowa, Minnesota, Montana, Nebraska, South Dakota, and Wisconsin have declared states of emergency to allow for more delivery of propane throughout the Midwest.
