Written on: April 11, 2022
Handling higher propane prices can be frustrating and downright painful sometimes, but try to take comfort in the fact that propane and heating oil both represent highly efficient and safe ways to heat your home and water—while reducing carbon emissions. Plus, historical trends have shown us that, when it comes to prices, what goes up must come down. It’s just a matter of when. For all of us, the feeling is, the sooner the better! In the meantime, let’s discuss the confluence of factors that impact price fluctuations in the energy market.
When war, political strife, conflict, or natural disasters occur around the world, this can impact crude oil and natural gas prices – along with causing a ripple effect propane, since it’s a natural by-product of both crude oil and natural gas. Before the start of the war in Ukraine, energy prices had already been rising in anticipation of potential sanctions that could be levied on the Russian energy sector if the country went ahead and invaded Ukraine. Once the invasion took place, fuel prices spiked further.
Why does Russia matter so much to energy prices? Russia carries clout because it is the third-largest petroleum and liquid fuels producer in the world, behind only the U.S. and Saudi Arabia. It’s a major exporter of both crude oil and natural gas. Even the hint of a possible disruption in energy supply will heavily influence the energy market, due to the “fear factor.” When Russia eventually invaded and the U.S. placed a ban on Russian imported oil and petroleum products–with other countries expected to follow–that meant there would be a big energy void to fill. Those who make their living in the oil markets don’t like that uncertainty.
Long-time factors that have always influenced where prices go include the balance between supply and demand.
More recently, these issues have also come into play:
We don’t know where things will go from here. One thing we can tell you is that we are just as troubled as you are. Some people are under the misconception that when prices rise, fuel providers make more money. The opposite is true. People cut back usage. They have trouble paying their bills and our receivables skyrocket. Meanwhile, we must pay our suppliers promptly. We must borrow much more from the bank. It is an awful mess for everyone. One thing you can count on is that we will not let you run out!
We have been in business more than 100 years along the South Shore of Massachusetts and have very strong relationships with suppliers and financial institutions. If you have having trouble paying your bill, please talk with us before it becomes a problem. Many times, we can work out something to give you more time, especially if you’ve been with us a while. We can also set you up on a monthly payment plan.
At Williams Energy, we have a plan for being part of the sustainable energy future. Being less dependent on global sources for energy can help keep fuel affordable domestically, and it’s better for the environment, too. Propane has an important role to play in our country’s transition to more sustainable energy sources and net-zero carbon emissions to address climate change. One of the best aspects of propane is its wide versatility and availability.
Likewise, we are forward-thinking about the heating oil we deliver. That is why we deliver Bioheat®! Bioheat is a blend of today’s cleaner-burning, ultra-low sulfur heating oil and biodiesel, which is made from natural, renewable resources like plant oils, recycled restaurant cooking oils, animal fats and algae.
Nothing will make us happier than when prices start dropping. Until then, trust us to look out for you and let’s hope that—regardless of what happens with energy prices—we will be soon living in a more peaceful world, where children don’t have to sleep in bomb shelters any more, and families don’t have to worry about staying safe and warm, at a price they can afford.
Get the quality, affordable service you deserve when you join the family of satisfied Williams Energy customers. How has Williams Energy stayed in business for more than 100 years? By treating our customers like our neighbors, and by providing the courteous, reliable service they deserve!
Our customers know that they can count on us for safe, reliable propane, heating-oil and commercial-fuels delivery, as well as plumbing and electrical service and equipment installation, maintenance and repairs. We’re here when you need us! Contact us today.