The overwhelming majority of the United States' propane supply is produced domestically (about 85 percent), and a small amount is imported (approximately 10 percent from Canada and Mexico; and 5 percent from overseas). When natural gas is brought out of the well, it must be processed before being transported. The unprocessed, or "sour," natural gas contains corrosive sulfur compounds. A process called "sweetening" removes these compounds. The "sweetened" natural gas is comprised of varying quantities of rich hydrocarbons known as "gas liquids." Gas liquids are separated at the processing plant into "wet" and "dry" gases. The dry, or natural gas, is piped to utilities in major cities for distribution to customers. The wet gas is separated into propane, butane and other derivatives, and readied for market. When drawn from the well, crude oil is a thick, black mixture of several chemical compounds. After the impurities are removed, the mixture is separated and processed into various petroleum products including propane, fuel oil and gasoline. From the refineries and processing plants, propane is transported by pipeline, rail car or tank truck to retail markets. Beyond the Mains: Propane In the United States, residential consumers have a choice of several types of available fuels. These choices include:
Fuel oil:This is a good source of energy, but fuel oil burners require frequent maintenance. The tanks used to store the oil are subject to heavy regulations established by the Environmental Protection Agency (EPA), and they are costly to insure as well. Burning fuel oil for heating releases significant amounts of harmful "greenhouse" gases into the air, including sulfur oxides, carbon monoxide and nitrogen oxide. These pollutants will also decrease the efficiency of heating equipment because they accumulate in the working parts of the appliance. Electricity:This is also a good energy source, but it does have limitations. When too many users are drawing power from the generating and distributing facilities, a "brownout" or "blackout" can occur. To alleviate this problem, the electric utilities would have to enlarge their generation and distribution systems to handle ultra heavy demands even when little power is used. This would cause electric rates to rise even higher. Natural gas: This is an excellent fuel. However, the consumer must be in a city that has a natural gas utility. Propane gas:This is also an excellent source of energy. After propane is processed, it is pressurized. This transforms gaseous propane into a liquid. in this state, it is delivered to the home owner's storage tank. When released from storage, it reverts to its gaseous form and can be utilized as a fuel in the same ways as natural gas. Since homes are most often served by individual storage tanks, power supply is virtually uninterruptable (providing that tank levels are properly maintained). And when many homes are served by a centrally located tank, simultaneous use will not strain a properly designed distribution system. Overall, propane gas offers more efficiency, less appliance maintenance and more convenience over electricity and fuel oil. It is also less harmful to the environment. To meet pipeline standards, nearly all pollutants are removed before it is allowed to enter the pipeline. When burned, emissions easily meet the standards for clean air set by the EPA. Selecting Propane Appliances and Equipment Equipment using either natural or propane gas is virtually identical. Many U.S. appliance manufacturers produce equipment designed specifically for propane use. But in those instances where propane appliances are not available, an experienced service technician can easily convert natural gas equipment to operate on propane. Gas appliances, either propane or natural gas, are sometimes more expensive than their electric counterparts. But due to their high efficiency levels, propane appliances use less energy than appliances powered by electricity or fuel oil. Because consumers will save money by using less fuel, the propane appliance will pay for itself in just a few years. This is known as energy savings payback. The fact that propane gas appliances have a short payback period is important. Many home buyers are more concerned with purchase price, and do not view appliance selection as an investment that can be quickly returned and provide significant savings in the long run. Like natural gas appliances, propane appliances are built to meet rigid specifications based on recommendations by the American Gas Association (AGA), Underwriters Laboratories (UL) and other certifying labs. Either the AGA or the UL seal of certification should appear on all propane appliances. Information describing various propane-fueled appliances is found in this guide. Your local propane supplier can also provide you with additional information. Installation of Propane Appliances Installation information is specific o each appliance, 1, is supplied by the manufacturer of the unit. Check with the manufacturer for required clearances. For additional information, refer to the current editions of the National Gas Fuel Code (National Fire Protection Association [NFPA] Code No. 54/American National Standards Institute [ANSI] Z223.1), and the National Fire Protection Association Code No. 58. Copies are obtainable from the National Propane Gas Association, 1600 Eisenhower Lane, Suite 100, Lisle, IL 60532, or your local propane supplier. Operating Costs The savings realized in operating propane gas appliances are shown on the Energy Guide label which is required by the Federal Trade Commission to be attached to many kinds of appliances. The label cites typical costs to operate specific equipment, resulting from government standard tests. While the labels compare electricity in kilowatt hours (kwh) and natural gas in therm, the latter figure can be easily converted to propane in gallons by dividing the therm number by 1.1 (roughly the number of gallons in a therm). Energy Guide labels are the best source for comparing efficiencies and operating costs of gas and electric appliances. Comparing Propane and Electricity Conservation of energy sources and capital is the challenge of home building today. Consumers have become increasingly aware that their choice of a home energy source can directly effect both the environment and their "out of pocket" expenses. System Efficiency Electric companies make much of the fact that electricity is 100 percent efficient at the point of use (the appliance). This figure does not, however, take into consideration the system efficiency of electric energy before it reaches the end user. System efficiency reflects the loss of energy during the processes of generation, transmission and distribution of an energy source. Most electricity produced in the United States is generated by burning coal to produce steam, a process that is only about 33 percent efficient. "In-plant" use, of the energy used in the electric power plant immediately after it is produced, results in a five percent loss of energy. When transmitted and distributed to residential customers, another nine percent of the energy is lost. Overall, this inefficient system, from generation through distribution, is only 28.5 percent efficient. The costs of this wasted energy are reflected in the home owner's electricity bill. Propane is a "hot" energy source, meaning that is does not require the burning of another fuel to generate its energy. Consequently, the system of producing and delivering propane to end users is about 93 percent efficient. Environmental Aspects The millions of tons of coal burned at coal-fired steam plants in the production of electricity emit toxic sulfur and nitrogen oxides, contributors to the "greenhouse effect" and acid rain. In order for steam plant emissions to meet the standards for clean air set by the EPA, the government requires these plants to implement pollution control devices called "scrubbers" to desulfurize flue gases. These devices effect the efficiency of the plants, and double the amount of solid waste they produce. The emissions produced by clean-burning propane gas easily meet the EPA's standards for clean air and are not as harmful to the environment. Propane Versus Electricity Costs When comparing the costs of electricity and propane, the British Thermal Unit (BTU) content of each energy source must be considered in order to give the comparison a "common denominator." A British Thermal Unit is a unit of measure for the heating value of a fuel. Electricity has 3,413 BTUs per kilowatt hour and propane has 91,500 BTUs per gallon. Since electricity is I 00 percent efficient at the point of use, there are 3,413 usable BTUs in one kwh of electricity (100% x 3,413 = 3,413 BTUs). But even when 80 percent is used as the efficiency factor for propane (some propane appliances are able to achieve a 97 percent efficiency), there are still 73,000 usable BTUs in one gallon of propane (80% x 91,500 = 73,000 BTUs). Therefore, one gallon of propane contains the usable energy equivalent of 21.44 kwhs of electricity (73,000 + 3,413 = 21.44). Simply, this means that if one gallon of propane sold for 21.44 times as much as one kwh of electricity, the cost per BTU would be equal. But propane users for much less than this. In fact, according to 1990 Department of Energy (DOE) figures based on national averages, propane costs about a third as much to use as electricity. |
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