American Homes
Propane is the third most widely used energy source in the U.S. by the number of households, behind only electricity and natural gas.
Commercial Customers
Businesses of all shapes and sizes are turning to propane to help drive more productivity.
Agriculture Customers
On farms across America, propane is bringing clean energy to irrigation, building heat, grain drying, and more.
Industrial Customers
Manufacturing plants and other industrial operations rely on propane to get the job done.
THE PROPANE INDUSTRY DELIVERS ECONOMIC BENEFITS NATIONWIDE
Contributing to activity in commercial, industrial, agricultural, and residential sectors.
*At the national level, the difference between the total market value and the total direct value added is the
difference between domestic propane production and odorized propane brought in from other countries.
METHODOLOGY
ICF took a two-step approach to perform a detailed value-chain analysis for odorized propane at the national and state level. First, it identified all points where value is added along the pathway from the wellhead to the consumers. Then, it allocated these values to individual states. The study assessed the economic and employment impacts of the production of natural gas liquids products; the Midstream contribution to the value added generated by natural gas liquids (including all activity in the transportation, storage, and wholesale stage of the value chain); as well as the contributions of the retail sector to ensure that the economic impact of the retail propane sector is properly captured.
THREE-YEAR GROWTH (2018–2021)
Compared to 2018, the odorized propane industry’s total economic impact increased, from $53.7 billion, to $64.8 billion in 2021 – a 20.6 percent increase in nominal terms. The total employee count and wages attributed to the odorized propane industry varies on a yearly basis and have witnessed an increasing trend over the past ten years. The total employee count and wages for the odorized propane industry reached 58,928 and $4.12 billion respectively in 2021.
DOMESTIC GROWTH
Propane production in the U.S. has increased markedly with the increases in shale gas and associated gas production from U.S. tight oil plays. As the production of domestically produced natural gas and oil increases, so too will the domestic value-added contribution by the odorized propane industry to the U.S. economy. U.S. propane production from gas processing plants grew by 25 percent from 2018 to 2021 and totaled 26.7 billion gallons in 2021. Following the rise in domestically produced propane, exports have increased from 14.5 billion gallons in 2018 to reach over 20.3 billion gallons in 2021, becoming the largest source of propane demand. Propane exports are expected to continue to increase both in volume and in the share of domestic production that they support
EMPLOYMENT
The total employee count and wages attributed to the odorized propane industry varies on a yearly basis amid an increasing trend over the past ten years. The total employee count and wages for the odorized propane industry reached 58,928 and $4.12 billion respectively in 2021. Of the total wages for the 11 propane-industry employment classifications (as identified by the North American Industrial Classification System), production accounts for 53 percent, followed by 30 percent from the retail sector and 17 percent in the transportation sector. Accounting for odorized propane industry’s contribution to total value, an estimated total of 58,928 full-time employment positions are directly attributable to the production, transportation, and distribution of odorized propane, accounting for 3.9 percent of all employees in the 11 industrial categories. The majority of these jobs (80 percent) are on the retail, or distribution, side of industry. ICF also estimates that for 2021, in addition to the 58,928 jobs directly created by the odorized propane industry, another 37,475 indirect and induced full-time jobs can be attributed to the industry, with indirect and induced wages adding another $2.9 billion.
EVERY STATE BENEFITS
All 50 states enjoy the added economic activity that the propane industry offers. Explore the map below to see how this clean energy source is driving growth in your state.
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Get additional details from the 2021 Propane Industry’s Economic Impact Report. Download the full report for comprehensive data including a state-by-state breakdown.