The Economic Impact of Propane The Economic Impact of Propane
Propane is the third most widely used energy source in the U.S. by the number of households, behind only electricity and natural gas.
Businesses of all shapes and sizes are turning to propane to help drive more productivity.
On farms across America, propane is bringing clean energy to irrigation, building heat, grain drying, and more.
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.
The 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 burner tip. Then, it allocated these values to individual states.
THREE-YEAR GROWTH (2015–2018)
Compared to 2015, the odorized propane industry’s direct economic impact increased from $40.5 billion in 2015 to $46.4 billion in 2018 — a 14.7 percent increase. Total employee count attributed to the odorized propane industry increased 5.8 percent, while growth in consumption and propane prices supported increased sales for the retail propane sector.
in Economic Impact
The increases seen between 2015 and 2018 were credited to growth in the domestic component of the odorized propane market, a sector whose value increased from $45.4 billion in 2015 to $54.6 billion in 2018. These gains were supported by a 13.4 percent increase in domestic propane/propylene production and a 13.6 percent increase in retail consumption, from 8.32 billion gallons in 2015 to 9.3 billion gallons in 2018.
Total wages for the 11 propane-industry employment classifications* in 2018 were nearly $105 billion, $1.07 billion higher than 2015 wages. Of the total wages for these industries, production accounts for two thirds, followed by 23 percent from the retail sector and 15 percent in the transportation sectors.
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.