Gas Technology Symposium, 17–18 April, Shreveport, Louisiana
This study is directed toward examination of the techno-economic problems associated with the natural gas liquids industry. It aims at collection and analysis of the broad technical and economic data vital for a clear understanding of the opportunities available to/and the problems confronting the industry. Consideration is given to the LP-Gas and natural gasoline industries.
In considering the LP-Gas industry, attention is given to:
the nature of demand for LP-Gas [for domestic and commercial applications, internal combustion engines, chemicals and synthetic rubber];
the availability of supply and required incentives for increased supply;
the importance of efficient transportation and storage to permit effective balance of supply and demand; and
an over-all picture of industry action required to achieve the maximum potential. An analysis is made of the natural gasoline situation and of future engine and fuel developments which will influence it.
This study does not attempt to answer fully all of the industry problems. It does attempt to define the problems in their proper perspective, to supply some of the basic data required to study them, and to suggest possible avenues of approach. Its aim is to stimulate the individual and collective industry thinking and action required to achieve early maturity.
There are strong indications that the competitive position of LP-Gas as a domestic fuel is not as strong as it must be if this market is to continue to represent 50 per cent of the total for LP-Gas.
LP-Gas must compete with electricity and oil for the domestic and commercial markets. Frequently, appliance purchases are made on the basis of one fuel for cooking, another for water heating, and possibly a third for home heating; the public has not become particularly single utility conscious. The electric industry is invariably a fairly large, well-staffed organization, with funds available for well-planned advertising and sales promotion efforts, and has gone far to promote the domestic and commercial market for its product. On the other hand, the LP-Gas sales, particularly in rural areas, are frequently handled by small dealers who do not have the abilities and backing of the large utility.