By Jacob Peterson, Senior Director of State Advocacy and Affairs, National Propane Gas Association
There is more to propane than your backyard BBQ. A lot more.
Propane is a versatile, portable, and energy-dense molecule that has been powering the U.S. economy for more than a century. It is a key part of the broad portfolio of energy solutions that are keeping energy costs down, improving resilience, and meeting rising energy demand.
Here are the top five facts to know about this remarkable fuel source:
1. The United States is awash in propane.
A by-product of natural gas processing and crude oil refining, production has skyrocketed since 2010.
In 2025, domestic field production of propane was 838 million barrels (35 billion gallons) – a whopping increase of 625 million barrels (26 billion gallons) over the past 15 years. Put another way, America has increased production of propane by 293 percent since the start of the 2010s.
Propane is extracted on U.S. soil and then separated at domestic oil refineries and natural gas plants. It is then stored at primary and secondary storage sites wholly within the country. There are tremendous economic, energy security, and national security benefits to using domestically sourced and produced propane, particularly when global energy markets get upended due to geopolitics or conflict, such as being played out in Iran and Ukraine.
The United States is the world’s leading producer and supplier of propane. Last year, the nation exported a record 28 billion gallons to global markets and has been a net exporter for 15 years. Propane exports reduce America’s trade deficit with other countries and are a strategic asset.
2. Propane’s uses are endless.
Across the United States, 12 million households rely on propane for space and water heating applications. Consumption is especially concentrated in Petroleum Administration for Defense Districts 1 and 2, covering the east coast and the Midwest.
Propane stands out as a unique energy source. Unlike other delivered fuels – fuel oil, coal, and wood – propane can power a wide variety of household energy needs, including space heating, water heating, clothes drying, fireplaces, cooktops and ranges, standby generators, pool heaters, BBQs, patio heaters, and more.
Outside the home, propane has long been used as a clean and reliable fuel for both stationary and mobile engines, such as irrigation pumps, power generation, cars and trucks, forklifts, lawn mowers, and construction equipment. Furthermore, R-290, which is refrigerant grade propane, is used as a climate- and ozone-friendly refrigerant for fridges, freezes, and yes, even heat pumps.
Across the country, propane marketers sell about 9 billion gallons of fuel each year. Propane powers large swaths of the U.S. economy and provides clean, reliable energy so a variety of market sectors can flourish.
3. Propane is clean and efficient.
Propane burns cleanly and has a low-carbon content. Its use can help reduce emissions of criteria air pollutants, such as particulate matter and nitrogen oxides, and greenhouse gases, including carbon dioxide and methane. Propane is nontoxic and vaporizes when released from a container. In contrast to other fuels, it does not pollute or damage land and water resources.
By using propane to power residential homes and commercial buildings, Americans can avoid the inefficiencies and often added emissions – criteria air pollutants and greenhouse gases –associated with grid electricity, as it is a primary, not secondary, energy source.
In addition, the United States continues to increase production of renewable propane, which is chemically identical to convention propane but is derived from sustainable, non-fossil resources, including fats, oils, greases, forest resources, wastes, and agricultural residues. Renewable propane retains all of the eco-friendly attributes of conventional propane but has an even lower carbon intensity that is a reflection of the feedstocks used in the production process.
4. Propane is affordable.
Given America’s propane abundance, this clean and reliable domestically-sourced energy is readily available to consumers. Wholesale and retail propane prices have long been lower than other delivered fuels, such as heating oil and kerosene. Per unit of energy, propane is half as expensive as grid electricity. Electricity’s price premium is especially notable for space and water heating, which are the two most energy-intensive applications in the typical household.
5. Propane increases energy security and resilience.
Propane’s delivery system is nimble and extremely versatile. The molecule can easily and economically be transported via pipeline, rail car, barge, and over-the-road vehicle. This transportation diversity enhances reliability and resilience.
Propane has an important – and often overlooked – role to help meet the aggregate energy demand during winter storms and prolonged periods of cold temperatures. While total electricity demand crests in the summer due to space cooling needs, aggregate energy demand peaks in the winter due to space heating requirements. This is because space heating a building is often more energy-intensive than cooling it.
The amount of energy required to keep a single-family home at 70° F when the temperature is 0° F outside is significantly greater than the amount needed to keep that same dwelling at 70° F on a 100° F day. In fact, in most homes, space and water heating represent the lion’s share of total energy use. Households utilizing propane take stress off the bulk electric grid and help it cope with peak demand during the coldest days of the year.
Propane’s delivery system is independent of the infrastructure utilized by electric and gas utilities, ensuring America’s energy needs are met without the need to divert assets.
To learn more about the role of propane in the U.S. economy, visit NPGA.org. For more facts on the U.S. energy expansion, download the 2026 Sustainable Energy in America Factbook.
About the author: Jacob Peterson is the Senior Director of State Advocacy and Affairs for the National Propane Gas Association (NPGA). With a membership of more than 3,200 companies in all 50 states, 38 affiliated state or regional associations, and members in 19 foreign countries, NPGA represents every segment of the propane industry.