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History
Industry History of Propane
The history of
propane begins with the industrial revolution and the proliferation
of the automobile. In 1910, a Pittsburgh motor-car owner complained
to chemist Dr. Walter Snelling that the gallon of gasoline he had
purchased was half a gallon by the time he got home. He thought the
government should look into why consumers were being cheated because
the gasoline was evaporating at a rapid and expensive rate. Dr.
Snelling took up the challenge and discovered that the evaporating
gases were propane, butane, and other hydrocarbons. The general term
for these gases is LP-gas.
Over
the years LP-gas has become synonymous with propane. Using coils from
an old hot water heater and other miscellaneous pieces of laboratory
equipment, Dr. Snelling built a still that could separate the
gasoline into its liquid and gaseous components.
About this same
time, according to a tradition, a wealthy family who had become
accustomed to piped natural gas for their cooking needs, moved to a
remote location along the eastern seaboard of the United States where
piped natural gas was not available. A friend of the family, who
worked in the oil refining industry, "bottled" some
liquefied petroleum gas (LP-gas), adapted a pressure regulator to a
valve on the bottle and piped the 'gas from a bottle' into the
kitchen of his wealthy friend's new home. Thus was born bottled gas.
Whether or not this story is true, propane was quickly becoming
recognized as an available and marketable, portable gas source which
acted very similar to natural gas or "city" gas, making it
an easy sell to modernize rural homes beyond the natural gas piping.
By 1912,
propane gas was cooking food at home. The first car powered by
propane ran in 1913. By
1915 propane was being used in torches to cut through metal. However, the motorist's demand for gasoline grew at such an
enormous rate during these early years, that the demand of other
hydrocarbons, including propane, could not keep up and were
considered little more than nuisance by-products. Millions
of gallons were literally "flared" (burned off) simply to be disposed
of.
In 1927, the
total sales of propane in the U.S. were just over one million
gallons, and after World War II the propane gas annual sales
increased to more than 15 billion gallons. When Dr. Snelling sold his
propane patent to Frank Phillips, the founder of Phillips Petroleum
Company, his price was $50,000. Today, propane gas is an $8 billion
dollar industry in the United States alone, and it is still growing.
By the
1930’s, the Compressed Gas Association (CGA) established and
proposed a set of recommendations to the National Fire Protection
Association (NFPA). In 1932, the first pamphlet of standards (No. 58)
was adopted for publication.
Today, about
30% of the propane produced is extracted with and refined from crude
oil. The other 70% is processed from natural gas. Propane is normally
found trapped in pockets with either crude oil or natural gas.
The process of
refining crude oil, similar to Dr. Snelling's still but on a grander
scale, produces many different gaseous hydrocarbons, including
propane. These different gases are captured under pressure and slowly
cooled. Depending on their boiling point, each of the gases will
condense into a liquid, one at a time, as the temperature drops (in a
condensing tower) below the boiling point of each gas.
Propane is also
extracted from natural gas; in several different ways. Natural gas
straight from a well is referred to as "wet" gas. This
means that the gas is a mixture of hydrocarbon gases and in, some
cases, liquids. The mixture includes propane, methane, butane, and
other natural gasolines. Even though the sources and the processes
are quite different, there is almost no difference in the quality and
composition of the end product.
There are 2 basic types of propane typically used in the propane industry:
- Commercial Propane: A type of LP-Gas, which consists mainly of propane and propylene.
-
HD5 Propane: A type of LP-Gas, which consists mainly of propane with a
maximum of 5% propylene.
To insure the
best in general quality, service to the appliance, and heat value,
Shelby Bottled Gas Corp. handles only HD5 Propane along with the
motor fuel certification.
This remarkable
fuel serves more than 60 million people in the United States, where
over 15 billion gallons of propane are consumed annually. Of these 15
billion gallons, propane is used as follows:
-
78.8 million gallons (0.5%) for utility/gas industry usage
-
507 million gallons (3.3%) for internal combustion engine use
-
1.5 billion gallons (10%) for other uses, including agriculture
-
5.4 billion gallons (36%) for residential/commercial usage
-
9.0 billion gallons (60%) for chemical/industrial usage
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The History of Air-Conditioning
& Heating
The histories
of the heating and air conditioning industry and Bryant (Day &
Night and Payne Air Conditioning “BDP”) are almost one and the
same. The innovations and technology introduced by these companies
are largely responsible for shaping the course of the HVAC industry.
In 1904,
Charles Bryant founded The National Gas Regulator Co. in Cleveland,
Ohio. The firm manufactured high-pressure regulators to control the
pressure from gas wells. By 1907, the company was producing gas-fired
water heaters and by the following year it was producing the first
tubular boiler. The company name was then changed to The Bryant
Heater and Manufacturing Co. Bryant was the first to advertise gas
heating on a national scale in 1928.
Day & Night
began in 1909 in Monrovia, California when William Bailey developed
a solar water heater with storage capability. This unit provided
Californians with the round-the-clock hot water for the first time
(Day & Night). The company ventured into the cooling field in the
1930's with a water chiller and entered the space heating market
with the "Penalty" radiant wall heater.
D.W. Payne and
his son began the Payne Co. in Los Angeles in 1914 when they began
building gravity-type furnaces. The company offered the first floor
furnace and was also the first to market a forced-air down-discharge
furnace in 1933. Along with Day & Night, they were the first to
introduce an outdoor unit that combined gas heating with electric
cooling.
In 1933,
Dresser Industries acquired the Bryant Heater and Manufacturing Co.
and in 1945 it acquired Payne and Day & Night. Still staying at
the forefront of the HVAC industry, the company extended its product
line. It pioneered perimeter and zone heating, added a remote air
conditioning line, and in 1962, the first horizontal force-air
furnace approved for outdoor installations. It also developed a
vertical combination heating and cooling unit for use in
schoolrooms, apartments, and other applications.
In 1949, the
three companies bought themselves out of Dresser Industries and
formed Affiliated Gas Equipment, Inc. In 1955, this company was
acquired by Carrier Corporation and the Bryant, Day &
Night/Payne Air Conditioning was formed into one division in 1974;
the BDP Co. Its headquarters were centrally located in Indianapolis.
The BDP Co., along
with the Carrier Corp., continues to be the leader in the design,
manufacturing, and marketing of residential and commercial heating
and cooling units. Shelby Air Conditioning and Heating is proud to
be associated with these companies that have such a full and rich
history in the HVAC industry.
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History
of the Company
Around the
same time that Dresser Industries was acquiring Bryant, Day &
Night, and Payne, Hugh Leary was returning to the states from
overseas duty. Both he and his brother Robert were in need of work.
During a brief meeting in Cincinnati, the brothers decided to open
an electrical business (as soon as Hugh was discharged from duty)
replacing old style knob and tube electrical wiring to the new safe
and modern Romex wiring. After
much success in gaining a solid business base, the risk of adventure
overcame the Leary brothers and they launched another business;
converting coal fired furnaces to gas and installing new gas
furnaces. They saw, first hand, the growing demand for gas
appliances in the home. They also saw an opportunity: providing gas
beyond the natural gas pipeline to the country could be accomplished
through propane. So the Leary brothers began setting 100# cylinders
supplying propane gas to cooking stoves in 1946 under the name of
Riley Gas. After 4 years of toting cylinders and establishing
another good business base, the need for propane gas in larger tanks
for home heating was more than they could resist. With fortitude, resourcefulness and stubbornness they
transported and set their first 1000 gallon bulk tank by dragging it
down the road on a makeshift sled of sheet steel in "the good
ole days" of 1951.
After several
home heating installations, it became apparent that a storage and
distribution facility was needed. One again through hard work and
sheer determination, a hand-built rail spur and adjacent storage
facility was planted in Greenfield in 1953. Soon, however; due to
the railroad's inability to be timely, the need for supply delivery
was met through the purchase of a semi tractor-trailer in 1958.
Growth and the
hiring of several employees brought about the necessity to
incorporate and change the business name to Leary's Bottled Gas,
Inc. In 1960, after a brief inquiry into a thriving propane business
in Shelbyville, Young's Liquid Gas was acquired. The Young's storage
facility was moved in 1960 from a railroad siding south of Hendricks
Street to the present site at 1340 N, Michigan Road. Beginning in
1964 all business done in Shelby County, and areas south, fell under
the name of another acquisition, Shelby Bottled Gas Corporation.
As business at
the two locations grew during the 1960's, so did the brothers'
desire for independence. After simple, speedy, and mutual
arrangements were made, US 52 became the natural dividing line of
the business territory and Hugh agreed to ownership of the southern
half.
The later 60's
and the early 70's brought company growth for Shelby Bottled Gas
Corp. both from within and through acquisitions, such as Jones
Bottled Gas, A& H Bottled Gas, the propane division of DePrez
Hardware, and the Thermogas operations in Bartholomew County. The
1970's also brought hardship in the great oil embargo, government
controls, and fierce auditing.
In the 1980's,
relief through deregulation and solid growth resulted from
innovative sales techniques and lower prices in the oil industry.
Then in 1990, the desire to expand services in a related field
brought on the acquisition of the well established Farlow Air
Conditioning and Heating business. This move positioned Shelby
Bottled Gas Corp. into the full service arena of "total home
air comfort", and makes them poised for the demands of the 21st
century. No other propane dealer or heating and cooling business in
central Indiana can compare in service value for home air comfort.
Shelby Bottled
Gas Corp. and Shelby Air Conditioning & Heating now provide
service to thousands of customers in twelve central Indiana
counties. Hugh Leary's extended family and motivated staff of
service experts manage the family business and provide the best
propane and heating & air conditioning service throughout
central Indiana with the same fortitude as in the beginning. Suffice
it to say that modern, state of the art technology has replaced the
iron sled, but the resolve and dedication to service still remain.
Our short-term
goal at Shelby Bottled Gas is a growth in sales of 5-8% yearly., by
means of improved marketing and increasing the number of HVACR
contract customers. Our long-term goal is to acquire additional
propane retailers followed by the incorporation of our HVACR
services into the new customer base. Along with sales growth, we
plan to increase profitability by continuing our commitment to
customer satisfaction, employee education, better management of our
human resources, and increasing margins when necessary.
We are unique
in that we not only supply the versatile energy, propane, but we
also sell and service the equipment that uses it and most other
energy sources. Our main product line is produced locally by Bryant,
the leader in the HVAC equipment industry. Bryant sets the industry
standard by creating, not copying, new technology. We maintain the
belief that striving to attain perfection elevates us above our
competitors. This is evident in our dedication to our customers by
providing them with the finest products and services, and to our
employees by acknowledging their contribution to our success.
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