Here's a story from the Bangor Daily News today:
Wood pellet supply fails to meet demand
Sellers tell consumers: No reason to panic
By Eric Russell - BDN Staff
Wood pellet manufacturers and suppliers in Maine are urging consumers to be patient and let supply catch up to demand as the winter heating season approaches.No evidence is offered in the article about total seasonal supply-demand balance so that we could evaluate if there really will be enough pellets this season. However, I am confident there will be plenty of $4 oil.
In the last several weeks, a number of pellet fuel distributors in Greater Bangor have been running out of pellets within a day or two of shipments. Many have been simply catching up on pre-sale orders that were made earlier this summer from customers looking to buy in bulk.
This stockpiling of pellets — heating fuel made from wood waste and sawdust that is pressurized into compact pieces — has created a unique bubble in the market, pellet experts said.
"The analogy I've been using is that if everybody who uses oil had [an empty 275-gallon oil tank] and wanted to take their entire full supply in July, there wouldn't be any oil left either," said George Soffron, CEO of Corinth Wood Pellets LLC, the state’s largest pellet manufacturer. "People need to hang on."
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