A debate on the future of oil heating was held at last month’s Oil & Renewable Energy Show. On the panel were OFTEC’s Jeremy Hawksley, Mark Askew from the Federation of Petroleum Suppliers (FPS), Brett Hale of Riello and Peter Carter from Atkinson Equipment. Chairing the debate was Jane Hughes, editor of Fuel Oil News. With a packed seminar theatre and several people keen to give their views, this debate could, and should, have lasted far longer. To be expected, the panel’s views on the future of oil heating were very diverse and in some cases, totally opposing. Explored by both OFTEC and the FPS, current threats to oil include its price, its exclusion from new build properties under the Code for Sustainable Homes, bioliquids being ruled out of the Renewable Heat Incentive(RHI), the possibility of an extra tax and the RHI subsidies. Whilst Riello sees oil working in partnership with solar thermal and heat pumps, the company believes that without bioliquids, oil does not and will not have a green credential to fit into the future energy mix. Whilst agreeing that our industry should work with renewables – particularly those unable to supply hot water all year round – Atkinson Equipment made a plea for our industry not to tinker with fuel and equipment that is tried, tested and trusted by its customers. Peter Carter argued that happy customers would give the industry greater leverage, if and when the government decides to ban oil heating altogether! In 2001, kerosene sales were at 2639 kilotonne (kmt), last year this was down to 1973kmt. The government predicts that by 2020, 500,000 homes will have switched to alternative technologies aided by the RHI. “One of oil’s problems is that it’s so damn good,” said Andy Townsend in Oil Installer Summer 2012. Now also working with renewables, Andy pointed out that we “can’t just turn the oil tap off”. But, the question the industry does need to ask now is, if more than a quarter of heating oil customers have stopped using kerosene by 2020, how long will a declining market remain attractive to refiners, wholesalers and fuel distributors? This debate is certainly to be continued….. In the meantime your views on the ability of the oil heating market to resist the threats are invited jane@oilinstaller.co.uk. THE FUTURE OF OIL HEATING JEREMY HAWKSLEY from A&D Publishing Ltd on Vimeo. THE FUTURE OF OIL HEATING MARK ASKEW from A&D Publishing Ltd on Vimeo. THE FUTURE OF OIL HEATING BRETT HALE from A&D Publishing Ltd on Vimeo. THE FUTURE OF OIL HEATING PETER CARTER from A&D Publishing Ltd on Vimeo. THE FUTURE OF OIL HEATING Q & A from A&D Publishing Ltd on Vimeo.

Many questions arose at last month’s Fuel Oil News Distributor Debate including how the industry should prepare for a potential kerosene shortage.  The short answer to that question from both Stephen Rhodes of Mabanaft and Portland’s James Spencer was to stock up on kerosene if you have the storage. “If there’s a precipice and we go off it, then the industry is knackered,” added James.  “Backwardation is not simple and, at the moment, this means that no commercial operator is going to be able to get huge amounts of kerosene – it’s basically commercial suicide.” How do we overcome the problem of consumers drawing unfair comparisons between different energy markets e.g. oil with gas? ‘Educating the public is key’ responded Mark Askew, chief executive, Federation of Petroleum Suppliers. Mark believes that the problem lies with ignorance and that part of the industry’s job is to explain how the market works. “I think most customers are savvy enough these days to understand some of the basic differences, if they’re explained properly.”   Launched recently, a joint FPS/OFTEC Oilsave campaign will explain how the industry works.  It will also demystify some of the information circulating about renewables and costs. Will the UK follow Europe in moving away from oil? Stressing the differences between the European and UK market, Mark Askew said the future probably lay in combining oil, which works instantly, with other energy sources. The distributor offering is likely to change, as it has changed in the past from coal and paraffin. “I don’t think any of us have crystal balls.  When the cut off date for oil is I don’t know, nobody knows, but I don’t think it’s quite dead in the water yet,” added Mark. For more questions and answers from the Distributor Debate see the December issue of Fuel Oil News

Forecasters have warned that a ‘big freeze’ could begin by early December – and we could be facing one of the coldest winters for more than a decade. Temperatures are expected to drop significantly, and ice and frost are likely to cause transport problems and there will be a significant risk of heavy snow. The Federation of Petroleum Suppliers (FPS) is urging homeowners and businesses who use oil for heating to get themselves prepared for winter now.  FPS chief executive, Mark Askew said: “We launched a buy oil early campaign in September in association with the Government and consumer agencies, ACRE (Action with Communities in Rural England), Citizens Advice Bureau and Consumer Focus but many people still haven’t heeded our advice.   “Our members remind customers that they should order early, but people have got into a pattern of ordering the minimum quantity.   Customers have had a trend of ordering 500 litres and then running out in the middle of the worst weather, when tanker drivers just can’t get to them.  “Demand is obviously governed by the weather and a prolonged cold snap, such as the Met Office is forecasting, means that the terminals are unable to provide product quickly enough and consumers can run out whilst waiting for deliveries as distributors have to go further afield to get supplies.” www.fpsonline.co.uk

The Freight Transport Association (FTA) has welcomed the announcement from the Department for Transport about the consultation Examining the Speed Limit for Heavy Goods Vehicles (HGVs) over 7.5T on Single Carriageway Roads.   The FTA has long campaigned on this subject, supporting the reduction of the speed differential between HGVs and other vehicles on single carriageway roads. The logistics industry is convinced that a 40 mph speed limit causes unnecessary costs to vehicle operators, congestion, and avoidable overtaking collisions. It also means that HGVs travelling above the speed limit enjoy a competitive advantage over those adhering to the law. Malcolm Bingham, FTA head of road network management policy, commented: “Whilst our members would not want their drivers to disobey any speed limit and many feel that it is inappropriate behaviour to do so; it creates a stressful situation when driving a vehicle at a lower speed than others particularly when other road users try to encourage the HGV to move faster.” The FTA has also assisted with the publication of two new guides promoting health and safety to professional drivers. The publications, Load Safe, Road Safe and Transport Safety have been produced by the Health and Safety Laboratory (HSL), with assistance from a number of organisations. They offer drivers and other operators information about good practice and assistance for complying with road and workplace legislation. www.fta.co.uk