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.
A Hertfordshire distributor has partnered with the police in a bid to help local residents protect their heating oil. Stevenage Oils has been distributing leaflets to customers containing practical advice on how to make oil tanks more secure.
Detective inspector Paul Doran of the county’s crime reduction unit said: “I’d like to thank Stevenage Oils for helping us to deliver these leaflets to those people who are most likely to benefit. The theft of heating and diesel oil always tends to increase whenever there are price rises at the petrol pumps.”
Is your company working with police to combat oil theft? Email alex@fueloilnews.co.uk.
Teresa Sayers, Downstream Fuel Association
After October’s Distributor Debate, Teresa Sayers of the Downstream Fuel Association has answered more questions received on the subject of biofuels.
With the audience keen to ask questions at October’s Distributor Debate, time ran out before all the issues shaping today’s oil market could be discussed. Teresa has provided more comments on the introduction of E10 in the January issue of Fuel Oil News. With restrictions to the bio content from food crops, what future do you see for biodiesel?
This is just a proposal at this stage and will be subject to intense lobbying and further political negotiations before becoming law in the UK. We anticipate that the process could take over two years to be finalised and implemented in the UK.
Earlier versions of the Indirect Land Use Change proposals indicated that crop based feedstocks used for the production of biodiesel would be given a significantly higher GHG default value than feedstocks used to produce bioethanol. This clearly would have disadvantaged significantly the European biodiesel industry. UK biodiesel producers would have been affected to a lesser extent due to their focus on waste feedstocks.
The current version, however, whilst maintaining a 5% limit by energy content on biofuels derived from land based feedstocks, has seen the default values as a means to calculate GHG emissions dropped from the proposal.
One of the biggest risks for the biofuels industry is the lack of policy stability and a long term trajectory for the UK biofuel mandate. This is needed to encourage R & D and investments and to develop supply chains for feedstocks that use less land and save more carbon. Read Teresa’s comments on the introduction of E10 in the January issue of the magazine.
Jeremy Hawksley, OFTEC director general
The proposed Renewable Heat Incentive (RHI) is unlikely to tackle the problem of carbon emissions from rural homes, according to OFTEC.
In a written response to the RHI consultation, OFTEC stated support for the principle behind the tariff, but was concerned that the practical impact of RHI will be to increase, not decrease, CO2 emissions from rural homes, because the incentivised technologies will run on carbon-rich electricity.
The statement also provided statistics which showed that the relevant technologies, including air and ground source heat pumps, could emit twice as much CO2 as B30K bioliquid fuel up to 2020-21. Other concerns include the cost of installing renewable technologies, when compared to converting an existing oil boiler for biofuels.
OFTEC director general, Jeremy Hawksley said: “In its current form, the RHI strategy incentivises renewables such as biomass and air source heat pumps, which can have high carbon savings. However, this is only true if they run efficiently and the electricity they use is sourced from renewable sources. Our response demonstrates that bio-liquids would be more effective at reducing carbon emissions in off-gas areas, and much cheaper and simpler for homeowners to adopt. With the weather growing colder I’m reminded of the harsh winter of 2010/11 when heat pumps performed poorly, causing higher running costs w hile failing to keep homes warm. By contrast, oil heating is much more compatible with rural homes off the mains gas network.”
Around 300,000 households could face fuel poverty in the next few weeks thanks to the continued rise in energy prices.
Fuel poverty has been defined as a household spending more than 10% of income on heating, and the Fuel Poverty Advisory Group’s tenth annual report predicts that this will apply to around nine million people by 2016.
It also shows that energy prices rose by 7% in 2012, with the average energy bill at £1247. In the case of oil, at the start of December average prices are virtually unchanged from a year ago – see prices and margins 2012, page 6 of the January issue.
The group calls for the government to use the carbon tax revenue for the benefit of low income households, and to provide a more coherent strategy to combat fuel poverty, including making homes more energy efficient.
“With a cold winter, welfare reforms cutting incomes, and all at a time of austerity measures and other rising household costs, the plight of the fuel poor has never been more serious,” Derek Lickorish, chairman of the FPAG, told the BBC.
“A toxic cocktail of rising wholesale prices, the high cost of energy reforms and cuts in incomes for many households means fuel poverty levels are set to sky rocket without radical action,” he added.
Read the report
(l-r) Malcolm Wilson, Hervé Montjotin, Patrick Bataillard and Luis Angel Gomez
Norbert Dentressangle has appointed two new executive board members.
Former managing director of the company’s logistics UK division, Malcolm Wilson, is now managing director of the group’s logistics division, whilst Luis Angel Gomez has been appointed as managing director of the transport division. Malcolm and Luis join CEO, Hervé Montjotin and CFO, Patrick Bataillard on the executive board.
Commenting on the new appointments, Hervé said: “Malcolm Wilson has considerable experience of managing logistics operations in the UK, where he is highly respected in this sector. Luis Angel Gomez gained a sound experience of transport at our Spanish subsidiary Norbert Dentressangle Gerposa, which he has successfully headed since 2008.”
(From left) Garner Group directors Mike Garner, Tim Garner and Dave Auger, and Phillips 66 manager, UK and Ireland marketing, Pete George
Garner Group Holdings has celebrated 50 years as an independent JET dealer. The two companies have been in partnership since founder Maurice Garner signed his first supply contract with JET in 1961, following the opening of his first service station near Portsmouth.
Five decades later, the Garner Group operates three JET forecourts in the region: Woolmer, Green Road and Portsbridge, all run by Maurice’s two sons, Mike and Tim, and co-director Dave Auger.
“We are delighted to reach such a milestone with Jet,” said Mike Garner. “When my father entered into partnership with the brand 50 years ago, fuel retailing was very different. The early deals he made were based on a gentleman’s agreement; contracts were written on the back of a beer mat and sealed with a handshake.”
To celebrate the 50-year milestone, Pete George, Phillips 66 manager, UK and Ireland marketing, joined manager, regional sales, Guy Pulham and territory manager Paul Carey on the forecourt of the Woolmer Service Station in Borden to toast the long-standing relationship with the Garner Group directors.
Pete George said: “We are known for the close relationships we have with our dealers and are proud to say that this approach has not changed, from the day Maurice Garner first became one of our dealers to our operations as Phillips 66 today.”
The Tank Storage Association’s 2013 Conference & Exhibition will be held at the E.ON Lounge at Coventry’s Ricoh Arena, on Thursday 19th September 2013.
TSA’s Conference and Exhibition is the UK’s leading event for the bulk liquid storage sector, designed to successfully bring people together who care about safe and effective bulk liquid storage operations. The event is moving to a larger venue to aid growth.
Martyn Lyons, TSA chairman said: “We are all excited about moving TSA’s Conference & Exhibition to the E.ON Lounge at the Ricoh Arena in 2013. This represents a significant next step in the development of this successful event. Plans are still at an early stage but the intention is to accommodate significantly more delegates and to double the number of exhibitors.”
http://www.tankstorage.org.uk/
Formula 1 driver Jenson Button has been educating UK drivers about the benefits of ExxonMobil’s synthetic engine oil, Mobil1.
Research carried out by the brand found that 94% of motorists are unaware of the benefits offered by synthetic engine oils, and almost 50 per cent are not sure why oil is needed in an engine.
The track star took time out of his busy schedule to demonstrate how to check your car’s lubrication levels at the UK headquarters of ExxonMobil in Leatherhead, Surrey.
Jenson said: “I rely on Mobil 1 to help improve the efficiency and performance in my Vodafone McLaren Mercedes race car. But you can also benefit from these fuel economy savings by changing your engine oil to Mobil 1 today.”
“Mobil 1 is dedicated to educating consumers on the benefits of using synthetic engine oil technology, which includes helping to minimise lubricant break-down and contamination in a car engine” said Dan McGoldrick, field marketing advisor UK, Nordic and Benelux for ExxonMobil Lubricants & Specialities.
ExxonMobil has also introduced Mobilgard 560 VS – a new high-performance cylinder oil, which helps reduce wear, extend engine life and ensure optimal reliability in severe operating conditions.
Norbert Dentressangle has announced a multi-million pound investment to upgrade its Euroterminal site on Trafford Park in Manchester, creating what it calls “the UK’s safest, most modern top tier COMAH warehouse”.
By increasing racking density at the 200,000 sq ft Euroterminal site, the company will increase capacity by 40%, creating an additional 8,000 pallet spaces to meet increasing demand for hazardous goods warehousing.
Due for completion in February 2013, it is expected that the project will create approximately 30 new jobs at the site, which currently employs 100 people.
Karl Hudson, regional general manager for Norbert Dentressangle’s COMAH operations, said: “Increasing the capacity of the site, along with the range of products we can handle, is a highly complex process and involves upgrading a whole host of ancillary facilities and equipment in line with the latest COMAH Regulations. As a result, we believe that Euroterminal will become the UK’s safest, most compliant Top Tier COMAH warehouse.”
www.norbert-dentressangle.co.uk
