In a year that the country has honoured outstanding achievement at the London Olympics, and longevity with the Queen’s Diamond Jubilee, Millers Oils celebrated a Queen’s Award for Enterprisein its 125th year of business. The Yorkshire-based company opened its state of the art Research and Development Centre in Brighouse in September, and invited industry guests to join staff for a unique day to commemorate the successes of 2012. A production hall was transformed into an exhibition space, where attendees could admire racing cars, and enjoy a Formula One simulator and giant Scalextric track, while listening to live Caribbean music. Millers Oils has invested more than £500,000 in the new Research and Devlopment facility, providing the capability to develop low friction oils that set new standards for efficiency. “The new R&D centre is essential to ensure we continue the steep growth we have experienced for the last decade,” said Nevil Hall, joint managing director. “As a relatively small company it is important that we develop innovative solutions to meet the challenges our customers face.” He added: “I am confident that we have the team to respond to the challenges in both the present and the future.” International growth Nevil’s optimism for a sparkling future is backed up with compelling evidence, as the company has nearly trebled turnover in the last 11 years, and experienced significant international growth in the past three years, despite a challenging economic climate. The Queen’s Award for International Trade, which celebrates companies who have made an outstanding contribution to the British economy, was presented at the event by Vice Lord Lieutenant of West Yorkshire, Mr Tim Hare. He acknowledged the tough times that many businesses are currently experiencing, and said: “Millers Oils have proven to be one of the exceptions.” Sales and joint managing director, Steve Woollven, said:” Despite the difficult economic conditions of the past three years, Millers Oils has produced consistent, strong growth in its business, both domestically and internationally.” He added: “Receiving the Queen’s Award for Enterprise is an enormous honour for the company and will help open doors for us as we continue to develop our export business. We already have a strong presence in Europe and the Far East and are now developing distributor networks in Africa and South America.” Millers Oils was founded in 1887 by John Watson Miller, but his descendent, and current company chairman speaking at the event, Andrew Miller, was quick to point to the current family of the Millers Oil staff in working towards the achievements of a modern, global business. Nevil went on to say: “We have established a lead ahead of the competition, and like the Olympic athletes, we have no intention of relinquishing it.” Racing to victory Special guest, Lord Drayson, who owns Drayson Racing Technology and was Minister of Science in the Department for Business, Innovation and Skills until May 2010, agreed.  “It is important to continue to invest in science in order to understand products and the problems that customers face.” He went on to discuss the role of innovation in motorsport, in trialing new inventions before they are introduced to general road users. The first rearview mirror was used at the inaugural Indianopolis 500 race in 1911, and the tradition continues today. Recognizing the opportunities and exposure that an involvement in motorsport can bring, Millers Oils sponsors a wide range of motor stars, including British Rally Championship Challenge Champion, Callum Black. Millers Oils continues to strive to ensure its continued presence at the forefront of the market. Recently, the company undertook an entire redesign of the labels across its product range. Following customer feedback, colours are brighter and the design more striking. Isle of Man TT winner Ryan Farquhar has also been signed up to appear on the label for the biking market, and he will continue to work with the company for the next 12 months. The company also launched a new family of high performance oils, Nanodrive, at this year’s Automechanika show in Frankfurt.  The lubricants use microscopic nanoparticles that act like minute ball bearings between opposing metal surfaces, thereby increasing engine performance through reducing friction. Motorsport users reported power increases up to 5.6 percent, and when the nanotechnology oil was tested against a competitor’s oil, Nanodrive recorded 33% lower friction. Application of the technology to road car oils is set to reduce fuel bills by up to 2.5 percent for the everyday road user. Nevil explained that many of those in the industry were surprised that results had been so significant through a slight change to the oil. He underlined the importance of using lubricants for engine performance.  He said: “Oil is just oil? I don’t think so. Not any more.”

With community buying still very much a talking point, Liz Boardman contacted a number of regional buying groups to get their side of the story    The benefits Without doubt the main aim in setting up or joining a buying group is to save money – most of the groups that FON spoke to were united on this point. Richard Holland, the instigator, designer and facilitator of the Wellow Oil Group in Somerset believes: “Substantial financial savings to members and less traffic movements and pollution into the various communities,” are key factors. “There’s no charge to belong to the group as I co-ordinate it as part of my voluntary commitment to my community. I can always beat national oil groups such as BoilerJuice on price – in fact they’re almost, without exception, the most expensive price I receive!” For Barney Lodge however, who runs the 1550 strong Essex-based Oil Buying Group, having a membership database is one of the key advantages. “It can do so many other things for rural membership,” he explained. My Consortium covers areas in the south west and East Midlands. Owner, Lisa Poole, told FON that there were a number of reasons for setting up the group. In addition to saving rural people money on heating oil, Lisa wanted to give power to the rural community, keep consumers at the heart of the business model and help those close to or in fuel poverty. As far as the benefits are concerned: “My Consortium does the work and the customer can sit back and let it happen rather than ringing round lots of suppliers themselves.” She believes that sharing market information and intelligence is also a huge advantage. Running a group Running a community buying group can be a full time job, but for most co-ordinator’s this is simply not a viable option. Steve Blood, co-ordinator of the Oxfordshire Merton Oil Buying Group (MOBG) set up the group in 2008 with just 19 participants. The group, which is not for profit, now boasts nearly 600 registered members. “My current employ is not a nine-to-five job so the time available to run MOBG is stretched and it’s very time consuming. Although the group was initially free to join, Steve introduced an annual £10 administration charge to cover his expenses and a small fraction of his time. Lisa Poole however, runs My Consortium as a commercial business. “I run the group as flexibly as possible. I have half a dozen local suppliers in each area and some that cover the whole country. Suppliers advise me of their bulk buying price each morning and I place orders every day.” Carole Seward runs Enstone Oil in Oxfordshire, with help from her husband. “I’ve asked for volunteers in the past but none were forthcoming. We’re a small group though so we can manage.” The group was set up in 2008 by housing association, Cottsway Housing. Having established one in neighbouring Burford, the association wanted to encourage other communities to do the same. Administered by Barney Lodge, the Oil Buying Group places orders for approximately two million litres of oil per year.  Barney believes that as a result of not charging for membership or commissions, the group’s numbers are climbing. “Members’ orders are posted online against a pre-determined buying date via their own village website, and orders are consolidated and exported to Excel for the winning supplier. The entire project, including a super-fast response to any enquiry, is managed on my iPhone and only takes a few hours a month.” Preparing for winter Getting members organised for the colder months is no mean feat. Lisa Poole has been galvanising customers into early action. “The first thing I did was advise customers when the price was at, what I felt, its lowest.  Back in June I contacted customers, advising them that it might be a good time to buy so they are topped up for winter, and many took advantage of this. We also encourage customers to purchase their oil before December to try and avoid paying an inflated price.” Keith Weller, co-ordinator of the Worcestershire-based Bayton Oil Syndicate agrees: “I get people to buy when the price is low, usually during the summer months. I also advise people to have at least two weeks reserve in their tanks when ordering.” Having being caught out in December 2010 by the sheer volume of new members wanting to order oil just before Christmas, Steve Blood plans ahead. “I avoid placing a group order in December. Obviously everyone’s needs are different so I would place a small order for those that actually need it, but my aim is to have the bulk order delivered at the beginning of December. I also place two orders in January.”  Carole Seward has also learned the hard way: “The first year, I placed an order in December. As soon as I did that it snowed and the temperature plummeted! Just about everyone received their oil before Christmas except me. So I learned to never place an order in December.”

Public storage is now fulfilling a number of key roles in the downstream supply chain In addition to both supplementing and complementing established oil company facilities, public storage contributes to the enhancement of our overall security and continuity of product supply; particularly now against a background of rationalisation of refinery and terminal networks.  It also –

With volatility in the oil market at an all time high, the importance of market intelligence cannot be underestimated. Liz Boardman talks to leading information providers to find out what’s on offer   Who, what, when, how much and at what price? At Argus market intelligence services underpin price assessments. With more than 200 reporters worldwide monitoring, checking and reporting on energy markets throughout the day, Argus offers a full picture of what is behind price movements.   In addition to an end of day assessment, there is an intra-day record of deals done, plus an explanation as to why prices have moved, the latest trends and how the supply/demand outlook is shaping up. Daily reports are produced on petroleum products, biofuels, LPG, jet fuel and other energy markets.  The Fuel Tracker product keeps British customers in touch with wider market developments. Offices across the world enable Argus to investigate and analyse market rumours and hearsay to discover what is really going on and why. A range of analytical, higher level reports offer exclusive insight.  www.argusmedia.com Sound advice to aid decision making “Managing price volatility and reducing risk is essential to survival in the current climate,” says Fuelpricesonline founder, Basil Shrourou. “There’s also an opportunity to improve margins. A daily price movement of 1ppl or 1cpl is no longer a surprise to us. On 3rd July, we saw a movement of over 2ppl on some oil products.”  “I honestly wouldn’t survive in this business without the help of Basil,” said Lambes Oil managing director, Rita Lambe. “He’s always available with sound advice at the other end of the line.” Also in Ireland, Andrew Wilson, sales manager – wholesale and retail, Kelly Fuels reported:  “The service is an extremely useful tool in providing us with accurate and timely information on market movements.” “Delivering this accurate and timely information to the downstream oil markets, helps distributors across the UKand Irelandto reduce exposure and optimise performance,” added Basil. “Being located close to the main oil trading centres in Londonand Rotterdamgives us a unique insight in to market thinking and oil intelligence.”  wwwfuelpricesonline.com The WP Group has used the service for over 10 years. Managing director David Faichild reports:  “We’ve always found this service reliable and accurate; it gives our sales and procurement teams the benefit of regular up to date information to help in decision making.” Planning ahead more effectively A wide range of market intelligence is to be found at The Oil Market Journal (OMJ), including intraday price assessments for refined products, detailed news and trend analysis. Live prices for heating oil, diesels and petrol are delivered through the trading day via OMJ’s website, ticker, mobile website, text and email messaging service. Each morning, the OMJ daily report provides clients with news and analysis on what is driving oil prices.  Enabling clients to plan more effectively, a weekly Energy Roadmap report gives a comprehensive overview of the fundamental and technical outlook for the week ahead. www.the-omj.com Making sound business decisions Platts publishes news, research, commentary, market data/analysis and price assessments on a daily basis. Its products and services include newsletters and reports, geospatial data and maps, conferences and a weekly television programme broadcast in the US and online. Information and market insights ‘help customers to make sound trading and business decisions and enable the markets to perform with greater transparency and efficiency.’ www.platts.com Having reported on the European oil products market for over 20 years, the research/consulting services of Wood Mackenzie are designed to enhance business performance and inform strategic planning/investment decisions. A downstream oil service provides in-depth research on the European oil supply chain with country/company analysis, monthly prices and margins reporting.  A monthly Market View report enables users to monitor monthly prices, marketing margins and demand data for key fuels, benchmark fuel prices/margins across 26 national markets. www.woodmac.com What aids the decision making for your business? Email liz@fueloilnews.co.uk. 

Police in North West Leicestershire say they are concerned about a recent rise in oil theft in the area. Fuel to a value of £16,000 has reportedly been stolen from properties in Worthington, Newbold Coleorton, Breedon, Lount and Tonge in the last 60 days. Police have noticed a steep rise in this type of crime occurring whenever the price of crude oil rises and are advising homeowners to take a few simple steps to secure their oil tanks. These include keeping oil levels as low as necessary to reduce the value of any theft, installing lockable gates and maintaining boundaries and perimeter fencing, hiding tanks from view with shrubs or fences, fitting tank alarms which are triggered when there is a rapid drop in the oil level. Sergeant Mark Watson, a neighbourhood team leader based at Coalville Local Policing Unit said: “We have noticed an increase in theft from domestic fuel tankers/containers in North West Leicestershire in recent months. As fuel costs increase, this problem may continue until the perpetrators are captured.”

Two new guides have been published, promoting health & safety best practice among professional drivers. Load Safe, Road Safe and Transport Safety have been produced by the Health and Safety Laboratory (HSL), with assistance from a number of organisations, including Wincanton, the Freight Transport Association and the Road Haulage Association. The publications, written by Nina Day, a senior engineer at the HSL, offer drivers and other operators information about good practice and assistance for complying with road and workplace legislation. Dave Rowlands, Wincanton’s technical services director said: “Although we operate in a competitive market, when it comes to issues such as health and safety, we are at the forefront of promoting good practice right across the industry, not just within our own business, so when we were asked to help with these new guides we were delighted to contribute.” The guides are available to purchase at www.hsl.gov.uk

Greenergy has commenced diesel, gasoil and kerosene supply from its terminal at Teesside, now known as Greenergy North Tees. The North Tees facility was already closed when it was acquired by Greenergy in July 2012, having ceased commercial operation earlier in the year following the administration of Petroplus Refining Teesside Ltd.  Since taking over at the terminal, Greenergy has undertaken a condition survey and made certain improvements prior to commencing supply. The company says it now intends to make further significant investments at the site in order to create an integrated supply system for petrol and diesel in the North East and a new hub for its rail distribution network. Andrew Owens, Greenergy chief executive, said “Our North Tees terminal will complement our existing petrol manufacturing facilities on Teesside, by adding the infrastructure for a new rail head, our own jetty capable of receiving large diesel ships and product interchange between terminal locations.” Other planned improvements at North Tees over the next 18 months include:

Ministers have been urged to take urgent steps to ensure the future security of the UK’s oil refining capacity by Unite. The call has come in the wake of the closure of the Coryton oil refinery in Essex earlier this year which cost nearly 3,000 jobs across the UK, with an adverse knock-on effect to the economy estimated to be up to £1bn. A number of distributors have told Fuel Oil News that the closure is having severe consequences on supply in the South East. Neil Flynn, Linton Fuel Oils, and Mark Mackenzie, Nolan Fuels, complained that congestion at other terminals is now such a serious problem that in some instances, allocations had run out. John Cooper, of Stevenage Oil Co, said:”It’s affecting other terminals in the area, with the high demand stretching product resources to the limit. Companies are queuing at the terminals as computers break down and are getting further and further behind.” In its document, Refining Our Future, Unite outlines the fragmented nature of oil refining in the UK and calls on the government to have “a serious policy aimed at the maintenance of a viable, competitive and efficient refining sector”. At present, there are seven UK oil refineries employing 150,000 workers, directly and indirectly, faced with squeezed profit margins and at the mercy of international market forces, as was the case with Coryton, owned by Swiss company, Petroplus. Unite is angry at the British government’s failure to rescue Coryton, while the French government stepped in with 16 million euros to save its Petroplus-owned refinery. The union accused the UK government of hiding behind so-called EU competition rules for its inertia. Unite national officer for the processing sector, Linda McCulloch said: “Unite is deeply concerned at what we consider to be the vulnerability of a number of oil refineries in the UK. “We consider the oil industry to be critical to the UK economy. In an increasingly unstable world where new supplies of crude oil will need to be found quickly in the years ahead, it is absolutely essential the UK maintains its ability to refine its own oil. “Britain should not become totally dependent on importing finished products. “We will be urging government, policy makers and the industry to recognise the key points in our strategy and use it to defend the UK’s oil sector capacity and manage significant economic change in the industry.” www.unitetheunion.org/  

New statistics show that oil prices have remained more stable than other forms of heating. A comparison of heating costs for the last five years, based on information supplied by the Sutherland tables, reveals that oil remains a very competitive choice for off mains gas customers, providing they use a condensing boiler. The average price of kerosene has risen less than many of its competitors and the seasonal variation in price gives oil heating users the chance to maximise savings. Percentage increase in the price of oil and other heating options 2008-2012 Heating type                      Percentage increase over five years Solid fuel                                 43% Electricity                              26% Mains Gas                              48% LPG/LPG Condensing       55% Oil/oil condensing             29% Wood pellets                        5% Data source: Sutherland Tables. These comparisons do not take into account the latest price increases announced by the leading energy suppliers, so oil is likely to become even more competitive.

The Heating and Hot Water Industry Council (HHIC) has introduced a new fictional family as part of its Hole in the Roof energy saving campaign. The Romans have been created to mirror an average British family wasting energy, and money, in their home. The HHIC hopes that the public will be able to relate to the Romans’ energy wasting habits and more effectively absorb the central messages of the organisation’s campaign. The HHIC describes the Romans as an ordinary family, in an ordinary house, in an ordinary street. They don’t actually have a hole in their roof but they might as well have one with all the energy that is leaking through doors, walls, windows, fireplaces, roofs, keyholes and garages. Dave Roman (Dad) has bad habits such as turning the thermostat up high and opening windows. He often puts the dishwasher on half full. Claire Roman (Mum) likes to take long baths often topping it up with hot water. She also likes to have a cup of tea having boiled a full kettle and sits on a sofa which blocks the radiator. Meanwhile the children, Alfie and Demi, are gadget mad, leave lights on when leaving rooms and electrical items such as hair straighteners and Ipod chargers plugged in all day. Roger Webb, HHIC director, said: “We can all identify with the behaviour of the Romans, as their energy wasting habits are quite familiar especially for those of us with teenage children. The purpose of our hole in the roof campaign is to raise awareness of energy efficiency and how important it is to make sure our homes leak less energy resulting in financial savings.” For energy saving tips and advice visit www.holeintheroof.org.uk

The chancellor George Osborne scrapped the 3 pence per litre rise in fuel duty scheduled for this January. The decision not to increase the tax was confirmed by Osborne in his Autumn Statement when he also pledged to postpone any further increase in April. FTA and its partners in the FairFuelUK campaign had been working with the Treasury and MPs, seeking to persuade them not to go ahead with January’s planned rise in fuel duty. FTA sent a FairFuelUK briefing document to all MPs to warn them of the damage increasing fuel duty could mean for the logistics sector and the wider economy. It also asked members to download a template letter to send to local MPs in a bid to ratchet up the pressure. Quentin Willson of FairFuelUK said: “FairFuelUK has worked tirelessly to convince MPs and Ministers that the 3p rise would be enormously damaging to the economic recovery.  To their credit the Treasury and the chancellor have engaged constructively and have made the right decision.  The cancellation of the 3p rise completely is a welcome surprise, it would have cost 35,000 jobs and hit growth. Fantastic news but the fight for fairer fuel pricing goes on for the sake of hard pressed businesses, the public and to stimulate growth in the economy.” Although happy with the decision to waive any rise in fuel duty due in either January of April, FTA adds that it is disappointed George Osborne did not go further and abandon all planned rises before the next election and move to reduce fuel duty by 3p a litre. The FairFuelUK campaign therefore looks set to continue lobbying for a reduction which its research suggests could grow the economy by 0.2% at a net cost of the Treasury of £3bn. James Hookham, FTA’s managing director – policy & communications, added: “This early Christmas present from the chancellor is a good start, but we will not let this issue go.  Spiralling fuel costs have a devastating impact on haulage businesses, their customers and ultimately everyone through the price of goods on the shelves, and the campaign for a fairer deal will continue. “January’s rise would have cost a 10 vehicle freight operator around £14,000 – which could be one employee’s wages.  While we are relieved that the immediate danger has passed, in order to get the UK back on the road to economic recovery it is vital that we have a cut in fuel duty and a long-term strategy to prevent future rises and uncertainty.” More details of the campaign can be found here: http://bit.ly/UFFnqN

Over six tonnes of toxic waste have been removed from a private address in Co Armagh following the discovery of a diesel laundering plant. The illegal operation was capable of producing five million litres of illicit fuel, evading nearly £4 million in taxes and duty. Officers from HM Revenue & Customs (HMRC), supported by the Police Service of Northern Ireland (PSNI), searched a number of sheds at a private address in Cullyhanna where the plant was uncovered and then dismantled. Pat Curtis, HMRC national oils co-ordinator, said: “Every illegal laundering operation typically generates tonnes of toxic waste, which involves significant environmental and safety issues. As taxpayers and local ratepayers, not only are we missing out on the stolen tax going into the pockets of the criminals, we are also paying the substantial clean up and disposal costs. “Buying illicit fuel funds crime and supports and encourages these dangerous activities within our communities. The only winners are the criminals. I would urge anyone with information on fuel misuse in their area to contact our free telephone hotline 0800 59 5000 and contribute to the fight against this criminality.” Pumps and equipment were removed from the site and investigations into those behind the operation are continuing.

The FPS has unveiled a restructured eight-module FPS Driver Certificate of Professional Competence (Driver CPC) Scheme. It is promoting the new modules with special offers until the end of 2012. “FPS is committed to providing the best possible training for its members through the Driver CPC Scheme. The new courses we are offering through our restructured CPC Training are purpose-designed to give extra choice and flexibility to end users with 3.5 hour modules in a ‘mix and match’ format to enable members to build a full day’s training to meet the individual needs of the company and its drivers,” said FPS driver CPC do-ordinator Keith Ashton. The modules will cover such things as Spillage Prevention & Loading, Discharge & Product Return, Working at Heights and Ladder Training, Manual Handling, Spill Prevention (Small), Working at Heights and Ladder Training (Small), Health & Safety, First Aid, Fire Safety, Drivers Hours, Driving, Accidents, SAFED, PPE, Spill Response, Site Risk Assessment, PPG & Marine Deliveries, Forecourt Deliveries and Caring for the Environment, Emergency Response and Security. As each module is 3.5 hours duration, any two may be used together to comply with the 7 hour training day prescribed in the Driver CPC. Each training day can take up to 20 delegates at a time and they are designed to deliver maximum benefits for drivers with minimal disruption to business, says FPS. In addition to the eight modules now on offer, FPS is looking to develop further modules that will benefit members. It says the highly popular ‘trainer in the cab’ practical training day will remain. “It is a fundamental part of the FPS Driver CPC course to deal with all the issues that drivers of fuel tankers have to consider day in and day out, as well as equipping them with more generalised HGV knowledge. This will be continued with the new 3.5 hour modules,” added Keith. FPS member companies have always received discounted rates for Driver CPC training but, until the end of 2012, FPS will promote the new modules with special offers to provide much more generous discounts. www.fpsonline.co.uk/training.asp

Greenergy is installing new equipment at its supply locations to improve driver safety when filling road tankers. The initiative, instigated following a safety walk involving driver and shop steward Dean Lawrence and Greenergy’s chief executive Andrew Owens, will see drip trays introduced to prevent the potential build-up of petrol and diesel residue in the loading bay area. Dean Lawrence said: “The drip trays are simple but effective.  By collecting even the smallest leaks of fuel from the loading arms, they help keep the loading area clean and reduce potential slip hazards. These are practical things that make a real difference. “As senior shop steward for Unite, I’m encouraged by Greenergy’s willingness to engage with its drivers and with the union on safety matters.  It’s an approach others in the industry should follow.” Andrew Owens added: “Our drivers are obviously best placed to observe potential safety issues as part of their daily routine.  We want to harness that knowledge to deliver safety improvements on an ongoing basis. “We have an official safety representative for Greenergy Flexigrid at all of our operating centres, but we also encourage all drivers to come forward with observations and ideas at any time.  I personally take a lead on this and aim to meet all our drivers at least once a year.” The drip trays have already been installed at West Thurrock, Plymouth, North Tees, Eastham and Clydebank and are on order for Grays and Vopak Teesside. www.greenergy.com