This morning more than 40 BP tanker drivers, working out of the Grangemouth oil refinery walked out in a dispute over cuts to pay and pensions. With the walkout scheduled to last until 8am on Monday morning (25th February), Unite believes that the action will affect aviation supplies and BP forecourts across Scotland and north east England. According to Unite, 90% of the 42 drivers balloted voted for strike action following the transfer of an aviation contract from BP to DHL. The union estimates that drivers could lose up to £100,000 from the value of their pensions and £1,400 a year in wages as a result. A BP spokeman said: “Our priority remains the safe delivery of fuel products to all our customers. We have been working to, and continue to work to, minimise any potential disruption the industrial action planned for this weekend at Grangemouth could cause.” Tony Trench, Unite’s regional industrial officer remarked: “It’s an outrage that BP, a multi-national giant which earns billions every year, is exploiting the UK’s weak employment laws to effectively swindle workers out of their retirement savings and future earnings.” The union has announced a ban on overtime from Monday and if the dispute is not resolved quickly, a second four-day strike is scheduled for 28th February.

When kerosene is being distributed by taxi rather than tanker, it’s time to take action. Air your views on the heating oil market, among other hot topics, at the Distributor Debate on Thursday 7th March. Reserve your FREE place(s) today by emailing sandra@fueloilnews.co.uk As the Northern Ireland Housing Executive carries out a consultation on its heating policy, you are cordially invited to join in the Fuel Oil News Distributor Debate on Thursday 7th March. Highlighting an overdependence on oil, the report says that whilst oil is technically a good heating solution, it is increasingly difficult to afford with ‘the lack of a PAYGO option a major factor’. It also points out that switching to oil does not currently have the same benefits for tenants as it did in previous policy periods. Among the questions being asked are:Oil heating is clean and efficient but requires bulk fill ups which are expensive. What ways do you think the problem of finding the money for this could be overcome?If you live in a rural area and oil or wood pellet systems are your only choice, what would be your preference?What are your views on schemes using saving stamps or local community “pay as you go” schemes and would you welcome such a community based scheme if it was available? __________________________________________________________ DISTRIBUTORS ACROSS IRELAND ARE ALL WELCOME TO JOIN IN THE DISTRIBUTOR DEBATE AT THE TEMPLETON HOTEL, TEMPLEPATRICK WHEN ISSUES SUCH AS THESE WILL BE DISCUSSED. REGISTER FOR YOUR FREE PLACE(S) TODAY sandra@fueloilnews.co.uk__________________________________________________________ Responses to the consultation can be made in writing or email.  Download the heating policy review document, the questions and accompanying letter at www.nihe.gov.uk/index/corporate/consultation.htm Additionally, a Rural Homes and People Draft Action Plan 2013-2015 has also been published with actions ‘designed to ensure that an equitable share of available resources is directed to rural areas’.  The NIHE intends to ‘undertake the actions listed by March 2015, subject of course to the necessary funding being available’. To return to the newsletter click here.

As an oilfield tax allowance paves the way for hundreds of new jobs in the UK, the Oil and Gas Global Salary Guide 2013 says UK oil and gas professionals are well rewarded. Based on data from over 25,000 respondents, the guide produced by Hays Oil & Gas and job site, Oil and Gas Job Search shows that full time professionals in the UK oil and gas industry enjoy average salaries of £57,900 per annum – a rate of growth of 7.2% from last year and more than twice the current rate of inflation. A rise in bonuses has continued and is now the dominant mechanism by which companies attract and retain talent. On average, bonuses account for a further 5.8% of the employees overall package with almost two thirds receiving some kind of benefit or allowance on top of their basic salary. Download a free copy of the guide www.hays.com.au/employer-services/oil-gas-recruitment/Salary-guides/HAYS_089070 www.oilandgasjobsearch.com/SalaryGuide Making the most of a valuable national asset As the government stimulates investment in the North Sea to ‘make the most of this valuable national asset’, EnQuest, the North Sea’s largest independent UK oil producer, has secured a brownfield tax allowance to fully exploit its Thistle oilfield. The move will safeguard almost 500 existing jobs and create almost 1000 new jobs across the UK oil and gas supply chain in Aberdeen, Newcastle, Manchester and Swansea over the next three years. “We acquired Thistle in 2010, and as a result of our investment so far production has significantly increased,” said David Heslop, general manager for EnQuest in Aberdeen.  Thistle is a prime example of how we’re able to recover more oil from mature assets through a combination of innovative ways of working and technical expertise. It demonstrates what EnQuest does best and underlines our long-term commitment to the North Sea.” “Oil and gas will still be needed to provide 70% of our energy needs into the 2040s,” added Mike Tholen, Oil & Gas UK’s economics and commercial director.  “EnQuest’s decision to make fresh investment in the Thistle field will provide  hundreds of jobs right across Britain and with extra oil being extracted, UK energy security will be strengthened.”  www.enquest.com To return to the newsletter click here.

Adler & Allan is one of the companies taking advantage of Alpeco’s bespoke liquid loading and dispensing systems With a big reduction in the number of new tankers produced last year, manufacturers and ancillary equipment suppliers are increasingly turning to niche markets. One niche area which has attracted the attention of Alpeco is bespoke liquid loading and dispensing systems for depots, harbours and trucks, with the company focusing its efforts on the design and manufacture of such equipment. A unit with a small demountable electric pump and meter system is now available from Alpeco.  Designed to be carried in a van or pick-up truck with an IBC or small storage tank, the unit is ideal for conducting small fuel deliveries to plant equipment such as generators, or for sites with difficult access where it may not be practical or cost efficient to send a delivery tanker._____________________________________________________________For more news on the niche markets being served by tanker manufacturers, see the 2013 Tanker Review in the February issue of Fuel Oil News._____________________________________________________________www.alpeco.co.uk To return to the newsletter click here.

Chris Dalton, managing director Just a few months after opening, Lateu Logistics has the ‘enviable position of working outside the UK as well as closer to home’, says managing director Chris Dalton. The team at Lateu Logistics has over 40 years combined experience within the transport industry. The company, which was established to fill a gap in the energy/chemical sector for experienced consultancy across the total supply chain logistics, has recently refined its online presence to better showcases its skills. “In a very volatile world where austerity is the key word, people are changing their perceptions on spending and value,” said Chris. “With businesses needing to evaluate their modus operandi, Lateu Logistics can help them decide the way forward from an impartial and knowledgeable base, taking a holistic view of their supply chain and business development needs of the future.” “We can also enhance our offering to clients with outsourced support services including planning, customer services, logistics management and sub-contractor selection which the client can no longer  undertake internally due to cost, skill or corporate policies.”   www.lateulogistics.com To return to the newsletter click here.

Speaking on the subject of top up, the majority of distributors to whom Fuel Oil News recently spoke had only a small number of customers opting for the service So which customers are using top up, and is the service in decline due to the proliferation of price comparison sites? Less than 5% of Nolan Oils’ customers use top up said transport manager, Mark Mackenzie.  “It’s becoming less popular as everyone’s pushed further into comparing prices for everything.  When prices didn’t change every five minutes you’d find a much more loyal customer base, willing to sign up to standing order accounts and top up services in the knowledge that they were getting a fair price and a reliable supply.” “I think the level of top up will grow if there’s a challenging winter,” commented Craggs Energy managing director, Chris Bingham. “That’s when customers start to focus on the guarantee of supply which comes as part of most top up services.” Which customers are using top up? Whilst some distributors, including AD Fuels, reported a broad spectrum of customers keen to top up; for others, top up customers fall into very specific sectors. “Our service is used mostly by the elderly, those who work away from home and by second homeowners,” Mark Mackenzie told FON.  “We also encourage top up for those customers who habitually run out, but it’s hard to educate some people…. However, when you offer the service we do, customers know they’ll only wait a day or two, at the longest, for a delivery.” “A good percentage of customers using this service are sons and daughters caring for elderly parents,” says Stevenage Oils’ account manager, Lisa Armstrong.  “Others include community centres and conference venues that mustn’t run out, and those who aren’t particularly worried about cost.” At Craggs Energy top up is offered to a small but solid set of customers, often along with a fixed monthly payment model.  Chris Bingham commented: “Many customers are what might be termed vulnerable, but we also have a number who just want to forget about the need to check their oil and trust us to manage the levels.” Is top-up in decline? Mark Mackenzie believes that the number using top up services has noticeably declined since the rise of price comparison sites.  “More and more customers are quoting online buying site prices when they either ring for a quote or wish to compare their current supply situation.” AD Fuels’ Rob Warne shares this view: “Generally people are shopping around more – customers admit to it.” Ribble Fuels has not, however, noticed any affect.  Managing director, David Hodge, said: “We’re talking about two very different markets.  Customers that use our top up service tend to be those that want to pay by direct debit and spread the cost, or they’re loyal, regular customers.” Chris Bingham adds: “I don’t know if price comparison sites are impacting the top up model.  As we offer a full online pricing/ordering system, we’re pulling in a strong number of online customers directly. “I do feel that the industry risks losing control of online sales if it doesn’t offer such a sales channel.  With the vast majority of distributers shying away from providing a direct online service, we’re encouraging third parties to build alternative sales channels that carry none of the costs and risks that we’re forced to shoulder.  Other industries have found to their cost how fast this can develop, and we can only blame ourselves if we allow it to happen.” Trusting telemetry Concerns were raised as to the effectiveness of available telemetry to assist with top up.  “Telemetry isn’t as good as it needs to be,” said David Hodge.  “At any one time there can be 10-15% of monitors not working and often batteries are dead.” Consequently, some did not feel confident relying on technology; Marsh Fuels  being one.  “We use good old-fashioned pen and paper, cutting costs and getting back to basics,” said Carried Marsh. “After all, I don’t recall ever hearing of a pen’s battery running out or it being useless in a power cut!   We review customers’ annual usage and provide a delivery schedule which is 90% effective.  It’s much easier than temperamental (in our experience) electronic readings or confused customers.” Stevenage Oils also runs a manual service as Lisa Armstrong explains. “The emphasis is on the customer to request top ups, it’s not a service we actively promote.  The customer sets up a delivery timescale and it’s up to them to let us know if they want to amend this.  We do monitor accounts on a regular basis as we don’t want our drivers turning up to deliver oil and finding that it’s not needed!” For Melanie Noel, WP Group’s fuel sales manager: “Whilst there have been a few issues with the older systems, mainly the battery, the new telemetry has improved.” Find out how telemetry has been improved when Fuel Oil News looks at the very latest telemetry products in the January issue of Fuel Oil News.