News

Smart solutions

Keen to grow in the fuel distribution sector, managing director Steve Spelman says MHT has products for everyone right down to the smallest depot Keen to find out more about MHT Technology, the terminal automation and tank gauging solutions specialist, deputy editor Liz Boardman travelled to the company’s base in Melsonby near Richmond to meet managing director Steve Spelman and product manager Judith Brown 2014 is a big year for the company as it celebrates 20 years in business. From just five members of staff in 1994, the company has grown almost five fold and now employs 24 people, including Steve who joined the company in June 2013. “MHT has built up a strong team with many loyal and committed staff,” said Steve. “There’s a huge amount of knowledge and experience here and we’re in a strong position to continue the growth of the company.” In September 2013 the company became a wholly owned subsidiary of Endress+Hauser. “It’s a win-win situation for us,” explained Steve. “Although we have the backing of a large, well known company and access to international markets, we are still MHT. We have retained the brand – the company name and logo remains unchanged and we maintain our independence within the market place when it comes to recommending gauges and instrumentation.”Scalable software Having carved a niche as a supplier of tank and inventory management solutions which can interface to field devices from all leading manufacturers, MHT offers a range of software and hardware solutions designed to lower operating costs and improve safety. One of the company’s first products, Visual Tank for Windows (VTW) was launched in 1994 and still remains one of its most popular. “As well as providing real time stock monitoring, the software also increases safety by reducing the need for manual dips,” explains Judith. “It enables fuel distributors to optimise deliveries and can also provide leak and theft detection. By working with all the main gauge manufacturers, we’re able to provide a complete service.” Launched in 2011, smartTAS terminal automation software is a scalable solution which can communicate directly with a single loading skid at a typical depot or multiple gantries at larger oil terminals. “Not only does smartTAS increase security through controlled loading but it also helps to reduce costs by increasing efficiency and quickly identifying any losses incurred,“ said Judith. “By working closely with a number of loading skid manufacturers and suppliers we can offer a complete solution. “Additionally there’s a link between the two software products, so physical stocks displayed in VTW can be compared against the transactional data in smartTAS. This means any losses can be identified and the cause investigated.” “Whilst a typical depot would have smartTAS, VTW and an ATEX approved Field Display, which provides level, temperature and volume data for multiple tanks, our systems are completely scalable and depots may opt to have just one element rather than the full package,” added Steve.Size doesn’t matter Although MHT’s main market is the terminals and storage sector and the company can boast an impressive client portfolio, Steve was keen to stress that it offers products which are suitable for even the smallest depot. “We have products for every market – both big and small – all of which are tailored to meet specific site and customer requirements. The fuel distribution sector is an extremely important market for us and one which we are keen to grow.” Carrs Billington is one of MHT’s biggest fuel distribution customers. The company is benefiting from increased efficiency and cost savings following the successful rollout of a programme of depot automation solutions across eight sites (five in England and three in Scotland.)“I can remotely monitor stock 24-7 across all of our sites, either from the office or at home. This is particularly useful at our unmanned sites, giving me both visibility and peace of mind.”Robert Young, operations manager for Carrs Billington’s five English sitesAdded support In addition to its range of products, site surveys, installation and commissioning are all part of the company’s standard service offering and are tailored on a site by site basis, as Judith explained: “We offer a free site survey as part of our pre-sales process where we can demonstrate the system and get a real understanding of the customer’s requirements. “Following installation, our support team provides a selection of maintenance and support packages. These range from remote support whereby we set up a remote login and can be on hand to support customers within office hours, to complete 24/7 support for some of our bigger customers. We have a helpdesk which is manned during office hours and out of hours there is always an engineer on call.” The company also offers face to face training and e-learning, both of which are proving popular with customers.An exciting new development Ensuring continuity of software systems is an essential requirement for most of MHT’s customers. With this in mind, the company has just launched a redundant solution for its smartTAS software, which enables a vehicle to load without interruption, even if the primary server has a hardware or software failure. In this instance a secondary server would automatically take over in a matter of seconds. “This gives our customers ultimate piece of mind and eradicates costly downtime,” said Steve. “It also means that routine IT maintenance can be done in office hours – again passing a cost saving onto our customers. With customers throughout the UK and across the world already using our redundancy offering for VTW and LMS (our LNG management system), we’re pleased to complete our portfolio with the new redundancy offering for smartTAS.”
4 min read

Interview

Holding steady in challenging times

Since Drury Oils was set up 12 years ago, the company has grown into a stronghold business in the Roscommon town of Ballaghaderreen writes Irish correspondent Aine Faherty. Its formula is arguably a simple one – an independent, authorised Texaco Oil distributor providing a top of the range oil service along with ancillary products that complement the business perfectly.   Small beginnings When owner Adrian Drury started the business in 2002, a skeleton staff operated from a small yard with just two 40 foot storage tanks. Adrian drove the company’s sole delivery truck and took orders out on the road whilst wife Fiona looked after the administration. As the business grew Adrian employed additional staff and a new depot was built with storage capacity for 110,000 litres of kerosene, 75,000 litres of gas oil, 75,000 litres of derv and two 70,000 underground petrol storage tanks.   Sales from the forecourt and making deliveries Today the company operates a pump service for road diesel, petrol and kerosene, which is sold in 20 litre drums. “This is an important arm of the business which has grown over the last few years,” said Adrian. “We also sell solid fuel in the form of coal and briquettes which has proved to be a good addition.” The Drury Oils forecourt does not have a convenience store. “Our location in an industrial park doesn’t have the passing trade to allow for it,” explained Adrian. The company also sells fully bunded and single skin Platinum Tanks and tank locks – a big seller in recessionary times. “Customers want locks as a deterrent to a would-be thief,” says Adrian. Drury Oils also stocks a range of lubes and engine oils. Although depot sales are important, the company’s home heating delivery service accounts for most of the business. Over the winter months and at other busy times, Drury Oils operates four delivery trucks – one that Adrian drives, another driven by a full-time operator and two others with seasonal drivers behind the wheel. “This market is still buoyant, but the commercial side isn’t as big as it once was,” said Adrian. “I pulled away from filling stations when an increasingly dodgier element began creeping in. I’m holding my own in these challenging times and still have good customers and a strong pool of suppliers. “We should all be talking to each other, and we should make sure that if we’re owed a lot of money, we tell others about it so they don’t get their fingers burned too”    Sharing information and not selling yourself short “I would advise anyone in the distributor market to ensure that they get paid for product. We should all be talking to each other, and we should make sure that if we’re owed a lot of money, we tell others about it so they don’t get their fingers burned too. “I also think distributors should have a minimum delivery – one that they can actually make money on, and stick to it,” added Adrian. “For me a drop of €150 is only feasible in the local town – it wouldn’t be worth travelling 10 miles for a drop of that size. “We’d all love to get the 1,000 litre drops but it isn’t happening at the moment. It’s a price conscious and cut throat industry right now but people should remember that they also need to survive.”   In the summertime In the summer months, Drury focuses on a strong agricultural market where it has a number of loyal, local customers, and despite the slowdown in the sector, the company has a select band of hauliers that remain on its books. Marketing and promotional plans are also put in place – marketing the Drury Oils brand and product both locally and online is never underestimated. “We’ve recently invested in freshening up our website, the revamped site now has a very modern feel and is easily navigable,” explains Adrian. Having tried to grow the business further in bad times, when conditions are better and the time is right, this amicable businessman wants to steer his business in an upward direction once again.
3 min read

News

Cold calling

With more than 200 million Americans in the icy grip of a polar vortex, FON spoke to US fuel distributors Loud Fuel and Porco Energy to find out how they were coping. Well seasoned Working in and around the Cape Cod area of Massachusetts, Loud Fuel’s managing director, Kabraul Tasha said that the company was finding it tough: “Cold weather is tough on the fuel in the trucks – trying to keep them running is difficult and, with the ice and snow staying around for longer, driving conditions are slowing down output. “We were prepared for the last cold spell – I was way ahead on degree days with my autos, so it’s a little more comfortable not worrying about autos on the brink of running out. The best thing I have on my side is seasoned people both in the office and out in the field.” www.loudfuel.com   Crunch time Porco Energy, based at Marlboro, New York may not have had the snow that others have experienced, yet demand for product has increased by 10%. Porco Energy, which has 10,000 customers and covers a 40-mile radius from two different locations, delivers kerosene, fuel oil and propane. “We’re normally busy at this time of year but when it gets really cold like this it’s crunch time,” said owner Joe Porco. “The extreme cold weather has put added pressure on us with increased deliveries and we do need to carry methyl alcohol in case we get frozen on a tank and fuel oil additive to stop gelling. Plus, due to several factors there’ve also been supply disruptions. “In the north east our main propane supply is from the Teppco pipeline. Two pipelines start at Mont Belvieu, Texas to Todd Hunter, Ohio, with one continuing to Selkirk, NY from where we get most of our supply. This year Teppco has decided to reverse the flow of one line from Todd Hunter to Texas to export propane and shale gas. This puts an immediate strain on the amount of propane coming north. “We supplement this with a contract for propane by rail, however, extreme cold out west and in Canada has at times affected pumps, compressors and valves, delaying delivery. Of course, all this supply and demand has increased costs.”www.porcoenergy.com  
2 min read

News

A Wild Wednesday at the Fuel Oil News Distributor Debate

The latest Fuel Oil News Distributor Debate took place last month on a day now referred to as Wild Wednesday. As the wind and rain began to whip up a storm, more than 80 people gathered at the Ramada Hotel in Solihull. Our first speaker was Andrew Owens (1), co-founder of Greenergy in the early 1990s, a company which now supplies over a quarter of all the road fuels in Britain. To better support the country’s growing import demand, Greenergy has both acquired, and made significant investment in, GB terminals. With the prospect of two thirds of our diesel needing to be imported in the future, Andrew asked the pertinent question Can the UK survive without refineries? With its Lindsey refinery, Total UK operates one of the UK’s 7 remaining refineries. Networking with a rather rain soaked David Hodge (6) of Lancashire-based Ribble Fuel Oils was Total UK commercial sales manager, Dominic Hewitt who found the day ‘very interesting.’ Phillips 66 still operates the Humber refinery, Pete George, managing director of the company’s UK & Ireland marketing, reported this Distributor Debate to have been ‘very informative’. With Pete George (3) are on his right, Janet Kettlewell of Kettlewell Fuels, one of the more recent distributors to join the Jet branded fold, and Karen McBride and Richard Billington from Certas Energy. Instructing the audience on the impact of issues in the wider oil world was Mystic Mog the Portland cat. James Spencer’s (4) entertaining presentation was much appreciated by the audience and particularly ‘thought provoking’ for Rod Prowse of Marathon Associates. Distributors and speakers had travelled far and wide to attend the event, among them Marcus Jones (5) from Anglesey-based TR Jones and Sandra Morris from Chester-based Wirral Fuels, pictured with Ken Taylor, OAMPS. By 2015 it is possible that oil heating could be eradicated – OFTEC director general, Jeremy Hawksley (2) made a plea for distributors to get behind the Oilsave campaign, a joint initiative with the FPS. FPS president Mark Nolan (7) of Nolan Oils, seen among many familiar faces, was spurred on by Jeremy’s call to fight for oil heating and is actively promoting the campaign in the distributor community. Julia Mansfield of Fuel Additive Science Technologies provided a highly informative insight into kerosene supply and quality. Taking a look at the impact of the imminent launch of the Renewable Heat Incentive, Paul Stephen, editor of Renewable Energy Installer, explained the challenges and the possibilities for oil heating. Endeavouring to give a business a more competitive edge, Fuelsoft’s David Kingsman and Kan’to’s, Dimitri Papaioannou discussed the benefits of customer relationship management software and enhanced real time tank telemetry respectively. To help better prepare for future events, Fuel Oil News welcomes feedback from those who attended to jane@fueloilnews.co.uk.
2 min read

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Opinion

“Do you agree with the Northern Ireland Housing Executive (NIHE) that the Province should have more oil buying clubs?”

Donall O’Connor, Value Oils “As Northern Irish oil distributors, we are part of a saturated supply market where consistent pressure on margins exists for all but a few high demand months o the year. Buying groups typically thrive where distributor numbers and supply options are low and where healthy margins are traditionally achieved – Northern Ireland is no longer such a place – even in periods of decent demand, the number of distributors far outstrips demand. In Northern Ireland many small distributors work off margins which barely cover variable costs for most of the year. A quick check on the Northern Ireland/UK price checker websites will verify that Platts-plus with a pathetic margin of 3ppl is not uncommon on 500 litres. Nowhere else in the UK mainland would such margins be tolerated by any worthy distributor. Buying groups, propped up with local government and council financial support, are not really a welcome addition to the current melting pot. The NIHE, which has a switch them to gas policy, has deemed fit to select the oil distributor trade for special attention. Where is the government support for gas, electricity, meat, milk and bread buying clubs? Oil buying clubs will continue to pop up, come and go and remain in existence across Northern Ireland. But, when government and local council funding runs out, the effort will ease for the simple reason that there’s not a decent margin to work with in the first place. In the long term buying groups will lead to more damage in an already fragile and fragmented market. Whilst I do not agree with the NIHE view on more oil buying clubs, there will inevitably be more – batten down the hatches!” For further comment see the Value Oils blog – www.valueoils.com/blog/home-heating/heating-oil-buying-groups-2/ Joe Bradley, Bradley Fuels “I don’t understand how any supplier could make any money from oil buying groups. I did it once and it was a waste of time and money. I just about covered my costs but some guy from 30 miles away saw fit to undercut me – never again!!” David Blevings, Northern Ireland Oil Federation (NIOF) “Oil buying clubs have their place – assuming they’re set up correctly, members have realistic expectations of savings and delivery addresses are centred around a local village or cluster of homes that offers logistical savings to the distributor. “We need to be careful that consumers are given the correct information: the leaflet prepared by the NIHE is both supportive and informative. Prior to this guidance document many oil clubs made savings comparisons based on the cost of heating oil supplied in 20 litre drums – which included the cost of the drum – something in the region of £1 per litre! “Rather than join a club many consumers are now filling drums they’ve acquired over the last few years at kerosene pumps at their local petrol station. This is big business in Northern Ireland and is now seen by many oil users as a viable ‘budgeting’ method. “NIOF is concerned at the growth of the drum business as there are clear health & safety issues when carrying drums of flammable liquid in cars and, the potential for environmental contamination from drips/spillages. Small oil drums should be for emergency use only. “While we accept that clubs do have a role to play by offering savings to clients buying small drops, we’re convinced that the future for oil consumers is a viable payment plan or Pay as you Go system similar to that for gas and electricity. “We’re not against oil clubs per se, but think consumers should be given the correct information on actual savings. As a responsible industry NIOF members already offer numerous products to assist consumers to budget for their annual fuel requirements.”  
3 min read

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