Stephen Marcos Jones, UKPIA director-general
According to a new study released earlier this week, the downstream oil sector provides major economic benefits across the UK.
Independent findings in the Oxford Economics report ‘The economic contribution of the UK downstream oil sector’ – commissioned by trade association, the UK Petroleum Industry Association (UKPIA) – underscore the industry’s central economic importance, both in terms of direct value and security of the national energy supply.
The downstream oil sector encompasses a wide range of companies involved in the production, import, distribution and sale of refined products, including the UK’s refineries, storage terminals, pipelines and filling stations. Conclusions from the report include that the sector’s annual contribution to UK GDP is £21.2 billion, with 300,000 jobs supported by the industry, with every job in the sector supporting a further 1.4 jobs elsewhere in the economy. As the UK faces an ongoing productivity challenge, it was also found that the sector is 29% above the national average in terms of efficiency of output.
“Be it highly-skilled careers or tax receipts, to the way our products enable all other major sectors of the economy to grow, the downstream oil sector has a vital part to play in keeping the UK economy moving,” said Stephen Marcos Jones, UKPIA director-general.
As society looks for ways to develop low carbon solutions to reduce global emissions, we believe that the downstream oil sector can continue to deliver significant reductions in emissions as well as enable others to work towards a sustainable, just and orderly low-carbon economy.
“This report marks the first of a number of studies we will be publishing in 2019, as part of UKPIA’s Future Vision, demonstrating that the downstream oil sector has an essential role not only now, but in the decades to come.”The economic contribution of the UK downstream oil sector report is available at http://www.ukpia.com/publications or in hard copy on request from the UKPIA press office.
BP’s Kingsbury terminal which has been acquired by Essar; the company has also acquired BP’s Northampton terminal
Last week the Essar Oil UK Group of companies (Essar) unveiled the latest phase of its strategic business development, with the announcement of the acquisition of a number of assets from BP.
Under the agreement, Essar will acquire an equity stake in the UKOP pipeline, a share of the contractual joint venture (with Shell) which runs the Kingsbury terminal and a 100% interest in the Northampton terminal. The BP assets are being acquired by two wholly owned subsidiaries of EOUK, namely Essar Midlands Limited and InfraNorth Limited.
Last month World Fuel Services won two contracts with London Oxford airport and London Heliport in Battersea to supply jet A-1, Avgas and training packages with the five-year contract commencing this month.
The largest user of Avgas in the UK, London Oxford is the third largest general aviation airport in the London area with World Fuel also offering refuelling equipment, maintenance and marketing support with the possibility of a new tank farm in Oxford.
“The win of this competitive bid expands our supply to 14 UK locations including three of the top five,” said Noel Siggery, GA & market development.
“Our partnership with London Oxford and London Heliport will be an important addition to the World Fuel network as we continue to bring solutions to our customers. Our operators and card holders in the region will benefit from this partnership because they will receive quality services and a great business option in England.”
London Oxford airport is wholly owned by the Reuben Brothers whose investment activities include private equity, real estate ownership and development. In February 2012, the Reubens purchased the London Heliport, the UK’s only CAA licensed heliport. The heliport is a 22-minute helicopter ride from London Oxford airport which is one of the fastest growing airports for private business aviation in the UK.
www.wfscorp.com/en
The new Holton Heath depot, which will support Certas Energy’s regional presence in the south west, joins a network of over 130 depots across the UK
Following a £2 million investment to turn a former truck parking location into a large fuel storage depot, Certas Energy is opening a new depot at Holton Heath.
Eight delivery tankers will be based at the Holton Heath depot, which will have capacity to distribute to homes, businesses, farms, construction sites, schools and haulage companies, over a sizeable geographical area.
We’re delighted to be opening a new Certas Energy depot in Holton Heath and extending our service to more homes and businesses in and around Poole,” commented Steve Gettings, regional director in the south west of England.
“The Holton Heath site has undergone a real transformation since the start of the project and offers excellent access to local areas. A reliable supply of fuel and lubricants is key to keeping our customers moving, and we’re committed to supporting the local community over the long term with tailored solutions to meet their individual needs.”www.certasenergy.co.uk
FPS chief executive Guy Pulham and Ireland representative Nick Hayes are keen to meet up with minister Richard Bruton to discuss the opportunity of setting up a working group
Responding to the first draft of Ireland’s National Energy and Climate Plan (NECP) the Federation of Petroleum Suppliers (FPS) has not only written to Richard Bruton, Irish minister for communications, climate action and the environment, but also requested a meeting to discuss how the association can work with government to help reduce Ireland’s carbon footprint.
The FPS and its members feel strongly that oil and – more long-term – a liquid efuel and/or bio fuel, can be part of the phased solution and the association has been working closely with the European Confederation of Fuel Distributors (ECFD), boiler manufacturers and other trade associations to promote a liquid bio fuel.
“Our members play an important role in the Irish economy in supplying not only heating oil for homes and businesses but also fuel for agriculture, construction, road transport, marine fuels and importantly fuel for back-up generators for hospitals, schools, care homes and data centres,” said Nick Hayes, FPS Ireland representative.
“Several demonstration projects with heating systems running on partly renewable liquid fuels are already in place across Europe, achieving substantial levels of emissions reduction so it is disappointing that this potential is not mentioned in the minister’s recent statement.
“The minister says that at least 170,000 homes will be supported to switch from oil-fired boilers to heat pumps and solar panels. I would appreciate understanding the rationale for this figure and the technology assigned for the switch. There is a danger in making early technology decisions and also in only concentrating on a small section of oil-fired homes when industry innovation can help all oil-fired homes.”
“We have in the UK set up a working group with the government alongside different sections of the supply chain with representation from trade associations for refineries, boiler manufacturers and installers and tank storage,” added Guy Pulham, FPS chief executive.
“This working group has been welcomed by the government in providing information and ideas on action to be taken to meet carbon reduction targets in off gas grid buildings and we would welcome the opportunity of setting up a working group with minister Bruton.
“We are not trying to protect the heating oil industry at all costs and we recognise and support the Irish Government’s work to meet carbon reduction targets but our members believe that a liquid fuel should have a major role in meeting the future needs of off grid homes. There is ample supply, an effective distribution network and low-cost installation requirements to use oil for heating and cooking. These are excellent benefits which could be retained using a bio or carbon neutral liquid fuel.”
Ongoing running costs continue to be good versus electric solutions and this is supported by the recent figures released by Sutherland Tables, a recognised independent source of comparative domestic heating prices, who say the average annual cost of heating a three-bedroom home in Ireland with heating oil is €1,594 per year when the same house to heat using electric storage heaters is €2,153 per annum. Oil is also far cheaper than air source heat pumps (with radiators) at €1,890 per year and LPG €2,296.
The social implications for having a dependence on one technology are also important and should not be understated. With 400,000 households in Ireland in fuel poverty, replacing oil with high capital/high running cost alternatives will directly affect those people most in need.
The FPS believes the government should look at a tiered approach to achieving the 2050 carbon reduction target, setting a pathway of home heating carbon emission reductions. That way industry can adapt all aspects of technological innovation thereby providing the means for consumers to make cost competitive choices in meeting those targets. A change to the standard specifications of the fuel would also give industry time to implement innovative solutions.
“Such a pathway would also give consumers the opportunity to make short term efficiencies such as replacing old oil boilers now,” added Guy Pulham.
“Highly efficient, oil-fired condensing heating systems save up to 30% of fuel oil, and by adding smart meters to tanks and installing better insulation in homes further efficiencies can be achieved. We urge minister Bruton to meet with us and discuss a pathway forward.”www.fpsonline.co.uk/
Ensuring fuel tanks are well-protected
An increasing number of fuel thefts have been occurring at transport premises where stock tanks are being targeted, with some companies having encountered multiple attacks where large quantities of fuels have been stolen.
Thefts have risen sharply over the winter months according to Fuel Theft Solutions with organised criminals using adapted vehicles to take advantage of the increased darker hours and tank positioning. Traffic noise and refrigerated units running, further enables the use of fuel transfer pumps to go unnoticed.
The company also points out that there have been many reports of perimeters being breached with fences cut or unbolted. By drilling into the ullage area and passing a pipe through into the fuel, stock tanks have been targeted with a a magnetic cover used to conceal the hole. Other breaches have occurred where the top lock has been cut and the inspection cover opened.
Among the measures, the company advises to help combat theft are the installation of CCTV and improved lighting; the removal of foliage around stock tanks and perimeter fencing; the installation and use of audible padlocks and inspection hatch alarms; the use of security marked grease on the fuel tank and the use of DieselDye™ with signs warning of its use.www.dieseldye.com
“We recognise that claims are often behaviour driven, which is why we have embedded Risk Management at the heart of every policy,” commented Stewart Ower, managing director of Compass Environmental
As leaders in their respective industries, Evergreen Insurance Services and Compass Environmental Consultancy have joined forces to provide a unique insurance and risk management solution for fuel oil distributors.
Alongside their insurance partner Aviva, one of the UK’s largest insurers, they have created ‘Oilshield’, a comprehensive insurance package to provide whole business protection, all under one policy.
With ever increasing fines and significant reputational damage for causing environmental pollution, it has never been more important to have adequate protection if the worst should happen. Every year millions of deliveries are made to domestic and commercial premises. Getting it wrong, just once, could put you out of business.
“Whether it’s the bulk storage of fuel at a depot, the transportation of fuel to clients or the delivery of fuel into their facilities, we recognise that each part of the journey presents its own unique obstacles,” said Dave Gardiner, of Evergreen Insurance Services.
“That’s why Oilshield protects all aspects of fuel distribution operations – property, vehicles and driver actions all covered under one policy.
“We recognise that claims are often behaviour driven, which is why we have embedded Risk Management at the heart of every policy,” commented Stewart Ower, managing director of Compass.
“As part of an ongoing relationship, Compass Environmental will deliver a programme of risk management initiatives that are relevant to your business with emphasis on promoting continual improvement to minimise risk.”
To discuss your insurance needs, call 020 3907 1361 or visit www.oilshield.co.uk.
