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Adding another dimension to Jet’s 60th anniversary celebrations is the “JET SET GO” summer promotion, launched across Jet’s dealer network to engage with customers and increase forecourt footfall.
Until 7th September, customers visiting Jet petrol stations will receive a unique code voucher to enter online where they will instantly find out if they have won one of more than 1,500 summer-themed prizes – including BBQ sets, travel gadgets, beach mats and picnic sets.
To encourage return forecourt visits, customers collecting three vouchers will automatically be entered into Jet’s prize draw to win one of four holidays worth £5,000 to a destination of their choice. Jet has partnered with its fuel customer, Jet2holidays.com, for the promotion.
Anne Day, brand communications manager of Phillips 66 UK & Ireland Marketing, comments: “Promotions have been a key element of Jet’s marketing strategy for many years and we are continually looking at new ways of engaging with our customer base.
“By making it very easy to enter, providing great instant prizes, a range of in-store POS and an integrated on and offline marketing campaign to support the promotion, we’re confident that we can drive customers on to our forecourts, increase brand loyalty and generate a real ‘feel good factor’ among UK consumers this summer.”
Ineos is giving the strongest signal yet of its intention to move into the controversial area of fracking.
The privately controlled chemicals group said it was now “more or less likely” that it would apply for a licence to extract shale under the 14th round of onshore applications launched by the government recently.
Ineos has already hired a small team of shale experts, and the company is also busy investing at Grangemouth to handle large quantities of ethane gas derived from shale in North America.
“Britain needs gas as part of its new energy strategy, both as a bridge to renewables and as a backup to intermittent [wind] power generation. If you have gas, why not use your own? Doing something [in the field of the extraction of UK shale gas] would be more or less likely for us, but as to exactly what we do not know yet,” said Ineos director, Tom Crotty.
“Clearly we need a degree of confidence that there is the gas that everyone says there is. The British Geological Survey [BGS] has given its view, but we need to make our own assessments,” he said.
Ineos needs gas as fuel for its chemical production plants at Grangemouth and Runcorn in Cheshire, and Tom Crotty expressed frustration at the slow place of UK shale development. He feels the industry is held back by a lack of clear communication and leadership.
There has been speculation in the past that Ineos might throw its weight behind one of the existing explorers, such as Cuadrilla Resources, but the chemicals group is now thinking it might “test the water” and apply for one of its own licences.
Over the past 12 months several larger companies, including Centrica, Total and GDF Suez, have joined smaller independents, such as Cuadrilla, Celtique Energie and IGas Energy, in taking a stake in various existing licences with shale potential.
The sale of Murco’s Milford Haven refinery has been confirmed, saving the facility from closure and safeguarding 400 jobs.
Murphy Oil Corporation has announced that its wholly-owned subsidiary, Murco Petroleum, has signed an agreement to sell its Milford Haven refinery and terminal assets to Klesch Refinery. The price of the deal was not disclosed. It added that a separate transaction for the sale of Murco’s UK petrol station retail business is at an advanced stage, and the company will provide a further update on this in due course.
Klesch said in a statement: “We look forward to using our considerable industry expertise to return the site to profitable growth. By taking a long-term investment view we aim to secure the future of this refinery, for its employees and the broader community.”
The Klesch Group is a global industrial commodities business, with three divisions specialising in the production and trading of chemicals, metals and oil. Founded in 1990 with headquarters in Geneva, it has revenues in excess of €5 billion, and employs more than 2,000 people across 30 locations in over 17 countries around the world.
Murphy Oil announced more than three years ago that it intended to sell its UK business, comprising the Murco filling stations and the oil refinery. The company halted production at Milford Haven in May after a potential deal with London-based private equity fund, Grey Bull, broke down. The refinery has been a major employer at the port since it opened in 1973.
Although it has not been confirmed, the owner of Motor Fuels Group (MFG) is believed to be in talks to buy the 228 filling stations owned by Murco. Private equity group Patron Capital, which bought MFG in 2012 and a further portfolio of 54 Murco filling stations last year, is believed to be in negotiations over a deal worth around £200m.
In January 2012 Patron Capital Partners teamed up with Aberdeen oil tycoon, Alasdair Locke, and paid £40m for MFG, then one of the largest independent petrol station groups in the UK, and currently ranked fourth in the Forecourt Trader Top 50 Indies. In August last year the two parties teamed up again to buy a portfolio of 54 Murco petrol stations in a deal worth more than £50m.
The Institution of Occupational Safety and Health (IOSH) is urging businesses to educate their fleet managers and drivers about the risks of failing to check blind spots before carrying out a manoeuvre.
Figures published by the Department for Transport show that during 2012, a total of 866 vulnerable road users were killed on the UK’s roads, while a further 13,781 were seriously injured.
IOSH senior policy and technical adviser, Phil Bates said: “It’s vital that companies ensure their workers are fully aware of their responsibilities to act in a safe and shrewd manner every time they get behind the wheel.
“This means grasping the importance of blind spots, as 75 per cent of collisions reported in Britain each year take place at or near junctions, where motorists may have had their vision obscured.”
In order for fleets to lower such risks for their drivers, various technologies are now available. They include CCTVs to give drivers a 360-degree view around their vehicle; wide angle and blind spot mirrors; automatic side mirrors that move to cover blind spots when turning; and rear, front and side sensors to detect obstacles.
After a government review established seven actions to support the health of the UK’s refining sector and to ensure our fuel supply resilience, the sector is receiving increased attention. But, will the new Midstream Oil Task Force be able to fulfill these actions?
Reflecting the government’s position on refining, the statements below are taken from the ministerial foreword from DECC’s recently published review into refining and fuel imports.
New figures from the Department of Energy and Climate Change (DECC) show the south west is leading the switch from oil to renewable forms of heating such as biomass boilers and heat pumps
Matt Lockhart, WP Group
“Renewable sources of energy are undoubtedly the future however the current reality of renewable energy for the majority of domestic homes is neither accessible nor feasible.
Despite considerable investment from the government, renewable energy makes more sense for commercial buildings rather than domestic use at present. The government’s Renewable Heat Incentive (RHI) offers an exciting opportunity for industry to offset the initial outlay for a biomass system. This form of energy offers more than just an energy source for industry, there are huge advantages in marketing applications for companies who make the switch.
However, the fact remains that biomass systems and heat pumps demonstrate barriers to consumers mainly due to space and initial cost. If an individual were to install a biomass boiler they would on average need to pay £25,000 plus VAT in addition to an annual service cost. Biomass boilers also require a greater amount of internal space for storing both the boiler itself and the fuel store. This initial investment is extremely high and could take up to 10 years for the switch to generate return for the consumer.
Heat pumps, regardless of costing much less, also have several drawbacks; they tend to be somewhat ineffective in any climate where the outdoor air temperature falls near or below freezing. This is because moving heat from a very cold area to a hotter one takes more energy than moving heat between two areas with a more moderate temperature difference. Typically in the past this might not have been such an issue in the UK however, changes in the climate are causing our winters to become much colder, a trend which looks set to continue. Despite the current drawbacks of biomass systems there are both long term cost and sustainability advantages which are attractive.
WP Group takes sustainability very seriously and is committed to delivering a range of products and services designed to improve efficiency and reduce carbon output. Renewable energy forms are costly however they will be an inevitable solution to a growing shortage in current non-renewable resources, the companies recent interest in the biomass market is a reflection of this industry demand.
In summary, renewable energy sources are not a realistic option for a vast majority of our domestic customers at present. Commercially, however, companies can benefit from bio systems harnessing this energy to generate significant profit and reduce carbon emissions. WP Group is currently investigating routes into this market in order to offer companies a complete energy solutions package as part of our ongoing commitment to sustainable alternatives.”
Kevin Bennetts, Consols Oils
“Working on the assumption that it’s much easier to upset customers than it is to please them, it’s a miracle that that there are any customers left since the disgraceful excessive pricing episodes of 2010 which saw the industry assume the same status as estate agents and politicians. Customers have woken up to the fact that in some cases they have been long abused by suppliers they had trusted.
This has led to a splintering of our marketplace with streetwise buyers defecting to renewables, and price comparison operations and buying groups gaining traction on the illusion that they can source cheaper oil.
If the market was operating properly in a truly transparent manner there would be no scope for cheaper oil because suppliers would be selling it at a margin that while allowing an essential element of profit, would be hard to beat by any third party seeking to take their own turn out of the transaction.
Instead we have suppliers continually playing the ludicrous game where new business shopping around gets a suicidal rate, subsidised by the loyal customer who pays over the odds.”
Like driving on the left, the UK is pretty much on its own when it comes to using kerosene as a heating oil
Picking kerosene in the UK because of its suitability for vaporising burners, most of Europe opted for gas oil because it was cheaper than kerosene and meant there was no need to steal fuel from the more valuable aviation market.
With 44% of our kerosene now imported from the Middle East, Asia, Russia and South America, quality is variable reported Julia Mansfield at the Fuel Oil News Distributor Debate earlier this year.
Julia, a chemist with 19 years experience in fuel and fuel additives, understands fuel. In her capacity as technical business development manager at Fuel Additive Science Technologies (FAST), last year she tested over 200 fuel samples sent in by customers.
Thirty-one percent of the samples tested were kerosene; 41% of which were found to have no problem with the fuel. Of the remaining figure, two thirds had produced coking problems in AGAs or similar cookers, 25% had housekeeping issues whilst 18% had intrinsic problems within the fuel.
In a bid to reduce illegal oil trading, the Revenue Commissioners introduced monthly Return of Oil Movements (ROM1) reports into the Republic of Ireland last year. Feeling weighed down by ROM1’s administrative burden, its introduction was initially met with some reservation
More than a year on, industry players can now see benefits writes Irish correspondent Aine Faherty – particularly towards the achievement of its goal to reduce illicit trading. Now Northern Ireland is also looking at ROM1 with a view to changing its existing RDCO system.
ROM1 – sales of legal diesel are on the rise
Since the introduction of ROM1 in January 2013, it is estimated that the legal diesel market in Ireland has risen 5.2%. Twelve months prior to this, the same market was down by approximately about 1.2%.
According to Paul Candon, Topaz marketing and corporate services director these figures provide ‘positive proof’ that the new legislation is having an impact.
“In recent years, rogue operators have become highly efficient in their operations. The fact that all genuine licence holders must now submit details, including opening/ closing stock balances and details of purchases/sales for all oil products, means illicit trading is now more difficult than ever,” said Paul. “This issue is island-wide and also of great concern north of the border.”
Time to improve RDCO
Despite the RDCO system having been in place in Northern Ireland since 2003, the trade is still running at close to a £160m loss to Treasury. Although this tax gap has decreased by £50m since its introduction, Paul says it indicates that more work needs to be done.
“RDCO was a huge step forward for HMRC but the scheme needs to sit in sync with ROM1 in terms of the requirements for the licence holder,” adds Paul. “There need to be stronger controls in place where the movements of stocks and goods supplied are fully traceable, as well as a stronger legislative requirement for reporting.”
Donall O’Connor, managing director of Value Oils, which operates north of the border, believes that for the most part, the RDCO scheme does not appear to have stopped illicit product being bought and sold in Northern Ireland.
“Despite the fact that over 460 retail sites have been found with illegal product since 2011, there has not been a single prosecution. I don’t have much faith in the present RDCO system as it operates.”
In Donall’s view the changes which have been suggested to make RDCO more similar ROM1 – to include purchases with sales – might be beneficial.”
Making further improvements to ROM1
For Jim Fitzgerald, managing director of Campus Ireland and chairman of the Irish Petroleum Industry Association (IPIA), ROM1 is an important part of the Revenue Authority’s campaign against fuel laundering in the Republic. “ROM1 is achieving its goal and has the full support of the oil industry as represented by IPIA.
“Early indications are that it appears to be having a positive effect in cutting off supply to the launderers,” Jim added. “IPIA and Revenue are in ongoing discussions to see how the effectiveness of the campaign can be improved further.”
Top Oil is wholly supportive of all measures taken to protect the legitimisation of the oil industry. John O’Donovan, Top Oil’s national reseller manager says that although ROM1 returns have increased the administrative burden on all oil businesses, especially the smaller players with less administration resources, “if it achieves its aims we believe it will be worthwhile,” says John.
“To begin with ROM1 returns did create an administrative headache for us,” said Rita Lambe of Lambes Oil, Co Offaly. “Now it’s a fairly routine operation which has made everything more transparent. It’s also gone some way to reducing the activity of rogue traders which is a good news all round.”
Does RDCO need updating?
Email Aine@fueloilnews.co.uk.
New head of national accounts, Franco Moller
Certas Energy has appointed Franco Moller as its new head of national accounts.
Franco brings a wealth of experience in the transport and logistics industry, having previously worked for rail services provider, DB Schenke.
Based at Certas Energy’s Birchwood office, Franco will spearhead the national accounts plan focusing on securing new contracts, developing the customer base and further establishing the company as a key player in the industry.
Managing director, Paul Vian commented: “Franco’s strong professional background and relevant experience of both the transport and logistics sectors makes him a valuable addition to our team.
“He joins us at the start of an exciting period of business growth, as our National Accounts team and the wider business go from strength to strength. As a senior business manager, Franco will be integral to promoting our company values and safety first culture.”
Franco added: “Customer service excellence is central to Certas Energy’s approach and I look forward to bringing this to life by working closely with the national accounts team to execute the businesses’ growth plans successfully.”www.certasenergy.co.uk
Dunraven’s product development manager, Michael McCaughley celebrates success at OFTEC’s Awards for Excellence
Dunraven Systems OilPal integrated heating oil management system has won the Innovative Product of the Year accolade at OFTEC’s Awards for Excellence.
Speaking after the presentation, Dunraven’s Michael McCaughley said: “We’re delighted to have won this much sought-after award. OilPal is a truly revolutionary product and the world’s first integrated heating oil management system. Not only does OilPal allow customers to monitor the level and volume of heating oil inside their tank, it allows them to check supplier prices and order fuel from any web connected device, including smartphones and tablets.
“As a business-to-consumer (B2C) product, OilPal perfectly complements our existing depot based Apollo RMS remote tank monitoring system. Indeed, for heating oil distributors who want the best of both worlds, we can even now offer an own-brand, white label version. This provides consumers with similar functionality to the proprietary OilPal product, whilst limiting online engagement options to a single distributor and putting that distributor’s brand at the heart of the customer experience.”
Having celebrated 10 years in business in 2013, Dunraven is currently benefiting from buoyant demand for its Apollo brand range of storage tank monitoring and energy management products – especially in international markets, which now represent the majority of the company’s sales. In response, Dunraven has recently completed a significant expansion of the company’s R&D, product assembly and customer support facilities at its Co. Louth headquarters.
Michael says, “Last year, we celebrated ten years of success. However, rather than resting on our laurels, we recognise you don’t stay ahead by standing still – especially with modern monitoring and communications technology developing at an ever faster pace. As we look ahead to Dunraven’s next decade, we will continue to develop our range of market led monitoring technologies.
“The success of our company to date has been built upon a flexible approach to customer requirements, coupled with unrivalled reliability and world class customer service. We are determined these values will remain at the heart of our business.”www.dunravensystems.com
The Freight Transport Association’s (FTA) Transport Manager series of conferences has become a must attend event for all transport managers across the country, providing the latest information, guidance and best practice advice on forthcoming legislation and enforcement changes.
At the 2014 series of events, sponsored by Goodyear and Volvo, delegates will hear from the Driver and Vehicle Standards Agency (DVSA) and the Traffic Commissioner.
The DVSA will be unveiling its systems approach to recognising individual operator culture and its attitude to compliance, outlining enforcement priorities for the coming year, discussing how the Agency is working in partnership with industry and providing an insight into the future enforcement of the seriously non-compliant.
The Highways Agency will be on hand to discuss pressures on the strategic road network and how it deals with challenges such as minimising the impact of road closures.
Other key sessions will include presentations on Trucks of the Future and understanding the new Guide to Maintaining Roadworthiness
The Transport Manager series will be on the road throughout the UK from September to December 2014:
Wednesday 10 September – Brands Hatch
Wednesday 17 September – Durham
Wednesday 24 September – Warrington
Wednesday 1 October – Leeds
Wednesday 8 October – Taunton
Wednesday 15 October – Huntingdon
Wednesday 22 October – Chepstow
Wednesday 29 October – Dunblane
Wednesday 5 November – Sheffield
Wednesday 12 November – Southampton
Wednesday 19 November – Slough
Wednesday 3 December – Birmingham
The cost for FTA members is £295 plus VAT for the first delegate and £265 plus VAT for subsequent delegates; for non-members £395 plus VAT for the first delegate and £365 plus VAT for subsequent delegates.
www.fta.co.uk/events/Transport_Manager_Conferences_2014.html
Measurement of the quantity and quality of petroleum and its products is vital for accurate allocation, custody transfer and fiscal purposes, stock control and loss prevention. The Energy Institute (EI)’s Hydrocarbon Management Committee (HMC) has developed new online training and good practice guidance to support greater understanding in this field.
The new resource – Online training for hydrocarbon management – has been designed to improve knowledge of these issues across various parts of the industry.
Given the international focus of hydrocarbon management, there is a clear need to standardise and align processes, to inform industry and to promote consistent and accurate measurement of the quantity and quality of products at various points along the supply chain.
The training is broken down into a series of modules to introduce the key elements of hydrocarbon management to those who are relatively new to the topic or who simply wish to refresh their knowledge. This project has been devised by the EI’s HMC in conjunction with IDESS Interactive Technologies Inc and SGS.
The first two modules in the training resource are now available:
· Petroleum measurement (for marine cargo inspection) covers marine cargo measurements and matches the requirements of the IFIA Inspector Certification Programme. This includes the safety, sampling, testing and calculation procedures associated with hydrocarbon management.
· LNG operations (sea transport) provides a solid background to those involved in handling marine LNG cargoes, covering the product properties and measurements and also vessel operations and load and discharge procedures.
HMC guidance covers all aspects of petroleum measurement from production allocation through to transportation and refining. Other recent EI technical publications cover general terms and conditions for the sale and purchase of crude oil, cleaning of tanks in marine tank vessels carrying petroleum or refined products, and procedures for cargo inspections for crude oil, products and liquefied petroleum gas. www.energyinst.org/hydrocarbon-management
A survey of 750 oil-using homes by Watson Petroleum and OFTEC earlier this year has revealed that oil heating remains a popular choice with few owners thinking of switching.
Of those that expressed a preference, most were satisfied with their existing heating system while 73% of those considering replacing their existing boiler will install a new oil condensing boiler. By contrast only 4% were considering switching to an air source heat pump.
“Oil is becoming more affordable and competitive, and the cheapest option going forward for most off-gas homes” says Jeremy Hawksley
New research commissioned by OFTEC and the FPS predicts the price of oil will continue to fall over the next three years, spelling more good news for the industry.
The results forecast that by Q4 2014, the price of kerosene will have reached 55.52ppl in the UK and 75.81 cents per litre in Ireland. From there, prices are forecast to drop to reach 54.00 ppl in the UK and 74.10 cents per litre in Ireland by Q4 2016. The forecasts show that prices will fall further into Q2 2017 to reach 53.43 ppl and 73.39 cents per litre.
The predicted drop in oil prices comes at a time when gas and electricity prices are continuing to rise, evidenced by the latest Sutherland Tables data.
These figures show the average annual cost of heating a three bedroom home by gas and electricity has increased over the last three years by 34% and 27% respectively. This compares to the cost of using an oil condensing boiler which has fallen by 12% over the same period.
The National Audit Office also predicted that consumers face almost two decades of price rises for electricity, gas and water to fund £310 billion worth of new infrastructure.
Commenting on the research, which was carried out by UX Energy Services, OFTEC director general Jeremy Hawksley said: “It is of course impossible to predict how future world events will pan out and exactly how these will affect the price of oil.
“However, the research remains valid and shows that the general trend of falling oil prices is expected to continue. This underlines the fact that oil is becoming more affordable and competitive, and the cheapest option going forward for most off-gas homes.”
As part of its 60th anniversary celebrations, JET has announced a three-year sponsorship package that will see the fuel brand appointed as the official fuel partner of the Silverstone Classic.
In the run up to the World’s Biggest Classic Motor Racing Festival, which takes place at Silverstone from 25th – 27th July 2014, the company will also be giving away an incredible money can’t buy prize.
The unique prize for two lucky individuals includes a 25 minute GT Legends high speed parade with a professional driver, a ride in the pace car, BMW luxury transfers, a helicopter ride, onsite accommodation, a guided tour of Race Control, VIP concert stage bar passes with a private backstage tour of the concert area, performance driving sessions, tickets to the BRDC Silverstone Classic Dinner and £500 spending money. Entries close on 18th July and full details of how to enter can be found at www.jetlocal.co.uk/moneycantbuyprize
Pete George, managing director, Phillips 66 UK and Ireland Marketing, comments: “2014 marks the diamond anniversary of our fuel brand JET – 60 years since JET opened its first petrol forecourt in Yorkshire. This is a real milestone for us as a company and an achievement that we are very proud of.
“As part of our anniversary celebrations, we are delighted to become Silverstone Classic’s first official fuel partner. To be part of the world’s biggest classic motor racing festival at the iconic Silverstone circuit is a great honour and seems a fitting way to mark 60 years of delivering the highest quality fuel to our network of 300+ independently operated service stations.
“Over the next three years, our sponsorship of this hugely popular event will provide us with a number of opportunities to engage with sports and motoring enthusiasts throughout the UK.”
As part of the agreement, JET will also take on the title sponsorship of the two iconic HSCC Super Touring Car Championship races.
www.jetlocal.co.uk
Caught on camera – Le Craggs team
When Le Grand Depart came to Yorkshire, Craggs Energy was in pole position.
“As a company with its origins firmly in Yorkshire, we were immensely proud that Le Grand Depart came to our county,” said marketing manager, Ben Duckworth.
“The stage two route came right past our head office in Cragg Vale and we felt very privileged to witness this once in a lifetime event. The whole team came out to enjoy race day and we were even lucky enough to get an aerial shot of our wagons on ITV!”
Certas Energy has announced a new facility supplying marine gas oil MGO <0.1% sulphur DMA grade at Port of Tyne in North Shields.
The facility, which comprises of a new pipeline as well as fuel storage facilities, opened on 10th June 2014. It also offers an ex-pipe facility, a convenient service for large ships, as well as providing MGO across the North East region by truck.
Gary Byers, head of marine, said: “Our decision to expand our services with this new facility demonstrates our continued commitment to delivering a cost effective service for our customers. We are continually developing our portfolio and this is the latest expansion in the North East.
“We have forged strong relationships with UK refineries to meet the pricing and quality demands of the shipping industry and our growing depot network will ensure customers can access our products across the UK.”
Port of Tyne is the latest addition to the company’s portfolio, which is expanding across the UK. The network features depots in many major UK ports, including the Isle of Wight, Isle of Man, Orkney, Southampton and Shetland Islands. It also has an ex-pipe facility at Aberdeen, barging on the Thames, the recent IFO facility in Dundee, a pipe fed marine bunker facility in Oban as well as an excellent nationwide delivery infrastructure.
The new pipeline will offer local and international customers MGO <0.1% sulphur DMA grade, which has the cold filter plugging point (CFPP) guaranteed.
Designed to offer complete flexibility for customers, there is no minimum or maximum fuel quantity and orders can be made in cubes or metric tonnes and paid for in US dollars, Pound Sterling and Euros. www.certasenergy.co.uk