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Drivers call for a new union

 Tanker drivers have called for a new union – the National Tanker Drivers’ Union – to be set up. “We could call it NTU, the National Tanker Driver’s Union,” wrote an anonymous driver on the DCC-GB Oils drivers’ info blog.  “We could recruit every driver in every sector of the industry.” Arguing that Unite, the drivers current union would not provide enough leadership going into the winter, the poster added:  “I’ve spoken to a lot of main fleet drivers who feel the same way, and they would be interested in a union that deals with our problems and not everybody else’s.” Others commenting on the post were quick to agree, one pointing out that he had received a letter saying his current union fees were set to be increased. Another argued: “We should be fighting for equal pay and terms and conditions for all drivers of all brands. We all do the same job, some are paid a lot more than others, some are on time and a half everyday, some get sick pay, some get laundry allowance and some are paying for the driver CPC.” http://dcc-gboil.blogspot.co.uk/

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The winning ways of trucks

Comedian and compere Sean Lock and DAF’s Ray Ashworth are joined on stage by John Jackson, sales manager, Chevron Lubricants – sponsor of the award As DAF’s CF85 vehicle wins Fleet Truck of the Year for a record-breaking 11th time, Volvo continues to strive to cut the number of rear-end impacts. Ray Ashworth, managing director of DAF Trucks UK said: “To go on winning the Motor Transport award during some of the most challenging years the UK transport industry has ever experienced, underlines the key principles of our truck range – maximum reliability, highest driver comfort, together with the outstanding in-service support provided by our nationwide network of dedicated dealers.”Volvo helps drivers avoid accidents Meanwhile the first results of the European Field Operation Test (euroFOT) field study presented in Brussels earlier this year, showed that Volvo Trucks’ active safety systems can help drivers avoid accidents. “We studied 30 trucks, operating with two haulage firms, and examined the effectiveness of three systems: Adaptive Cruise Control (ACC), Forward Collision Warning (FCW) and Lane Keeping Support,” says Karsten Heinig, manager of the project at Volvo. The study revealed that ACC and CW, which are used together to maintain a safe distance behind the vehicle in front, could cut the number of rear-end impacts on motorways by 15%. “On average, the system is used less than half of the driving time. If usage increases, this will bring about a further reduction in accidents,” adds Karsten.

News

Oil boiler sales fall

Figures supplied by OFTEC members to HHIC Boiler sales for the first six months of 2012 are at the lowest for 10 years, figures have revealed. Sales of all oil boilers during this period were at 23,254 compared to 26,590 during the first six months of 2011. The figures cover all the SEDBUK bands and are based on figures supplied by OFTEC members to the Heating & Hotwater Industry Council (HHIC). Numbers also showed that sales of all gas and LPG boilers were recorded at 671,435 from January to June this year, which was a 5.9% fall on the sales during the same period of 2011. The HHIC has called for urgent support for the construction industry which is in a “perilous state”, before boiler manufacturers and other related businesses fall victim to the depressed state of the housing market. Manufacturers have invested heavily in new product development, but remain dependent on a large number of property transactions.

News

Total outlook downgraded from stable to negative

Moody’s Investors Service has changed the rating for Total SA from stable to negative. The move reflects Moody’s concerns that significant investment in Total’s upstream business since 2010 has constrained the recovery in its credit metrics, despite buoyant oil prices. Figures from June 2012 showed that upstream investments from the previous 12 months amounted to $26billion, compared to $15billion in the 12 months prior to June 2010. This increased capital spending includes Total’s growing involvement in major long cycle projects, such as shale gas, and the formation of new partnerships with independent exploration and production companies. This has resulted in a higher allocation of capital towards unproved, not yet producing assets. However, on a more positive note, ‘Moody’s expects Total’s operating cash flow to benefit from the start-up of several upstream projects, which should help raise production to around 2.7million barrels of oil equivalent per day by 2015, and yield barrels of a higher margin.

News

Rural energy grid launched in Cornwall with Community Buying unLimited

Community Buying unLimited has teamed up with Cornwall Together, which unites the power of the county’s major employers to negotiate with energy companies to achieve the best deals on oil, gas and electricity. The model, conceived by the Eden Project and launched in late July, includes Cornwall Council, Cornwall NHS, St Austell Brewery, CEP and Unison. Community Buying unLimited, which is set to manage the oil side of the negotiations, is hopeful of rolling the system out across the rest of the UK very quickly. Founder, Chris Pomfret, hopes that this will help the oil supply industry to keep track of when customers are likely to order more oil, preventing shortages for buyer and supplier. The model is based on businesses being connected together by Smart Meters, which allows users to keep track, via the internet, of their own energy levels and current information about prices and supplier levels. However, Kevin Bennetts, owner of Consols Oils, said: “Community Buying unLimited claims to be about to revolutionise oil sales and sort out dishonest inefficient oil suppliers. But to deliver oil you need tankers, and the company doesn’t have any. While he sits and thinks, we are investing heavily in order to serve our customers better. “Smart meters will see future orders go to the most suicidal quote from a firm that is desperate for work. “Family firms like Consols Oils work in clearly defined areas where they are part of the community they serve, and have been built up through hard work and dedication. Our biggest asset is our loyal customer base.” Fuel Oil News will be looking at the scheme in more depth in the magazine, and will be looking for comment from distributors. To comment, please email alex@fueloilnews.co.uk

News

Craggs Energy takes over Samuel Cooke and Co depot in Padiham

Craggs Energy managing director, Chris Bingham, and new depot manager Jeremy Cosway Craggs Energy has become the new owners of the Samuel Cooke and Co depot, based in Padiham. Last month came the sad news that the Burnley based fuel distributor Samuel Cooke & Co, had gone into administration resulting in the loss of over 80 jobs. Craggs Energy, an independent fuel company based in Hebden Bridge, has taken over the depot and launched the business in the Lancashire area using the local knowledge of two former Samuel Cooke and Co employees. Craggs Energy managing director, Chris Bingham, explained: “We have built our business by using experienced staff and delivering high levels of customer service at a fair price. Opening a depot in the Burnley and Pendle area means we can extend this promise and provide the local area with a family run local company they can trust to take care of their fuel requirements” Jeremy Cosway, ex depot manager, and Ben Duckworth, ex marketing manager, of Samuel Cooke and Co have both joined the team  to launch the new Padiham site. Jeremy Cosway said: “I worked at Samuel Cooke and Co for six years and I was the depot manager for two of those. It was sad to say goodbye but I’m really happy that I can continue my career in Padiham and continue to focus on the local area”. Ben added: “I was really disappointed when Samuel Cooke and Co Ltd was forced to close, but thanks to Craggs Energy, we can continue our efforts of serving the Burnley and Pendle area out of the well-known Padiham depot.”www.craggsenergy.co.uk

News

GB Oils appoints new regional manager in south east Anglia

New regional manager for south east Anglia, Keith Durrant GB Oils has appointed Keith Durrant as regional manager in south east Anglia, to manage the new Pace Fuelcare depot in Ipswich. Keith, who has lived much of his life in the local area, brings a wealth of business experience to the role, having held several senior managerial positions with companies such as ICI, Burmah – Castol and Total. Keith joined GB Oils two years ago. His primary objective in his new role will be to stimulate organic growth and elevate the Pace brand to become the first choice for customers across the region. The area includes oil distribution depots in Shefford, Letchworth, Cambridge, Braintree, and Hadleigh, plus the newly constructed multi million pound terminal in Ipswich. Simon Willis, general manager at GB Oils, commented: “Keith’s appointment to manage the business in south east Anglia comes following his successful work for the company during the past two years. We have no doubt that he will be fantastic in this new role and will help deliver our ambitious plans for the new depot and wider area.” Keith added: “As well as providing competitive pricing and continuous improvements to services, my aim is to ensure we continue to deliver exceptional standards of customer satisfaction, whilst remaining at the forefront of fuel distribution, both within east Anglia, and throughout the UK”.

News

OFT boosts transparency on heating oil prices

Following OFT action, GB Oils, the largest supplier of heating oil in the country, has changed its domestic heating oil contracts ensuring quoted prices do not increase from the time an order is made until the customer is billed on delivery. When a consumer orders from a supplier, ‘spot’ prices are quoted that reflect the current market price of oil. The OFT has today secured legally binding undertakings from GB Oils to change its terms and conditions ensuring prices quoted at order remain fixed until delivery. The action follows on from its 2011 Off-Grid Energy Market Study, which identified concerns that some suppliers may not be treating their customers fairly. Mary Starks, senior director in the OFT’s services, infrastructure and public markets group, said: “Customers need to know where they stand when they are dealing with suppliers. The action we have taken will allow consumers to buy with confidence, even during periods when the weather is snowy, and prices are changing rapidly.   ‘This adds to a body of enforcement work the OFT has undertaken to ensure that users of off-grid energy are treated fairly by suppliers.” Other action taken in this sector includes securing voluntary changes to the content of misleading websites, and voluntary agreements from the major liquefied petroleum gas (LPG) suppliers, to improve transparency around switching and cancellation rights.

News

Raw deal for rural renewables

With the RHI and Green Deal set to encourage a push towards alternative technologies, OFTEC has taken a look at the true costs of going green for rural homeowners. Using the Energy Saving Trust’s online ‘home energy generation selector’, costs and energy savings were calculated across a range of renewable technologies for a typical three-bedroom cottage in east Anglia, currently using oil for heating and hot water. If an existing oil-fired boiler was replaced with a biomass model then fuel bills would actually rise by £430 per year. Ground source and air source heat pumps did not fare much better – it would take between 31 and 200 years for any energy savings to make the installation costs worthwhile at today’s prices. In terms of carbon savings, the biomass boiler came out best, but at an increased running cost to the consumer. Users who switched from oil to an air source heat pump would actually be increasing their carbon emissions. The ground source heat pump represented the best option, with potential CO2 savings of 1150kg per annum.

News

Petroplus administrators reveal scale of Coryton’s financial woes

The joint administrators of Petroplus Refining & Marketing have published their first progress report on the administration, which illustrates the depth of the financial challenges faced in continuing to operate the Coryton refinery. The report provides creditors with a detailed description of progress that has been made in the six months since the appointment of the administrators. Trading losses from refining during the six-month period of administration are currently estimated at $22m-$31m, on sales of some $347m. Of this loss, some $20m relates to capital expenditure incurred and written off in the period. The report also states that an extensive exercise to obtain the best value for creditors from the sale of Coryton found that offers to run the site as a refinery were materially lower than for an alternative use. It is currently estimated that the net funds available for distribution to unsecured creditors may be in the order of $102m-$135m. Gross realisations from the assets of the company are projected to be $199m-$209m. Steven Pearson, joint administrator and PwC partner, said: “This has been an exceptionally difficult administration. The information we have published today illustrates the scale of financial and operational challenges we faced in operating the refinery for nearly six months. “The unfortunate reality is that, despite rigorous cost control, the refinery incurred significant losses from operations between January and June. This high risk, low reward environment was the main driver in having to cease operations – put simply, we could not afford to incur the ongoing losses associated with continuing refining.”

News

DCC to acquire BP’s LPG business in Britain

DCC has reached agreement to acquire BP’s LPG distribution business in Britain. Completion of the acquisition is expected to take place at the end of September 2012. The deal is worth approximately £40.5m, to be satisfied at completion, after the net tangible operating assets of the LPG business were valued at approximately £30m (€38m) on 31 December 2011. The Bristol-based business currently supplies a wide range of industrial, commercial and domestic customers with an annual volume of approximately 87,000 tonnes of bulk and cylinder LPG. It has 116 staff and operates from a network of 13 locations throughout Britain with a fleet of 62 delivery vehicles. Haulage services are principally outsourced. Flogas, DCC’s existing LPG arm in Britain, has annual sales volumes of approximately 190,000 tonnes. Tommy Breen, DCC chief executive, said:  “We have a successful track record in acquiring energy distribution businesses from the oil majors as they exit downstream activities. This transaction will enhance DCC’s position as the leading oil and LPG sales, marketing and distribution business in Britain.” www.dcc.ie

News

Mabanaft – delivering on the things that matter most to their customers

Mabanaft has sought feedback from customers to gain a deeper appreciation of their wants, and to focus on developing services for further improvement. The company recently conducted an online survey, and results found that, in addition to price, customer service, continuity of supply, accuracy of invoicing and efficiency of loading times were rated as being of key importance. Mabanaft was delighted that almost all participants rated them as above average across all of these areas, with 95% rating their customer service as very good or excellent and more than eight out of ten marking continuity of supply, efficiency of loading times and accuracy of invoicing as very good or excellent. The company also achieved a resounding vote of confidence in the quality of advice and expertise that they provide to customers, with 86% saying they found it to be very good or excellent. Stephen Rhodes, marketing manager, said: “I am extremely pleased with these results as they confirm that we are delivering on the things that matter most to our customers. I am also thrilled with some of the comments we received and proud of my team for delivering such high levels of service. We will now be looking to address any areas where customers feel there is room for improvement.” www.mabanaft.co.uk

News

Jet launches new campaign offering discounts on sporting activities

Jet is running a special sports and fitness promotion this summer, encouraging customers to enjoy a broad range of exciting activities. The campaign is set to run until October 31. Vouchers will be handed out to customers through the Jet Distributor network, and redeemable on the Jet-Local.co.uk website. One voucher will be distributed per transaction until October 31, set to be redeemable up to September 2013. During an Olympic summer when the country has embraced a wide variety of sports, the Jet Active promotion includes deals on swimming, golf, and martial arts. Free lessons and discounts are also available on experiences such as paintballing and holiday club visits. Additionally, in partnership with Blockbuster, customers will be offered a five week trial of the two DVD Unlimited plan, so they can look forward to a film on the sofa after a busy day of sports. People taking advantage of the deal will be encouraged to try a variety of experiences, with customers only allowed to redeem their voucher once at a specific venue. www.jetactive.co.uk

Analysis

Mabanaft – An “innovative approach” in a tough environment

Supporting customers and adding value is MabaLIVE’s online price information and fuel ordering service This is a time of unprecedented change for the downstream sector, with numerous factors conspiring to make this one of the toughest operating environments ever seen, says Mabanaft. “With over capacity and falling consumer demand throughout Europe prompting international oil companies to focus on upstream sectors, re-organisation and disinvestment has resulted, not least in refining and marketing in the UK,” said marketing manager, Stephen Rhodes.  Increased wholesale prices “Downstream fuel prices remain high, with governments looking to raise revenues through fuel duties and other fiscal measures. And investors are looking to place available funds into safe, secure commodities – such as oil – resulting in increased wholesale prices. Add to this fluctuating exchange rates, inflationary factors, political unrest in the Middle East, recession within the Eurozone, and a global economic slowdown – all are bolstering volatility,” added Stephen. Mabanaft has found that the current economic climate, combined with the high price of oil, has resulted in limited credit availability for all industry participants.  Suppliers are operating on lower stock holdings, which have the potential to impact on the prevailing cost of compulsory stock, leading to increased prices for consumers. “And the volatility of the biofuels blending markets, coupled with rigorous audit and sustainability requirements, are adding yet more costs to doing business,” adds Stephen.How is Mabanaft countering such difficult circumstances? Vast experience, and a thorough understanding of the fuel oil distribution market means that Mabanaft can offer valuable support and advice on purchasing fuel. “Innovation is key to delivering added and new value, and MabaLIVE, our online price information and fuel ordering service, is a good example of this,” says Stephen. “It provides immediate pricing information, enabling customers to make informed purchasing decisions and order fuel quickly and easily.” Mabanaft is also exploring new market sectors and ways of working with customers to meet specific requirements. This includes developing new methods of delivering fuel to market, as well as improved products.Building relationships and meeting customer expectations “We’re committed to understanding what our customers want – and we go out of our way to deliver. We are currently implementing a feedback survey to gain a deeper understanding of exactly what our customers value, and to ensure that we are meeting expectations.   “Credit lines and pricing structures are of critical importance in the current environment and Mabanaft is providing a range of options to enable customers to minimise price risk and exposure to price volatility. “We support customers,” adds Stephen. “And this includes delivering the basics accurately and efficiently – competitive pricing, accurate administration and a robust and reliable operational service.”        www.mabalive.com

Analysis

Greenergy – National expansion in sales and service

The new Cardiff facility is rail fed enabling more efficient fuel movements between terminals Despite a declining market, Greenergy has continued its rapid growth over the past 12 months – supplying 10.9 billion litres of fuel during the company’s financial year, ending April 12th – one billion litres more than the previous year, an increase of more than 10%.  “We’ve experienced growth in all areas of our business and in all locations,” Greenergy chief executive, Andrew Owens, told Fuel Oil News. “In particular, we’ve seen strong growth in diesel sales at Teesside following the administration of Petroplus, which brought their exit from nearby storage terminals. We’ve also experienced increased sales volumes for both petrol and diesel in the south east due to interruption of supply at Coryton. Operationally the business has coped well with this additional demand.” ______________________________________________________________________________