Latest
The Leicestershire-based independent and family-owned distributor, now in its 60th year, has recently been approved for two prestigious accreditations following a project that was first implemented in late 2020. With the company being recognised for excellence in administration systems, having been assessed and approved to ISO 9001 standard, as well as being awarded the Fleet Operators Registration Scheme accreditation we spoke with managing director, David Prince.
Diversification is a constant theme of our industry currently as those involved in all aspects of fuel production and distribution find ways to keep pace with the evolving nature of fuel demand. Here we speak with Damian Fusco, owner of Bangor Fuels in Northern Ireland, to learn how the business has grown and diversified since he took the bold step to take it on 20 years ago.
It began with belief
Now a multi-faceted business, Bangor Fuels is where it all started, and where Damian clearly still feels the greatest sense of pride. Damian takes us back:
“Most local people will recall Rayker Fuels, a coal business. Well, I managed them from 1994 and, after a few years there, I saw an opportunity to buy the business.”
It turns out that ‘buying the business’ was a different arrangement to the way it would usually be understood. Damian didn’t have the ready cash to invest in the way he wanted to but he did have sufficient belief in the future of the business to propose a bolder arrangement.
“I offered the owners the opportunity to sell to me and for me to pay them back out of annual profits. Accepted, I took over in 2001, and so it began. I had just backed myself to make a success of it and be able to make a living as well as paying for the business!”
A lot of hard work followed over the next 12 months leading to two major developments. January 2002 saw the purchase of a first oil tanker and then the business moved to Gransha Stores later that same year.
The years that followed were about keeping his head down and building a reputation.
“There is no real secret to those years,” Damian admitted. “It was largely down to hard work, making sure that our service was second to none, and holding a keen price. I didn’t have a grand vision of where the business was going, and none at all of me being where I am now.”
An unspoken testimony to the personal graft that Damian has invested over the years is that his hands are black. They are, in fact, ‘permanently black’ due to the number of times he lay under lorries and vehicles until the early hours of the morning putting in new clutches or doing what was needed to keep the wheels moving.
“If it needed done I just did it myself, whatever it was.” A commitment well understood by other self-made businesses but, as Damian is first to acknowledge, family and friends were also a ‘massive support’.
Constant investment and growth
As the company has grown it has continually looked for ways to improve and diversify through investment. By 2007, a new home was needed, and 5 Balloo Way was purchased, which is where Bangor Fuels remains now.
With the rapid growth experienced under his ownership, we asked Damian to explain the principles the business was so successfully built on and he answers without hesitation:
“Quicker, cheaper and more reliable. That’s what I set out to be and how we’ve succeeded. Furthermore, we are now renowned for our respected ‘one price promise’ – irrespective of distance.”
This approach proved to be a successful growth strategy, very popular with customers and, having started in North Down and Ards, BT1 to BT9 and BT16 were soon incorporated, and in time, greater Belfast and beyond as Damian confirms:
“We now go to Antrim and Larne, as demand has pushed expansion.”
Diversification came naturally
Another driving force is the desire to add value to the local area and employ people who are willing and keen to work. Constantly regarding challenges as opportunities has led to natural diversification and the business became businesses, with Damian now proud owner of not only Bangor Fuels, but also Fusco Vehicle Sales, Maypole Garden Services, Maypole Construction Design & Build, Maypole Lawnmowers and, most recently, Wolseys Bar & Restaurant. All are now prosperous, well-known local brands important to the local area with Bangor Fuels employing 35 people and 85 employed in total across the companies.
When asked how these other businesses came about Damian explains:
“What do you do with drivers in the summer when orders are down? How do you keep seasonal factors at bay and keep paying people? Well, we put an ad in the Spectator and opened a gardening company!”
And this ability to create an opportunity from a challenge wasn’t a one-off.
“What happens when you build a fleet of vehicles that need replaced, and need repaired, and lawnmowers that need updated and fixed. Well, you get the drift.”
At each challenge the business has evolved and grown, and we wonder what other developments may be coming.
“The challenges of the future are not just operational, such as the fact that it is now much harder to get qualified tanker drivers, but also how far to expand and develop the business.” Damian replies thoughtfully.
“I’m not necessarily going to grow province-wide, but the business is expanding organically as new customers continue to come to us. And I’m still very passionate about Bangor. All my businesses are in Bangor and I try to support the local community where possible. It would have been easier and less rick to tick along as Bangor Fuels, but I’m keen to invest locally, which is why I’ve expanded into other local areas”.
It seems that Damian is not a man to rest on his laurels and our suspicions are confirmed when we ask about his out of work passions. Damian thinks for a while then admits: “When I’m not working, I’m in work”.
Given this passion for the business and the area we have no doubt there will be more developments to hear from Bangor Fuels soon and we will look forward to sharing them.
The hands may be black, but the future certainly doesn’t appear to be so.
Covid-19 and plummeting oil prices are two of the most substantial challenges that the fuel oil distribution sector has faced in the past 12 months. But whilst these were very much in the spotlight, existing challenges continued to present barriers – one of the biggest being driver shortages across the UK and Ireland.
During recent conversations, several distributors have told Fuel Oil News that a shortage in drivers is one of the biggest challenges facing their businesses currently. With an increased workload for many distributors in an unseasonably cold spring, some distributors have had to rely on drivers hired from agencies, although this can sometimes be more of a hindrance than a help.
Carrie Marsh, managing director, Marsh Fuels told us: “We don’t use agency drivers any more after our own experience was that while the ones that came to us had the right ‘piece of paper’ to do the job, they had never put delivery by oil tanker into practise, let alone safely negotiate tight driveways at customer properties. We paid out more in repair bills…”
It is not just distributors that are struggling to fill the skills gap, however. A latest report from Logistics UK highlighted that almost one in ten logistics businesses (9.8%) say the recruitment of drivers is an ‘extreme barrier’ to the recovery of their business. Logistics UK is urging the government to take immediate action to unlock access to these careers for new recruits to the sector, in order to support the recovery of UK PLC.
The pandemic has not helped matters, as Alex Veitch, general manager for public policy at Logistics UK outlines: “Our report shows that 29% of logistics businesses anticipate that they will be unable to fill vacancies for HGV drivers this year; a further 14.5% expect long delays before filling a role. With the logistics industry in urgent need of these workers, Logistics UK is urging the government to provide interest free loans or grants to train or reskill potential employees and help recruit them into the logistics industry. The business group is also urging the Driver and Vehicle Standards Agency (DVSA) to maintain its fast-track programme to catch-up on at least 30,000 driving tests that were postponed due to Covid-19 between March and December 2020; this has left thousands of potential HGV drivers waiting in the wings when the UK needs them most to support every facet of UK PLC.”
Are you struggling with driver shortages? Do you think support from government will help to close this gap? Let us know stephanie@fueloilnews.co.uk
Essar Oil (UK) Limited (EOUK), which owns and operates the Stanlow Refinery, today announced that it has closed new financial arrangements of over US$850 million. This has allowed EOUK to replace its former credit facility as well as access additional capital, thereby strengthening its financial position.
The funding is made up of liquidity from a diversified range of sources, including bilateral arrangements with many of its key customers on enhanced payment terms and other long-term financings, linked primarily to crude supply.
With these financial arrangements now in place, EOUK has more low-cost liquidity to meet its upcoming requirements and can continue to focus its energies on its transition to become a “Low Carbon Energy Provider” of the future. EOUK is already working on delivering two blue hydrogen production hubs at Stanlow, which will attract £750 million in total investment.
Find out more about Essar’s transition to becoming a ‘Low Carbon Energy Provider’ of the future here.
Follow-on capacity growth is planned to work towards the Government’s new target of 5GW of low carbon hydrogen for power, transport, industry and homes. Stanlow is committed to reaching 80% of the Government-set targets. In addition, EOUK remains committed to delivering the necessary operational cost reductions at the refinery over the course of the coming year in order to help secure its long-term future and to ensure it remains competitive in its traditional refining business.
EOUK has also recently completed a review and update of its corporate governance and its board has adopted the recommendations arising out of that review process, which included independent input from Ashurst LLP. As a result of that process, the board has committed to appointing two independent non-executive directors to the board.
Commenting on the recent developments, chairman Prashant Ruia said: “Securing this financing demonstrates the confidence all our stakeholders have in our long-term vision for Stanlow.
“We believe this confidence will be further bolstered by the updates we have made to our corporate governance, which includes a commitment to appoint two new independent non-executive directors to our board. These appointments will further enhance our overall governance and risk assessment processes, as well as providing insights and strategic inputs to the business as it continues its transition to low carbon operations.
“With a strong economic recovery driven by the UK Government’s roadmap out of the pandemic, I feel that our business has moved into a positive and progressive phase for the benefit of all of our stakeholders and employees. We look forward to furthering our investments in exciting new technologies, securing high-tech jobs and the Stanlow’s future at the heart of the UK’s green revolution.”
The second week in May saw the largest pipeline in the United States shut down for five days after the operator of Colonial Pipeline was hit by a ransomware attack by Russian criminal group, DarkSide, as named by the FBI, forcing it to shut down all pipeline operations.
The pipeline carries gasoline and other fuel between Texas and Northeastern states, delivering, according to Colonial Pipeline, around 45% of the fuel used on the East Coast. Reported as the worst assault to date against US critical infrastructure, the attack underscores serious vulnerabilities within US infrastructure.
Why do oil prices vary?
Oil prices vary from day to day, but when an unexpected event occurs that causes disruption in the supply chain, drastic variations can be the result. We’ve mostly recently witnessed this with the Covid-19 outbreak, where oil prices plummeted because of decreasing demand, only to become more stable when supply was reduced.
With demand returning to normal, as the majority of the world comes out of lockdown, the closure of the pipeline has the reverse effect, resulting in the oil price to increase.
Mike Johnson, general manager, Portland Fuel said:
“The cyberattack saw WTI oil futures (North America’s primary crude benchmark) spike to $65.50/bbl, close to a two-month high, after the pipeline was shut down to contain the impact of the attack, causing concerns over security of supply.
“The majority of US refining capacity is located on the Gulf Coast, meaning the East Coast is heavily reliant on transportation via the pipeline, which carries 2.5-3mbpd of refined product from Houston to New York (around 45% of the East Coast’s refined product supply). Any prolonged period of downtime would therefore cause significant issues around the availability of refined product in the region – associated concerns saw domestic gasoline prices increase by around 2% as a result.
“As a domestic distribution network of refined product, opposed to crude, the wider impact on global oil prices was lessened, for example Brent crude prices increased slightly by c. $0.75/bbl to a high of $69.00/bbl on Friday before dropping back to trade around $68.00/bbl by close of business. However, the attack does highlight the relationship between oil prices and disruption in supply.”
Ian Moore, OMJ also comments on the effects of the supply ‘dislocation’:
“The outage of the Colonial Pipeline linking the US oil production and refinery region in the US Gulf Coast with the US demand region of the US East Coast is a supply dislocation rather than supply outage. This is because the oil which is normally pumped into the pipeline is still being produced and shipped and stored elsewhere. For example, the major producers in the US Gulf Coast are reported as having hired tankers to store oil they cannot pump. In addition, traders can ship additional product from Europe to the US East Coast. This is not a new phenomenon and shipping gasoline from Europe to the US is well established.
“During the 1970s-1990s, the oil market was largely focused on Middle East tensions. However, with the rise in US shale production, Middle East supply is of lesser importance. In addition, the move to a low carbon economy will further reduce the impact of oil outages.”
Commenting further on the relationship between oil prices and supply disruption, Portland Analytics highlighted that this was recently demonstrated during the week-long blockage of the Suez Canal by the MV Ever Given container ship, which saw Brent crude prices rise c. $5.00/bbl across the week of the grounding. Further back, geopolitical instability around the Strait of Hormuz, a key Middle Eastern oil shipping route, saw a prolonged period of volatile crude prices in the Summer of 2019 after the seizure of UK and Iranian oil tankers in the region.
In short, disruption in global crude/refined product transportation can affect oil prices due to the impact on the balance of supply and demand; if supply is limited and cannot meet demand as a result, prices generally rise. Although both crude indexes swiftly returned to their previous levels after it became evident the outage would not be sustained, the attack represents a short-lived example of the impact a lapse in security of supply can have on oil markets.
Looking forward, Ian comments on the potential future effects on oil prices:
“The most worrying geopolitical event might not be the occasional pipeline attack caused by a bomb blast or computer virus but rather a conflict in the South China Sea between the US and China over Taiwan or some other nation in the region which depends on the US for its security.”
This month once again saw the price of Brent crude hit $70 a barrel – it’s highest level in two months.
Having first recovered to pre-pandemic levels in February of this year after slumping below $20 a barrel last April as the impact of Covid-19 and lockdown restrictions resulted in significant reductions in fuel demand, the international oil benchmark is now comfortably back at its pre-pandemic level.
All the signs are pointing to an increase in oil demand in Q3 and Q4 this year as the vaccine rollout continues and lockdown restrictions continue to be eased meaning traders are willing to bet on a more positive economic outlook.
Brent rose as much as 1.1 percent at $70.24 a barrel in early London trading, and despite later falling back slightly to $68.65 is it still up about a third for the year-to-date.
“The euphoria is reflected in the general belief that the economic revival will be soon coupled with oil demand recovery,” said Tamas Varga, an analyst at PVM oil brokerage in London. He cautioned, however, that the recovery still faced headwinds such as the emergence of the coronavirus variant first identified in India.
The International Energy Agency announced this week that all new oil and gas exploration projects must stop from this year if the world is to have any chance of hitting the target of limiting global warming to 1.5C above pre-industrial levels. With environmental drivers already seeing oil majors scaling back investment in future production and demand for oil expected to peak sometime in the next decade it is possible that future volumes may not keep pace with future demand increases. And this concern over supply is contributing to the current oil price gains.
Having reduced output through the pandemic, Opec and other large oil producers are slowly starting to add barrels back to the market as consumption increases, but it remains uncertain whether there is sufficient spare capacity should demand start to rise significantly above its pre-pandemic level of about 100m barrels a day.
The recovery in oil demand is still expected to be uneven for the next few months.
Fuel Oil News is proud to be the inaugural sponsor of UKIFDA’s Innovation Award, which will be presented for the first time during this year’s virtual EXPO.
We are now inviting entries for this award with the winner, whether a single person, group of people or company, to be announced during the virtual UKIFDA EXPO which takes place on the 7th and 8th of July this year.
If you want to recognise a person, team or organisation that has made a significant contribution to the industry this year please send in your entries by 8th June to Dawn Shakespeare, membership manager, UKIFDA.
In an industry that constantly seeks to improve, we are already aware of many impressive contributions this year and we look forward to receiving your entries and to covering these in future issues of Fuel Oil News.
In a recent release NFU Scotland has said more must be done to urgently address fuel filter blocking amid reports that problems have begun to emerge again across the UK.
Concerns surrounding money siphoned out of the Stanlow oil refinery have been raised by Deloitte, after the accounting giant quit as auditor to the parent company of the refinery – Essar Oil UK.
It has been reported that dividends and loans were siphoned out of Essar Oil UK in the period leading up to the company’s participation in the government’s pandemic VAT deferral scheme to the tune of £356 million.
The company has gained a 6 month stay-of-execution in the deadline to pay this VAT bill but the ability to do so will be heavily influenced by what happens at the refinery; the recovery of margins, which are still depressed and plant utilisation levels.
With refineries being largely fixed cost operations (around 90% of the total, mainly comprising personnel costs), it will need utilisation levels of at least circa 85% – the level at which US refineries are currently running. European plants have more recently been running at a percentage around the high 70s.
Alongside Deloitte, Lloyds, PwC and law firm Linklaters have all cut ties with Essar Oil UK. Deloitte’s statement, originally written in October 2020, is the first time one of the professional firms advising Essar Oil UK has pinpointed governance concerns.
Current auditors, PKF Littlejohn, signed off the latest set of accounts for the year ending September 2020, which revealed a $186 million loss.
Essar, which is chaired by Prashant Ruia, claims to have invested $1 billion (£715 million) in Stanlow since purchasing it from Shell in 2011 for £801 million. It is said it received lenders’ consent for the loan.
A spokesperson for Essar Oil UK said:
“EOUK is well advised by a suite of highly experienced, professional firms. We have always sought to implement the highest standards of corporate governance.
“In October 2020, PKF replaced Deloitte as our auditors after ten years. PKF remain our auditors today, alongside other high-calibre advisors.
“EOUK’s financial statements for the period ending September 2019 were signed off by Deloitte. The next set of financial statements [for the period ending September 2020] were signed off by PKF.”
There is much being written about the way in which automation technologies can increase efficiency, in terms of both time and cost, in many areas of the industry. In our May issue, we spoke with fuel oil suppliers, wholesalers and distributors, as well as suppliers of technologies to find out what has been most recently adopted throughout the supply chain as well as what could be coming next.
On-site AR and remote working for efficiency and improved safety
As part of a digital transformation strategy, Shell has entered into a contract with Intoware who will provide WorkfloPlus at Shell’s upstream and downstream manufacturing operations, following a 12-month trial.
Telling us about the service provided to Shell, Vince Galvin, chief revenue officer, Intoware, said:
“WorkfloPlus will help Shell’s workers to undertake activities such as daily inspection audits and maintenance tasks by creating live in-work views, progress updates and immediate results analysis, encouraging collaborative working and improved problem solving.”
The recently released enhanced reporting capabilities, with the option to integrate WorkfloPlus into customers’ existing identity infrastructure, allows for improved job scheduling and the ability to connect to the remote experts of their choice. With social distancing, the ability to consult with experts remotely, even when carrying out inspections or repairs is an extremely valuable service.
Vince Galvin explains further:
“Companies are looking for new innovative technologies that will accelerate their digital transformation programmes, ones that can be easily adopted and make a real difference, especially when it comes to the connected worker. The ability to use mobile and wearable technology, combined with workflow software that drives productivity gains and connectivity without compromising on risk or health and safety, is increasingly in demand for many industries, including downstream oil refiners and distributors.
“For instance, when these technologies were combined with WorkfloPlus to digitise inspections, they yielded a substantial 200% increase in offshore productivity for one of our clients recently. In the pandemic environment that we now find ourselves in, with restrictions on movement and requirements for remote working, companies are increasingly adopting new digital solutions such as WorkfloPlus to help optimise operations, even with fewer frontline workers.”
Michael Kaldenbach, digital realities lead, Shell said:
“WorkfloPlus adds, to our existing eXtended Realities portfolio, the ability to support our front-line workers with process guidance and reporting when connectivity is challenging. Digitising standard operating procedures allows front-line workers to focus on their tasks and access additional relevant information when required.
“Once their task is completed, the WorkfloPlus platform automatically compiles the captured data in a report that is shared with relevant stakeholders and systems, thereby simplifying and reducing the overhead of the front-line worker. If connectivity is not available at the work location, this data transfer automatically occurs when the front-line worker is back within communication range, allowing them to focus on their next activity instead of having to manually write down the results or transfer them into their existing systems.”
Michael Kaldenbach continues:
“We see benefits from the detail and simplicity of Intoware’s digital workflows for onboarding, inspections or repairs and the ease of integrations will help us access key, often unique, data insights. This, together with a fast and easy deployment, live job updates and alerts, integrated remote expert providers and great support from their technical development team are going to enable further efficiencies and safer working practices.”
A single, paperless system
With the value of a single, simple and paperless workflow process emphasised by the Shell / Intoware partnership, Paul Foley, CEO of DreamTec tells us more about the full-system technologies that are being most widely adopted by fuel oil distributors and the positive impact this is having for management, staff and drivers:
“For many of our customers, they start with installing meter tracking, keeping a close eye on stock. Many then move to the full tablet solution, removing paper and going electronic.”
“Covid has increased demand and actually presents a good reason to adopt technologies that reduce the time for drivers to be near or in the office, cut out paper handling and give management transparency on field activity. With so many staff members working from home, our systems give management complete control.”
Explaining the advantages further, Paul continued:
“There are huge benefits to digitising the distribution business, mostly around speed, with drivers being focused on making deliveries and office staff being able to focus on sales and customers rather than admin or paperwork. Some of our customers made the move to these systems years ago, whereas some are only starting now. Without doubt, if you want to grow the business, systems like our latest android command can give you the tools to deliver a fantastic return in a very short time.”
Darren Priddey, national sales manager at Fuelsoft also emphasised customers’ desires to have a single, paperless solution to save both time and money:
“Integration is at the heart of everything we do, and we continually look to enhance the level of integration with industry leading ‘in cab’ solution providers, DreamTec and Touchstar.
“We’ve recently completed Phase 1 of a development project with Lightyear, an accounts payable (AP) automation tool which automates the data-entry from all supplier invoices and puts the invoices into a digital approvals workflow, saving AP teams up to 80% of their time, eliminating the need to manually enter the invoices. Integrating Fuelsoft with Lightyear provides real-time, accurate accounting data within the Fuelsoft platform, and means that users can collaborate with team members, accountants, bookkeepers and suppliers with the digital approvals process that Lightyear provides. It makes accounts and bookkeeping easy and, most favourably, paperless.”
Seamless integration
When speaking with suppliers, distributors and wholesalers on this topic it was clear to see that, at the top of the priorities list, alongside going paperless and being able to remotely control deliveries, is seamless integration.
Darren Priddey tells us more about the last 12-18 months for Fuelsoft:
“The uptake of fully integrated web ordering systems has seen major growth over the past year and a half, and this is down to a number of factors. With our integrated solution, customers can place an order on a distributor’s website, and this order will feed into the back-office software, be scheduled and be transferred to the ‘in cab’ computer for the driver to see. No tickets need to change hands and drivers don’t need to go back to the office to pick up orders. As well as saving both time and money, this has also helped to keep valuable social distancing measures in place.”
“Fuelsoft is also fully integrated with Optitool, an optimised route planning software solution,” Darren continued. “Optimising drivers’ routes saves further time, presents the opportunity to increase the number of deliveries in a day, and allows the fuel distributor to provide the customer with ETAs and consequently a higher level of service”
With a number of available systems, technologies and updates, being able to utilise several throughout the distribution process, to maximise cohesive operations, is key to a seamless supply chain.
When asked about the technological advancement that has most revolutionised the industry, Nick Hawkins commercial director, Kingspan comments on the seamless integration of the company’s latest radar telemetry device:
“Our latest Radar telemetry device uses 2G, NB-IoT or SIGFOX connectivity. It integrates seamlessly with Codas and Fuelsoft and gives the end-user the option of a mobile phone app. Plus, installation could not be easier on either plastic-bunded or single-skin tanks; you don’t even have to drill a hole!”
“We have several hardware and connectivity options, ensuring the correct solution whatever the tank, whatever the location, whatever the requirement. And if a fuel oil distributor purchases one of our Kingspan tanks, we can supply a hardware telemetry solution, free of charge.
As Nick emphasises;
“Distributors are becoming more aware of the value of telemetry and are using it to improve customer service, reduce customer churn, and drive operational efficiencies such as reducing left-on-boards and delivery frequency.”
Ahead of the curve
Alongside seamless integration, the ability to be one step ahead of demand is imperative, especially considering how quickly technology advances. Martin Cook, managing director, Mabanaft, explains that staying ahead of the curve is helping to transform processes for fuel oil distributors:
“Mabalive continues to transform deal administration with real-time pricing, online ordering, deal tracking and detailed reporting. We also plan to launch online bidding on Mabalive, which will offer a new and exciting dynamic to the process of purchasing fuel online, as well as additional tracking and monitoring to further enhance our services.
“Mabanaft is also now offering a vendor managed inventory (VMI) service which uses technology to remotely monitor a customer’s tanks to ensure a site remains ‘wet’ at all times. We will be looking to roll this out to customers who could benefit from VMI as part of our delivered-in service.”
A medley of solutions for distributors
Another company constantly seeking new ways to automate processes is Mechtronic who, as of the end of March 2021, has 300 of its OptiMate systems in operation across the UK and Ireland, with another 150 in build and considers that this move towards OptiMate is a clear demonstration that automation is seen as the way forward for the fuel industry.
Brad Wilkie, sales and marketing manager at MechTronic, said:
“OptiMate has been engineered to feature a range of automatic processes such as product loading via our bespoke SPGI (smart product grade indicator) system, automatic line change and the automatic process of emptying of the manifold – drivers and fuel oil operatives can be confident that the correct fuel is delivered every time and free from contamination.
“In addition, through the use of modern technologies and solid-state firmware, we have been able to reduce the number of components (such as logic valves and sensors) by some 30% which increases the performance and reliability of OptiMate.”
As a fuel distributor open to considering new solutions Mark Nolan, managing director of Oxon based Nolan Oils, shared some of the automation technologies that the company already has in place:
“Masternaut vehicle tracking allows the entire fleet to be viewed on a live map at any point in time. This means we can track fleet activity, provide arrival times and check a vehicle’s status with ease. I’d go as far as to say that real time delivery update has been the most revolutionary to date.
“We also utilise Alpeco’s TEX FLOW operating system on our COBO tanker. This allows us to monitor grades and volumes in each compartment and reduce the risk of making costly errors in the set-up and delivery process.
“We have also been trialling lorry cameras on the new truck and will eventually fit these to all of our lorries. To keep a close eye on storage, we use EA Project Stock which is fantastic for stock checks and reviews.”
Automation is not always seen as a positive especially where it cannot compete directly with acquired knowledge. Route optimisation software, for example, may be unaware of an shortcut known to someone who has been in the industry 30+ years, but, for a new driver who is not as familiar with the surrounding area, optimised route planning could be hugely advantageous.
What is coming next?
In addition to their remote structure, Intoware is also releasing a web client. Vince Galvin tells us more:
“The web client will help move us into job management as well as improving the digital workflow side. The aim of all this is to provide our customers with a digital solution that transforms their workforce, enabling connected working for better data-driven decisions in downstream oil.”
Asked about what’s in the pipeline for DreamTec, Paul replies:
“We are constantly evaluating new technologies and looking for application in our product – some of the newer wireless platforms include 5G, NFC, RFID. Using the collected data to drive improvements we always look for useful trends that can help customers make better decisions. Meter technology is also improving, and we have meters at the heart of all our solutions, so we like using the accurate data they collect.”
Commenting on Fuelsoft’s upcoming additions to its product portfolio, Darren said:
“Our software roadmap includes providing a higher level of integration into banking software to enhance bank reconciliation services for our customers. Alongside this, we will continue to improve and enhance our existing automation and integration technologies, taking on board all feedback from quarterly reviews with our customers.”
Brad Wilkie also speaks of changes in MechTronic’s pipeline as a direct result of customer feedback:
“Based on customer feedback, we are developing a remote control which will provide drivers with the full management of the delivery process from the point of delivery. This will not only save time during deliveries but ensure that the driver remains at the point of delivery throughout.”
In considering where digitalisation and automation may take the industry, Michael Kaldenbach, Shell offers a useful conclusion:
“Digital technologies are transforming our lives in ways that were unimaginable even a decade ago. Digitalisation is also transforming the energy industry, by improving efficiency and safety, and by facilitating the use of renewable energy. We believe what could be next is the end-to-end digital integration – where we recognise that digital is all about data: from collecting data and feeding that into AI. This creates end-to-end solutions that result in actional insights that support decision making, thereby creating value.”
It has been interesting to speak with various stages of the supply chain on different automation technologies for this feature – but what works, or doesn’t work, for you? Let us know stephanie@fueloilnews.co.uk.
From self-driving vehicles transporting goods, to warehouses run on Artificial Intelligence, logistics businesses are harnessing the technology of tomorrow to revolutionise the efficiency of the industry. To help identify where space-age inspiration could provide solutions for 21st century challenges, Major Tim Peake CMG will be the keynote speaker at Logistics UK’s Future Logistics Conference at the Innovation & Technology in Transport Hub (ITT Hub).
Essar was delighted to host a visit to Stanlow Refinery today by Andrew Stephenson MP, minister of state at the Department for Transport. The minister met senior company representatives and discussed plans to create a new facility to convert non-recyclable household waste into sustainable aviation fuel (SAF) for use by airlines operating at UK airports.
TSG UK has launched a new Driver Controlled Delivery (DCD) System that allows fuel to be delivered 24 hours a day, seven days a week, regardless of whether on-site staff are in attendance.
For forecourts, and other sites requiring fuel deliveries – such as military bases and haulage depots – the DCD System saves on out-of-hours staffing costs and ensures no hold-up in supply.
Thanks to the in-built Tank Monitoring System, information about the status of the tank can be accessed at any time, with an illuminated external display showing how much fuel can safely be delivered.
How does the DCD System work?
The DCD System communicates directly with the Tank Gauge System at the start of the delivery, confirming with the tanker driver that there is enough space in the tank to allow the fuel to be inputted safely. An internal printer retains a hard copy of this information which can be printed out on successful completion, showing the volume of fuel added to each tank.
In the event of an emergency, the DCD System incorporates a stop switch and telephone as well as a floodlight circuit.
Bill Bowers, TSG’s product manager, said: “Automated solutions, such as TSG’s DCD System, provide greater flexibility and lower staffing costs, saving businesses money and contributing to safer, more efficient operations – the perfect accompaniment to our range of equipment and services for the fuel retail and commercial fleet fuelling industries.”
More DCD System features & benefits
As grass roots organisations and local charities struggle for funding during the pandemic, Oomph, Gulf Retails award-winning forecourt loyalty platform and the collective efforts of staff and customers at participating Gulf forecourts are providing a welcome boost to many across the UK.
Exolum’s CEO, Jorge Lanza, recently addressed the evolution of the business and the new challenges faced in the current energy transition. The company will continue its traditional business of hydrocarbon transport and storage in an efficient and sustainable manner, ensuring that society has access to fuels, while progressing towards the diversification and expansion of logistics services for other products. This will enable the company to leverage its capabilities and guarantee business sustainability.
To support this diversification, a dedicated division, promoting innovation and entrepreneurship within the company under the name of Exolum Ventures, cooperates with other entrepreneurs or start-ups that can contribute to faster and better innovation.
Hydrogen
Exolum has submitted a portfolio of renewable hydrogen-based projects to the call for expressions of interest launched by the Ministry for Ecological Transition and Demographic Challenge and the Ministry of Industry. This portfolio of projects has associated investments reaching over 500 million euros and includes different projects to be developed on the Iberian Peninsula, the Balearic Islands and the Canary Islands.
Exolum focuses on integrating solutions throughout the value chain for the production, transport, storage and distribution of green hydrogen. One of the most ambitious projects is the development of hydrogen corridors that cover the whole Iberian Peninsula, thus allowing the new energy vector to have a uniform penetration. The company is also developing alliances throughout the hydrogen value chain that enable the development of new technologies.
The circular economy
Exolum is looking to use its excellent location and its extensive experience in the hydrocarbon sector to develop projects relating to water and waste treatment. One such project is the building of a waste recycling plant in the port of Algeciras which will make it possible to transform wastewater into fuel for ships.
Eco-fuels
Exolum manages infrastructures in Spain that are fully adapted to biofuel storage and distribution and cooperates with the oil sector in the development and promotion of 2nd generation advanced biofuels.
Sustainable aviation fuel (SAF)
Exolum’s AVIKOR platform offers both individuals and companies flying from Spain the chance to do so more sustainably by enabling them to reduce the emissions from their flights by using sustainable aviation fuel.
Sustainability
Exolum has signed the UN Global Compact committing to making a contribution to compliance with the Sustainable Development Goals established by the UN in 2015 and has a sustainability strategy that aims to reduce its CO2 emissions by 50% in 2025 and to become a zero-emissions company in 2050.
Margaret Major recently caught up with Miriam James, managing director of Silvey Fleet.
We hear from Neste after a decade of transitioning from a regional oil refinery to a global leader in renewable solutions to see if the investment is paying off.
Neste’s transformation from a regional oil refinery to becoming a global leader in renewable and circular solutions speaks loudly about limitless curiosity, courage, hard work and perseverance. This inspiring journey has for example put Neste on the list of the 20 most transformative companies of the last decade globally and made it a winner of Fast Company’s 2021 World Changing Ideas Awards.
Now is the right time to also update the Neste brand and to make a bold promise to continue on this transformational path, to the benefit of future generations: Change runs on renewables.
The latest report by Brand Finance shows that the world’s top 50 most valuable oil and gas brands have, on average, lost 16% of their brand value. At the same time, Neste’s brand is growing in value. According to Brand Finance, in 2020 Neste was the third most valuable Finnish brand and the second fastest growing brand in Finland with a growth of 26% year-on-year. Neste was the highest placed new entrant to the ranking, and the company’s transformed strategy and updated brand have catapulted it to growth.
Neste’s transformation became visible in its brand strategy update in 2015, when Neste Oil became Neste. Since then, the company’s market cap has grown by over 800% according to Brand Finance.
Neste’s consistent work with renewables has been paying off, as demonstrated most recently also by the company’s reported Q1 figures. More than 90% of Neste’s comparable operating profits now come from its renewables business. Renewable products brought in a total of 294 million euros in comparable operating profit in the first quarter of 2021.
“This achievement is based on the transformation of Neste’s business in the past decade and we’re very proud of our work so far. We continue to expand our business, but we are also making significant investments into innovation and R&D to make sure that we can give solutions for combating climate change also in the future,” says Minna Aila, SVP, sustainability and corporate affairs at Neste.
From air to the roads – renewables run the world
Neste’s transformation and profitability have a solid foundation. The company’s journey towards a more sustainable future started in the 2000s, when it introduced its NEXBTL technology that allows Neste to turn a wide variety of renewable raw materials into premium products.
Neste MY Renewable Diesel™ keeps making transportation more sustainable together with consumers and partners. In the Netherlands, used cooking oil from McDonald’s waste stream is turned into Neste MY Renewable Diesel to power HAVI’s logistics. Neste’s renewable diesel results in significant GHG emission reduction over the fuel’s lifecycle compared to fossil diesel.
Neste is also working with major airlines, such as American Airlines, Lufthansa, KLM, and Finnair on sustainable aviation, and the product is already used by over 10 airlines globally. Neste just announced a capacity modification investment in its Rotterdam refinery. Together with its Singapore expansion, Neste will have the capacity of producing 1.5 million tons of sustainable aviation fuel annually by the end of 2023.
The latest addition to Neste’s renewable product portfolio is Neste RE™, a 100% renewable and recycled raw material for plastics production. It takes on the global plastics waste challenge by bringing alternative solutions to the plastics and chemicals industry.
“Neste’s transformation shows that change really runs on renewables. Aviation and road transportation are the biggest industries that can benefit from lower-emission renewable fuels. We can offer real, fast and scalable solutions where they really matter – so that societies can run more sustainably,” continues Aila.
Digitally recycled video showcases the brand promise
Even Neste’s latest brand film supports the renewed brand promise “Change runs on renewables,” as the film is made entirely out of 120 different recycled video clips edited together to create a strong visual piece. The film brings up powerful moments from history, where revolutionary change was made while showing that even recycling can go digital.
“With our new brand film we wanted to honor the changemakers of the past and present. The change we need today, the change to carbon-neutrality, requires change in both mindsets and actions. This change is a team play and a choice we can all make – together we can create a healthier planet for our children,” says Aila.
Ford Fuels has invested in TouchStar’s mobile computing technologies in order to boost customer service and optimise deliveries.
The South West based fuel and lubricants distributor began its relationship with TouchStar after the company’s software provider, Fuelsoft, recommended the installation of TouchStar’s ‘Hawk’ units, which were then installed in six Ford Fuels vehicles.
As with any business operation, time is a critical resource. For Ford Fuels, the basing of several vehicles at terminals became problematic as employees needed to manually run paperwork between sites every day, including between two remote sites that were one-and-a-half hours away in opposite directions and this slow submission of paperwork throughout the operation soon became a key business challenge.
“Rather than being a mere inconvenience, it ended up being a real business problem. We felt that the TouchStar solution could make things slicker,” explained John Ford, director at Ford Fuels.
The TouchStar handheld solution negated the need to use valuable time and resource to travel to sites, offering a far superior streamlined solution which allows fleet drivers to print delivery notes on the spot. A customer’s signature is captured on screen for proof of delivery purposes, and a proof of delivery document is printed instantly.
Following the first roll out, the benefits and capabilities of the TouchStar system were evident. This led to Ford Fuels expanding handhelds into their fleet of vehicles based at terminals, which subsequently led to a further roll out of the technology in 45 – 50 vehicles based at their own offices.
The TouchStar technology has enabled Ford Fuels to be able to focus on customer service and continue to provide the seamless delivery of fuel within this service-based industry. Given this significant benefit, Ford Fuels is aiming to have TouchStar technology within its entire fuel fleet, comprising of 65 oil tankers by the end of 2021.
John Ford remarks: “We differentiate ourselves by moving vehicles to places where other people can’t. If someone needs fuel, they need fuel, and we’ll move heaven and earth to get it, and this just makes that process more efficient.
“I don’t get involved with TouchStar day-to-day, which shows that it works. It streamlines the office operation with the drivers and delivers them up-to-date information.”
The technical awareness and competency of staff, together with the quality and performance of the system is highly rated by Ford Fuels.
“TouchStar have always been a pleasure to deal with – the system works, the technology is what we need, and it has been tried and tested. We look forward to rolling out the technology to the rest of our fleet.”