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The Oil Market Journal (OMJ) has launched a series of new dashboards which provide full details on oil tankers en-route, in port and at anchor in ports around the United Kingdom and Ireland.
The service updates in real-time and details any tanker in the world which has set its destination to a port in the UK and Ireland.
The service provides full details on the gross tonnage of the cargo and other data including estimated time of arrival, last destination and status.
Within the OMJ Port Report Dashboards clients can click on a tanker report and a pop-up will provide a map detailing the current location of the tanker along with details on other tankers in dock or heading to other ports listed on the Dashboard tile.
In addition, clients can edit the service to their own individual requirements including the country, port, type of tankers and/or tanker status.
Advantages
The service enables oil distributors to ascertain when a tanker is en-route to a port and is especially useful during periods of “tight supply” when product is on allocation.
The data shows users when the tanker has arrived and as a result, users will know that product will soon be available again at the oil terminal.
Pre-built Dashboards
OMJ Port Report Dashboards are available for all the key oil ports in the United Kingdom and Ireland and is part of the “OMJ Professional Subscription.”
Free trials are available via OMJ’s support team.
Commenting on Shell’s pledge made on 11th February, to accelerate the drive for net zero emissions, OGUK sustainability director Mike Tholen said:
“It is an exciting time for the country’s oil and gas industry as we see companies including Shell demonstrate how our sector is transforming to meet the clean energy challenge, putting their expertise to work, as other companies are also doing, to help achieve our climate goals here in the UK.
“Now is the time to develop a sustainable future. By reducing the carbon impact of oil and gas as we invest in low carbon technologies, we can unlock a homegrown move towards net zero which maintains consumer affordability, promotes our world class supply chain and protects jobs and the energy communities we support.
“Everyday we see more examples of how this industry is changing. As we continue to face the challenges brought about by the pandemic, the UK economy should build on its strengths. The North Sea Transition Deal proposed in the Energy White Paper will be essential to accelerating investment and creating employment opportunities in new technologies while reducing emissions from production.”
The Chartered Institute of Logistics and Transport (CILT) believes that “we can achieve net-zero by 2050” through a range of measures recommended to government and others in its latest report, Routes to Net-Zero 2050: 2020 Year End Summary. The report includes 21 recommendations for action covering all transport modes and activities.
At the end of a year of study, debate and events, CILT has published its year-end report summarising its work on Routes to Net Zero 2050 and looking ahead to the work to be done in 2021.
Kevin Richardson, chief executive, CILT(UK), says: “Transport accounts for 28% of UK carbon emissions and, despite the downturn caused by the coronavirus pandemic, transport emissions will grow with recovery unless action is taken. Government is clearly the key player, but industry, organisations and individuals are also urged to take action, and we believe there is plenty to be achieved, starting today.”
Recommendations for government include:
UKIFDA, one of the largest training providers for tanker drivers in the UK, has now been approved as a remote training centre by all the appropriate driver training bodies. This new centre will allow UKIFDA to continue to provide their complete ‘one stop shop’ tanker driver training in a remote environment.
UKIFDA chief executive Ken Cronin comments:
“The DfT/DVSA have recently announced that, due to the current pandemic, driver training should take place remotely whenever possible. The speedy action taken by UKIFDA to implement remote training means this will not impact our members training requirements.
“Through the new remote training, delivered via Zoom, UKIFDA are now able to offer UKIFDA members ADR – initial and refresher courses, CPC – all modules and PDP – annual refresher classroom driver training courses. The courses are all industry specific and tailored to the individual’s needs.
“Examinations cannot be conducted remotely but arrangements can be made for these to take place at UKIFDA members’ approved sites in adherence to COVID-19 restrictions and UKIFDA will assist members in organising this.”
Low costs – high standards
Oil services companies can no longer delay making a choice on their future direction according to the latest report from PwC Strategy&, called ‘Time to Choose’. The options are to stick with their hydrocarbon heritage; becoming ultra-efficient and digitally enabled or pivot towards low carbon growth opportunities such as offshore wind or carbon capture, using hydrocarbons as the cash generating engine to fund this transition.
‘Time to Choose’ states that a perfect storm of COVID-19, increasing public scrutiny and the growing momentum of Environmental, Social and Governance (ESG) factors influencing investor and buying decisions, has accelerated the pace and impact of energy transition in many regions.
According to the report’s respondents, many oil services companies already recognise the need to transform in order to better align with their customers, with some helping to set the pace of decarbonisation alongside major players.
Transformation influences
Low carbon credentials could become an area of significant competitive advantage. The report highlights how oil services companies can increasingly showcase their decarbonisation credentials as a means of securing tenders. Some respondents also mentioned increasing pressure being brought to bear by some majors who are keen for supply chain decarbonisation credentials to help support their own strategic direction and licence to operate.
Where firms operate can also influence the pace of transformation. As governments around the world respond to the pandemic, fiscal stimulus packages have been developed with many countries looking to use this pivotal moment in time to stimulate a green recovery to ‘build back better’. For those companies with a major footprint or head office in Europe, energy transition and ESG themes are likely to be much higher up the corporate agenda than other regions, such as the Middle East, which will see hydrocarbons retain their importance as a focal point.
Drew Stevenson, PwC’s Energy, Utilities and Resources leader, commented:
“We believe the oil services sector has a significant contribution to make in the UK’s energy transition journey.
“From engineering expertise and innovation to project management and global operational scale, these businesses have a golden opportunity to not only channel this capability into market leading credentials that will be in-demand globally, but to play a role in shifting the conversation about how this industry fuels and sustains energy and employment into the future.”
Decarbonisation driven by digital technology, deals and diversifying skills
In many ways COVID-19 has accelerated the need to adopt and deploy digital solutions. Given the physical impact of coronavirus on the workforce, companies in the oil and gas sector have been forced to increase automation and use of digital technologies, such as remote controlled vessels and robots to inspect underwater pipe networks and conduct maintenance scans of industrial complexes.
Needless to say, while digital offers great potential for efficiency gains in the oil services segment, in the short term at least, it will be balanced against tight cost control. As a strategic imperative, investment in digital solutions cannot be cut off.
M&A is another means by which energy transition could be accelerated, with complimentary skills, technologies and credentials likely to be highly sought after as entry points into new markets. Premium valuations are already evident for renewable-facing businesses. The availability of finance will probably also be a driver of this transition.
As for the transferability of skills between oil and gas and low carbon, this is not always easy or evident. All oil services companies have core capabilities in particular areas – some may have skills that are transferable while others may struggle.
Have you selected a strategic pathway that will allow you to flourish in an increasingly volatile trading environment? Let us know.
Kent-based logistics company Lenham Storage has signed a new 12-month fully comprehensive support contract with Europump Maintenance Ltd for all the fuel island equipment at its two main depots.
Speaking about the deal, Lenham Storage’s fleet manager, Steve Emsley, said: “We are delighted to have signed the deal with Europump Maintenance Ltd. We knew some of their personnel and knew they had a reputation for good service so it made sense to switch to them. We are very happy with how our relationship is progressing.”
Martyn Gent, business development manager at Europump Maintenance Ltd, commented: “It’s great to have been chosen by such a long-established logistics expert. We are very pleased to be working together.”
StocExpo, the leading tank storage event, has been postponed from June 2021 to 8 – 10 March 2022 in a decision made in consultation with the community. The live exhibition, conference and associated awards, which regularly attracts key visitors and exhibitors from across the industry’s biggest, best and most innovative players, will be held at the Rotterdam Ahoy in Rotterdam, Netherlands.
After announcing Crown Oil as the winner of our 2020 Tanker of the Year competition, we hear from Crown Oil director, Mark Andrews:
The Covid-19 pandemic has definitely affected all existing industries and sectors on the planet — and oil and gas are not different. However, this doesn’t mean that the crisis has not presented some opportunities for crucial industry decision-makers. For instance, this pandemic could act as something of a springboard; particularly when it comes to creating more sustainable and stronger business models.
Cutting-edge digital technologies could make the crux of this effort, allowing existing companies to achieve more with fewer resources, as well as attract younger talent.
Plenty of directors and partners in major oil companies have talked about how the coronavirus pandemic has altered both short-term and long-term outlooks in the business. Namely, due to the fact that oil and gas companies must learn how to extract bigger margins via technological diversification. Their businesses must become less cyclical and sturdier, independent of their exposure to production and exploration.
For example, most offshore companies had major troubles adapting to the changes brought by the coronavirus pandemic. Herein, we’re talking about practical adaptations that had to be performed in the work environment. There have been plenty of projects that had to be shut in, as well as crews that were pulled back from their offshore locations altogether. In many cases, only operations related to core productions remained functional. The sector is set to recover sluggishly, but digital technologies could help with all of that.
At first, trade shows and industry gatherings were centered around conversations on immediate responses; how decision-makers could provide quick adaptive measures to the virus. But after that, it became more and more about ambitions to extract some value from the disastrous events of 2020; using the new environment to create more resilient, sustainable business models for the offshore industries and cogeneration projects in a mid-term outlook.
For instance, there have been examples where North Sea offshore operations managed to retain a more than acceptable level of productivity while also applying all of the required coronavirus measures. They were forced to pull back a little under half of their regular crew from offshore platforms. However, innovative use of digital wearables, remote viewing, and contemporary work planning allowed them to achieve staggering results; 90% of all the planned core activities and plant maintenance!
Of course, there are issues with digital innovations in the oil and gas industries beyond such smaller remedies. If digital technologies were to be adopted more widely along the value chain for offshore businesses, all of the companies involved would actually suffer from a challenge in recruitment.
Otley-based company, Tate Oil, has partnered with Yorkshire Dales Millennium Trust (YDMT) to plant 3,000 trees over the next three years, in a bid to reduce its carbon footprint.
Launching on 1st January 2021, family-run Tate Oil will be planting a tree for every 4th order a qualifying customer places – helping the 1.5 million homeowners using heating oil to offset their carbon emissions. As a completely free service to the customer, Tate Oil’s scheme is one of the first of its kind in Yorkshire and focuses on giving back to the local community.
Working with local trust, the scheme will support the target of planting 100,000 trees within the county, including areas such as Nidderdale and the Yorkshire Dales. The charity will be working with landowners and farmers to facilitate the tree planting, with customers able to visit their tree.
Michael Devlin, deputy CEO at YDMT added:
“Through our ‘Together for Trees’ campaign we are working with many supporters and partners such as Tate Oil to plant 100,000 additional trees across the region. Trees are hugely valuable as a habitat for wildlife, supporting some of our most endangered woodland animals, like red squirrels, dormice and cuckoos.
“They are also important for our mental health and wellbeing and we believe that everyone should have access to them. The appeal aims to raise funds to create beautiful woodlands that everyone can enjoy for years to come.”
Tate Oil has ambitious goals for their new green initiative:
“This is a really exciting opportunity for us to help our customers offset their carbon emissions” says Andrew Tate, director of the company. “This is the next step in Tate Oil becoming a greener company, and we’re pleased to be working with a local charity doing great things for our county”.
The scheme will offset approximately 3,000 tonnes of CO² from the atmosphere, bringing Yorkshire a step closer to achieving the UK’s net-zero emissions target by 2050.
Euro Garages’ parent company EG Group has agreed a deal to acquire Asda’s petrol filling stations, car washes and ancillary land for £750m. The shareholders in EG Group, the Issa brothers and TDR Capital, made a deal to take over the Asda Group on 2nd October 2020.
EG’s acquisition of the forecourt business is subject to the same CMA regulatory clearance being received by the group’s shareholders for their acquisition of Asda. Subject to these approvals, the transaction is expected to close in the second quarter of 2021. If the deal is approved, EG Group would have around 700 forecourts in the UK, only behind MFG, with more than 900 sites.
When announcing the deal, EG Group said:
“A detailed integration plan will ensure a seamless transition into EG Group’s UK operations, which have successfully integrated four significant acquisitions since 2015. The forecourts, which will remain an integral part of the broader retail locations where they are situated, will continue to be Asda branded and will remain a price leader in the fuel market.”
Zuber Issa CBE and Mohsin Issa CBE, co-founders and co-CEOs of EG Group, in a joint statement, commented:
“We are excited to have the opportunity to further strengthen our network in the UK through the proposed acquisition of Asda’s forecourt business, which will enhance our position as a major independent forecourt operator and provide a platform for future growth of the combined network.”
Certas Energy has purchased seven forecourts in the North East of England as the company continues to grow its Gulf network across the UK. The portfolio of forecourts, with a combined volume of 31 million litres, was purchased from Marla and Gus Saggu.
“We are delighted to have concluded this acquisition of seven well-run forecourts and a highly capable and community-minded team of people,” enthuses Richard Billington, director, Certas Energy. “It’s a good fit for our business and adds further strength to our company-operation. We already have a strong Gulf presence in the North East and these sites will be an ideal complement to our thriving dealer operation.”
The sites will be rebranded to Gulf in March whilst simultaneously transforming each shop into the latest-design SPAR C-store.
“We are taking on a healthy business that will be further enhanced by our stunning new Gulf livery and award-winning loyalty platform, Oomph,” continues Richard. “Working alongside SPAR and with ongoing investment, we see huge potential at each location.”
Marla and Gus Saggu commented: “It feels like the end of an era but we are very pleased to be handing over the business and, in particular, our people to Certas Energy who, we are sure, will do great things with them.”
The seven newly acquired forecourts are located in Bishop Auckland, Crook, Howden-le-Wear, South Shields, Stockton, West Rainton and Witton Gilbert.
It is with great sadness that Fuel Oil News reports the passing of Anthony Hoctor (known to most as Terry), proprietor and founder of Speed Oil Services and former director of what was the Federation of Petroleum Suppliers (FPS).
Enhancing collaborative culture within the offshore oil and gas industry is not only key to maximising the potential of its existing world class supply chain but could also unlock future activity in the UK Continental Shelf (UKCS) and be key to delivering a successful Net-Zero future.
Improving commercial models which support cost reduction whilst incentivising the supply chain could re-energise collaboration, according to the findings of the annual Deloitte and OGUK Collaboration Report, published on 28th January.
Deloitte and OGUK’s industry-wide Collaboration Index (CI), which measures the effectiveness of companies as partners in projects, is part of the annual UKCS upstream supply chain collaboration survey. The report showed a slight increase in the collaboration index to 7.1 in 2020 from 7.0 in 2019, highlighting the flexibility and support the supply chain showed during an exceptionally challenging year.
On top of this, collaboration success rates hit a record high in 2020 with more than 50 per cent of survey respondents saying over half of their efforts were successful. In what also marked a first in the survey’s six-year history, the overall proportion of ‘successful’ efforts was higher than ‘unsuccessful’ ones.
However, while COVID-19 saw many businesses work together to address the challenges, respondents said the pandemic and consequent economic downturn also led to disadvantageous commercial behaviours such as cancelled or modified contracts.
OGUK supply chain and operations director, Katy Heidenreich, said:
“OGUK has been encouraging industry to do business in a sustainable way to protect the supply chain. This includes finding innovative ways of working that deliver value for both sides, ensuring that industry has the skills and resources needed when activity rebounds, as well as using the Supply Chain Principles as a mechanism to improve behaviours.
“We redesigned the questions in our 2020 Collaboration survey to understand how well these Principles have been embraced since we launched them.
“Greater collaboration will be a key factor in unlocking future industry developments and to strengthening our basin, our versatility, and our resilience. The ability to work together well across companies, industry and the wider energy sector will be critical to delivering a successful energy transition which supports jobs and the communities we work in. Collaboration needs to be part of our DNA; while it is not a silver bullet, it is good for business.”
OGUK will issue a call to action to promote adherence to its Supply Chain Principles and to communicate the benefits after the survey received a broad mix of views.
Deloitte’s office senior partner (Aberdeen), Graham Hollis, said:
“In what is an extremely challenging environment, the industry must assess new opportunities and challenges as it addresses the year ahead. Organisations need to reimagine their businesses and models and focus on the right set of collaborative behaviours because as the report highlights, working closely with suppliers and customers to support one another will be vital.
“As part of this, Deloitte has produced a Framework for Action which details six building blocks that organisations should consider helping develop and continue building successful collaborative relationships – ones which deliver greater value for both operators and suppliers.”
Deloitte’s Framework for Action supports the OGUK Supply Chain Principles, and both will be key to stimulating collaborative behaviours. OGUK will also be issuing a call to action to promote adherence to its Supply Chain Principles and to communicate the benefits after the survey received a broad mix of views.
With the Supply Chain Principles, energy transition and internal collaboration being new themes explored in this year’s survey, almost two-thirds of operator respondents said they were making some progress to meet their energy transition objectives – in line with the OGUK’s Roadmap 2035: a blueprint for net zero – compared with 49 per cent of suppliers.
While some operators showed best practice in sharing the risks and rewards of working relationships appropriately, there are still opportunities to improve.
OGA’s head of supply, Bill Cattanach, said: “Successful project delivery is more predictable where there is a fair and equitable partnership between operator and supplier.
“There are encouraging signals, as shown in the report, that the industry is leaving old approaches behind and embracing the expertise which exists within the supply chain in a collaborative manner. However, there is still room for improvement, and collaboration should remain a key focus for industry going forward.”
Since his inauguration, the new American President, Joe Biden, has wasted no time in initiating the shift away from coal, oil and natural gas – once the bedrock of US prosperity.
John Kerry, previously Barack Obama’s secretary of state and key architect of the Paris climate change summit in 2015, has been tasked with drawing up the new President’s climate plans. He commented:
“It is one of his top priorities, without any questions whatsoever. He’ll make more progress on the issue than any previous President.”
Whilst many of Biden’s actions were expected, the speed of implementation was not, and the world watched as the US changed its stance on fossil fuels almost overnight.
In his first few days of Presidency, Biden stopped the giant Keystone XL oil pipeline dead in its track by pulling the permit, re-joined the Paris climate accord and ordered the Pentagon to make climate change an issue of national security.
Whole government approach
Kerry explained:
“He is mobilising every department, every agency of the United States government to focus on climate and he is determined to try and restore America’s credibility and reputation.”
The intense ‘whole government’ approach to the issue of climate change, with drastic actions and commitments already in play, raises the possibility of returning to the notion ‘where America leads, the rest of the world will follow’ in an arena where, until now, the US has been left far behind.
Veteran environmental campaigner Bill McKibben comments that the President wants to send ‘a decisive signal about the end of one epoch and the beginning of another’ – a signal aimed at investors: “Fossil fuel, Biden is making clear, is not a safe bet, or even a good bet, for making real money.”
An economic stimulus
With share prices plummeting and Goldman Sachs warning of a drop in US crude supplies, one oil services company CEO told Bloomberg: “The industry is aghast at these changes. They are more direct, more fierce and quicker than what folks expected.”
Biden has been careful in casting the agenda as an exercise in job creations and economic stimulus in the wake of the Covid-19 crisis. Kerry comments: “If we’re going to invest new money, let’s invest it in clean energy, invest it in clean jobs, invest it in those technologies and other things that will build the future, rather than simply being the prisoners of the past.”
Biden has reiterated his desire to end all fossil fuel subsidies, ordered a ban on new oil and gas leases on federal land and said a third of all federal land must be reserved for conservation.
Displaced workers put to use
The President plans to reinstate and strengthen Obama-era regulations on the three largest sources of greenhouse gas emissions: vehicles, power plants and methane leaks from oil and gas wells.
Many displaced fossil-fuel workers will be put to work sealing off the estimated one million leaking oil and gas wells whilst millions of ‘prevailing wage’ jobs will be created in line with the plan is to build 1.5 million energy-efficient homes and install half a million EV charging stations.
Not without opposition
Although some big oil companies have acknowledged some of the curbs on emissions lifted by President Trump need to be reinstated, backlash is expected from others in the fossil fuel industry.
The democratic senator for West Virginia, Joe Manchin, is likely to be one such voice. Elected as a defender of his states coal industry, Machin famously campaigned with a TV ad that featured him using a hunting rifle to shoot a copy of one of Obama’s climate change bills.
Working with the UK
Kerry and the rest of the administration is also set to work hard with the UK government to ensure that the UN Climate Change Conference (COP26), which is scheduled to take place in November 2021 in Glasgow, is a success.
Fuel Oil News would like to thank everyone who nominated a charity in response to our festive email. We are very pleased to announce that we will be donating £100 each to Macmillan, Mind and Midlands Air Ambulance charities.
Fuel supply brand, JET, has today announced that ten new Ascona-owned sites will be joining its growing nationwide network of JET branded dealer sites – a move that further strengthens its relationship with the roadside retailer.
JET currently supplies Ascona Group, one of the fastest growing independent forecourt operators in the UK, at three sites: Fyfield Service Station in Marlborough; Jack Service Station in Stoke-on-Trent and Deepcar Service Station near Sheffield – a relatively new joiner having signed up to the network in November last year (2020).
The ten new sites, mainly located in Bedfordshire, Buckinghamshire and Warwickshire will provide depth and strength in these areas – boosting JET’s total portfolio of UK JET dealer sites to more than 300. And with Ascona sites now numbering 13 and with the potential for further sites in the future, Ascona is fast becoming one of JET’s largest retail customers.
Commenting on the decision to move to JET, Darren Briggs, MD, Ascona Group says: “JET provides an industry-leading fuel supply package and together with their new JET brand image, is recognised in the industry for great value and service. They are the perfect partner for Ascona as we continue to expand our operations in the UK via both organic and acquisitive growth and focus on building best-in-class retail roadside destinations that cater to changing customer needs.”
Working closely with Ascona, the sites will be rebranded and repumped including two KDRB (Knock Down Re-Build).
“We are delighted to welcome these new sites to our JET dealer network and introducing the JET brand to a number of new communities.” Says Oliver Mueller, retail business manager, Phillips 66 Limited “With a reputation driven by good service and good value we are committed to building business relationships with dealers across the UK and are looking forward to helping these new sites flourish over the coming months – further strengthening the JET brand.”
The licensed supply contract with Ascona Group is in place until 2026.
The ten new JET dealer sites are: