Market & Supply 59

News

UK government guarantees Grangemouth upgrade loan

The UK will guarantee a 230-million-pound ($394 million) loan for an upgrade of Ineos AG’s petrochemical plant at Grangemouth in Scotland, protecting jobs ahead of September’s independence referendum. The loan guarantee will allow Ineos to start work immediately on building Europe’s biggest ethane storage tank. “The Grangemouth guarantee is fantastic news for Scotland’s economic future, and for the UK’s energy security,” said chief secretary to the treasury, Danny Alexander. “Our action is creating the right conditions for more investment in our infrastructure, helping to build a stronger economy and a fairer society across the country.” The loan will secure thousands of jobs, and the work is vital if the refinery is to continue operating after 2017, says the treasury. The announcement comes as ministers are seeking to press the benefits of Scotland staying part of the UK ahead of the September 18th independence referendum. Alexander, who represents a Scottish seat in the House of Commons, and chancellor of the exchequer, George Osborne, have repeatedly made the economic case for the union. Ineos, a British company which relocated to Switzerland for tax purposes, is pioneering the import of cheaper ethane from the US as North Sea production wanes and higher energy and feedstock costs squeeze commodity chemical producers in western Europe. The Grangemouth plant, the company’s biggest, combines both chemical production and oil refining.

News

Relaunch of Seletar’s Great Yarmouth site

Lubricants supplier, Seletar Services, is relaunching its Great Yarmouth site following an investment of more than £250,000 to develop new office and depot facilities. Seletar Services – part of Certas Energy – hosted an open day recently to show customers, including Boston Putford, Shell Exploration, Seajacks and Air Products, the improvements which have been made since the site was first acquired in February 2012. Ross Buckland, head of lubricants at Certas Energy, said: “The investment in the site is testament to our commitment to maintaining a long-term presence at our Great Yarmouth base, in order to provide the best possible service to our customers. “The open day was a great opportunity to catch up with our customers in person and show them the work we’ve done.” Seletar Services is one of the largest stockists and suppliers of all lubricants used in the wind farm and oil and gas industries operating in the southern North Sea. The marine division of Certas has depots in many major UK ports, including the Isle of Wight, Port of Tyne, Isle of Man, Orkney, Southampton and Shetland Islands. It also has facilities in Aberdeen, on the Thames, in Dundee, and in Oban, as well as a nationwide delivery infrastructure.

News

Essar staff offered £30,000 “leaver incentive” package

As reported in July, Essar’s 1000 employees at the Stanlow Oil Refinery are being offered a voluntary severance package, now rumoured to be worth a fixed-sum of £30,000. All employees will be offered the “leaver incentive” package, but not all “volunteers” will be accepted by management. “The offer is available to all employees, but will be granted on a discretionary basis, dependent on the right blend of skills and experience required to help us build a positive and long term future for our business,” said Ian Cotton, head of communications and community for Essar Oil (UK) Ltd. In a statement explaining the move, Mr Cotton said: “Essar Oil UK announced in February our intention to increase the production of higher value products from the Stanlow refinery by closing the smaller of our two crude refining units later this year. “As a result of this optimised configuration going forward, organisational changes may be required to create additional efficiencies. “Before considering any changes, Essar Oil UK has, in conjunction with a proposal from a specially formed Joint Working Group of employees from across the company, decided to offer an entirely voluntary leaver incentive scheme to staff who may be considering alternative options for their future career. “The amount on offer is a fixed sum to all employees – but we consider that detail confidential between ourselves and our staff.” Essar have denied reports it intends to sell Britain’s second largest oil refinery, which it bought from Shell in 2011 for $350 million. The refinery supplies around 15 per cent of the UK’s transport fuels, which equates to an annual production of more than two billion litres of jet fuel, three billion litres of petrol and 3.5 billion litres of diesel. It also processes over 11 million tonnes of crude oil each year. The company, part of the Indian Essar Group, said refining margins had been “exceptionally poor” but stressed its commitment to working in the region and in the UK.

News

Gulf Aviation extends presence in Scotland

Gulf Aviation supplies fuel at airports throughout the UK Gulf Aviation, part of national fuel and lubricants supplier Certas Energy, has significantly extended its presence in Scotland after securing fuel supply contracts with Lufthansa, Virgin Airways and Thomas Cook at Aberdeen International, Edinburgh and Glasgow airports. The deal with Germany’s national carrier also includes fuel supply to three other major airlines, which are owned by or affiliated to Lufthansa, operating at the Scottish airports – Brussels Airlines, Germanwings, Edelweiss and Austrian Airlines. Alex Murphy, head of Gulf Aviation, said: “Our contracts with Lufthansa and Thomas Cook are the latest in a series of significant contract wins, which have seen us extend our scope in the commercial aviation industry across the UK among national and international airlines. This new deal will give us an increased presence in three major Scottish airports, and we intend to build on this success going forward.” The contracts are the latest in a series of Scotland-based wins for the company, whose client base in the country now includes Norwegian ASA, Flybe, Stobart Air, EasyJet, Monarch Airlines and Loganair. Gulf Aviation’s wider fuel supply portfolio currently includes London City Airport, Blackpool International Airport and City of Derry Airport.www.gulfaviation.co.uk

News

OFTEC launches “Tank Safe” campaign

OFTEC has teamed up with the Environment Agency and the Federation of Petroleum Suppliers (FPS) to launch a new ‘Tank Safe’ campaign, urging the one million oil using homes in England, Wales and Scotland to carry out crucial safety checks on their storage tanks during the summer months. It is estimated that at least one in three oil tanks currently in use are past their life expectancy of 20 years and should be replaced. Failing to do so could result in leaks which can be costly to both the owner and the environment. Malcolm Farrow of OFTEC says: “It’s easy to forget about oil tanks during the summer months when central heating systems are not in use. That’s why we’ve launched the ‘Tank Safe’ campaign, offering consumers advice and guidance on how important it is to check their tanks now so they are ready for when the colder weather arrives. “Fortunately leaks are rare, but the consequences of oil spills aren’t just inconvenient for the homeowner, they can be a serious issue for the environment, depending on how much oil has leaked.” OFTEC recommends that tanks are inspected by a competent person, such as an OFTEC registered technician, at least once a year as part of a normal central heating system service. Mark Askew of FPS adds: “It’s important for consumers to have their tanks checked by a qualified technician to ensure it’s in the best condition and to alert householders to potential problems before they happen. Losing a tank of oil could be expensive, but this cost is minimal compared to the potential costs of a spill.” www.oftec.co.uk www.oilsave.org.uk

News

Norbert Dentressangle reports steady growth

Norbert Dentressangle has reported “steady growth and improved profitability” across all its business divisions in its half-year results released at the end of July. First half 2014 revenues were up by 13.4% to $2,191 million, whilst the group’s earnings, before the deduction of interest, tax and expenses (EBITA), were up by 19% to $65.5 million. This produced an operating margin of 3.0% compared to 2.9% in the previous period. Commenting on the results, Norbert Dentressangle’s CEO, Hervé Montjotin, said: “The first half of 2014 took place in a European economic environment which was boosted by growth in the UK economy and recovery in Spain. Against this backdrop, and despite flat activity in France, Norbert Dentressangle capitalised on its ever expanding global footprint and its positioning within buoyant sectors. Not only did we achieve revenue growth of 13.4% compared to the first half of 2013, but – and this is more important – we generated EBITA growth of over 19% for the same period. “Our three business lines – logistics, transport and air & sea – are all well on course in terms of growth and profitability, in accordance with our expectations.” The share of revenues generated outside France amounted to 61%, while the UK, the second largest contributor to group revenues, accounted for nearly 30% of total sales for the period. The transport division posted first half 2014 revenues of €1,067 million, up 5.6% from the same period in 2013 and up 4.1% like for like. During the period, Norbert Dentressangle reinforced its position in the UK bulk tanker transport market with the acquisition of Hopkinson, a company with annual revenues of around £4 million. With more than 14,700 employees across 195 sites, 1,700 vehicles, and around 3.5 million sq.m of warehousing, Norbert Dentressangle is one of the UK’s largest transport and logistics companies. www.norbert-dentressangle.co.uk

News

INEOS “more or less likely” to move into fracking

Ineos is giving the strongest signal yet of its intention to move into the controversial area of fracking. The privately controlled chemicals group said it was now “more or less likely” that it would apply for a licence to extract shale under the 14th round of onshore applications launched by the government recently. Ineos has already hired a small team of shale experts, and the company is also busy investing at Grangemouth to handle large quantities of ethane gas derived from shale in North America. “Britain needs gas as part of its new energy strategy, both as a bridge to renewables and as a backup to intermittent [wind] power generation. If you have gas, why not use your own? Doing something [in the field of the extraction of UK shale gas] would be more or less likely for us, but as to exactly what we do not know yet,” said Ineos director, Tom Crotty. “Clearly we need a degree of confidence that there is the gas that everyone says there is. The British Geological Survey [BGS] has given its view, but we need to make our own assessments,” he said. Ineos needs gas as fuel for its chemical production plants at Grangemouth and Runcorn in Cheshire, and Tom Crotty expressed frustration at the slow place of UK shale development. He feels the industry is held back by a lack of clear communication and leadership. There has been speculation in the past that Ineos might throw its weight behind one of the existing explorers, such as Cuadrilla Resources, but the chemicals group is now thinking it might “test the water” and apply for one of its own licences. Over the past 12 months several larger companies, including Centrica, Total and GDF Suez, have joined smaller independents, such as Cuadrilla, Celtique Energie and IGas Energy, in taking a stake in various existing licences with shale potential.

News

Murco confirms sale of Milford Haven refinery: 400 jobs saved

The sale of Murco’s Milford Haven refinery has been confirmed, saving the facility from closure and safeguarding 400 jobs. Murphy Oil Corporation has announced that its wholly-owned subsidiary, Murco Petroleum, has signed an agreement to sell its Milford Haven refinery and terminal assets to Klesch Refinery. The price of the deal was not disclosed. It added that a separate transaction for the sale of Murco’s UK petrol station retail business is at an advanced stage, and the company will provide a further update on this in due course. Klesch said in a statement: “We look forward to using our considerable industry expertise to return the site to profitable growth. By taking a long-term investment view we aim to secure the future of this refinery, for its employees and the broader community.” The Klesch Group is a global industrial commodities business, with three divisions specialising in the production and trading of chemicals, metals and oil. Founded in 1990 with headquarters in Geneva, it has revenues in excess of €5 billion, and employs more than 2,000 people across 30 locations in over 17 countries around the world. Murphy Oil announced more than three years ago that it intended to sell its UK business, comprising the Murco filling stations and the oil refinery. The company halted production at Milford Haven in May after a potential deal with London-based private equity fund, Grey Bull, broke down. The refinery has been a major employer at the port since it opened in 1973. Although it has not been confirmed, the owner of Motor Fuels Group (MFG) is believed to be in talks to buy the 228 filling stations owned by Murco. Private equity group Patron Capital, which bought MFG in 2012 and a further portfolio of 54 Murco filling stations last year, is believed to be in negotiations over a deal worth around £200m. In January 2012 Patron Capital Partners teamed up with Aberdeen oil tycoon, Alasdair Locke, and paid £40m for MFG, then one of the largest independent petrol station groups in the UK, and currently ranked fourth in the Forecourt Trader Top 50 Indies. In August last year the two parties teamed up again to buy a portfolio of 54 Murco petrol stations in a deal worth more than £50m.

News

Improving blind spot awareness

The Institution of Occupational Safety and Health (IOSH) is urging businesses to educate their fleet managers and drivers about the risks of failing to check blind spots before carrying out a manoeuvre. Figures published by the Department for Transport show that during 2012, a total of 866 vulnerable road users were killed on the UK’s roads, while a further 13,781 were seriously injured. IOSH senior policy and technical adviser, Phil Bates said: “It’s vital that companies ensure their workers are fully aware of their responsibilities to act in a safe and shrewd manner every time they get behind the wheel. “This means grasping the importance of blind spots, as 75 per cent of collisions reported in Britain each year take place at or near junctions, where motorists may have had their vision obscured.” In order for fleets to lower such risks for their drivers, various technologies are now available. They include CCTVs to give drivers a 360-degree view around their vehicle; wide angle and blind spot mirrors; automatic side mirrors that move to cover blind spots when turning; and rear, front and side sensors to detect obstacles.

Insight

Task force to take action on UK refining and fuel import issues

After a government review established seven actions to support the health of the UK’s refining sector and to ensure our fuel supply resilience, the sector is receiving increased attention. But, will the new Midstream Oil Task Force be able to fulfill these actions? Reflecting the government’s position on refining, the statements below are taken from the ministerial foreword from DECC’s recently published review into refining and fuel imports.

Opinion

“Do you expect domestic customers to desert oil in favour of renewables?”

New figures from the Department of Energy and Climate Change (DECC) show the south west is leading the switch from oil to renewable forms of heating such as biomass boilers and heat pumps Matt Lockhart, WP Group “Renewable sources of energy are undoubtedly the future however the current reality of renewable energy for the majority of domestic homes is neither accessible nor feasible. Despite considerable investment from the government, renewable energy makes more sense for commercial buildings rather than domestic use at present. The government’s Renewable Heat Incentive (RHI) offers an exciting opportunity for industry to offset the initial outlay for a biomass system. This form of energy offers more than just an energy source for industry, there are huge advantages in marketing applications for companies who make the switch. However, the fact remains that biomass systems and heat pumps demonstrate barriers to consumers mainly due to space and initial cost. If an individual were to install a biomass boiler they would on average need to pay £25,000 plus VAT in addition to an annual service cost. Biomass boilers also require a greater amount of internal space for storing both the boiler itself and the fuel store. This initial investment is extremely high and could take up to 10 years for the switch to generate return for the consumer. Heat pumps, regardless of costing much less, also have several drawbacks; they tend to be somewhat ineffective in any climate where the outdoor air temperature falls near or below freezing. This is because moving heat from a very cold area to a hotter one takes more energy than moving heat between two areas with a more moderate temperature difference. Typically in the past this might not have been such an issue in the UK however, changes in the climate are causing our winters to become much colder, a trend which looks set to continue. Despite the current drawbacks of biomass systems there are both long term cost and sustainability advantages which are attractive. WP Group takes sustainability very seriously and is committed to delivering a range of products and services designed to improve efficiency and reduce carbon output. Renewable energy forms are costly however they will be an inevitable solution to a growing shortage in current non-renewable resources, the companies recent interest in the biomass market is a reflection of this industry demand. In summary, renewable energy sources are not a realistic option for a vast majority of our domestic customers at present. Commercially, however, companies can benefit from bio systems harnessing this energy to generate significant profit and reduce carbon emissions. WP Group is currently investigating routes into this market in order to offer companies a complete energy solutions package as part of our ongoing commitment to sustainable alternatives.” Kevin Bennetts, Consols Oils “Working on the assumption that it’s much easier to upset customers than it is to please them, it’s a miracle that that there are any customers left since the disgraceful excessive pricing episodes of 2010 which saw the industry assume the same status as estate agents and politicians. Customers have woken up to the fact that in some cases they have been long abused by suppliers they had trusted. This has led to a splintering of our marketplace with streetwise buyers defecting to renewables, and price comparison operations and buying groups gaining traction on the illusion that they can source cheaper oil. If the market was operating properly in a truly transparent manner there would be no scope for cheaper oil because suppliers would be selling it at a margin that while allowing an essential element of profit, would be hard to beat by any third party seeking to take their own turn out of the transaction. Instead we have suppliers continually playing the ludicrous game where new business shopping around gets a suicidal rate, subsidised by the loyal customer who pays over the odds.”

News

Kerosene – supply and quality

Like driving on the left, the UK is pretty much on its own when it comes to using kerosene as a heating oil Picking kerosene in the UK because of its suitability for vaporising burners, most of Europe opted for gas oil because it was cheaper than kerosene and meant there was no need to steal fuel from the more valuable aviation market. With 44% of our kerosene now imported from the Middle East, Asia, Russia and South America, quality is variable reported Julia Mansfield at the Fuel Oil News Distributor Debate earlier this year. Julia, a chemist with 19 years experience in fuel and fuel additives, understands fuel. In her capacity as technical business development manager at Fuel Additive Science Technologies (FAST), last year she tested over 200 fuel samples sent in by customers. Thirty-one percent of the samples tested were kerosene; 41% of which were found to have no problem with the fuel.  Of the remaining figure, two thirds had produced coking problems in AGAs or similar cookers, 25% had housekeeping issues whilst 18% had intrinsic problems within the fuel.

Interview

ROM1 – a step in the right direction

In a bid to reduce illegal oil trading, the Revenue Commissioners introduced monthly Return of Oil Movements (ROM1) reports into the Republic of Ireland last year. Feeling weighed down by ROM1’s administrative burden, its introduction was initially met with some reservation More than a year on, industry players can now see benefits writes Irish correspondent Aine Faherty – particularly towards the achievement of its goal to reduce illicit trading.  Now Northern Ireland is also looking at ROM1 with a view to changing its existing RDCO system. ROM1 – sales of legal diesel are on the rise Since the introduction of ROM1 in January 2013, it is estimated that the legal diesel market in Ireland has risen 5.2%. Twelve months prior to this, the same market was down by approximately about 1.2%. According to Paul Candon, Topaz marketing and corporate services director these figures provide ‘positive proof’ that the new legislation is having an impact. “In recent years, rogue operators have become highly efficient in their operations. The fact that all genuine licence holders must now submit details, including opening/ closing stock balances and details of purchases/sales for all oil products, means illicit trading is now more difficult than ever,” said Paul.  “This issue is island-wide and also of great concern north of the border.”   Time to improve RDCO Despite the RDCO system having been in place in Northern Ireland since 2003, the trade is still running at close to a £160m loss to Treasury. Although this tax gap has decreased by £50m since its introduction, Paul says it indicates that more work needs to be done. “RDCO was a huge step forward for HMRC but the scheme needs to sit in sync with ROM1 in terms of the requirements for the licence holder,” adds Paul. “There need to be stronger controls in place where the movements of stocks and goods supplied are fully traceable, as well as a stronger legislative requirement for reporting.” Donall O’Connor, managing director of Value Oils, which operates north of the border, believes that for the most part, the RDCO scheme does not appear to have stopped illicit product being bought and sold in Northern Ireland. “Despite the fact that over 460 retail sites have been found with illegal product since 2011, there has not been a single prosecution.  I don’t have much faith in the present RDCO system as it operates.” In Donall’s view the changes which have been suggested to make RDCO more similar ROM1 – to include purchases with sales – might be beneficial.”   Making further improvements to ROM1 For Jim Fitzgerald, managing director of Campus Ireland and chairman of the         Irish Petroleum Industry Association (IPIA), ROM1 is an important part of the Revenue Authority’s campaign against fuel laundering in the Republic.  “ROM1 is achieving its goal and has the full support of the oil industry as represented by IPIA. “Early indications are that it appears to be having a positive effect in cutting off supply to the launderers,” Jim added. “IPIA and Revenue are in ongoing discussions to see how the effectiveness of the campaign can be improved further.” Top Oil is wholly supportive of all measures taken to protect the legitimisation of the oil industry. John O’Donovan, Top Oil’s national reseller manager says that although ROM1 returns have increased the administrative burden on all oil businesses, especially the smaller players with less administration resources, “if it achieves its aims we believe it will be worthwhile,” says John. “To begin with ROM1 returns did create an administrative headache for us,” said Rita Lambe of Lambes Oil, Co Offaly. “Now it’s a fairly routine operation which has made everything more transparent. It’s also gone some way to reducing the activity of rogue traders which is a good news all round.”   Does RDCO need updating? Email Aine@fueloilnews.co.uk. 

News

New appointment for Certas

New head of national accounts, Franco Moller Certas Energy has appointed Franco Moller as its new head of national accounts. Franco brings a wealth of experience in the transport and logistics industry, having previously worked for rail services provider, DB Schenke. Based at Certas Energy’s Birchwood office, Franco will spearhead the national accounts plan focusing on securing new contracts, developing the customer base and further establishing the company as a key player in the industry. Managing director, Paul Vian commented: “Franco’s strong professional background and relevant experience of both the transport and logistics sectors makes him a valuable addition to our team. “He joins us at the start of an exciting period of business growth, as our National Accounts team and the wider business go from strength to strength. As a senior business manager, Franco will be integral to promoting our company values and safety first culture.” Franco added: “Customer service excellence is central to Certas Energy’s approach and I look forward to bringing this to life by working closely with the national accounts team to execute the businesses’ growth plans successfully.”www.certasenergy.co.uk

News

FTA Transport Manager on tour

The Freight Transport Association’s (FTA) Transport Manager series of conferences has become a must attend event for all transport managers across the country, providing the latest information, guidance and best practice advice on forthcoming legislation and enforcement changes. At the 2014 series of events, sponsored by Goodyear and Volvo, delegates will hear from the Driver and Vehicle Standards Agency (DVSA) and the Traffic Commissioner. The DVSA will be unveiling its systems approach to recognising individual operator culture and its attitude to compliance, outlining enforcement priorities for the coming year, discussing how the Agency is working in partnership with industry and providing an insight into the future enforcement of the seriously non-compliant. The Highways Agency will be on hand to discuss pressures on the strategic road network and how it deals with challenges such as minimising the impact of road closures. Other key sessions will include presentations on Trucks of the Future and understanding the new Guide to Maintaining Roadworthiness The Transport Manager series will be on the road throughout the UK from September to December 2014: Wednesday 10 September – Brands Hatch Wednesday 17 September – Durham Wednesday 24 September – Warrington Wednesday 1 October – Leeds Wednesday 8 October – Taunton Wednesday 15 October – Huntingdon Wednesday 22 October – Chepstow Wednesday 29 October – Dunblane Wednesday 5 November – Sheffield Wednesday 12 November – Southampton Wednesday 19 November – Slough Wednesday 3 December – Birmingham The cost for FTA members is £295 plus VAT for the first delegate and £265 plus VAT for subsequent delegates; for non-members £395 plus VAT for the first delegate and £365 plus VAT for subsequent delegates. www.fta.co.uk/events/Transport_Manager_Conferences_2014.html

News

New petroleum measurement training and technical guidance

Measurement of the quantity and quality of petroleum and its products is vital for accurate allocation, custody transfer and fiscal purposes, stock control and loss prevention. The Energy Institute (EI)’s Hydrocarbon Management Committee (HMC) has developed new online training and good practice guidance to support greater understanding in this field. The new resource – Online training for hydrocarbon management – has been designed to improve knowledge of these issues across various parts of the industry. 

Given the international focus of hydrocarbon management, there is a clear need to standardise and align processes, to inform industry and to promote consistent and accurate measurement of the quantity and quality of products at various points along the supply chain. The training is broken down into a series of modules to introduce the key elements of hydrocarbon management to those who are relatively new to the topic or who simply wish to refresh their knowledge. This project has been devised by the EI’s HMC in conjunction with IDESS Interactive Technologies Inc and SGS. The first two modules in the training resource are now available: ·         Petroleum measurement (for marine cargo inspection) covers marine cargo measurements and matches the requirements of the IFIA Inspector Certification Programme. This includes the safety, sampling, testing and calculation procedures associated with hydrocarbon management. ·         LNG operations (sea transport) provides a solid background to those involved in handling marine LNG cargoes, covering the product properties and measurements and also vessel operations and load and discharge procedures. HMC guidance covers all aspects of petroleum measurement from production allocation through to transportation and refining. Other recent EI technical publications cover general terms and conditions for the sale and purchase of crude oil, cleaning of tanks in marine tank vessels carrying petroleum or refined products, and procedures for cargo inspections for crude oil, products and liquefied petroleum gas.  www.energyinst.org/hydrocarbon-management  

News

Loyal to oil – Watson Petroleum customers

A survey of 750 oil-using homes by Watson Petroleum and OFTEC earlier this year has revealed that oil heating remains a popular choice with few owners thinking of switching. Of those that expressed a preference, most were satisfied with their existing heating system while 73% of those considering replacing their existing boiler will install a new oil condensing boiler. By contrast only 4% were considering switching to an air source heat pump.

News

Research predicts oil price drop will continue

“Oil is becoming more affordable and competitive, and the cheapest option going forward for most off-gas homes” says Jeremy Hawksley New research commissioned by OFTEC and the FPS predicts the price of oil will continue to fall over the next three years, spelling more good news for the industry. The results forecast that by Q4 2014, the price of kerosene will have reached 55.52ppl in the UK and 75.81 cents per litre in Ireland. From there, prices are forecast to drop to reach 54.00 ppl in the UK and 74.10 cents per litre in Ireland by Q4 2016. The forecasts show that prices will fall further into Q2 2017 to reach 53.43 ppl and 73.39 cents per litre. The predicted drop in oil prices comes at a time when gas and electricity prices are continuing to rise, evidenced by the latest Sutherland Tables data. These figures show the average annual cost of heating a three bedroom home by gas and electricity has increased over the last three years by 34% and 27% respectively. This compares to the cost of using an oil condensing boiler which has fallen by 12% over the same period. The National Audit Office also predicted that consumers face almost two decades of price rises for electricity, gas and water to fund £310 billion worth of new infrastructure. Commenting on the research, which was carried out by UX Energy Services, OFTEC director general Jeremy Hawksley said: “It is of course impossible to predict how future world events will pan out and exactly how these will affect the price of oil. “However, the research remains valid and shows that the general trend of falling oil prices is expected to continue. This underlines the fact that oil is becoming more affordable and competitive, and the cheapest option going forward for most off-gas homes.”

News

JET keeps Silverstone Classic on track

As part of its 60th anniversary celebrations, JET has announced a three-year sponsorship package that will see the fuel brand appointed as the official fuel partner of the Silverstone Classic. In the run up to the World’s Biggest Classic Motor Racing Festival, which takes place at Silverstone from 25th – 27th July 2014, the company will also be giving away an incredible money can’t buy prize. The unique prize for two lucky individuals includes a 25 minute GT Legends high speed parade with a professional driver, a ride in the pace car, BMW luxury transfers, a helicopter ride, onsite accommodation, a guided tour of Race Control, VIP concert stage bar passes with a private backstage tour of the concert area, performance driving sessions, tickets to the BRDC Silverstone Classic Dinner and £500 spending money. Entries close on 18th July and full details of how to enter can be found at www.jetlocal.co.uk/moneycantbuyprize Pete George, managing director, Phillips 66 UK and Ireland Marketing, comments: “2014 marks the diamond anniversary of our fuel brand JET – 60 years since JET opened its first petrol forecourt in Yorkshire. This is a real milestone for us as a company and an achievement that we are very proud of. “As part of our anniversary celebrations, we are delighted to become Silverstone Classic’s first official fuel partner. To be part of the world’s biggest classic motor racing festival at the iconic Silverstone circuit is a great honour and seems a fitting way to mark 60 years of delivering the highest quality fuel to our network of 300+ independently operated service stations. “Over the next three years, our sponsorship of this hugely popular event will provide us with a number of opportunities to engage with sports and motoring enthusiasts throughout the UK.” As part of the agreement, JET will also take on the title sponsorship of the two iconic HSCC Super Touring Car Championship races. www.jetlocal.co.uk                  

News

Craggs Yorkshire pride

Caught on camera – Le Craggs team When Le Grand Depart came to Yorkshire, Craggs Energy was in pole position. “As a company with its origins firmly in Yorkshire, we were immensely proud that Le Grand Depart came to our county,” said marketing manager, Ben Duckworth. “The stage two route came right past our head office in Cragg Vale and we felt very privileged to witness this once in a lifetime event. The whole team came out to enjoy race day and we were even lucky enough to get an aerial shot of our wagons on ITV!”

News

Oil industry stars recognised

The 2014 OFTEC Awards for Excellence winners The best talent in the oil heating industry was showcased at OFTEC’s 2014 Awards for Excellence event last month. Attended by more than 170 industry guests, this year’s Awards saw David Ewins from Cornwall-based Davanna Heating beat off stiff competition to pick up the title of Boiler Installer of the Year, with Stephen Owen of SC Owen in Reading receiving the award for Servicing and Commissioning Technician of the Year.

News

Protecting consumers against summer oil theft

Domestic oil theft is on the rise according to the FPS. The trade association has warned consumers to be extra vigilant when it comes to safeguarding their supply during the summer holiday period and issued the following advice: ·         If your tank has a lid, fit locks. This may be a legal requirement for some tanks. Your tank installation engineer or fuel delivery company will be able to advise you. ·         Consumers with the ‘vent and fill’ design should fit the lockable cap designed to secure this type of container. Of course, locking your tank may prevent your supplier from filling your tank if you’re not at home, so make sure your supplier has a key or code for access. ·         Monitor your oil tank on a regular basis.  Remote electronic oil level gauges are available which will set off an audible alarm if the oil level in the tank suddenly drops or falls below a quarter full. These gauges can be located in the kitchen or perhaps a utility room to warn of any potential problem. ·         If you belong to a neighbourhood watch scheme you can discuss this issue of oil theft with your group coordinator so that everyone of the scheme can be vigilant. ·         If the need arises to replace your tank, consider where you position the tank and make more secure. But remember to leave clear access for the delivery man at the fill point and the gauge can be seen. ·         You MUST never lock or block the tank vent/ breather, as this will cause the tank to split and cause further damage. ·         Consider fitting CCTV to monitor the tank ·         Security lights can have a very positive effect and make any property a much harder target for the thief. It’s not always necessary to floodlight the area with high power beams, as a more subtle level of lighting may be all that is needed. Low energy “dusk till’ dawn lights positioned close to the tank should, in most cases, provide sufficient light to illuminate any suspicious activity. This type of light can be both effective and inexpensive. High powered lights can be used but care should be taken not to cause any nuisance to neighbours or road users. Chief executive, Mark Askew warned that consumers in rural areas may be at greater risk: “Consumers in isolated locations, especially with tanks sited near the road should be especially vigilant. Rural areas are quieter and less frequently patrolled by police than their towns and cities, so homeowners need to look out for each other. Lookout for suspicious-looking individuals and vehicles, particularly vans, on both yours and your neighbours’ properties. If you’re particularly concerned, consider relocating your tank to an area that is more secure, remembering to leave it accessible for deliveries. Fitting CCTV and/or security lights to monitor your tank can also go some way to deterring potential thieves.” www.oilsave.org.uk https://blog.boilerjuice.com/3-ways-to-prevent-heating-oil-theft-in-your-area/  

News

10 years of making a difference

In April 2004 a small team of passionate individuals formed MechTronic with the aim of providing ‘class leading products and services’ to the  fuel oil market  Initially working from a spare room, the company moved into an industrial unit at Kirkstall Forge in Leeds, an area first occupied by the Cistercian monks of Kirkstall Abbey 800 years ago. “At this stage the team would not have believed that within 5 years the company would be the UK market leader in its field,” said sales & marketing director, Andy Spencer. “But MechTronic’s three years at the forge saw the development of the first mechanical metering solution, the new VisiFlow manifold and the revolutionary SPGI (Smart Product Grade Indication System).  It also delivered the MaxFlow electronic metering system with its simplified one cabinet approach that the industry now considers the bench mark.” In 2007 when the River Aire burst its banks flooding the MechTronic building, the company moved to newer city centre premises which had the added benefit of parking for Leeds United matches!   Listening to customers, doing the simple things well and innovating Further investment in cutting edge IT enabled the development of a facility in which rapid proto typing could be carried out.  Coupled with the team’s flexibility and drive, these new resources allowed the company to take ideas from the field and bring them to market as products they could sell very quickly. “MechTronic’s philosophy has always been to listen to customers, do the simple things well and to innovate,” said Andy.  “This philosophy resonated with fuel oil distributors giving us a unique approach that would eventually deliver a fresh new look to the industry.” In addition to first-class products, the company quickly realised that after sales support was just as important and MechTronic Technical Support was born.  Known as MTS, this service team has rapidly increased in size in response to demand for planned/unplanned maintenance packages, similar to those offered by vehicle manufacturers. “The UK-wide team now has 12 people dedicated to providing class leading customer service,” added Andy. Anniversary activities Celebrating its 10th anniversary this year, MechTronic will unveil its new OptiMate metering control system.  “The next major step in the evolution of metering and delivery control, it will reflect big operational savings for distributors and much improved compliance with HMRC requirements on line contamination,” says Andy. In June, 12 employees will cycle almost 80 miles in just one day for charity – some customers are rumoured to be tagging along too.  Later in the year, all employees are invited to a day at York races. “Time flies – that saying has never been truer, especially for those that were present when MechTronic was formed 10 years ago,” said Andy.  “In the time ahead, the team looks forward to working with customers old and new to help ensure our industry is a more cost effective and safer place to be.’’