Earlier this year, Par Petroleum took the FPS Depot of the Year title for a fifth time.

Road Tankers Northern (RTN) has opened a second factory in Barnsley. Founded in 1991, RTN is growing steadily and has now expanded its Barnsley headquarters and built a new specialist manufacturing facility at nearby Birdwell. RTN, which counts Shell, DHL, Tesco and Morrisons among its customers, can now offer tankers to the chemical, pharmaceutical, dairy and brewery industries. RTN, which also has factories in Birmingham, Sheffield and Northern Ireland, now has a share of around 80-90% of the UK petroleum semi-trailers market. Positive news for UK manufacturing “Foreign competition has dramatically reduced due to our expanding production which is very positive news for UK manufacturing,” said operations director Don Mckelvie. “We’re now supplying most of the fuel distribution companies and we supply all four major supermarkets.” Owned by the NWT Group, which was founded by South Yorkshire-based businessmen Paul Wright and Frank Newell, RTN is recording year on year growth and is set to turnover £11.2m in 2013. The company has increased its workforce from 88 to126 in two years with a number of apprentices now learning specialist trades on both the tanker manufacture side and in RTN’s five bay-service and repair centre. RTN plans to recruit a further 15-20 staff this summer. Regional support RTN is supported by Barnsley Business and Innovation Centre (BBIC) through the Enterprising Barnsley programme with funding assistance from Barnsley Council. Additional support has been received from Barnsley Development Agency to access funding from the Regional Growth Fund. “The growth of RTN has been exceptional in the past two years and we owe a debt of gratitude to Enterprising Barnsley and BBIC who have been pillars of support, particularly with regards to lean manufacturing and expansion,” added Don. Kevin Steel, BBIC business development manager said: “RTN not only manufactures tankers to the highest quality, it’s also creating skilled jobs and training the next generation through its apprenticeship scheme. We are delighted to provide business support to RTN.” www.rtnltd.co.uk      

According to DCC plc’s interim management statement, its energy division is trading ‘significantly ahead of both the prior year and budget’. Backed by an encouraging performance in the first quarter of 2013, due to colder than normal weather conditions which drove up demand for kerosene and LPG, DCC now expects operating profits to be 15%, 3% ahead of last year. According to Investors Intelligence, DCC ‘has experienced some impressive growth figures since the beginning of last year, ranging from a share price of 1467p to a 52-week high figure of 2725p’. “We can expect the uptrend demonstrated by DCC to continue with signals that further deals could be on the cards.” During the first quarter, DCC Energy completed the planned integration of the former BP LPG business in Britain with DCC’s existing LPG distribution business and of the former Total oil distribution business in Britain with its existing oil distribution business. The Interim Management Statement released last Friday also stated that ‘the group remains in a very strong financial position to pursue a range of development opportunities.’ The group also operates in the IT, healthcare, environmental services and food & beverage sectors, www.dcc.ie  

Another Royal Warrant holder, Worcester, Bosch Group has honoured this week’s royal birth by creating a one-off baby blue boiler.

BOILER SALES FOR THE FIRST HALF OF THIS YEAR ARE UP 23% ON 2012 – A VERY WELCOME OUTCOME FOR KEROSENE DISTRIBUTORS, BOILER MANUFACTURERS AND INSTALLERS Following on from last winter’s heating season which saw a welcome improvement in boiler sales, this positive trend continued into the spring with oil boiler sales up over 23% on the same quarter in 2012 – the best results for 5 years. The results underline the continued consumer confidence in oil heating following the cold winter. It is likely that many new boilers have been bought as distress purchases, with homeowners preferring to simply replace their old boiler – which no doubt gave many years of reliable, trouble free service – with a new condensing model. Sales of gas condensing boilers have also seen significant sales increases. www.oftec.org      

Over 14 tonnes of toxic waste was removed from farm buildings at the end of June after the discovery of a diesel laundering plant in Co Armagh. Officers from HM Revenue and Customs (HMRC), assisted by the Police Service of Northern Ireland, dismantled the plant, which was capable of producing nearly five million litres of illicit fuel a year, evading over £3 million in excise duty and VAT. Pat Curtis, HMRC National Oils Co-ordinator, commented: “Every illegal laundering operation typically generates tonnes of toxic waste, which involves significant environmental and safety issues. As taxpayers and local ratepayers, not only are we missing out on the stolen tax going into the pockets of the criminals, we are also paying the substantial clean up and disposal costs.” Mr Curtis highlighted to consumers and wholesalers that buying illicit fuel only services to fund crime and supports and encourages dangerous activities within communities. “The only winners are the criminals,” he said before urging anyone with information fuel misuse in their area to contact free telephone hotline on 0800 59 5000 and contribute to the fight against this type of criminality. Pumps, tanks and equipment were removed from the site and a forensic investigation and enquiries into the illegal operation there are underway. www.hmrc.gov.uk/nircto  

The EC Wind 55kW wind turbine UFW, part of the DCC Group, has secured the sole distribution rights in the UK and Ireland for the EC Wind 55kW wind turbine.

The Green Deal needs to be reformed not ridiculed says Worcester, Bosch Group’s Neil Schofield Since Green Deal’s launch in January 2013, official figures show that take-up amongst consumers has been poor with only a handful of installations despite 9224 assessments being completed.

David Blevings, OFTEC’s Ireland manager has welcomed the boiler replacement scheme Strong response from Irish householders to the government’s £12million Boiler Replacement Scheme introduced last September, has been welcomed by OFTEC. Figures from the Northern Ireland Housing Executive, which is managing the grant scheme on behalf of the Department of Social Development, show that 3,600 new boilers have been fitted since the scheme was introduced over nine months ago. Over 80% of those installed are new condensing oil boilers, which reduce energy costs and improve energy efficiency for oil householders. David Blevings, Ireland manager of OFTEC said: “The boiler replacement scheme is an excellent initiative and it’s good news local householders are beginning to reap the benefits. Here, 68% of homes use heating oil as their primary heating source but over 80% are being heated by older, inefficient boilers. The response has been very positive among oil users with 2,961 new oil condensing boilers so far fitted under the scheme. These boilers improve energy efficiency by up to 18% and that can mean an annual saving of up to £300 on your oil bill every year thereafter.” “While the response has been good so far, we estimate there are still circa 400,000 homes with oil boilers over 15 years old. But it’s important to act quickly if householders think they might qualify – the scheme operates on a first come, first served basis.”www.oftec.org

Celebrating graduation – the Petroineos sponsored students The first three students from a Petroineos-sponsored training programme have graduated from Heriot-Watt University.

Under chief executive officer Chris O’Callaghan and his team, Inver Energy has gained a reputation as a reliable and innovative supplier The company began over 30 years ago as an independent supplier of industrial fuel and steam coal to large end-users in Ireland, where a large presence is still maintained in these markets.

The company’s new Carlisle depot – commissioned in October 2012 When Carrs Billington Agriculture (Sales) Oil Division bought Wallace Oils in 2005, Derek Wallace said that he would stay with the business for three years. Eight years on, he is still there and at 67, has no intention of retiring – just yetLiz Boardman went to meet Derek at the company’s new Carlisle depot to find out more about the growing group of companies From small beginnings Having set up Wallace Oils in 1982 from his living room, former boiler engineer, electrician and Currie Fuels sales representative, Derek, gradually built up the business, buying trucks and eventually a depot in Carlisle in 1989. Now wholly owned by Carrs Billington Agriculture (Sales) Oil Division, Wallace Oils sits alongside sister companies Johnstone Wallace and Carrs Billington Fuels. Although at the moment the companies still operate under three separate names, the plan no doubt, at some time in the future is to bring them all under the Carrs Billington Fuels branding in the future. With five depots in the north of England (Carlisle, Lancaster, Hexham, Cockermouth and Langwathby) and three in Scotland (Dumfries, Castle Douglas and Stranraer), Carrs Billington supplies circa 100 million litres of fuel and a substantial amount of lubricants each year. Each depot operates in a 30-40 mile radius, giving the division excellent coverage in Cumbria, Northumberland, Lancashire and south west Scotland.A rural landscape The division does a huge amount of business in the agricultural sector. “We operate in an extremely rural area. Over the summer 40% of our business is gasoil to farmers. Our parent company, Carrs Billington has a very strong presence in the sector, selling feed and other agricultural supplies.” On the flip side, over winter, 60% of our work is in domestic heating oil.” A keen supporter of the area’s agricultural shows, Carrs Billington has attended the Cumberland Show under the Wallace Oils banner for the last 30 years. This year is no exception, as Derek explained: “It’s a form of local advertising for us – it’s all about having a presence and offering our customers a cup of tea and a bun. We like to spend a bit of money and encourage customers to visit us with their families – it’s nice for them to see that we value their custom. We do also take orders and get some new business each year.”Loyalty pays With community buying still very much a hot topic, Liz asked Derek if it was prevalent in the area and whether the company supplied any buying groups. “There are lots of buying groups in our area,” said Derek. “It’s a fact of life – we either have to work with them or lose orders. Hexham has three on its books and in Carlisle there is a similar number and is growing. On the whole we have a good rapport with them and the majority of them are village based. I can understand the thinking behind it. I don’t want to be high handed – it’s a numbers game, we’ve had to encompass it in our business. We pride ourselves on giving a good service and particularly with the buying groups and this has definitely worked in our favour. “The downside is that if buying groups chop and change between distributors, then they don’t get our loyalty. Why should they? It works both ways. If a good, loyal customer requires an emergency delivery, they get it. I often get calls on a Sunday; I had to build the business like this. My business card has all of my numbers on – I don’t get abused and would always rather people called if they are struggling. We also have an emergency line where there’s always someone on hand to help. We are open from 7am until 5.30 during the week and Saturday mornings.“

Adler and Allan was tasked to run a robust and secure supply chain for fuel to the Games’ construction phase site contractors Below features writer Liz Boardman takes a closer look at how some of the fuel distribution industry’s key players helped to make London 2012 such a huge successYears in the making In 2008 Adler & Allan (A&A) won what was to become one of the company’s highest profile contracts to date, right on the doorstep of its Stratford depot. Awarded by the Olympic Development Authority (ODA) A&A was tasked to run a robust and secure supply chain for fuel to the Games’ construction phase site contractors. “Our site fuel station was designed and implemented inhouse by an experienced team of fuel installation and supply personnel, expert in providing facilities and product to precise, measurable service delivery criteria, on an unusual and potentially hazardous site surrounded by waterways,” said A&A’s group marketing manager, Alan Scrafton. The company’s project manager, Colin Mitchell and his team were responsible for designing and building an efficient, removable fuel station close to the Northern Plaza, completing it well within the three month deadline given by the ODA. The station was later overlaid by hockey pitches where Team GB women won bronze.Site eviction A&A Fuel Services under Dave Whiskerd and Mike Grayton managed the contract to supply over 25 million litres of fuel and associated products from the site, operating and manning the fuel station with compliant and trained staff to the high standards of safety and quality demanded by the ODA. “The site provided a simple to use, stable retail style fuel service with vehicle recognition capability for onsite customer collections, and also a base for two rigid fuel tankers making over 10,000 bulk deliveries all over the Olympic Park,” Alan told FON. Supervised by Maggie Lyons, the station became the company’s on-site base for the next three years, with fuel being bridged in from new Barking premises following eviction from its Stratford site to make way for the construction of a coach parking zone for the Games. “Security measures were high on the agenda, so operations had to be carried out under stringent security procedures and to specific timed delivery schedules. Most of the bulk tanker movements to replenish the company’s onsite storage facilities were carried out at night to minimise traffic issues,” explained Alan. As the construction phase approached completion at the end of 2011, A&A was awarded the contract to supply on behalf of BP, all the fuel for the 600 plus generators providing main line and back-up power to over 40 Olympic venues around the country. This involved employing 12 rigid tankers on a 24/7 basis from May to September 2012, initially fuelling the generators and supporting bulk storage tanks, and then progressively replenishing through a robust testing phase to round the clock operations at the peak of the Games themselves. Throughout the project the company was required to operate to the highest HSE and security requirements and successfully completed over 2000 individual deliveries. “Staff screening ramped up tenfold three months prior to the competitions and at its peak we had over 40 members of staff involved directly or indirectly working on the project,” added Alan “Ambush marketing clauses in the ODA’s contracts made it impossible for us to publicise any involvement in the Games, but we did benefit from being onsite with spin-off business in spill response, barge booming for stored fuel in the canal; hazardous waste and other industrial services throughout a hugely successful project. However, just recently there has been a relaxation of this so that British companies can reference their contribution and we have applied for a licensed agreement for London 2012 Supplier Recognition with the British Olympic Association.A proud supplier After supplying the Olympic rowing test events in 2011 WP Group was awarded the prestigious contract to install, supply and maintain the London Organising Committee of the Olympic and Paralympic Games (LOCOG) sport and logistic fuel for over 40 venues, including Olympic Park, Excel, O2, Eton Dorney, Weymouth and numerous football stadiums. Darren Borras, the company’s commercial director led the project from the test events and bidding process. “The WP team continues to impress me with its desire and ability to deliver the most professional service in the toughest of conditions, closest scrutiny and against the tightest timelines. The Olympics was a true test for our expanding organisation and one for which I am proud to award the team a gold medal!”

Group managing director, Andrew Palmer Against a backdrop of economic instability, one company bucking the trend and achieving impressive organic growth is the Suttons Group. The Cheshire-based global logistics provider recently announced group revenues of £149 million, pre-tax profits of £7.2 million, and a 40% rise in turnover in the last two years alone.Liz Boardman visited group managing director, Andrew Palmer at the company’s Widnes headquarters to find out the secret of its success.Riding the storm Seven years ago the company was not in the enviable position it is now, but in many ways this enabled it to ride the recent downturn more effectively, as Andrew told FON: “The company was in trouble financially and commercially, but we were able to turn it round successfully. By actively looking at cash flow and overhead costs, we were able to make the business leaner and stronger, which actually prepared us for the downturn better than most other companies. We’d already taken the necessary measures to survive and put the company where it needed to be.” Currently in the fuels sector, Suttons operates 75 road tankers across 20 sites throughout the UK, including Grangemouth, Purfleet, Milford Haven and Avonmouth. Harvest Energy is one of the company’s biggest customers with whom it has “a long and mutually successful relationship.” Fuel logistics accounts for approximately 20% of the group’s overall business, making it an extremely important area for Suttons. Speaking to Andrew, a day after the chancellor’s Autumn Statement, he was optimistic about the fuels side of the business. “Now the fuel duty has been put off, it gives us breathing space. It’s the right decision and it will definitely help everyone.”The last link Probably one of the biggest factors in the company’s growth and success is its approach to training and health & safety. With 450 drivers on its books, recruitment, training and safety are key issues for Suttons, not just in fuels but across all areas of the business. A number of drivers are trained in more than one area to ensure flexibility. “Whilst drivers mostly stick to their own areas, some are cross-trained and we do have a contingency plan, which was developed when the bird flu crisis struck a few years ago.” He went on to say: “Drivers have got a very responsible job. They spend an awful lot of time on their own and are the last link in the chain for the customer.” Managing director of the company’s road tanker division, Tony Leighton, told FON that driver recruitment is intense. “As well as a pre-employment driving assessment and interview, drivers must undergo numeracy and literacy tests and drugs and alcohol checks, in support of the company’s policy of zero tolerance. We’re also looking to bring in behaviour-based psychometric testing in the near future.”Making safety memorable As active members of Brake and four times winners of Motor Transport’s Safety in Operation award, Suttons takes safety extremely seriously. The company employs 11 dedicated driver trainers to assess new starters and all drivers on an ongoing basis. As well as monthly tool box talks and yearly refresher training, Suttons insist that all drivers undertake a defensive driving course every two years. “We look at all the potential risk factors and try to minimise them where we can,” said Tony. “It’s about making safety memorable and constantly refreshing the message.” “Anyone can buy trucks,” Andrew added, “but people make the difference – that’s why we have such a strong focus on training and development.” It’s this focus that has won the company a lucrative contact in the Middle East. “Our partners in Saudi Arabia were very impressed with our strict training and safety policies and its one of the main reasons why they wanted us on board. Our driver trainers have been out there recently, transferring skills to local drivers.” Moving forward however, the company is going take a slightly different approach to training, as Andrew explained: ”We’re going to begin some joint attitude training for both drivers and managers. This will be carried out in a series of workshops, in conjunction with a third party training provider.”Preparing for winter Driving in treacherous conditions is also something that the company is keen to cover with its drivers so it actively prepares for winter. Andrew told FON that preparations start as early as July. “We make sure that all of our drivers are briefed on winter driving techniques by the middle of August and that we are well stocked up on grit. You cannot underestimate the value of preparation. “However, the problem is not getting the depot cleared for action, but getting drivers to the depot,” he added. “We learned a lot three years ago, when the weather was bad. The worst time is after Christmas when some of the vehicles can be stood for three or four days unused. It’s important to check the engines and lights before the drivers get to site.” Long term, the company is also looking at ways to get better predictability, to try and safeguard and plan for extreme weather conditions such as flooding, which affected the UK towards the end of last year.So what’s next? With projected figures for April 2013 looking healthy, FON was keen to find out how Andrew plans to take the company to the next level. “We’re aiming to double business in the next three to five years by retaining and recruiting excellent staff,” he said. Admittedly this isn’t going to be easy but Andrew remains positive: “Generally, the economic outlook is still bleak and predictions aren’t great, but in our industry it’s about making the best of what you’ve got. We’ve set a high benchmark of growth in recent years and have raised expectations amongst shareholders. However, we’ve renewed and taken on new business in the UK, including Total and are always looking at where we can add value and skills.” Although Andrew admitted that the company has looked at acquisition opportunities in the fuels sector, so far nothing has been the right fit. “Along the way things have not fitted strategically or the price has been too high. You have to kiss a lot of frogs to find a prince,” he joked. “Acquisitions are fraught with challenges. It’s a challenge to integrate a company and extract value. We do take risks, but not gambles. We’re a privately owned, family business, extremely conservative and prudent about where we put our money, but we may acquire in the food sector at some point, if the right opportunity arises.”

The CBL team headed up by Chris Pomfret Having spent several years as a sustainability consultant in the States, CBL’s Chris Pomfret found himself unexpectedly back in an Oxfordshire village of oil users, caring for his disabled mother Surprised to see three tankers from three different suppliers delivering oil at the same time, Chris was inspired to draw the village community closer together and Community Buying unLimited (CBL) was born. “Something magical happens when people join together. There’s a sense of community and inclusion,” explained Chris. “I wanted to create something unique.” Although initially difficult to get the scheme going, persistence paid off.Forming local partnerships Collaborating with housing associations, parish councils, community groups and Rural Community Councils (RCC), the scheme was able to get off the ground. Currently CBL works with 22 of the 37 RCCs across the country. Oxfordshire RCC was highly instrumental in getting others involved. Chief executive, Linda Watson explains: “We’d been thinking that if small local groups syndicated into something bigger, they’d increase buying power. By chance that’s when Chris came to see me. His village oil buying scheme had spread across North Oxfordshire. Borrowing his business model, we started the scheme in November 2010, using our long track record and extensive reach into communities to promote it. “We agreed it would be appropriate for us to build the scheme around local community coordinators, who get membership free of charge. In Oxon we now have 40 coordinators covering 86 communities. “Within three months colleague RCCs were asking questions – six months later we’d developed a franchise offer, now taken up by 21 other counties. In Oxfordshire alone we have over 1000 members, who pay £24 per annum. “From day one, we’ve been convinced that this scheme not only helps members save money, but also reduces the carbon footprint of deliveries. As an organisation that cares about environmental sustainability, we’d prefer not to be running an oil scheme – but for off-gas rural communities, oil heating is a fact of life.”Changing buying and supplying behaviour Currently there are over 9000 households and businesses buying oil through CBL. Feedback from satisfied customers has been extremely encouraging. “We avoid submitting orders in December and spread buying across 11 months, especially over the summer. This January alone, we placed orders totalling over 1.9 million litres.” “On the distributor side, perceptions have changed,” says Chris. Fuel Supply Solutions consultant, Keith Guppy, is working with Chris to help him better understand the distributor market and build a new buying model. “Viewed by some as the Antichrist, many thought Chris was simply driving down prices and forcing them to lose contact with individual customers,” said Keith. “Not so, CBL actually wants to make a fairer market which is ultimately more sustainable. It’s developing better relationships with suppliers and encouraging people to change the way they buy heating oil. CBL believes suppliers can make more money by delivering smarter,” said Keith. “As changes are implemented, bulk orders through CBL will result in distributors actually saving 1.5% on each individual card payment,” added Chris. “Keith wouldn’t be working with us if he didn’t see benefits for the industry. He’s helping set up an electronic purse so that customers can pay CBL by Paypal and spread payments across the year.” CBL now places orders with more than 40 fuel suppliers. Kevin Day, business development manager at Barton Petroleum commented: “Since our initial meeting in February 2010, I feel Chris now has a far better appreciation of the operational issues and difficulties faced by fuel distributors. Our dialogue has led to a realisation that cooperation and a willingness to work together is more productive for both parties. We’re always looking at ways to improve service and to help customers cope with higher energy costs. The industry does need to do more to help alleviate fuel poverty and we’re happy to be a supplier to CBL.” Another supplier told us: “We’ve done some business with CBL this winter.  They provide very comprehensive information, customers ring promptly with payment, and there’s a reasonable delivery window.”Gaining oil buying intelligence to help those in fuel poverty CBL is behind an initiative to expand the use of smart meters. “It’s a major problem when people don’t know what’s in their tank, so making a tank smarter makes sense,” said Chris. A mini version of the industrial sized smart meters used extensively in Africa and India has been created incorporating an electronic dipstick which sends users an update every two days. Currently a group of 50 householders are piloting the scheme. “Early results show huge potential as people better understand the big green thing at the end of their garden,” said Chris. Deeply concerned about fuel poverty, Cottsway Housing Association in West Oxfordshire is also involved. The Association has purchased a number of CBL’s smart meters for its most vulnerable tenants. In return CBL has developed a community oil fund that purchases oil on behalf of Cottsway’s tenants. The smart meters inform CBL of oil used, with tenants able to pay for oil as used. “Cottsway has shown real vision – we believe this is the first pay as you go oil system of its kind – and a solution to an issue that the heating oil industry has never been able to solve for itself,” said Chris. Barton Petroleum is also supporting the use of smart meters. Kevin explains: “We’re constantly looking at ways to keep distribution costs to a minimum and recognise the pressure from government to help our customers reduce CO2 emissions. We’re hoping to work closely with CBL to promote this smart meter. Customers will be able to see how much fuel they’re using and it’ll help reduce emergency deliveries.” CBL members are also benefiting from the government’s ECO (Energy Company Obligation) initiative. CBL has direct access to a fund to facilitate the installation of energy efficiency measures into off-grid homes – including free boiler replacements for the oldest most energy inefficient boilers. “A massive development for us and one on which we’d like to work even more closely with suppliers to help them help their customers,” said Chris. Now in its fourth winter, CBL continues to buy communal oil, rock salt and even iPads. Mains gas and electricity are on the horizon, but it is in the immediate future that Chris believes those working with CBL can increase profits, reduce fuel poverty and lower their carbon footprint. Share your thoughts on community buying with liz@fueloilnews.co.uk

When the price of crude oil rises, reports of oil theft increase. Alex Porter spoke to distributors about the situation in their area A recent article on the Fuel Oil News website reported that police in Leicestershire had found that fuel to the value of £16,000 had been stolen in the region over a period of 60 days. In Wales, statistics revealed the equivalent of a theft a day by the end of 2011. The impact on business Neil Kovac, sales manager at Leicestershire-based Brobot Petroleum said: “Whereas buyers would have previously purchased larger tanks in order to buy more fuel at once, buyers are becoming more wary of purchasing and storing large amounts. “This is especially true for the agricultural community in and around the Leicestershire region. More and more farmers are spreading their deliveries out. This obviously impacts upon our delivery costs and for the farmer, makes them more vulnerable to running out of fuel.” Duncan Lambert, general manager of Rix Petroleum, agreed that, as well as a lack of funds, rising levels of theft are partly responsible for smaller volume orders. “A big problem is that each time our 30-foot tanker parks outside a property to make a delivery, we advertise that a new batch of oil has just been delivered. But what can we do? Alarms, locks and fancy gauges are available; however, if the thief wants it, they’ll get it!” “In response to this developing trend, GB Oils made a strategic decision to establish a range of oil monitoring and security products and bunded oil storage tanks to help keep our customers protected,” explained Sara Richardson, GB Oils. Grossly exaggerated? Not all distributors believe that instances of oil theft are as widespread as suggested. “Whilst there has been an increase in isolated thefts of oil, I think that, due to publicity around theft, some customers automatically believe that because the smaller quantity they’ve purchased hasn’t lasted as long as their usual larger purchase, their oil must’ve been stolen!” said Mark Nolan, owner of Nolan Fuel Oils. Stevenage Oils has been working with Hertfordshire police to distribute leaflets making consumers aware of thieves, but owner John Cooper described reports of oil theft as “grossly exaggerated.” “People hear about a theft, and then assume the same has happened to them when they’ve actually just run out. Oil does get stolen, and plenty of products have been sold to try and combat that – but there’s no point having a very secure lock when the tank itself is plastic!” “We’ve not seen any evidence that the threat of theft is eroding confidence in oil heating, but it would be wrong to be complacent,” advised Malcolm Farrow, OFTEC marketing and communications manager. As an industry we must do everything we can to help customers secure their oil tank.” Share your thoughts on oil theft – prevalence and prevention liz@fueloilnews.co.uk https://blog.boilerjuice.com/3-ways-to-prevent-heating-oil-theft-in-your-area/

A newcomer to the UK, the Valero Energy Corporation entered the UK market last summer following its acquisition of Chevron assets including the Pembroke refinery, pipelines, terminals, an aviation fuels business and a network of over 900 Texaco-branded service stations in the UK, Plus around 230 in Ireland. This Fortune 500 company has headquarters at San Antonio in Texas with total assets (at the end of 2011) put at $42 billion. Market opportunities Keen to know what attracted Valero to the UK market, Fuel Oil News editor Jane Hughes recently met with Eric Fisher, president – Europe and Mike Lewis, director – product supply, at the company’s UK headquarters in London’s Canary Wharf. “Valero has had a keen interest in acquiring an asset in the UK or ARA (Amsterdam Rotterdam Antwerp) markets for some time,” said Eric. “Having a North Atlantic position enables us to do commercial trades here and to gain a much better insight into the European market. “The Chevron acquisition has given us an excellent entry into the UK – it was a good opportunity that came with good people and good logistics. With this European foothold, Valero has the ability to ship excess gasoline back to the north east US, where many refineries have closed. And, on the flip side, we can bring diesel back to the UK and ARA region.” Now firmly focused on profitably growing its inland volume, Valero has already made significant investment to move more barrels into the Midlands market and to offer its customers quality products at a competitive price. The company has an interest in four pipelines and owns five terminals – Avonmouth, Cardiff, Kingsbury, Manchester and Plymouth, and is part owner of a terminal in Dublin. The Mainline pipeline which connects the Pembroke refinery with the Midlands and Manchester is also under Valero ownership. To further strengthen its supply position in the Midlands and north west of England, Valero will be reopening the Manchester Fuels terminal this spring. “This terminal is very conveniently placed; former and prospective customers are very enthusiastic about its reopening,” said Mike. “I am pleased to say that Valero has been very well received in the UK market place and our work force is proud of what we’ve achieved to date. We’ve had some excellent feedback.” An experienced refiner “The refining market is volatile, seasonal and cyclical but we’ve got the experience in this business,” said Eric. (Valero is now the world’s largest independent refiner with 15 refineries producing 2.8 million barrels of oil per day.) “Western Europe is a challenging market to operate in, and it’s very competitive. That said, we’ve been here 14 months now and we’ve found nothing here that we had not already anticipated. “Valero is very pleased with its UK acquisition. There are still more opportunities to reduce costs, to be more effective and to ensure we continue operating safely – we work to improve on these things every single day,” Mike added. Valero’s refined product customers include its network of Texaco sites, branded wholesalers, jet fuel handlers and supermarkets. Kerosene is a sizeable market for Valero. From allocated crude stocks, the company currently sells 83% as kerosene and 17% as jet fuel but acknowledges that kerosene demand is ‘steadily decreasing.’ Ireland is one of Valero’s biggest kerosene customers. Asked if they thought the UK’s kerosene market would be quickly eroded by the UK government’s renewables drive, Mike replied: “Not yet, such transitions take a lot of time. The good thing about kerosene is that it’s a dual purpose fuel. In an area that’s short on fuel, we could easily switch more kerosene sales to jet fuel.”  Introducing E10 and the possibility of a Valero brand The challenges of introducing E10 into the UK market were also discussed. “E10 is difficult as the rules are far from clear,” said Mike. “By early January, it will be possible to put up to 10% ethanol in petrol but will that be introduced on the forecourt? The industry is waiting for some guidance as to when, where and what. We look to the government for direction and to communicate with consumers.” FON also asked about the possibility of a Valero brand being introduced to UK forecourts. “We’re evaluating our options with respect to re branding. Texaco is a strong brand with a long history in the UK so this is clearly something we have to consider very carefully,” said Eric. So have there been any regrets about entering the UK market? “Valero is a positive story for the UK, the company is well-capitalised and we’re still excited about being here. Make no mistake the UK market is very different, but it’s been a great transition and we’ve got a great team here. We’re here, we’ve identified the assets and we’re continuing to invest.” Developing a sense of community A recognised community leader, Valero likes to give back to the communities in which it works. Eric explained: “Well established in all the countries in which Valero operates, we’ve got volunteer schemes, charitable giving and governorships going in the UK and Ireland. To date employees have volunteered 785 hours to local projects.”   Valero was formed as a pipeline company in Texas in 1980. The company acquired a shutdown refinery site at Corpus Christi, now one of the newest refineries in North America. In the mid 90s, Valero chose to sell its pipeline business to grow the refining side. Valero is now the world’s largest independent refiner with 15 refineries producing 2.8 million barrels of oil per day. With 21,000 employees, Valero operates in the US, Canada and the Caribbean and also owns 10 corn ethanol plants in the Mid West, a biodiesel plant in Louisiana and 6800 branded retail sites.

In the first quarter of 2013 oil boiler sales increased by 22% compared to last year. Sales at the end of 2012 also showed an improvement on the previous year. Commenting on the news, OFTEC director general, Jeremy Hawksley said: “Most boiler sales are distress purchases and the healthy results are due partly to the cold weather the UK has experienced this winter. However, it also underlines the public’s continued enthusiasm for oil heating and the fact that upgrading to a modern oil condensing boiler will bring an immediate saving in heating costs. This is by far the simplest and most cost-effective change that existing oil heating users can make”. OFTEC is promoting the benefits of oil heating to rural households with Oilsave leaflets and flyers. The flyer offers homeowners a booklet about energy efficiency which is available FREE from OFTEC. http://www.oilsave.org.uk/