Market & Supply 65

News

FPS EXPO 2013 – more visitors

Visitors to FPS EXPO 2013 admire WCF Fuels’ latest tanker. Built by RTN Lakeland, it features WCF Fuels’ new logo Visitor numbers at this year’s FPS EXPO, where 98 exhibitors displayed the latest advances in oil distribution technology, were up 7% on last year. “There was a real buzz about the place this year and that showed in the level of enquiries we received, as well as the general atmosphere we experienced,” reported Kiran Shaw, operations manager at IFC Inflow. “It is our most important show of the year, we really enjoy attending and catching up with both customers and suppliers, old and new. “FPS EXPO is a very focused show, targeted specifically to our customer base” said an Emco Wheaton spokesperson. “It offers an opportunity to showcase our latest developments to a large audience.” New FPS president Mark Nolan addressed an audience of industry professionals at the awards dinner where John Bussell of Moorland Fuels took the coveted Driver of the Year award, sponsored by OAMPS Petrochemical. The runners up were Bob Cook of GB Oils and Mark Summerfield of Heltor. Planning has already begun for the 34th FPS EXPO which will again be held in Harrogate on 9 & 10 April 2014. Many of this year’s exhibitors will be returning and 41% of the stand space has already been sold.www.fpsshow.co.uk

News

Vital statistics for oil

The UK produced less oil in the fourth quarter of 2012; the closure of Coryton in July 2012 was a key factor says a recently published report. Last month the Department of Energy and Climate Change published its Energy Trends and Quarterly Energy Prices covering new data for Q4 2012 and provisional annual data for 2012.     Key findings • The UK’s total energy production was 10½% lower than in 2011 • Imports in 2012 were at a record high, with exports at their lowest level since 1989 • Oil production was 14½% lower than in 2011 – the lowest annual production volume since the current reporting system began • Production of petroleum products was down 8½%, with the closure of Coryton in July 2012 a key factor • Compare to Q4 2011, the cost of heating oil increased by 2.7% • Based on a fixed consumption level of 3,300 kWh, the average electricity bill in 2012 increased by £26, compared to 2011 • Based on a fixed consumption level of 18,000 kWh, the average 2012 domestic gas bill rose by £81, compared to 2011   Oil quarterly tables ET 3.1 – 3.7 are available on the DECC section of the gov.uk website at: www.gov.uk/government/organisations/department-of-energy-climate-change/series/oil-statistics     Energy Trends and the Quarterly Energy Prices bulletins, published quarterly, are available in hard copy from DECC on subscription, price £40 per annum and on the DECC section of the gov.uk website at www.gov.uk/government/organisations/department-of-energy-climate-change/about/statistics    

News

It’s a cracker for Essar

Moving the load was a complex technical operation – it took six hours to transport the head from Ellesmere Port docks to the refinery four miles away Vital to Stanlow’s annual production of three billion litres of petrol, Essar Oil (UK) recently took delivery of a 450 tonne steel regenerator head for its residue catalytic cracking unit. Its delivery is part of a planned £23million refurbishment project for the unit, which is the largest of its kind in Europe. The unit is being prepared for a major refurbishment later this year, of which the replacement of the giant head is a key element. It will give the refinery unit another 25 years of life. Volker Schultz, chief executive officer, said: “The project represents a significant multi-million pound investment and is further proof of our determination to ensure Essar Oil UK is sustainably profitable and growing moving forward. “The Stanlow refinery – the UK’s second largest refinery producing 15% of the UK’s transport fuels – is a major economic driver in the north west and this is a clear demonstration of our confidence in its future growth.”www.essar.com

News

Storage – reducing fire risk

Since the incident at Buncefield in December 2005 changes have been made in the regulatory approach to fire precautions at such installations. The EI Model Code of Safe Practice Part 19: Fire precautions at petroleum refineries and bulk storage installations provides updated guidance The Energy Institute (EI) has updated its guidance on fire precautions measures to reduce the risk from fires at installations that process and store crude oil, petroleum, intermediates and refined products The updated EI Model Code of Safe Practice Part 19: Fire precautions at petroleum refineries and bulk storage installations covers prevention through to detection, protection systems and mitigation measures and looks at selecting, implementing and monitoring the continuing performance of installation-specific justified risk reduction measures. It supersedes the second edition which was being finalised at the time of the Buncefield bulk storage installation major accident in December 2005.  Since then there have been changes in the regulatory approach to fire precautions at such installations, encompassing fire prevention measures, incident detection techniques, fire-fighting and response and emergency planning requirements.  Among others, there have also been major changes in Part 19 to:Enhance guidance on consideration of environmental impacts of fire-fighting and the need for environmental risk assessment Provide guidance on fire response for ethanol and related polar substance handling/storage.Include guidance on potential scenarios, the role of congestion, incident consequences and examples of substances with a propensity to form large flammable vapour clouds.Clarify basis for determining whether scenarios are credible by referencing their likelihood to risk   tolerability criteria.Provide guidance on passive fire protection (PFP) maintenance, fire water systems and detection systems.Provide guidance on vulnerability and siting of critical equipment and resources. The guidance in this publication should assist process safety engineers/advisors, designers, emergency planners or others with responsibility for fire and explosion hazard management to meet the requirements of the European Seveso II Directive.The EI Model Code of Safe Practice Part 19: Fire precautions at petroleum refineries and bulk storage installations can be ordered at www.energypublishing.orgISBN: 978 0 85293 634 4Price: £165.00

News

Non-compliant tanks

“Failure to install a storage tank correctly can cause irreparable damage and significantly reduce operational life,” says Carbery’s John Switzer An all Ireland oil tank survey has revealed that 78% of installations completed in the last 10 years were non-compliant with at least one OFTEC tank installation requirement. The Carbery Plastics survey analysed compliance with OFTEC storage tank installation requirements at 150 domestic heating oil storage installations across Ireland. In the Republic of Ireland, environmental protection was the biggest issue with 72% of surveyed tanks incorrectly specified as single skin tanks at installations where a bunded tank was required. In Northern Ireland, fire protection was the biggest issue, with 60% of tanks non-compliant with fire safety requirements. Carbery’s John Switzer said: “When installed in accordance with OFTEC requirements, modern plastic oil tanks can provide many years of reliable, dependable service. However failure to install a storage tank correctly can cause irreparable damage and significantly reduce operational life. Non-compliance with installation instructions and statutory requirements means that some technicians are exposing themselves and their customers to unwelcome and wholly unnecessary risk and liability.”www.carberyplastics.com 

News

Reviewing the UK’s oil stocking system

Is the present obligation on suppliers to hold stocks the most efficient model or would a centralised stocking agency be more appropriate? Your views are sought by 7th June. “We are launching this consultation to ensure our oil stocking system continues to follow best practice, remains fit for purpose and provides the foundation to a vibrant UK oil industry,” said energy and climate change secretary, Edward Davey. At UKPIA, director general Chris Hunt welcomed the government’s consultation: “We would support the establishment of an independent stockholding agency to manage the Compulsory Stock Obligation (CSO) going forward. We welcome DECC’s commitment to examine the case for this approach, and look forward to responding to this key consultation.” The Downstream Fuel Association also supports the consultation and DECC’s consideration of a centralised stocking agency, in particular. Chief executive Teresa Sayers said: “This is a unique opportunity to ensure the UK finds the most cost effective way to comply with its international oil stocking obligations.” Have your say in the consultation by clicking here. Responses are requested no later than 7 June 2013 and should be emailed to deccdownstreamoilteam@decc.gsi.gov.uk or, if in hard copy, to David Rolfe Department for Energy and Climate Change (Area 3E), 3 Whitehall Place, London, SW1A 2AW. Official published figures in Energy Trends March 2013 showed the UK had stocks equal to around 84 days of average consumption are available by clicking here.  

News

A victory for oil heating

The removal of proposals for a much reduced NOx emission level and a penalty on non-modulating domestic oil-fired boilers are ‘extremely positive for our industry’ says Jeremy Hawksley When the European Commission published the draft Energy-related Products Directive six years ago, the future of the oil-fired heating sector looked bleak.  Following a long campaign OFTEC has won a ‘significant victory’. The proposed directive would have required NOx emissions levels from boilers of well below 100 milligrams per kilowatt hour. Had these limits been accepted it would have destroyed the UK and Irish oil heating industry overnight because it would have been impossible to reduce boiler emissions to the proposed levels. However, after extensive lobbying by OFTEC and its European industry partner Eurofuel, the recently published directive has set the maximum NOx emission limit at 120 milligrams per kilowatt hours for oil boilers – a figure manufacturers believe is achievable, and are happy to work towards. Commenting on the news, OFTEC director general Jeremy Hawksley said: “We’ve worked tirelessly with our industry partners in Europe to secure this realistic figure for NOx emissions, which is extremely positive for our industry. The new standard for oil boilers has been deferred until 2018 instead of 2016 as previously proposed, which will give manufacturers the necessary lead time to implement any product changes. “The proposed penalty for non-modulating domestic oil-fired boilers has also been removed, which was also a significant threat to the oil industry. These positive outcomes are a direct result of the important work that OFTEC does in lobbying for the oil fired sector both at UK and European level. Without this action it probably would have been unfeasible to manufacture an oil fired boiler after 2015/16.”     www.oftec.org

News

Are fuel tankers ready for CNG?

Officially launching the new filling station – CNG Services John Baldwin and Edward Timpson, MP for Crewe and Nantwich The UK’s first compressed natural gas (CNG) filling station opened recently in Crewe. Local MP Edward Timpson officially opened the event, which attracted interest from companies across the UK.A range of cars, light commercial vehicles, buses and trucks which can run on CNG are already on the market but as yet there has been little interest from the fuel tanker market.The filling station is the largest such facility in the UK, offering a reliable fuel supply with capacity to fill 500 HGVs a day via three fast-fill hoses. The unmanned station will be used initially by commercial vehicles, providing transport and logistics operators in the area with a chance to incorporate CNG vehicles into their fleets.John Gavin, managing director of CNG Services, which will operate the station said: “The interest in CNG is being driven by the huge cost savings it offers – between 30 and 40% in comparison to diesel – and also because it is much cleaner. There are very significant savings of CO2, NOx and particulates from biomethane compared to diesel. It’s an excellent fuel as it performs well with low emissions and almost no carbon residuals.” www.cngservices.co.uk

News

New loads for tankers

Operations manager, Helen Lewis believes loadsfortanker.com is a fantastic way for hauliers to create new opportunities Lateu Logistics is to launch a new service.  Loadsfortankers.com is a free to register web based portal, marrying hauliers and load placers. Operations manager, Helen Lewis, explains: “There are so many sites out there that provide a similar service for the likes of palletised loads and do it well. But tanker loads can be a bit trickier to find. “Loadsfortankers.com is aimed at those that move any product in a tanker. It’s a fantastic way to create opportunities for small, medium and large hauliers seeking new work or looking for backloads, and to ensure that the load placer gets a fair quote for the transportation of their product.” The service provides a cost effective way to move loads without the hassle of dealing with multiple companies. Charlie McLoughlin joins as commercial manager, bringing 20 years experience in the tanker business.  “With so many companies under economic pressure, this is a great tool you can access from your desk to find work and grow your business,” he adds. “It’s a low cost, pay as you go service based on a flat payment, not a percentage of the quote. This way we ensure that those who use our service know exactly what the pricing will be upfront.”www.loadsfortankers.com

News

Training in process safety

Director of Reynolds Training Services, John Reynolds (middle) Reynolds Training Services (RTS) has been awarded a contract to produce training material for the National Skills Academy Process Industries (NSAPI). The Lincolnshire-based health and safety specialist will develop six modules for the SkillsAcademy’s new process safety management for operations (PSMO) course. The course will also be supported by a train the trainer package that will provide the skills and resources for an employer’s own training personnel to deliver the PSMO in house. “This gives us the chance to impart our knowledge and skills to a wider audience,” said director, John Reynolds. The SkillsAcademy has worked with the Process Safety Management project board, since 2011 to develop three process safety courses which comprehensively cover all rungs of the workforce ladder.

News

Open to debate in Ireland

l-r From Corrib Oil in Co Galway – Tom Connolly, Gerry Mullen, Matt Stratford, Eamonn Dalton, with Neil Stewart, Stewart Oils, Co Roscommon 70% of distributors who completed the feedback forms at the Distributor Debate in Templepatrick earlier this month, rated too much competition and poor margins as their biggest concerns. Poor image, supply, prices, variable fuel quality, gas oil changes, legislation and the future of the oil heating market were lesser concerns to attendees, with no-one expressing worries about sharing information online or the threat from renewable energy. Attendees reported the Distributor Debate to have been a really useful event with some good information provided by the five industry speakers – Mark Askew, Federation of Petroleum Suppliers, Angus Fraser, BP, David Kingsman, Fuelsoft, Julia Mansfield, Fuel Additive Science Technologies and David Blevings, Northern Ireland Oil Federation. “I felt the mix of speakers was interesting,” wrote John Switzer of J Switzer Associates.  “The FAST and BP presentations in particular provided a great insight into the technical and distribution side of the industry, which are both often overlooked.” Paul Hackett, business development manager – Direct for DCC Oil Ireland, who attended the second half said: “The content of the meeting was good although I think the distributors from ROI might have wanted more reference to their issues, etc.   I enjoyed the questions and the interchanges between Donall O’Connor, Sam Chambers and David Blevings.” A report on the Distributor Debate appears in the April issue of Fuel Oil News. ________________________________________________________________Perhaps your concerns about and hopes for the fuel oil distribution industry in Ireland differ……If you’re visiting FPS Expo next month, the Fuel Oil News team hopes you will call at stand C40 to share both your concerns and your hopes about the industry’s future.We also look forward very much to seeing you at future Fuel Oil News events in Ireland.

News

Irish pay as you go scheme falters

Pictured at the pay as you go launch in 2012 (l-r) Charles Burns, commercial director Kingspan Environmental; David Blevings, OFTEC’s Ireland manager; Nelson McCausland; Philip Browne, brand director, Kingspan Environmental; and Jillian Ferris, client and stakeholder director of Carillion Energy Services Designed to reduce heating bills for struggling families, an initiative by the  Department of Social Development in Northern Ireland has been shelved following the failure of its pilot scheme, according to an Irishnews.com report  Rolled out in February 2012, the scheme – partnered by Kingspan Renewables and Carillion Energy – involved the installation of meters at 17 low income households across three counties in Northern Ireland. Social development minister, Nelson McCausland, pulled plans to continue the scheme saying: “The results of the pilot were disappointing regarding the proportion of participants benefiting from lower oil costs. “There are two crucial issues around the cost and delivery of introducing a pay-as-you-go oil system into the department’s mainstream energy efficiency improvement schemes: (1)   Costs associated with production and administration of the pay-as-you-go oil scheme. (2)   And, who will supply the oil to the customer? Departmental economists have serious concerns about the feasibility of the pay-as-you-go oil scheme from a cost/benefit perspective. “I have considered all of the information available and concluded that it’s not feasible to introduce the scheme into my department’s energy efficiency improvements’ schemes.”

News

Cost effective depot upgrades

Upgrade your skid with IFC Distributors can now cost effectively convert existing loading skids from old mechanical registers to the latest electronic automated equipment with IFC’s skid upgrade kit which brings terminal loading technology to depot distribution. When IFC originally started building skids for depot loading, electronic batch control was still new to tanker loading and was mainly installed in refineries and terminals. Although it offered many benefits, the costs were prohibitive for smaller distributors and many chose skids with traditional mechanical registers, presets and ticket printers. As the advantages of electronic control and automated depot loading became clearer and costs dropped, IFC started fitting electronic batch control to new skids, mainly for larger distributors with multiple sites.Why upgrade? Although many customers have had mechanical registers for years, there are numerous benefits to upgrading. These include higher levels of security and reliability, operational flexibility, temperature compensation and data storage capacity. Following years of discussion with customers and further developments in electronic batch control, IFC has come up with a conversion kit that allows operators of existing mechanical skids to take advantage of the benefits of electronic loading and control. With a number of options to suit all needs, from individual electronic registers mounted at each meter point, to a central multi-point controller for the whole skid, all variations offer storage of loading data and connection to a separate printer or PC.  www.inflow.co.uk

News

Tanks – getting the last drop out

If you spot a tank in a compromising position, please take a photo on whatever you have to hand and send it to jane@fueloilnews.co.uk Everyone knows that heating oil orders are smaller and more frequent – but, evidence that times are really hard has come from Monument Fuels…. When Trevor Rolph of Monument Fuels spotted this tank, he only had his Blackberry to hand.  “I thought it was such a good example of what some people are trying to do in these tough times that I had to take the shot.  Obviously, it’s not really the thing to do to your tank!” For more comment on the impact of the recession, see the April issue of Fuel Oil News.  Your copy will be with you shortly.

News

Lewis Tankers flying high

Delivering 115 million litres annually, Lewis Tankers will employ three dedicated aviation fuel tankers on the new Q8Aviation contract Lewis Tankers has won a new contract with Q8Aviation to handle deliveries of aviation fuel to Bristol, Cardiff and Exeter airports from Hallen PSD, near Avonmouth. The operation which will run over 363 days of the year will see Lewis Tankers delivering an estimated 115 million litres of fuel annually, utilising a team of up to ten drivers and three dedicated aviation fuel tankers. The Yorkshire-based tanker operator already has contracts with Q8Aviation to deliver aviation fuel to Newcastle and Leeds/Bradford airports from Misterton PSD, near Doncaster, and to Blackpool airport from Backford PSD, near Chester. The contract extends Lewis Tankers’ operations into the south west and has prompted the company to set up a small operating base in Avonmouth, with plans to develop its presence in the region. Stewart MacDonald, Lewis Tankers’ managing director, said: “We’ve been working with Q8Aviation in the north of England for three years and are delighted that our performance has earned us this opportunity to demonstrate our abilities in the south west. This contract broadens our coverage of the UK and provides us with a platform for growing the business in the region.”http://www.lewistankers.co.uk/

Opinion

Is the heating oil market threatened by the government’s decision not to support bioliquids under the renewable heat incentive?

Ben More, Moorland Fuels, Devon “After attending The Oil & Renewable Energy Show in October and conducting our own research, it’s clear that alternative energy sources and government incentives have to be taken seriously. “As a fuel supplier, we firmly believe that biofuels have a significant part to play in the future as a reliable and trusted fuel source. As such we continue to promote the benefits of fuel oils and derivatives to our customers, while keeping an eye on the impact new technologies are having in our market place and the future thereof.” Trevor Rolph, Monument Fuels, Somerset “I don’t think it will have any noticeable effect.  Let’s be realistic – unless there’s some great development in the way energy is generated from oil, which makes it either environmentally friendly or extremely cost effective, we will remain in a mature market.” Carrie Marsh, Marsh Fuels, Berkshire “To be honest, I would need a degree to understand the Renewable Heat Incentive in the first place. It does not affect our customer base at present.” Kevin Bennetts, Consols Oils, Cornwall “We operate in an increasingly mature market place where the only prospect for any future growth will come at the expense of competitors, who are unable to compete on service. Of course price, as always, will be an issue but the current vogue for mega buying groups will eventually run its course along with the mega distributors who are the next generation of dinosaurs in gestation. “Someone once said a good little un will always beat a big un. Our aim is to be a good little un, consolidating a rock solid customer base within a clearly defined territory, always getting better at what we already do well and letting our customers judge us on performance. All we need to achieve this objective is a reliable supply of gimmick free kerosene at a competitive price. “I’ve always viewed biokerosene as a gimmick, cynically promoted by aspiring bandwagon hoppers. Life is already complicated enough, given that further complication will add further costs which the customer will pick up, invariably and almost inevitably to our collective disadvantage.”

News

Top up telemetry – what’s on offer?

In the December issue, fuel oil news covered the subject of tank top up services. Whilst concerns were raised about the reliability of some products, Melanie Noel, WP Group’s fuel sales manager commented: “Although there have been a few issues with older systems, mainly the battery, new telemetry has improved.” In this issue we take a closer look at available telemetry – its features, benefits and reliability.

News

Suttons lands Total contract

New contract with Total UK strengthens Suttons position as a supplier of bulk fuel transport Suttons has landed a new contract with Total UK for the distribution of petroleum products through its road tanker division. Suttons group managing director, Andrew Palmer said:  “We are delighted Total chose to award this business to Suttons. This contract strengthens our position as a supplier of bulk fuel transport. “Suttons will bring industry leading standards of health and safety and operational excellence to the contract and we look forward to a successful partnership.” The contract, which focuses on business to business commercial fuel deliveries nationwide, has seen Suttons invest in new equipment for its existing fuels fleet. Paul Maloney, B2B operations manager for Total UK, added: “We selected Suttons following a competitive tendering process. Suttons has a proven record of adding value and delivering a consistent and reliable service to its customers in the bulk fuel sector. The company also recognises that safety is paramount and must always come first.”    www.suttonsgroup.com

News

Theft advice to customers

The Federation of Petroleum Suppliers (FPS) says domestic oil consumers should be extra vigilant when it comes to safeguarding their oil supply. The FPS recommends heating oil customers take the following measures:-

News

Visionary fuel solutions

Two former oil company executives have established a new management and consulting company – Fuel Supply Solutions. With over 60 years of combined experience, founders Patrick Hudson and Keith Guppy want to put industry insight at the forefront of their service. Patrick Hudson explains:  “End-users and resellers of petroleum products tend to focus on the current trading climate and will invariably rely too heavily on past experiences when looking forward.  In the current environment of rapid industry change, we aim to have a visionary approach for our clients through consultancy, products and services that reflect where the industry is going, not where it has been.” Keith Guppy adds:  “We’ve spent several months carefully looking at key industry indicators and matching potential business partners that share our vision. Our goal is to now focus on providing valuable consultation across a wide client base including retailers, distributors, wholesalers and end users, our website will give more details of these core areas and target markets”. www.fuelsupplysolutions.co.uk

News

Clugston expands fleet

Ready for action – brand new Clugston tanker Clugston Distribution has announced a £1.5 million capital expansion of its fleet.  The expansion is part of a strategy to increase the company’s presence in the fuels, intermodal, bulk powder and bulk ash movement markets. The investment, which will lead to ten new jobs being created, means the company will have increased its workforce by 25 people in the last year alone. With the funds the company will acquire an additional 15 Renault Premium tractor units; five of which will be specified with ADR and Pet Reg compliance and will aid the growth of the fuels fleet on the Humber, as well as the start of the Teesside fuels operation in the summer. The remaining eight tractor units will be specified with hydraulic discharge fitted compressors for use in the company’s bulk powder operation. On the fuels logistics side a new fuels tanker, built by Cobo will be on fleet in April and used in the new Teesside operation from June. Commenting on the investment, Clugston Distribution’s general manager, David Heath, said: “We are extremely pleased that the group board of Clugston is backing our strategy of expansion in targeted markets. We are anticipating 2013 to be a successful growth year across all areas of the business and remain positive about reinforcing our market position with our current client base as well as new customers.” www.clugston.co.uk