Market & Supply 67

News

Brogan opens refurbished depot

Brogan’s newly refurbished depot Having acquired Brogan Fuels in 2007, GB Oils has just completed a major refurbishment of its Oban depot. Established 86 years ago, Brogan Fuels is the main kerosene heating oil supplier in Scotland.  Now under the guidance of area manager, Scott Wilson, the entire Oban depot has been upgraded with a new office block providing a professional working environment for the company’s ten staff and a modern, pleasant place for customers to purchase fuel. Scott, who has worked for the company for 15 years, commented:  “We decided to refurbish the depot in Oban as the location is a hub for our customers on the west coast of Scotland.  We’ve been here for a number of years now and I’m proud to see how the business has developed.” The depot provides a key support function for the Oban community by servicing commercial, agricultural and domestic customers in the region with road diesel, gas oil, heating oil and a full range of Shell and Total lubricants. It also stocks Harlequin oil & water tanks.  Although focussed on the Oban area, the depot has the ability to reach Brogan Fuels customers throughout Argyll and the Islands. The Oban depot can be reached on 01631 570670. 

News

Identifying vulnerable customers

FPS chief executive, Mark Askew A recent report by the Fuel Poverty Action Group (FPAG) calls on fuel oil distributors to establish a priority register for vulnerable customers. With the FPAG report making reference to the need for fuel oil distributors to keep a priority register for vulnerable customers, Fuel Oil News spoke to Mark Askew, chief executive, Federation of Petroleum Suppliers who said:  “In many cases FPS members already know who their more vulnerable customers are.  One of the benefits of being a regular customer of one particular distributor is that, more often than not, your circumstances are known to that distributor.  “When buying heating oil, price isn’t always the main driver.  For many customers, it’s more reassuring to know that their supplier knows their circumstances, particularly if they’re elderly, have small children or are struggling to cope with bills.   The FPS can relay many tales of drivers who keep an eye on such customers all year round, even between deliveries. “In the case of those who prefer to shop around for the best price or place orders on price comparison sites, such information is not usually known. It has already been suggested to government that if distributors were able to access the government’s register of vulnerable households, they would be in a better position to help vulnerable customers.  With such a register covered by the Data Protection Act, we’re still waiting to be advised.” The FPS Code of Practice is currently under revision and will be updated to include more about vulnerable customers. Predictions point to 300,000 households being affected by fuel poverty this winter with two million households eligible for help under the Warm Home Discount Scheme. Following the FPAG report, the government is to launch a new fuel poverty strategy in 2013 to ensure those most in need of help are targeted.  Commenting on the report, a DECC spokesperson said:   “The FPAG has an important part to play in helping us assess our progress in this area and we will now carefully consider the recommendations set out in this report.” Fuel poverty has been defined as a household spending more than 10% of income on heating.   The FPAG’s tenth annual report predicts that this will apply to around nine million people by 2016.www.fuelpovertyaction.org.ukwww.decc.gov.uk

News

Suttons MD to step down

LR Handing over – John Sutton and Andrew Palmer After eight years at the helm of the Suttons Group, Andrew Palmer, group managing director, has announced his intention to retire at the end of April. John Sutton will take over in May. Currently managing director of the Group’s International Division, John Sutton takes over the reigns from 1st May and will also join the Thomas Cradley Holdings (TCH) board.  John will work with Andrew from now until the end of April to facilitate a smooth and efficient hand-over “The board and the shareholders would like to express considerable thanks to Andrew for the way in which he has transformed the fortunes of the company, making it a highly profitable and substantial global provider of bulk logistics services with an outstanding reputation for safe, high quality services,” said chairman, Michael Sutton. “John has managed the International Division through a period of high growth and the board looks forward to him building on the excellent work done by Andrew,” added Michael. From 1st May, Andrew will be joining the TCH board as a non-executive director, enabling the Group to continue benefitting from his knowledge and experience. www.suttonsgroup.comFind out more about Suttons – read Liz Boardman’s exclusive interview with Andrew Palmer in the February issue of Fuel Oil News.

News

Adler & Allan’s TV star

With widespread snow across the country reported on virtually every news bulletin, some in the industry have been in the limelight. Whilst this Adler & Allan van was trying to get around the north east of England on Tuesday, it was captured by a BBC News camera crew. Fuel Oil News contacted marketing manager Alan Scrafton to see if any of the team had taken a photograph of their moment in the spotlight to which he replied:  “I guess they were too busy digging themselves out!” If one of your drivers has managed to take a good snowy shot whilst out and about over the past few days, please send it to jane@fueloilnews.co.uk. Look out for the Stevenage Oils tanker delivering in a snowy Hertfordshire in the February issue of Fuel Oil News.  

News

First ADR tests – changes for new trailers

VOSA has made changes to ADR first testing for new trailers, subject to European Community Whole Vehicle Type Approval (ECWVTA) or Individual Vehicle Approval (IVA). An ADR Test and a first trailer HGV Annual Test prior to entering service is no longer necessary if new trailers subject to ECWVTA or IVA are supplied by the manufacturer with proof that they are designed and constructed in a roadworthy condition. A cursory visual inspection will be carried out to ensure there are no obvious roadworthiness defects. It is still legally possible for trailers built in multiple stages not to need ECWVTA or IVA, provided they are supplied to be placed in service prior to 29th October 2013.  These trailers will still need a first test application for a trailer (VTG2) and satisfactory HGV Annual Test pass as a condition of being issued with a first ADR certificate. www.dft.gov.uk/vosa

News

More than a truck manufacturer

To maintain compliance with O Licence regulations, Volvo Trucks has a user-friendly suite of solutions that can be used by vehicle operators. Commercial aftermarket director, Tony Davis said:  “Having trucks off the road because of non-compliance issues has a direct effect on uptime and therefore your business’ bottom-line. “We’re working hard to get the message across to transport operators that Volvo Trucks is much, much more than a truck manufacturer.” The Science of Compliance campaign focuses on a range of solutions to help keep operators compliant and maintain vehicle uptime.

News

New OCRS report

VOSA and the Freight Transport Association (FTA) have taken part in a joint workshop to develop a new Operator Compliance Risk Score (OCRS) report. As a result of recent changes to OCRS, VOSA found that some of the calculations were too complicated to be usefully indicated on the Encounter Report and Test History Report, and removed the scores from the report altogether. Following representations by FTA, VOSA recognised that it had removed a useful compliance too and agreed to develop a bespoke report. At the workshop operators gave feedback on the latest draft. VOSA is expected to produce a further draft in February, although timescales have not yet been confirmed. www.fta.co.uk www.dft.gov.uk/vosa

News

Will refinery restructure lead to a sale?

  A restructure at the Total Lindsey oil refinery (LOR) is set to take effect from spring 2013. Total LOR, which has seen more than £600m of investment in the last few years, is to become a separate operating company, and will take responsibility for the daily running of the group’s refining, logistics and storage terminals interests throughout the UK. Total has already tried to find a buyer for its Lindsey oil refinery on previous occasions, Fuel Oil News quizzed an industry insider as to whether being a separate entity would make the refinery a more attractive proposition? “Not really, as I don’t think this is much more than a formalisation and integration of operational and reporting arrangements following the 2011 sale of the marketing business. “The original sale structure was unusual, splitting away primary logistics and the associated terminals along with the commercial/industrial fuels sales to distributors, direct commercial customers, bitumen and aviation from those parts of the marketing organisation sold under Project Mary – principally to Rontec. “Any prospective buyer is taking on not only a refinery, but also some downstream elements, which they may not want…” Jacques Beuckelaers, who has taken over as general manager from Nigel Tranter, said:  “The new organisation will streamline our services so that there’s a direct link from refinery to storage and then on to our customers. The ambition of Total LOR is to be a truly customer-focused organisation providing the best quality products with a first-class service.”

News

Q3 2012 – oil production and refinery demand

Total energy production, Q3 2012 Production of oil fell by 12.1% in the third quarter of 2012 when compared to the previous year. Oil consumption fell by 1.1%. The Department of Energy and Climate Change has published the figures in Energy Trends and Quarterly Energy Prices, publications which give statistics on energy production and consumption. The overall demand for primary oils at refineries fell by 9.2% when compared to the previous year. The closure of the Coryton refinery was a contributory factor, having previously accounted for around 10% of the UK’s refinery production, but other refineries around the country also shut down for planned maintenance work during the quarter. Consequently, petroleum imports increased by 23%. Domestic heating oil prices rose by just 0.1% from the previous year. Domestic gas prices rose by 6.4% in real terms from the same period in 2011. Total energy production for this period was measured at 27.1 million tonnes, a fall of 7.3%, of which oil accounted for 10.7 million tonnes. Production of gas also fell by 10.3%.www.decc.gov.uk

News

FPS highlights low margins in response to claims of profiteering on heating oil

FPS chief executive, Mark Askew The Federation of Petroleum Suppliers (FPS) has responded to claims of profiteering on heating oil, explaining that community buying groups should be realistic about the savings that can be gained in these times of low margins. Chris Pomfret, founder of Community Buying unLimited, has sent letters to the FPS and prime minister, David Cameron, arguing “there is something very wrong with the price of heating oil”, and that domestic heating oil suppliers have “allowed themselves to be influenced by very short term greed”. The statement from the FPS read: “Consumers get a pretty good deal and, with low margins, there is very little leeway to give them price reductions and still remain viable! Many claims of huge savings are actually comparing the highest quotes – possibly artificially high from a distributor who doesn’t want the business – with the lowest quote, because some of these high prices are just not feasible. “The FPS always recommend that if buying group customers wish to receive an indication of the true saving for the fuel they should contact the distribution company who delivered their fuel and ask for a spot price for the volume which they have had delivered. The difference between this price and the price they have paid represents the true saving obtained.” The organisation has continually urged distributors to be honest if they cannot, or do not wish to supply a community buying group with fuel, in response to news of artificially high prices being quoted to deter potential customers. The response also highlights the benefits for consumers of buying oil individually, and building a relationship with a regular supplier, to ensure priority treatment during times of short supply.www.fpsonline.co.uk

News

Distributor trains for energy efficiency

Pictured at the certificate presentation with Hugh Nicholl and the successful advisors are NEA NI’s Pat Austin, John Dallet MLA, professor Christine Lidell, University of Ulster and Mary McKeown, Department of Enterprise, Trade and Investment Six Nicholl Fuel Oils advisors have recently been given energy in the home training by National Energy Assessors Northern Ireland, (NEA NI).  “For some considerable time, Nicholl Fuel Oils has firmly believed that energy efficiency is the only way that people can afford energies such as oil, gas and electricity,” said director Hugh Nicholl. “In these hard economic times, energy efficiency is extremely important.  As a company, we felt we had a part to play; training our advisors is just one commitment to helping customers become more aware about energy efficiency. “The training received equips our advisors to provide energy advice to customers by highlighting energy efficiency grants and schemes which will enable them to get the most from the energy they use.” Commenting on the training Paul Wallace, NEA NI development manager said: “The advisors successfully achieved the NEA/City and Guilds Energy Awareness qualification and are now competent in the provision of quality energy advice to a specific standard.”www.nicholloils.com

News

Oil challenges and opportunities to be tackled at IP Week

‘Meeting today’s challenges, investing in tomorrow’s opportunities’ is the theme for this year’s International Petroleum Week in London on 18-20 February 2013. The global outlook for the oil and gas industries is set to be tackled at the event, with the opening conference focusing on the challenges for the sector, technological advances, and the requirements to move forward for a more sustainable future. A seminar on the global future of the downstream oil industry, including making a profit and changing demand, is being held on 20 February. The speakers include Chris Hunt, director general of the UK Petroleum Industry Association. Dr Fatih Birol HonFEI, executive director, International Energy Agency, will present the outlook for the oil market, examining the uncertainties and certainties for the sector. Other speakers include John Hayes MP, minister of state, Department of Energy and Climate Change, and senior industry leaders from AMEC, BP, Chevron and ExxonMobil. IP Week 2013 is sponsored by Ernst & Young, Standard Chartered Bank and Platts. It will feature conferences, seminars, a high profile luncheon, an evening reception, exhibition and will conclude with the prestigious IP Week Dinner. www.energyinst.org/ip-week

News

Oil heating updates on Oilsave website

The Oilsave website has been updated to carry new campaign material to promote oil heating to consumers. Members of the Federation of Petroleum Suppliers (FPS) are due to receive an A5 postcard promoting the campaign shortly, and electronic copies can be obtained by emailing mfarrow@oftec.org A leaflet which highlights the benefits of oil for homeowners, as well as providing information about improving energy efficiency of an oil heating system, is available now free of charge to registered OFTEC technicians. The postcard promoting the campaign was sent out to registered OFTEC technicians in December, together with the latest news from OFTEC and a Green Deal registration flyer. The postcard gives details of how to get involved in the marketing campaign, and get free marketing material. www.oilsave.org.uk

News

Oil boiler sales rise

Figures compiled by the HHIC show a rise in oil boiler sales during October and November 2012 New statistics have revealed a welcome rise in oil boiler sales. Figures compiled by the Heating and Hot water Industry Council (HHIC), supplied to the organisation by OFTEC members, have shown a significant recovery in sales at the end of last year, as temperatures fell in autumn. For all but two months, 2012’s sales have been below 2011 totals. However, sales during October and November have shown a significant recovery, with November’s figures exceeding not just 2011, but 2008 and 2009 as well. Total boiler sales for the year to mid-December were recorded at 47,413, a fall of approximately 10% on 2011.

News

The distributor offer revisited

Over the past 20 or so years the major integrated oil companies (refiners) have repositioned, progressively withdrawing from certain market sectors which they were formerly prepared to service. Two areas in particular spring to mind:

News

TSA talks competence

“Around 75% of the time, systems fail because they are designed or used incorrectly,” Peter Davidson, director – safety, commercial and projects, UKPIA, told a packed room of delegates at the Hilton Hotel in Coventry. “Both are caused by human error, and a lack of competence.”Increasing competence across each business, so that industry standards can improve, was a focus of the event.Peter argued that competence is not just about training, but also incorporates knowledge, experience and qualifications.A joint industry group formed by UKPIA and the Cogent Sector Skills Council has been set up to share good practice, within a framework of understanding the needs of the industry and the expectations of regulators.Peter explained: “We noticed a shortfall in clear and easy guidelines to enforce competency management systems, so we developed guidance to do it.”The guidelines are focused on the downstream oil industry, although they are relevant to other sectors, and have been designed to avoid jargon and be easily understandable.As the industry continues to learn and develop following the Buncefield disaster in 2005, the competency management system should be carefully designed to ensure its purpose is clearly defined, who should implement and how standards will be maintained.A copy of the guidelines is available on the UKPIA website at www.ukpia.com.Stepping up “Things aren’t half as bad as you would think if you just listened to the media,” said Phil Scott, safety & risk policy manager, Chemical Industries Association, which covers oil refineries and related transportation.He told the conference that guidance was available for the industry on process safety, but that embedding those guidelines into businesses needs a clearer strategy.“This is not an irresponsible industry,” he stressed. “There are just some companies who need to step up a bit.  There is a tremendous will, and evidence that things are improving.”Peter Baker, deputy director & head of Chemical Industries Division, Hazardous Installations Directorate, HSE, suggested that the way to deal with competence issues was “a bit like an AA meeting”. He said: “We have to accept the problem, identify the problem, and then take steps to solve the problem.”In response to a question from Daniel Brain at Murco, Peter explained that in terms of significant incidents, the old chemical and downstream oil industry was above the rest ofEurope. He went on: “But in terms of overall performance we are significantly ahead – both in the way we measure performance and the way we talk about performance.”Shane Wakefield, Chemical Industries Strategy Unit, Hazardous Installations Directorate, HSE, also talked about COMAH CA’s expectations of competency management systems.While there was a focus on competency in management, the conference also acknowledged the pitfalls the tanks themselves can present, particularly as they get older.Ageing issues David Burgess, of ABB Consulting, spoke about the challenge of ageing assets in the bulk liquid storage industry.  He told the audience that owners and users of equipment containing potentially hazardous fluids have a responsibility to the public and environment to minimise risk.An ageing tank can be damaged in various ways, including wall thinning which can cause corrosion, the biggest cause of tank failures in 2009. By installing an integrity management system, assigning responsibility for tank maintenance and including regular inspection, potential failure scenarios can be identified.Tank horrorsDr Rene Hoyle, Axiom Engineering Associates, told the audience about a series of storage tank failures due to corrosion and fatigue. He was forced to confirm that none of the images he had used to illustrate his presentation had been photo-shopped, despite the horrors some depicted!He used images to illustrate external corrosion, corrosion under insulation, underside corrosion, and internal pitting corrosion. Rene argued that a lack of understanding of mechanisms, lack of knowledge about the causes of corrosion, a lack of physical and financial resources to implement the necessary precautions, and perhaps even a lack of care, could all be reasons for the problems.He said: “We have the technology to stop corrosion being an issue – you just need to use it!”Oil fraudJohn Spargo, director at Customs 558, gave delegates an insight into the problem of oil fraud. The issue lies in differentiating between the excise duty responsibility of the warehouse keeper and the customer.  Currently, a warehouse receiving imported oil is authored by HMRC in duty suspension, and the duty is charged when the product leaves the terminal. However, John discussed whether that duty point could be moved, to where the product is measured out of the refinery, or even to the filling station forecourt.The delegates enjoyed a varied day of presentations and discussion, but the focus remained on improving the industry for all, particularly through competency issues. All the speakers provided a wealth of information that can be put into practice in business.Peter Davidson said:  “As an industry, you need to use all the resources available to you – wherever they are.”www.tankstorage.org.uk

News

Life begins at 40

Staff join managing director, Richard Burton to celebrate the company’s 40th anniversary On a recent visit to Barton Petroleum’s Wellingborough head office, features writer, Liz Boardman learned more about managing director, Richard Burton’s plans to celebrate its 40th anniversary and inject new life into the company. Moving with the times Having celebrated Barton’s 40th anniversary in style at an Oxfordshire hotel in September, Richard is keen to move Barton Petroleum forward and has recently reorganised the company. “Business is difficult, conditions are tough and the industry as a whole faces fresh challenges every day.  We feel that by reorganising, we’re better placed to deal with those challenges, and I am pleased to say that we are already seeing the benefits.” The company has increased sales resource appointing two new sales account managers and promoting Kevin Day to business development manager. Kevin has collective responsibility for sales over the entire company and is currently assembling a new team to strengthen this area of the business. In addition there are new depot managers at three out of the four depots, all of whom have come through the ranks. Steve Moulin is Leicester’s new manager, Mark Gamble takes the reigns at Wellingborough and Mark Varley has been promoted at Watford. Clive Morin has been also been promoted to develop the company’s key relationships with suppliers as well as taking overall responsibility for managing credit. “We have some long-standing employees at Barton, and where possible, prefer to promote existing staff to new roles,” said Richard. “We’ve got a great team here and a very loyal customer base.” Acquisitions, however, are not currently on the agenda. Richard admitted: “I’m not crazy about acquisitions. I would much rather grow the business organically from our own depots, however we will continue to evaluate opportunities as they arise.” In line with the new changes, Barton is relaunching its website to enable domestic customers to order and pay online.

Opinion

The future of oil heating debate – watch the video

A debate on the future of oil heating was held at last month’s Oil & Renewable Energy Show. On the panel were OFTEC’s Jeremy Hawksley, Mark Askew from the Federation of Petroleum Suppliers (FPS), Brett Hale of Riello and Peter Carter from Atkinson Equipment. Chairing the debate was Jane Hughes, editor of Fuel Oil News. With a packed seminar theatre and several people keen to give their views, this debate could, and should, have lasted far longer. To be expected, the panel’s views on the future of oil heating were very diverse and in some cases, totally opposing. Explored by both OFTEC and the FPS, current threats to oil include its price, its exclusion from new build properties under the Code for Sustainable Homes, bioliquids being ruled out of the Renewable Heat Incentive(RHI), the possibility of an extra tax and the RHI subsidies. Whilst Riello sees oil working in partnership with solar thermal and heat pumps, the company believes that without bioliquids, oil does not and will not have a green credential to fit into the future energy mix. Whilst agreeing that our industry should work with renewables – particularly those unable to supply hot water all year round – Atkinson Equipment made a plea for our industry not to tinker with fuel and equipment that is tried, tested and trusted by its customers. Peter Carter argued that happy customers would give the industry greater leverage, if and when the government decides to ban oil heating altogether! In 2001, kerosene sales were at 2639 kilotonne (kmt), last year this was down to 1973kmt. The government predicts that by 2020, 500,000 homes will have switched to alternative technologies aided by the RHI. “One of oil’s problems is that it’s so damn good,” said Andy Townsend in Oil Installer Summer 2012. Now also working with renewables, Andy pointed out that we “can’t just turn the oil tap off”. But, the question the industry does need to ask now is, if more than a quarter of heating oil customers have stopped using kerosene by 2020, how long will a declining market remain attractive to refiners, wholesalers and fuel distributors? This debate is certainly to be continued….. In the meantime your views on the ability of the oil heating market to resist the threats are invited jane@oilinstaller.co.uk. THE FUTURE OF OIL HEATING JEREMY HAWKSLEY from A&D Publishing Ltd on Vimeo. THE FUTURE OF OIL HEATING MARK ASKEW from A&D Publishing Ltd on Vimeo. THE FUTURE OF OIL HEATING BRETT HALE from A&D Publishing Ltd on Vimeo. THE FUTURE OF OIL HEATING PETER CARTER from A&D Publishing Ltd on Vimeo. THE FUTURE OF OIL HEATING Q & A from A&D Publishing Ltd on Vimeo.

News

Distributor joins forces with police

A Hertfordshire distributor has partnered with the police in a bid to help local residents protect their heating oil.  Stevenage Oils has been distributing leaflets to customers containing practical advice on how to make oil tanks more secure. Detective inspector Paul Doran of the county’s crime reduction unit said: “I’d like to thank Stevenage Oils for helping us to deliver these leaflets to those people who are most likely to benefit.  The theft of heating and diesel oil always tends to increase whenever there are price rises at the petrol pumps.”   Is your company working with police to combat oil theft?  Email alex@fueloilnews.co.uk.

News

New logistics appointments

(l-r) Malcolm Wilson, Hervé Montjotin, Patrick Bataillard and Luis Angel Gomez Norbert Dentressangle has appointed two new executive board members. Former managing director of the company’s logistics UK division, Malcolm Wilson, is now managing director of the group’s logistics division, whilst Luis Angel Gomez has been appointed as managing director of the transport division. Malcolm and Luis join CEO, Hervé Montjotin and CFO, Patrick Bataillard on the executive board. Commenting on the new appointments, Hervé said: “Malcolm Wilson has considerable experience of managing logistics operations in the UK, where he is highly respected in this sector.  Luis Angel Gomez gained a sound experience of transport at our Spanish subsidiary Norbert Dentressangle Gerposa, which he has successfully headed since 2008.”

News

50 years with JET

(From left) Garner Group directors Mike Garner, Tim Garner and Dave Auger, and Phillips 66 manager, UK and Ireland marketing, Pete George Garner Group Holdings has celebrated 50 years as an independent JET dealer. The two companies have been in partnership since founder Maurice Garner signed his first supply contract with JET in 1961, following the opening of his first service station near Portsmouth. Five decades later, the Garner Group operates three JET forecourts in the region: Woolmer, Green Road and Portsbridge, all run by Maurice’s two sons, Mike and Tim, and co-director Dave Auger. “We are delighted to reach such a milestone with Jet,” said Mike Garner.  “When my father entered into partnership with the brand 50 years ago, fuel retailing was very different. The early deals he made were based on a gentleman’s agreement; contracts were written on the back of a beer mat and sealed with a handshake.” To celebrate the 50-year milestone, Pete George, Phillips 66 manager, UK and Ireland marketing, joined manager, regional sales, Guy Pulham and territory manager Paul Carey on the forecourt of the Woolmer Service Station in Borden to toast the long-standing relationship with the Garner Group directors. Pete George said: “We are known for the close relationships we have with our dealers and are proud to say that this approach has not changed, from the day Maurice Garner first became one of our dealers to our operations as Phillips 66 today.”

News

TSA moves to bigger venue for 2013

The Tank Storage Association’s 2013 Conference & Exhibition will be held at the E.ON Lounge at Coventry’s Ricoh Arena, on Thursday 19th September 2013. TSA’s Conference and Exhibition is the UK’s leading event for the bulk liquid storage sector, designed to successfully bring people together who care about safe and effective bulk liquid storage operations. The event is moving to a larger venue to aid growth. Martyn Lyons, TSA chairman said: “We are all excited about moving TSA’s Conference & Exhibition to the E.ON Lounge at the Ricoh Arena in 2013. This represents a significant next step in the development of this successful event. Plans are still at an early stage but the intention is to accommodate significantly more delegates and to double the number of exhibitors.” http://www.tankstorage.org.uk/