Thr price of heating oils rose by 4.1 per cent between Q1 2011 and Q1 2012 Oil production fell by 13 per cent in the first quarter of 2012, when compared to the previous year. 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. Overall primary demand for oil products in the first quarter of 2012 was also 1.3 per cent lower than last year. However, when the figures were seasonally adjusted and temperature corrected, it found that oil consumption rose by 1.4 per cent. Sales of motor spirit and DERV in the first quarter of 2012 increased by 2.6 per cent and 4.5 percent respectively, compared to the first quarter of 2011. This reflects the increased demand in March, when the UK reacted to a potential tanker drivers strike. In mid June 2012, a litre of unleaded petrol was on average 132.0 pence per litre, 3.6 pence lower than a year earlier, and 9.7 pence lower than the high reached in April 2012. At the same time, diesel was on average 137.7 pence per litre, 1.9 pence lower than a year earlier, and 10.1 pence below the peak seen in April. In May, the UK retail price for petrol was ranked fourth highest in the EU and UK diesel prices were the highest in the EU. In the domestic sector, the price of heating oils rose by 4.1 per cent between Q1 2011 and Q1 2012 and by 3.4 per cent between Q4 2011 and Q1 2012.www.decc.gov.uk

Mitchell and Webber had a successful and enjoyable time at the Royal Cornwall Show, despite the bad weather of an English summer.

Your opinions on changes to the law which would allow tractors to use red diesel for gritting roads are wanted by HM Revenue & Customs (HMRC). Currently, only purpose built or adapted gritters may use red diesel when they are being used to grit roads. HMRC welcomes views on the consultation document “Use of rebated fuel for gritting in rural areas” from anyone who would be affected by any changes or is involved in the provision of gritting services or equipment, including councils, agencies and other bodies. Steven Clarke, HMRC oils policy team, said: “In recent winters during extreme weather we have temporarily allowed tractors and other agricultural vehicles gritting rural roads to use red diesel. We are now considering whether we need to change the law to formalise this and make it permanent”. The consultation document can be found at: http://www.hmrc.gov.uk/news/index.htm Views must be sent to HMRC by 5 October 2012. Please send your response to: Oils Policy Team HMRC 3W Ralli Quays 3 Stanley Street SALFORD M60 9LA Or steve.clarke2@hmrc.gsi.gov.uk

The global energy industry remains buoyant despite an overall reduction in new projects, the latest EIC monitor report has indicated. The number of new projects announced in the second quarter of 2012 was 401, compared to 471 in the first quarter. However the upstream sector has seen an increase of 55% in the potential investment value of new projects, now totalling US$50 billion. This is despite the overall number of new projects in the sector decreasing by 34 per cent. The Ukraine and Russia together account for two-thirds of the total potential upstream investment value between them. The largest project announced is the proposed Skif Shale Gas Project in theUkraine which could see investment of up to US$12 billion. In the downstream sector, the number of new quarterly projects has dropped by 7% since Q1 2012, with a 47% increase in the total potential investment value from US$43 billion in Q1 2012 to US$63 billion in Q2 2012. Most proposed new projects still need to gain consent and finances, so a proportion will not go ahead. Dr Phil Goddard, head of EIC consult, said: “Overall, the picture shows that the industry as a whole is holding steady.” www.the-eic.com

Russell Mortimer, Neil Flynn, David Flynn and Peter Gower from Linton Fuel Oils As the nation celebrates the Queen’s Diamond Jubilee, across the city another London institution is marking its own special anniversary. Founded in 1972 by David Flynn and Roy Panton, Linton Fuel Oils celebrates its 40th anniversary this month.  Liz Boardman visited the company’s Wandsworth head office recently to find out more about the firm, its royal connection, recent rebranding, and the trials and tribulations of operating in the heart of the city.Generation game Forty years on, Linton remains a family owned and run business.

The oil heating market has contracted significantly over recent years, because of what can legitimately be described as the ‘perfect storm’, says marketing consultant John Switzer, who works with Carbery Plastics.  The market for heating oil equipment has contracted markedly in just a few years.  Whilst there are no continuously updated statistics to show what is happening across the industry, the general consensus is that sales have declined significantly. Ask any oil tank installer today ‘How’s business?’ and more often than not, the best response you can hope for is ‘Could be better’. We need to recognise that, heating oil may no longer be the default choice of householders, be they on or off the mains-gas network. Instead, we have to compete for such business against both established and new energy sources. The perfect storm Some installers I speak to are reporting year on year volume decreases of up to 30%. The new build sector, which once represented c.20% of the market, has virtually dried up – a victim of the housing slump, a decrease in public sector spending and general economic uncertainty. The number of replacement installations has also declined, due to the understandable reluctance of consumers to part with their hard earned cash. ‘Make do and mend’ is today the default position of many homeowners and householders. Away from the domestic market, the commercial tank market is at something of a low ebb too. This follows the introduction of environmental legislation in England and Scotland, which required tens of thousands of tanks to be replaced.  As a result, the commercial tank population is unusually young, and I would expect it will be a decade or more, before we see any significant uplift in demand.  It’s also fair to say that issues surrounding tanks supplied by a number of manufacturers have also impacted upon our industry. Such matters have previously and extensively been discussed elsewhere and need no repetition here. But suffice to say, public confidence has taken something of a knock. And of course, we must also consider the impact of renewables upon the industry, whilst also taking care not to overstate its significance. Many renewable technologies are inherently incompatible with the high temperature heating systems in use at existing homes throughoutGreat BritainandIreland. Therefore, they are unlikely ever to become a default choice at anything other than a small number of existing properties. It’s not all doom and gloom Despite the obvious challenges facing the industry, it’s important not to paint too bleak a picture. Some renewable technologies (e.g. solar) can of course complement existing oil heating installations. And in Northern Ireland, The Control of Pollution (Oil Storage) Regulations (Northern Ireland) 2010 continues to drive tank the market forward, as too does the recently announced Boiler Scrappage Scheme. Meantime inWales, discussions have commenced with a view to enacting similar oil storage regulations to those now in force in the rest of theUK. At Carbery, we would hope that prior to the formulation of new Welsh regulations, the effectiveness of existing regulations in other jurisdictions will be closely examined. InEngland, since new fuel storage regulations came into full effect in 2005, there has been a welcome reduction in the number of oil related pollution incidents. Bunded tanks were of course a cornerstone of these regulations. But, we would ask, how much of this reduction was caused by bunding? And how much would have occurred anyway because of the installation of new storage tanks, irrespective of whether they were bunded or single skinned?

Navman Wireless to help Bullet Express improve driver efficiency across its fleet Bullet Express, one of theUK’s leading logistics specialists, has invested in Smart Telematics from Navman Wireless to help promote efficient and safe driver behaviour across its fleet of 36 vehicles. Bullet Express chose the Navman system after exhaustive trials found it to present highly accurate data in an easy to interpret format.  David McCutcheon, managing director of Bullet Express, explained: “We saw great improvements in the driver’s performance over the two week trial; the system helped them improve in all areas and we saw our drivers achieve the 85 per cent performance standard we had set.” Bullet Express have also included Navman Wireless’ MNav 760, an integrated navigation terminal and head up training aid, that reports real-time performance statistics to the driver. David believes this ‘trainer in the cab’ can help drivers continuously self-evaluate their performance and deliver significant savings. “We wanted to give our drivers the tools to improve their performance. Knowing in real-time when they are underperforming helps them continually learn and enables them to take the training we provide on to the road.” Bullet Express also chose Smart Telematics to help with reducing fuel consumption and to help with minimising the company’s impact on the environment.

From 4 July the company name of ConocoPhillips has changed to Phillips 66. The name change in the UK follows ConocoPhillips’ global repositioning of its upstream and downstream operations to create two independently operated companies, which took place on 1 May of this year. As a result of the repositioning, Phillips 66 Limited, a subsidiary of Phillips 66, is focused on downstream refining, marketing operations and trading in the UK. Despite the change in name, the company will continue to market its fuel brand in the UK as Jet®. “Although the name Phillips 66 may be new to many in the UK sector, Phillips 66 already has a rich heritage in many countries across the world. This, combined with the assets we already have in place and the unrivalled expertise and knowledge of our people, ensures we are launching from a position of strength that few in the marketplace can match,” said Pete George, manager, UK and Ireland marketing. “Even on day one, we rank as one of the largest and best performing players in the UK industry, boasting an enviable customer base and an impressive portfolio of business divisions, including consumer-facing marketing and our world-class Humber Refinery,” continued Pete George. A key part of Phillips 66’s global refinery portfolio, the Humber Refinery, is one of the most advanced in the world. Since its construction in the early sixties, it has been the focus of hundreds of millions of pounds worth of near-continuous investment in its facilities.  With a daily crude oil processing capacity of 221,000 barrels, it produces a range of light products and fuel oil, from low sulphur petrol and diesel to liquefied petroleum gas (LPG), as well as marine and aviation fuels. Approximately 70 per cent of the light oils produced in the refinery are marketed in the UK, while the other products are exported to customers and markets across Europe and the US. Phillips 66 has a diverse range of customers spanning a number of sectors, including resellers and supermarkets, as well as Jet’s 350-strong network of independently operated forecourts. Aviation and marine will continue to be key markets for the business in the UK. “The autonomy we will enjoy as Phillips 66 will give us greater focus and flexibility to anticipate and respond to the demands of the marketplace. We are excited for the future and ready to meet the needs of our customer base,” concluded Pete George. Return to emailshot

The Office of Fair Trading (OFT) has failed to prove that fuel suppliers are abusing their position in Shetland and other rural areas. Whilst the OFT did find a large differential between island pump prices and those on the mainland, there was no evidence of a distortion of competition.  However, a door has been left open for consumers to provide evidence which may point to market distortion. A report before the Shetland council transport body said the OFT was writing to those who had made “unsubstantiated statements” during the consultation period, advising them of the “relevant law and inviting them to provide specific evidence of any market distortion or abuse”. The OFT found that higher prices and limited choice result from low sales volumes and weak competition, with some businesses having local monopolies. Its report to councillors acknowledges that the problems identified do not all fall within the OFT’s remit because, for example, they do not relate to illegal or anti-competitive behaviour. OFT director Kyla Brand stated: “There is no quick-fix solution within the OFT’s powers but we have a part to play, alongside businesses, communities and government bodies. “We have taken, and will continue to take, action ourselves to address these concerns and will share our report with government departments, local authorities, community groups and others to help ensure that this consultation informs policy discussions.” Return to emailshot

The latest independent figures show oil prices have become more competitive over the last four years.  LPG remains the most expensive fuel for off gas main customers. According to the Sutherland Tables, the price gap between oil and mains gas has narrowed from 48% in 2008 to 37% in 2012. Additionally, there is now very little difference between the price of heating an average three-bedroom home with oil, electricity or wood pellets. The results coincide with the announcement by the Department of Energy and Climate Change (DECC) that the number of fuel poor households in the UK fell to 4.75m in 2010, from 5.5m in 2009. The DECC report says that improvements in the energy efficiency of the housing stock and installations of energy efficient boilers (32% of households had condensing boilers in 2010 compared with 24% in 2009) enabled households to heat their home with less energy. There was also little change in prices for domestic energy between 2009 and 2010. OFTEC director general Jeremy Hawksley said: “Oil is still one of the most competitive fuels for off gas main properties in rural areas, and it’s reassuring that the move towards condensing boilers has helped contribute to a reduction in fuel poverty.” For an average three-bedroom house, it costs £1929 per annum to provide heating and hot water with LPG, while oil is 27% cheaper at £1408.Return to emailshot

The first recipient of the Suckling Transport service provider of the year award is the Southampton-based Harwood Truck Centre.

In response to the recent outbreak of Legionnaires’ disease in Edinburgh, the Energy Institute (EI) has released new guidance for the oil and gas industry.   The Energy Institute’s occupational health and hygiene committee has updated its existing technical guidance, and is working on a second publication specific to cooling tower maintenance, both of which are now available to pre-order. This technical advice covers the guidelines set out by the Health and Safety Executive. Committee chair, Lynne Morgan FEI, said:  “The problem for the industry is that water systems can become heavily contaminated with potentially lethal bacteria. The committee’s responsibility is to advise industry on appropriate workplace, health protection issues and, where possible, provide relevant technical guidance and control measures. Further to this publication, additional guidance will follow to specifically address maintenance of cooling towers for the control of Legionella.” The second publication, entitled Cooling tower maintenance and other controls for the effective management of Legionella risk, will be available later in the year. Orders can be made online at www.energypublishing.org Return to emailshot

Fairbanks has agreed a deal to provide Euro Garages with a wetstock management service. Euro Garages, a Blackburn-based company own petrol forecourts with food franchises, and all 74 of its service stations are set to have the ibank technology installed.  “A wetstock management service such as Fairbanks’ is critical when managing a petrol retail network,” said Euro Garages managing director, Mohsin Issa.  “Their real-time service allows us to have access to valuable, intelligent information and reporting tools as well as providing peace of mind that any potential wetstock issues will be identified and resolved quickly.’’ “in addition to their loss detection analysis,Fairbanks’ daily, weekly and monthly reports give me everything I need to keep the network running smoothly,” added regional manager Guy Bickerstaffe. “Euro Garages are a very successful and dynamic business and we are excited to be working closely with them as they continue to expand their network,” said Michelle King,Fairbanks’ operations director for the UK and Ireland.Return to emailshot

Norbert Dentressangle fought off stiff competition to win the training category at the 2012 Motor Transport Awards.  The company’s learning and development managers, Chris Dolby (logistics) and Dawn Boatswain (transport services), received the trophy from Commercial Motor editor, Will Shiers. Chris Dolby said: “Our strategy is to develop a culture of high performance, capable of adapting swiftly to new opportunities and challenges in order to deliver profitable growth.”  Norbert Dentressangle is committed to the training and development of its colleagues and, despite tough economic conditions, has continued to invest in the development and delivery of bespoke training programmes for the shared benefit of its employees, the business and its customers. The company’s award entry focused on its management development programme, safe driving plan and driver CPC training. www.norbert-dentressangle.co.uk Return to emailshot

  On June 26, the  joint administrators of  Petroplus Refining and Marketing Ltd (PRML) announced that they  had   entered into an agreement for the sale of the majority of the assets at the Coryton site to a joint venture, consisting of Royal Vopak, Greenergy and Shell UK Limited.   The  administrators understand that the joint venture parties intend that the future use of the site is to be an import terminal, after significant reconfiguration of the existing site.   The  administrators are presently overseeing the removal of all crude oil and refined products from the site and are managing the safe closure of the refinery. The sale follows a five month exercise to explore all the options for the refinery.   As stated by the administrators in May, there was insufficient interest from the oil industry and financial investors in acquiring the business as an operational refinery and, as such, the  administrators commenced steps to cease operations with a view to selling the site for an alternative use.   Refining ceased at the plant earlier in June. The sale of the assets of PRML will be completed once the current refinery closure process has been concluded.  This is likely to take some months, as the various units are decommissioned and remaining crude and refined products are removed from the site.   There is no change to the redundancy programme announced by the  administrators earlier in June.  As a reminder, approximately 180 roles will be made redundant in June, with further redundancies anticipated from late July onwards as the closure progresses.  It is expected that a small number of employees and contractors will be retained to provide site security beyond the end of the summer. Steven Pearson,  joint  administrator and partner at PwC, said:    “It is regretful that there were no credible offers for the business at Coryton as a going concern as it has been necessary to cease refining and make employees redundant.  Ultimately, the  administrators have a legal responsibility to achieve the best price possible for the assets and we have been able to obtain the highest price by selling the site for an alternative use.   We understand that the joint venture partners intend to develop the site in due course, which we hope will provide an important and stable source of supply of fuel for the foreseeable future. “We recognise that the closure results in the redundancy of the majority of the employees at Coryton and we intend to work with the local agencies and authorities to provide assistance during this difficult time. “We now have to spend the coming weeks and months completing the removal of the remaining oil and ensuring that the closure programme is safely managed ahead of the sale of the assets to the joint venture partners.”   New import terminal for oil products at Coryton

In a statement issued on June 26, energy minister Charles Hendry said:  “Vopak, Greenergy and Shell have committed to investing a substantial amount in the site to develop it as a state-of-the-art import terminal. This includes paying for enhancements to the infrastructure that will keep the site viable for many years.   “As a result, the UK will have a new import terminal and its first deep water product jetty. This will allow low-cost high quality diesel to be imported, thereby enhancing  security of supply for London and the South East, and more affordable prices at the pumps.   “The construction and operation of the terminal should also create significant economic activity in the region over the next 2-3 years.  Vopak estimate that up to 50 direct jobs could be supported at the terminal. But, there will be much wider knock-on effects, with additional jobs available for contractors with skills in maintenance, security, engineering, truck driving and construction”.   “To continue operating as a refinery, some hundreds of millions would have needed to be invested in the plant, and unfortunately this has presented a huge barrier to potential new owners to invest because of the costs involved.   “The site is of exceptional value as an import terminal because of its location and amenities, so it is not surprising that it has had a higher sale value as an import terminal, which does not also require the extra investment a refinery would need”.  “ This is very sad news for the workers at Coryton, who will be extremely disappointed that PWC has been unable to find a buyer for the site as a refinery.      “We are doing everything we can to help these skilled people to find new posts, and are working with the Thurrock Council taskforce, local agencies and Jobcentre Plus to ensure they get the support they need at this difficult time”. Coryton assets to be sold to joint venture

Speaking yesterday, energy minister, Charles Hendry told representatives from Thurrock Council, Unite, local MPs and the administrator PWC that the government had “looked long and hard at whether or not state aid should be provided for Coryton” before concluding that “the existing overcapacity in the refining industry and declining demand for petrol means that it would not be sustainable.” Future options for the refinery were discussed along with the work the administrators are doing to secure a sustainable future for the plant. The minister reiterated government’s commitment to help those workers who are at risk of losing their jobs if the refinery closes. Charles Hendry said: “From the outset of this process, we have worked tirelessly with the administrator to find a way to secure a successful outcome for Coryton and to safeguard local jobs. “It is extremely disappointing that the administrators have not found a buyer for the refinery, despite their strong efforts.  Unfortunately considerable additional investment is needed to keep the refinery operating efficiently, and this has meant that potential bidders have been faced with high upfront investments to make in the order of some hundreds of millions. “UK refineries face tough competition from other refineries in Europe and increasingly in Asia, which means that profit margins are low and there is overcapacity in the sector.  If government did step in to help Coryton, this would be a short-term fix, and it could potentially lead to job losses at other refineries which would be at an unfair disadvantage.  “We realise this is a really worrying time for those who work at the refinery in Coryton, for their families and their communities more generally. We will be doing whatever we can to support people through this difficult period.” https://fuelondev.wpengine.com/2012/06/possible-buyer-for-coryton-says-unite/ https://fuelondev.wpengine.com/2012/05/no-deal-for-coryton/

Last week anti-trust regulators approved Mabanaft’s takeover of Bominflot.  The acquisition of this long established bunker trader makes Mabanaft one of the leading international bunker companies. The merger of Bominflot, which will now operate under the name Bomin, and Matrix Marine, Mabanaft’s subsidiary in the bunker business, is regarded by Mabanaft as an important step in an effort to combine the strengths of both companies on a sustainable and long-term basis. For Mabanaft, the acquisition is seen as a strategic step forward. As the bunker business deals with transactions involving physical oil, where logistics and customer loyalty play an important role, Mabanaft regards it as complementary to its strategic core competencies. Likewise, Bomin has now acquired critical mass on the ship bunker market, and, as a result, will now rank as one of the world’s largest bunker companies. The managing director of the Bomin Group is Peter Schreiber. Stefan Herde, managing director of Matrix Marine Holding, will also be a member of the management team of the Bomin Group. Bomin is an independent bunker trader and supplier, with more than 35 years of experience. Its business activities include the supply of bunker fuels and lubricants, cargo trading and ancillary services to the shipping industry. With a staff of more than 300 in 36 offices worldwide, Bomin is organised into three regions, The Americas, Europe/Africa and Far/Middle East. Meanwhile, Matrix Marine has been involved in the bunker business for almost 15 years. It has established itself as a leading independent supplier of bunker fuels and related services. Current locations include the US Gulf Coast, Singapore, Oman and India. www.mabanaft.com    www.matrixmarine.com    www.bomin.com Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

Over the past three years, Scottish Fuels has increased its marine lubricants customer base by more than 600%. The increase is a result of re-introducing Castrol Marine Oil back into Scotland, says the company. Scottish Fuels became the sole distributor of Castrol Oil to the marine trade in Scotland, after the company was awarded the inshore marine contract in 2009. Since then, the company has seen the number of customers using Castrol Marine rise from 23 to 139. The steady customer growth has been attributed to Scottish Fuels’ 18-strong team which has been applauded in a recent Castrol report, for providing the highest standards of customer service compared to its other distributors. Andrew Salton, lubricants manager at Scottish Fuels, said: “At Scottish Fuels, we recognise that in the marine industry, the key to efficiency is reliability and ensuring we stock and effectively deliver the best products.”  www.scottishfuels.co.uk Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

GB Oils has completed a series of road shows for its Total dealer network where the challenges and opportunities for retailers were discussed and its commitment to supply dealers across the whole of the UK was welcomed. More than 110 retailers attended events in Birmingham, York and Windsor where Ramsay MacDonald, retail director for GB Oils, presented a case for the Gulf brand as part of the company’s growth strategy. Guest speaker, Brian Madderson, chairman of the Retail Motor Industry (RMI) Petrol, acknowledged the importance of working closely with an organisation that now accounts for around 25% of the dealer market’s 5500 sites. “The GB Oils strategy is good for the industry and good for the independent,” he said. “With further investment planned in products, infrastructure and growth, the Gulf brand has huge potential. Most importantly for dealers is a recognisable, reliable brand that provides an all-inclusive deal, offers a full range of products including premium grades, a convenience shops programme, and a comfort factor for the consumer. We face so many challenges, but now is the hour for the good dealer, backed by a supportive fuel supplier.” Mr MacDonald reported that 15 Total dealers had already agreed to convert to the Gulf brand and said that, following the road shows, the momentum was building and around 45 sites were expected to rebrand to Gulf by the end of the year. Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

Petrol normally lost to delivery tankers equipped with stage 1B vapour recovery can now be retained says Petroman Environmental Services. “The Total Vapour Solutions system pays for itself, and begins to actually make money in a remarkably short time, simply by retaining petrol that would otherwise go back to the depot or refinery,” says Roger Bailey, sales manager of Petroman Environmental Services. “When a tank is ready to accept a new delivery, it is normally low on liquid and high on ullage filled with petrol vapour. When the tanker attaches its delivery hose to the fill pipe and beings delivery, that vapour is taken back into the tanker,” says Roger. By using the new system, a forecourt can recover up to four litres of petrol from this vapour for every 1000 litres sold. According to Petroman, this is equivalent to a saving of around £3.60.  www.petroman.ltd.uk Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

Highlighted in the last newsletter by uSwitch, fuel poverty continues to throw up a range of statistics and opinions. Speaking about the recent fall seen in the 2010 fuel poverty statistics, Energy minister, Greg Barker was “encouraged by the fall in fuel poverty in the period to April 2011,” but added “there is no room for complacency. Fuel poverty remains a serious national problem and the coalition is absolutely committed to tackling it.” Fuel poverty statistics for 2010 published by The Department of Energy & Climate Change (DECC) show that the number of fuel poor households throughout the UK fell, year on year, from 5.5 million to 4.75 million. England’s figure fell to 3.5m in 2010, projections for 2012 indicate this will rise to around 3.9m this year. Professor John Hills of the London School of Economics and author of the Hills Fuel Poverty Review warns that the number of households in fuel poverty could rise to 9.2m or 43% of households. www.decc.gov.uk/hillsfuelpovertyreview Greg Barker added: “People can still get help with heating and insulation through Warm Front, and around two million households will get money off their energy bills this year through the Warm Home Discount scheme.” “Ambitious new policies” which include the Green Deal, “will help people pay for home improvements through savings on their energy bills, with extra financial help for the most vulnerable.” Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php