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

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

Given developments in Ukraine and the role that Russia plays in the global oil market, supply availability is a big talking point once again. Below UX Energy Services consultant Dr Craig Lowrey looks at some of the issues that this situation could generate for the UK market. Closer to home, the devastating weather conditions that hit parts of the UK over the last winter have also brought security of supply into renewed focus.     The UK’s ability to control the fate of its heating oil price has diminished; something also seen in the wholesale natural gas market over the last decade. A decline in domestic refining capacity coupled with the decline in crude production from the UK Continental Shelf has meant increased import reliance, making the UK price for heating oil increasingly reflective of international events. As North Sea output declines further, forecasts from the UK government show that this trend is likely to continue well into the next decade for all petroleum products. Reflecting the economics of the refining industry across Europe, the nation’s refining capacity has fallen over the past few years as the industry struggles with falling demand in the wake of recession and the resultant over-capacity.  This has been compounded by growing competition from facilities in the US, Russia and Asia, although these regions themselves have had a few mixed years.  Many sources in the industry are predicting that further European refinery closures can be expected by the latter part of the decade. The refining sector saw the closure of the Petroplus-owned Coryton site in 2012 and in late 2013, an industrial dispute threatened to result in the closure of the INEOS site at Grangemouth.  The start of 2014 has been equally challenging; in February, Essar Energy announced that its Stanlow refinery would see production capacity reduced by a third from October, citing ongoing losses on site. For some years Murphy Oil has been seeking a buyer  for its Murco facilities in the UK which include the Milford Haven refinery.  With the latest efforts regarding a takeover having recently broken down, the future operation of the site is now in further question; particularly given the general ill health of the European refining sector. Increasing imports with ‘mutual interdependency and common interest’ With the UK’s reliance on imports showing no signs of abating, there is the question of the source of those imports and, in particular, the role Russia plays with respect to energy matters in the UK and Continental Europe. Building on a long standing partnership, Russia and the EU signed an agreement in March 2013 aimed at cooperation in the energy sector through to 2050.  In recent years, Europe has sought to diversify away from Russian energy imports, a move that largely commenced in 2006 following the Russia-Ukraine gas supply dispute when Russian gas flows to the EU through Ukraine’s pipelines were compromised. A second dispute in early 2009 accelerated the move away. The EU describes the relationship with Russia as one based upon ‘mutual interdependency and common interest’ with Russia being the largest oil, gas and coal exporter to Europe.  In the oil industry, EU-Russia cooperation has been growing over recent years with European companies active in Russian exploration and production, while Russian companies have made increasing inroads into refining, marketing and retail. According to the latest figures from the UK government, at 40% of total imports Russia may have been the nation’s largest single source of coal and solid fuel imports in 2012 but it was third in terms of crude oil imports with the provision of 11% of the total, behind Norway at 50% and Nigeria on 12%. The Department of Energy and Climate Change did however note that Russia ‘has generally become a more important source of imports’ of crude oil in recent years. The effect of sanctions While the possibility of economic sanctions and a decline or loss of Russian energy flows into Europe is – at the time of writing – a number of steps away, even the possibility of such an event gives rise to continued volatility in financial and energy markets in the short term.  So far, Russia’s comments regarding a possible reduction  in energy flows have focused more upon gas than oil and oil products, a fact reflective of Ukraine’s outstanding multi-billion debt to state-owned Russian company Gazprom. The ability of both the UK and the rest of the EU, notably Germany – the largest single importer of Russian oil and gas – to diversify away from this traditional and long standing source is limited – particularly given that the influence of sanctions will have a global effect. Sanctions against Iran in the summer of 2012 contributed towards a 10%-15% increase in the price of crude oil that was reflected in the markets for petroleum products. As well as impacting energy prices, this in turn fed through to the cost of living through the prevailing inflation rate. Russia’s status as the largest non-OPEC oil producer – as well as the world’s largest largest oil producers in general – means that sanctions would have a noticeable effect, although the extent of this – not to mention the likelihood and form of sanctions – remain speculation at this stage.

Improving the terminal’s capability has seen customer service and efficiency optimised says engineering manager, Phillip McEvoy Since moving to its new terminal at Stanlow in Cheshire, ESL Fuels has gone from strength to strength. ESL has invested in modern, sophisticated facilities and systems to bring the terminal up to date.  The terminal is on the former BP Castrol site which closed in March 2010 with the loss of 60 jobs Deputy editor Liz Boardman visited engineering manager, Phillip McEvoy to find out more about the company’s plans for growth.Innovation and diversification “Innovation powers our long-term growth and is at the heart of what we do,” said Phillip.  “Established in 1999, ESL Fuels pioneered the manufacture of alternative industrial fuels long before anyone was truly aware of the impact caused by greenhouse gases and CO2 emissions. We’ve gone on to diversify, specialising in the design, manufacture and supply of a wide range of innovative fuel products. “The move to Stanlow has opened the doors for further diversification. We’re in a key location with extensive storage and have numerous opportunities to move the business forward.” In addition to a long-standing partnership with Certas Energy, ESL has recently further strengthened its well established collaboration with Essar Oil (UK), by linking the two facilities together. “The infrastructure for growth is in place,” said Phillip. “We have an excellent relationship with Essar – they have a good track record of supporting local companies and are helping us to grow the business.” This is being done by moving away from the traditional customer supplier model and moving towards a solutions driven collaboration between ESL and Essar. “We see Essar as a supportive and innovative business partner.” Colin Dixon, Essar’s head of marketing commented: “Our partnership with ESL is a great example of Essar’s commitment to delivering world class service to our customers in the reseller channel. We’re proud to have supported ESL’s growth since the early days of their business.” ESL operates a pipeline network that runs through the Stanlow refinery to the terminal’s quayside with the Manchester Ship Canal, opening up further opportunities for the company by having the ability to import and export products by ship.A bespoke service ESL can offer a huge range of customer offerings, from standard storage solutions to bespoke discrete toll manufacturing and blending services. “We have 112 tanks offering at total of 50,000 cubic meters of storage, of varying capacity and function. Any tank can be heated, agitated and blended with components from any other tank on site. “We’re committed to working with customers and providing bespoke solutions. We pride ourselves in offering a good service at a reasonable cost.” ESL has recently been awarded a major contract on behalf of a leading biodiesel supplier. This will see ESL blend up to an additional 100 million litres per year. This contract was awarded by working closely with the operator to provide a tailored solution to their requirements. The company, which was founded by Stephen Whittaker and now employs 30 people, is also going through a program of major capital investment. This is focused on improving the terminal’s capability so customer service and efficiency will be optimised. Investment is also being targeted in terminal infrastructure and asset integrity.  “Robust asset management is at the heart of everything we do, this allows us to sustainably provide an excellent service to all customers.” ESL has also recently invested in four new In-Control loading skids to enable a quick turnaround for fuel collection for both customers and its own tanker fleet. Now supplying up to 180 million litres of alternative fuels per year, the company uses in house transport combined with dedicated haulage contractors to deliver a first class service.

Following the recent acquisition of Countrywide’s fuels division, deputy editor Liz Boardman travelled down to Ford Fuel Oils’ Farrington head office to find out more about the family firm   Family values From early roots in milk and coal after the Second World War to scrap metal in the early 1970s, Alan and Jack Ford founded the fuel business in 1972.Following in their footsteps, sons Adrian, Michael and Richard remain in the business whilst the family’s fourth generation – John, Teelah, David and Grayson – has also entered the business in recent years. John Ford, now a director, joined the business at 15, working part time to gain valuable experience. Having worked in every area of the business, including two years as a full time driver, John can turn his hand to pretty much anything. “You can’t ask someone to do something that you wouldn’t do yourself,” he said. “We have got to where we are now through family,” adds John. “Certainly we have increased in size since the Countrywide acquisition and now employ 120 people including 45 drivers, but we are still very hands on. Customers can still talk directly to a member of the Ford family. We often go to visit farmers and regularly speak to domestic customers over the phone. Equally we know all of our employees well and regularly talk to our drivers. That’s what sets us apart and ultimately accounts for our success. We like to think that we do things differently here – and better!”   A good fit  Although the company has tentatively dabbled in the acquisitions market in the past – mostly buying one man bands for access to their customer bases – the decision to acquire Countrywide’s fuels division in October 2013 was not one that the directors took lightly, as John explained: “We agonised over the decision but ultimately it looked right. It was a good opportunity and one which fits well with our business – not least geographically. “We have strong family ethics and in many ways still view ourselves as a small, independent distributor. We’ve not lost touch with our roots and don’t want to be seen as a big corporate machine now we have a sizable acquisition under our belt. We don’t want to introduce high margins or have phones ringing off the hook – it would be a bad reflection on both the business and the acquisition itself.” Now rebranded as Countrywide Oils – part of the family driven solution/part of the Ford Fuels Oils Group (the company’s two strap lines) the new section of the business will eventually come under the Ford banner with a dedicated website in the pipeline. As far as further acquisitions go, Ford Fuel Oils is not currently in the market, as John pointed out. “We’ve already taken on a big acquisition and that’s enough for the foreseeable future. We don’t want to chase growth and put at risk what has taken years to build. We need a solid period of consolidation and we also need to take the time to build Countrywide Oils back up to where it used to be.” Nor is the company up for sale: “There have been a number of big distributor acquisitions recently but we are most definitely not for sale,” added John.   Supply solutions With existing Ford depots in Farrington Gurney, Westerleigh, Stalbridge, Membury, Theale, Bow and North Petherton and newly added Countrywide Oils depots in Defford, Finmere, Presteigne and Weston Super Mare, the company has a good presence across the south of England with a significant stronghold in the south west. Supplying in excess of 150 million litres of fuel each year, mostly to agricultural and domestic customers, the company also has a sizeable commercial customer base and services a number of local quarries. “The domestic and agricultural sectors remain by far our biggest markets. We are an old fashioned distributor – it’s what the business was built on,” John told Fuel Oil News. “However we are fortunate that we aren’t reliant on one sector. We haven’t really had a winter so far but have been able to pick up work in other markets.” The company also supplies four million litres of Total, Petronas and its own brand lubricants – Lubricants Direct – per year. “Lubricants bring opportunities for fuel and vice versa,” said John. “We have our own bottling plant and can label containers with our customers’ logos, which is quite unusual for a distributor. It also gives us a good level of flexibility.” Fuel cards is another albeit small arm to the business. “We supply approximately 15 million litres of fuel this way each year, explained John.” It’s a relatively small part of our business but one that’s convenient for our customers. If customers want to use fuels cards then we can supply them, although we are very wary credit-wise” With a fleet of 43 tankers and another three on order from RTN Lakeland, Ford Fuel Oils moved up six places from 16th to 10th on this year’s Fuel Oil News’ Top 20 UK distributors list which was published in the February issue. “We have a long-standing relationship with RTN Lakeland and buy at least three rigid tankers each year. We are a company that likes to build lasting relationships and stick with them. We consistently use Emco Wheaton’s loading solutions and have long been a customer of Fuelsoft.”

INVER CONTINUES TO GROW ITS UK BUSINESS BY EXPANDING THE SALES OFFERING FROM ITS CARDIFF TERMINAL; THE SIZE AND LOCATION OF WHICH HAS FACILITATED THE COMPANY’S GROWTH AND DIVERSIFICATION Development projects in 2008, 2010 and 2012 have transformed the terminal from a heavy fuel oil terminal to a modern sophisticated facility supplying a full range of fuel products.   The 74,000 m3 terminal now has multi-modal capability for receipt of fuel by ship, road and rail.  The terminal’s automation system, 24/7 operations, and its 6 fast-pumping loading racks offer customers unparallel flexibility and efficiency.   A wider range of products Capitalising on recently vacated storage capacity within the terminal, Inver has expanded its product offering. The company is now selling a wide range of gas oils, kerosene, diesel, heavy fuel oil and marine fuels.  Inver’s ability to purchase and store large economical cargoes, allows it to offer customers competitive pricing for these products.  Sales have exceeded expectations in the first quarter; this is supported by the security of supply afforded through the import and storage of 20,000 tonnes of kerosene and low sulphur gasoil. The company has observed the increasing product segmentation of the gas oil market: 10 ppm gasoil for non-road mobile machinery; 1000 ppm gasoil for industrial and commercial heating; and various grades of marine gasoil.  Inver’s ability to import and store these various grades has allowed it to offer customers the right grade at the right price for the specific requirement. Tony Wilson, commercial director of Inver UK since 2006, says that the expansion of Inver’s sales and product offering has been well received and welcomed by customers. “The exit by other fuel importers in the area has reduced the security of supply and competitiveness in the market.  Inver is committed to using its own terminal to maintain the supply of cost competitive product,” says Tony. “Customers always want supply and pricing alternatives.  Inver’s pricing options include contract and spot live pricing and both are proving popular.  Our ability to supply ex-rack or to deliver using our fleet of dedicated road tankers is also an important optionality and service.”

Pete George – taking every opportunity to get out and meet customers AN HONEST CONVERSATIONHeadquartered in Houston, Phillips 66 has 13,500 employees and, as of 31st December, 2013, had $50 billion worth of assets ‘On the back of a strong supply of quality products both in the wholesale markets and in the retail market as JET’, Phillips 66 continues to grow its market share here.  Fuel Oil News editor, Jane Hughes asked managing director, Pete George about the business, refining and fuels and its relationship with fuel oil distributors.

Keen to grow in the fuel distribution sector, managing director Steve Spelman says MHT has products for everyone right down to the smallest depot Keen to find out more about MHT Technology, the terminal automation and tank gauging solutions specialist, deputy editor Liz Boardman travelled to the company’s base in Melsonby near Richmond to meet managing director Steve Spelman and product manager Judith Brown 2014 is a big year for the company as it celebrates 20 years in business. From just five members of staff in 1994, the company has grown almost five fold and now employs 24 people, including Steve who joined the company in June 2013. “MHT has built up a strong team with many loyal and committed staff,” said Steve. “There’s a huge amount of knowledge and experience here and we’re in a strong position to continue the growth of the company.” In September 2013 the company became a wholly owned subsidiary of Endress+Hauser. “It’s a win-win situation for us,” explained Steve. “Although we have the backing of a large, well known company and access to international markets, we are still MHT. We have retained the brand – the company name and logo remains unchanged and we maintain our independence within the market place when it comes to recommending gauges and instrumentation.”Scalable software Having carved a niche as a supplier of tank and inventory management solutions which can interface to field devices from all leading manufacturers, MHT offers a range of software and hardware solutions designed to lower operating costs and improve safety. One of the company’s first products, Visual Tank for Windows (VTW) was launched in 1994 and still remains one of its most popular. “As well as providing real time stock monitoring, the software also increases safety by reducing the need for manual dips,” explains Judith. “It enables fuel distributors to optimise deliveries and can also provide leak and theft detection. By working with all the main gauge manufacturers, we’re able to provide a complete service.” Launched in 2011, smartTAS terminal automation software is a scalable solution which can communicate directly with a single loading skid at a typical depot or multiple gantries at larger oil terminals. “Not only does smartTAS increase security through controlled loading but it also helps to reduce costs by increasing efficiency and quickly identifying any losses incurred,“ said Judith. “By working closely with a number of loading skid manufacturers and suppliers we can offer a complete solution. “Additionally there’s a link between the two software products, so physical stocks displayed in VTW can be compared against the transactional data in smartTAS. This means any losses can be identified and the cause investigated.” “Whilst a typical depot would have smartTAS, VTW and an ATEX approved Field Display, which provides level, temperature and volume data for multiple tanks, our systems are completely scalable and depots may opt to have just one element rather than the full package,” added Steve.Size doesn’t matter Although MHT’s main market is the terminals and storage sector and the company can boast an impressive client portfolio, Steve was keen to stress that it offers products which are suitable for even the smallest depot. “We have products for every market – both big and small – all of which are tailored to meet specific site and customer requirements. The fuel distribution sector is an extremely important market for us and one which we are keen to grow.” Carrs Billington is one of MHT’s biggest fuel distribution customers. The company is benefiting from increased efficiency and cost savings following the successful rollout of a programme of depot automation solutions across eight sites (five in England and three in Scotland.)“I can remotely monitor stock 24-7 across all of our sites, either from the office or at home. This is particularly useful at our unmanned sites, giving me both visibility and peace of mind.”Robert Young, operations manager for Carrs Billington’s five English sitesAdded support In addition to its range of products, site surveys, installation and commissioning are all part of the company’s standard service offering and are tailored on a site by site basis, as Judith explained: “We offer a free site survey as part of our pre-sales process where we can demonstrate the system and get a real understanding of the customer’s requirements. “Following installation, our support team provides a selection of maintenance and support packages. These range from remote support whereby we set up a remote login and can be on hand to support customers within office hours, to complete 24/7 support for some of our bigger customers. We have a helpdesk which is manned during office hours and out of hours there is always an engineer on call.” The company also offers face to face training and e-learning, both of which are proving popular with customers.An exciting new development Ensuring continuity of software systems is an essential requirement for most of MHT’s customers. With this in mind, the company has just launched a redundant solution for its smartTAS software, which enables a vehicle to load without interruption, even if the primary server has a hardware or software failure. In this instance a secondary server would automatically take over in a matter of seconds. “This gives our customers ultimate piece of mind and eradicates costly downtime,” said Steve. “It also means that routine IT maintenance can be done in office hours – again passing a cost saving onto our customers. With customers throughout the UK and across the world already using our redundancy offering for VTW and LMS (our LNG management system), we’re pleased to complete our portfolio with the new redundancy offering for smartTAS.”

With more than 200 million Americans in the icy grip of a polar vortex, FON spoke to US fuel distributors Loud Fuel and Porco Energy to find out how they were coping. Well seasoned Working in and around the Cape Cod area of Massachusetts, Loud Fuel’s managing director, Kabraul Tasha said that the company was finding it tough: “Cold weather is tough on the fuel in the trucks – trying to keep them running is difficult and, with the ice and snow staying around for longer, driving conditions are slowing down output. “We were prepared for the last cold spell – I was way ahead on degree days with my autos, so it’s a little more comfortable not worrying about autos on the brink of running out. The best thing I have on my side is seasoned people both in the office and out in the field.” www.loudfuel.com   Crunch time Porco Energy, based at Marlboro, New York may not have had the snow that others have experienced, yet demand for product has increased by 10%. Porco Energy, which has 10,000 customers and covers a 40-mile radius from two different locations, delivers kerosene, fuel oil and propane. “We’re normally busy at this time of year but when it gets really cold like this it’s crunch time,” said owner Joe Porco. “The extreme cold weather has put added pressure on us with increased deliveries and we do need to carry methyl alcohol in case we get frozen on a tank and fuel oil additive to stop gelling. Plus, due to several factors there’ve also been supply disruptions. “In the north east our main propane supply is from the Teppco pipeline. Two pipelines start at Mont Belvieu, Texas to Todd Hunter, Ohio, with one continuing to Selkirk, NY from where we get most of our supply. This year Teppco has decided to reverse the flow of one line from Todd Hunter to Texas to export propane and shale gas. This puts an immediate strain on the amount of propane coming north. “We supplement this with a contract for propane by rail, however, extreme cold out west and in Canada has at times affected pumps, compressors and valves, delaying delivery. Of course, all this supply and demand has increased costs.”www.porcoenergy.com  

The latest Fuel Oil News Distributor Debate took place last month on a day now referred to as Wild Wednesday. As the wind and rain began to whip up a storm, more than 80 people gathered at the Ramada Hotel in Solihull. Our first speaker was Andrew Owens (1), co-founder of Greenergy in the early 1990s, a company which now supplies over a quarter of all the road fuels in Britain. To better support the country’s growing import demand, Greenergy has both acquired, and made significant investment in, GB terminals. With the prospect of two thirds of our diesel needing to be imported in the future, Andrew asked the pertinent question Can the UK survive without refineries? With its Lindsey refinery, Total UK operates one of the UK’s 7 remaining refineries. Networking with a rather rain soaked David Hodge (6) of Lancashire-based Ribble Fuel Oils was Total UK commercial sales manager, Dominic Hewitt who found the day ‘very interesting.’ Phillips 66 still operates the Humber refinery, Pete George, managing director of the company’s UK & Ireland marketing, reported this Distributor Debate to have been ‘very informative’. With Pete George (3) are on his right, Janet Kettlewell of Kettlewell Fuels, one of the more recent distributors to join the Jet branded fold, and Karen McBride and Richard Billington from Certas Energy. Instructing the audience on the impact of issues in the wider oil world was Mystic Mog the Portland cat. James Spencer’s (4) entertaining presentation was much appreciated by the audience and particularly ‘thought provoking’ for Rod Prowse of Marathon Associates. Distributors and speakers had travelled far and wide to attend the event, among them Marcus Jones (5) from Anglesey-based TR Jones and Sandra Morris from Chester-based Wirral Fuels, pictured with Ken Taylor, OAMPS. By 2015 it is possible that oil heating could be eradicated – OFTEC director general, Jeremy Hawksley (2) made a plea for distributors to get behind the Oilsave campaign, a joint initiative with the FPS. FPS president Mark Nolan (7) of Nolan Oils, seen among many familiar faces, was spurred on by Jeremy’s call to fight for oil heating and is actively promoting the campaign in the distributor community. Julia Mansfield of Fuel Additive Science Technologies provided a highly informative insight into kerosene supply and quality. Taking a look at the impact of the imminent launch of the Renewable Heat Incentive, Paul Stephen, editor of Renewable Energy Installer, explained the challenges and the possibilities for oil heating. Endeavouring to give a business a more competitive edge, Fuelsoft’s David Kingsman and Kan’to’s, Dimitri Papaioannou discussed the benefits of customer relationship management software and enhanced real time tank telemetry respectively. To help better prepare for future events, Fuel Oil News welcomes feedback from those who attended to jane@fueloilnews.co.uk.

Working in ‘a highly competitive market’ DHL keeps deliveries on track for Morrisons with 56 new Scania Euro V tractor units Morrisons has strengthened its relationship with DHL, extending its national fuel distribution agreement for a further six years. In the new contract DHL retains responsibility for the scheduling and delivery of fuel from its fuel planning centre in Whitwood, West Yorkshire to Morrisons’ network of 335 forecourts and regional distribution centres across the UK. Speaking to Fuel Oil News’ Liz Boardman, Stuart Carlyon, DHL’s vice president fuels and chemicals explained: “Morrisons’ decision to renew the contract demonstrates its confidence in our partnership and the closeness of our relationship. We see ourselves as one big team and work hard to ensure that customers get the supply chain they deserve.”

Phillips 66 has awarded a new contract to Wincanton for the delivery of over a billion litres of petroleum products per year. Operating from Immingham, Kingsbury and Stockton, a team of 100 Wincanton operational staff will deliver more than a billion litres of fuel and LPG per year to retail forecourts and other commercial premises across the Midlands and north east England. The announcement, which comes off the back of an excellent safety record, including an Energy Institute Award for Safety, is significant as it will take the two companies’ working relationship to the 15-year mark. “The very nature of the industry in which Phillips 66 operates means safety has to be of paramount importance,” said Eric Born, Wincanton CEO. “We’ve worked hard at this aspect of the partnership, underlined by our Energy Institute Award for Safety. READ THE PHILLIPS 66 INTERVIEW IN THE APRIL ISSUE OF FUEL OIL NEWS www.wincanton.co.uk www.phillips66.co.uk  

UK Fuels has relaunched its Fleetone fuel card following the signing of a new deal with JET. Under the new deal Fleetone has been adopted as the national fuel card offering for JET’s UK network of 300 plus dealers. Fleetone fuel card holders will also benefit from access to UK Fuels specialist fleet card services, including its Velocity online management tool and its e-route journey planner Velocity is offered as standard to UK Fuels customers and provides fleet managers with complete control of fuel spend with the ability to monitor the fuel usage of individual drivers as well as the entire fleet. Online reporting removes the need for drivers to retain all fuel receipts whilst the e-Route journey planner software can deliver long-term cost savings by helping drivers find convenient refuelling stations and therefore avoid route deviation. “Whether for a fleet of one or 100, the Fleetone fuel card is the ideal way to track fuel spend and take steps to reduce it,” explained Tony Garner, UK Fuels director. “With its extensive nationwide acceptance, the time and fuel often wasted by drivers searching for a suitable filling station is significantly reduced. “This is critical when you consider the UK has the third highest diesel prices in Europe. At UK Fuels we aim to make fleet management as simple as possible, which is why we provide a flexible solution where our customers aren’t tied into a contract. It’s also why we conveniently collect payment by direct debit and send invoices by email. “Our fuel cards can be tailored to a specific vehicle, fleet number and driver, with restrictions placed on what can be purchased on the card. This reduces company driver fraud as well as helping to prevent theft when a fuel card is stolen. “ The card is already accepted at over 2,700 multi-branded fuel stations nationwide, including Texaco, JET, Morrisons and Tesco. www.ukfuels.co.uk

From May 2014, Norbert Dentressangle will provide ‘continuous, intensive and dynamic fuel operations’ for Harvest Energy In a new three-year contract, Harvest Energy has appointed Norbert Dentressangle to distribute road fuels to commercial and retail outlets across the UK. Central to the appointment is Norbert Dentressangle’s proven capability in managing continuous, intensive and dynamic fuel delivery operations on a UK wide basis, which can include handling volume swings in excess of +20% week-on-week. “During the exhaustive review of the provision of our road fuels distribution, Norbert Dentressangle consistently challenged the norm,” said Simon Davis, Harvest Energy’s head of sales and logistics. “The company came up with innovative solutions to improve our supply chain service and deliver cost efficiencies.” The new service agreement which commences on 5th May, will involve a core resource of dedicated vehicles. The operation will be managed by a team based at Norbert Dentressangle’s Thurrock site, and will be supported by the company’s Flexi Fuel Fleet regional management network and central functional specialists. All vehicles will operate with an integrated state of the art tracking and driving style management system, which incorporates an automated reporting function to manage fuel efficiency and safe driving. Ann Dawson, managing director, Norbert Dentressangle Tankers, added: “As a major logistics business already delivering a significant amount of UK motor fuel sales, we’re delighted to add Harvest Energy, which is experiencing rapid year-on-year market growth, to our expanding customer portfolio within this industry sector.”www.harvestenergy.co.ukwww.norbert-dentressangle.co.u

David Heath is planning for more tankers and double digit growth at Clugston Distribution in 2014 Following a 20% growth in revenue in 2013, a £2.15m fleet expansion and renewal plan has been announced by Clugston Distribution. The investment is part of the company’s strategy to develop its UK customer base by growing services in the fuels, bulk powdered food, intermodal and bulk ash movement markets. Funds are being used to purchase eighteen new Euro6 Renault tractor units and fourteen new trailers, demonstrating the Clugston Group’s commitment to the logistics side of the business. The first two Euro6 Renaults hit the road last month delivering flour and other bulk food products. Three of the vehicles have been earmarked for the fuels fleet, taking it up to 16 vehicles on the Humber and Tees. Clugston Distribution is also looking to employ up to thirteen new employees to support predicted growth. Already on order, the new tractor units will be split 50/50 between fleet replacement and additional fleet capacity. The nine additional vehicles are being split across different areas of the business. David Heath, head of logistics, said: “We’re delighted that the Clugston board has chosen to support us further by backing our ambitious growth plans. 2013 was a great year for us and we’re looking forward to continuing our success in 2014 and beyond. We’re forecasting double digit revenue growth again in 2014.”www.clugstondistribution.co.uk

Just a quick reminder to anyone planning to attend FPS EXPO, Mabanaft will be holding a ‘Guess the price on MabaLIVE’ competition at the show. The person to guess the correct, or closest to the correct, ex-rack price* for kerosene at Grays on MabaLIVE at 16.00 on Thursday 10th April will win a fabulous Garnet Red Samsung Galaxy Tab 3, 7.0. The runner up will win £30 worth of John Lewis vouchers. To take part in the competition visit the Mabanaft stand (B48/49) where live fuel prices will be displayed on MabaLIVE. A member of the team will take your entry and give you a free gift for taking part. The competition closes at 2.00pm on Thursday 10th of April. The winners will be announced and prizes awarded at 4.00pm followed by a champagne toast. For more information about MabaLIVE please call our marketing team on 0207 802 3300, email sales@mabanaft.co.uk or visit www.mabalive.co.uk. * 30 day payment term ex-rack price for Kerosene at Grays. Terms and conditions apply.  

With energy prices becoming a major point of political debate in 2013, below Dr Craig Lowrey, consultant at UX Energy Services looks back over a year that has brought energy’s impact on the cost of living very sharply into focus Economic and geopolitical factors have interacted with supply and demand issues in the global oil market generating the movement and volatility which is generally seen as synonymous with oil. The future of Iran’s nuclear programme with the possibility of sanctions easing, civil unrest in Libya affecting its crude exports, and the pace of global economic growth have all served to provide sentiment and direction. For the most part, the price of crude oil has remained persistently above $100 per barrel – falling briefly below this important psychological benchmark in April 2013 after disappointing economic news from the US and China, as well as concerns over Europe’s financial stability, given developments in Cyprus. The UK Continental Shelf continues to be a key contributor to both the nation’s supply-demand balance and also the economy. There were some particularly positive supply developments with the start up of production at the Jasmine and Breagh fields; the former being the largest field to commence commercial operation in the North Sea since Buzzard six years ago. (Disappointingly, the Breagh field ceased operation only a few weeks after it came online, with developers citing technical problems and Buzzard experienced production problems for the second year in a row.) THE UK DEPENDS ON IMPORTS FOR 44% OF ITS HEATING OIL REQUIREMENTS The industrial dispute at the Grangemouth facility illustrated the potential vulnerability of the UK market to disruptions, coming as it did in the wake of a report from the House of Commons Energy and Climate Change Select Committee warning that domestic production could not keep up with rising demand for refined oil products. Indeed, the same report pointed out that the UK depends on imports for 44% of its heating oil requirements. A fact that vividly illustrates the key role that imports and international factors play in determining domestic prices. An affordable and secure supply When a fuel customer’s primary concern is an affordable and secure supply, the aforementioned global developments may seem literally and figuratively half a world away. So how do these international issues translate into domestic matters? And, how does the growing criticism of gas and electricity suppliers, and the possibility of changing policies, relate to off-grid energy sources such as heating oil? As the Big Six started to announce the latest round of domestic gas and electricity tariffs, the Labour Party declared a 20-month freeze on energy bills from May 2015 – should it win the next general election. Throughout the ensuing debate, very little mention was made of other fuels such as heating oil. The possibility of a heating oil price freeze Citing international factors, gas and electricity suppliers plus a number of independent commentators have questioned whether such a prize freeze policy is practical. Could such a freeze work in the heating oil market? At first glance the answer would appear to be no – given the market’s highly regionalised nature and the fact that international oil prices ultimately dictate price. Despite this, there could be options for something akin to a price freeze. According to the 2011 Office of Fair Trading report into the off-grid energy market, over 90% of the fluctuation in the price of heating oil is based upon the price of crude oil; any policy would therefore have to focus on this. One possible approach would be a measure similar to the Fair Fuel Stabiliser that operates in the petrol market. While this is based upon amendments to the prevailing rate of duty to compensate for variations in the crude oil price, a similar pricing approach could in theory be employed to insulate the rates paid by customers from international oil market volatility. Were such a policy to be implemented, fiscal and legislative implications would have to be carefully considered alongside the sharp differences in structure between the heating oil market and its gas and electricity counterparts, not to mention issues relating to changes in foreign currency exchange rates and other variables. Given regional variations in price and the site specific nature of delivery charges and volumes, the enforcement of such a policy would represent a major challenge and could ultimately preclude its introduction. Not all heating oil retailers are of a size and scale that would allow them to manage any additional regulatory or compliance obligations in a cost effective manner. A greater focus on off-grid customers With energy prices receiving an increasing amount of media coverage, it is important to ensure that off-grid fuel customers are seen as being of no less importance in terms of policy and bills. Given that off-grid energy is often more expensive there is an argument that they should receive a greater focus. Whether this is borne out by political developments in 2014 and the run-up to the 2015 general election remains to be seen.

Paul Vian – ambitious plans for Certas Energy In November 1999, I interviewed my very first fuel distributor at Carlton Fuels which had just been listed among the north-west’s top businesses. Asked for the secret of his success, owner Frank Hunter said the company’s strength came from its people, citing his 28-year old sales manager, Paul Vian for special mention. Fourteen years later and now managing director at Certas Energy, Paul Vian was in the interview chairFrom GB Oils to Certas Energy Why the change of name? “It was more than a change of name; it was a culmination of a number of developments within the business in the last 12 months – a restructured sales & operations function (including the introduction of logistics services) and renewed investment both in our people and also our infrastructure. However, the main driver was ensuring consistency – for customers and colleagues. As a business built on acquisition, we had any number of different ways of doing things. So, this two-year project re-established who we were, what we do, and most importantly how we did it.” Paul explained. “The name Certas in itself is significant as it translates to ‘Certainty’ which is at the heart of the business; we are committed to providing assurance and certainty of supply to our customers. The Certas brand not only reflects the size and strength of the business but also the great team that sits behind it. Along with the name and identity, we created the Certas Energy Way of Working where we shared our company mission, giving us a common goal, and a shared set of values. Externally, Certas Energy positions us as a leading market force in the distribution sector, and gives us the scope to achieve our growth ambitions, both organically and through acquisition, the latter of which we are constantly reviewing to see where there is opportunity for acquisition expansion. Certas Energy branded tankers are now being spotted out on the road. “We wanted to get the name known as quickly as possible,” said Paul. “Since the vehicles have been on the road, the name is gaining momentum.” The company operates 1,000 vehicles; starting next summer we will ramp up the pace of converting our vehicles to the Certas Energy branded ones. WE’LL LOOK AT ANY OPPORTUNITY THAT PRESENTS ITSELF IN ANY BUSINESS SECTOR There are 45 brand names operating under the Certas Energy umbrella. Although there is an aspiration to operate under the one name, Paul appreciates that existing brands cannot be changed overnight. “A collective name is an ambition but we’re not sure that we can get there just yet… “At the start of the brand project, we conducted one of the largest pieces of customer research in the industry. It was essential we listened to our customers. In the domestic market our customers have developed strong relationships with a particular brand over many years. We now have a great understanding of the different factors customers are looking for when dealing with us so we need to operate with sensitivity for the foreseeable future; retaining customers will still require a multi-brand strategy. “However, no matter which brand, customers know who they’re dealing with in terms of the parent brand; we are completely transparent.” GB Oils did receive some adverse media coverage in the winter of 2010/11, what action has the company taken to remedy this? “We’ve taken a much more proactive approach to our corporate social responsibility,” said Paul. “We regularly offer bursary schemes across the country providing donations and funds to a host of local charities and community initiatives. “This winter Certas Energy is the official corporate partner of Independent Age (IA), a charity which works with and for older people throughout the UK and Ireland. And we are working with them to help us better identify and support elderly customers.” “We’re also big supporters of the new Code of Practice recently launched by the FPS, and as market leaders we’re very happy to drive this through our business. “Across all our brands every customer knows the price of a delivery before it’s delivered. Underlying oil prices may change daily but our consumer pricing policy ensures the quoted price is the one the customer pays thus giving them the ability to make an informed decision. With the more financially vulnerable, we encourage budgeting by paying over a period of time via direct debit and ordering early.” “The business is an active supporter of the Buy Oil Early campaign run by the Action with Communities in Rural England, Citizens Advice Bureau, Consumer Focus, and FPS. “Additional drivers and telesales staff have ensured that we’re much better geared up for the winter period when the number of calls and deliveries can more than double. In times of peak demand, third party logistics cover may also be used to ensure a good level of customer service. “We like to think we are leaders now in terms of customer service and transparency,” added Paul.