News 81
Neil Ryding, Bob Hall and Julia Mansfield
With a strong research background in both a major oil company and a couple of large chemical concerns, Bob Hall founded Fuel Additive Science Technologies (FAST) in July 2005
Having the original intention of developing technically superior off the shelf automotive products offering 90% technology and 10% marketing (rather then the other way round); with a small marketing budget and the need to buy shelf space in key outlets, the concept was proving difficult.
However, that autumn, Bob was approached by Mark Haselden, then with CPL Petroleum, about the development of a premium heating oil with added fragrance. Also expressing interest in premium kerosene were James Spencer, then at Bayfords, which went on to launch the new product at nine depots over 7 working days, and Neil Donald, then owner of Southern Counties.
Up to this point, being a diesel and a gasoline man, Bob had never looked at kerosene. Research found much useful evidence in the bigger heating markets of France, Germany, the north east USA and Scandinavia which led to FAST’s premium product for pressure jet boilers. Then as problems with AGAs proliferated, the timing was perfect to develop a product for this market too.
Whilst the chemistry was relatively straightforward, finding a company to produce bottles in the desired quantities was a challenge. A Norwich-based company now produces 200, 100 and 50ml bottles for which FAST owns the tooling.Staff additions
Although by 2008 FAST had found its niche, it was still very much a cottage industry with a staff of two consisting of Bob and his partner,, SallyAnn as company secretary. Bob did all the formulations, bottling and labeling, even going out in a van to make sales.
Enter Charles Southan. Despite a background in selling women’s underwear, Charles proved to be a first class relationship builder; Bob credits him with being largely instrumental in growing the business across the UK. Charles’ arrival coincided with the need to desulphurise fuel which put huge demands on refineries, resulting in more kerosene being imported with inherent quality issues.
In October 2009, Charles was joined by Tim Carlon. Both recruits had come via the Golden Ball in Ironbridge, a popular watering hole of Bob’s. Sales to agricultural and marine markets are covered by Jane Murdock. By April 2010, FAST had 8 employees and when managing director Neil Ryding arrived that July, Bob took up the position of chairman. Working with Shropshire County Council, FAST now offers work placements to young people, some of whom are now in full time positions. In December 2011, chemist Julia Mansfield joined the team.The right product at the right time
Again in 2011, FAST developed the right product at the right time when the gas oil standard changed and off-road diesel saw a massive reduction in sulphur. With off road vehicles calibrated on white diesel, an additive was needed to bring red diesel up to the DERV specification.
FAST’s number one product is still its kerosene additive, now used by over 90% of the fuel distributor market. Its gas oil additive is in second place, followed by Diesel Supreme, a premium additive used by hauliers. Power Restorer, a service tool for agricultural/diesel servicing workshops, which cleans out deposits in the injectors, comes next. Recent cold winters have seen sales of anti-waxing products rise considerably whilst poor housekeeping exposure led to a peak in anti-bug sales in 2011.
To test the performance of its additives, there are two boilers and an AGA which also keeps FAST’s Shropshire premises warm and is the focus for a Friday feed up when staff take turns to cook lunch. Agricultural additives have been independently tested by a Lincolnshire-based agricultural machinery dealership.
When a customer has fuel problems, FAST offers a special customer service taking in samples for test and providing an answer.What’s next for FAST?
This month Julia, who produced a fuel quality report last year, will be joined in the laboratory by a new recruit whilst significant investment is being made in the laboratory itself. “The fuel quality report was a real milestone; we went to fuel producers, shook the tree and got factual information rather than the usual fuel hearsay. The perception is that nothing changes in fuel, but believe me it does,” said Julia.
The next generation of heating oil additive with a patent pending is FASTFlame, which provides improved boiler efficiency even on new equipment.
FAST recently expanded into Ireland where Jeff Murrells is in charge. “Whilst this market has huge potential, economic woes have made all fuels price sensitive and premiums, whilst beneficial, can put people off,” said Neil. FAST has also received supply enquiries from Europe.
Attendance at regional shows has led to ‘a massive increase’ in recognition of its own Exocet brand. Getting together with a number of agricultural equipment suppliers and fuel distributors to help educate customers about how to store and look after fuel has paid dividends.
“We’ve come a long way but we’re still a small company with multi-skilled staff willing to turn their hand to anything. I always tell people that if they come to work here they leave their ego at the door,” said Bob.
Lee Burgess (l) and Ian Appleton
With cost cutting top of many a distributor’s business agenda, Fuel Oil News asks are there any opportunities available to increase profit?
Speaking to Euro Oils directors, Lee Burgess and Ian Appleton, the answer is an emphatic “yes”. Just four years ago, the pair acquired this Midlands-based lubricants blender and manufacturer. Having grown the business by 400%, Euro Oils customers are sharing in the company’s success.Our lubricant, your brand
Private label branding in the UK has grown substantially as major oil and lubricant brands have retrenched.
Euro Oils is different from other lubricants manufacturers, in that it produces lubricants solely for its customers. Working with Euro Oils allows your company to build its own brand equity with a quality UK manufactured product bearing your name. Not having its own brand, Euro Oils will never be in competition with yours. Euro Oils acts as your silent partner – never divulging its suppliers nor its customers.
“We launched our own brand of engine oil after becoming disheartened with the service and margins offered by our existing suppliers. As a small wholesaler/distributor we weren’t taken seriously by many of the other companies that we approached. Euro Oils came across as far more on the ball, and I was confident that they could deliver what I wanted.” Professional and profitable
Benchmarking itself against the global leaders in lubricants, recent investment has vastly improved the image, quality and presentation of packaging. “When our customer’s brand packs a punch on the shelf, it’s definitely in everyone’s interests,” said Ian. “Professional packaging that really stands out certainly helps increase sales.”
Considerable investment in the company’s capacity, capability and people has seen new laboratory testing equipment, a state of the art label printer, new filling lines plus more graduate recruitment and staff training. “For the first time in over 7 years of wholesaling other brand engine oils we can finally see profits in small pack engine oil. Previously our oil brands had acted as a door opener and we would be reliant on pushing wiper blades, car mats and seat covers to try and earn some profit. Sales are going very strong; the independent motor factor shops and a couple of larger distributors have been very receptive to our branding and packaging.”
“We’ve added more to our offering,” said Lee. “Having reduced the complexity around the sale of lubricants, there are now less barriers to entry for smaller players. Synthetic oils have risen in prominence and there’s been a move away from barrels to the production of smaller pack sizes and multiple packs. Large or small – all customers can build a brand with a strong image in the automotive and agricultural markets, and make a good profit.”
With threats of negative interest, rather than leave £30,000 in the bank doing nothing, one Euro Oil customer spends the money on lubricants; in six weeks he can make a £10,000 profit.
With the minimum order being just a pallet, entering the own brand lubricants market may be easier than you think. Taking a flexible approach, Euro Oils encourages customers to regard its blending plant as their own. “Simply tell us what you want,” said Lee.“A partnership with Euro Oils was very much part of our company strategy. We felt that developing our own brand products for our retail network would give us a competitive edge. On a more personal level I have known Lee for many years and knew that I could rely on him to deliver a package that would effectively suit our business needs.”
Having upgraded its facilities for the benefit of customers, Euro Oils has upgraded itself with a brand new logo designed to reflect the company’s growing customer base in the Middle East. Check out the new logo and brand new website at www.euro-oils.com.
Could this silent non-competing partner give your business a competitive edge? To find out more, please call Lee on 01527 502252.
Glynn Mitchell says it’s the easiest system he has ever used
Crown Oil recently selected Emco Wheaton to be its electronic pump metering supplier after the Bury-based distributor had an excellent introduction to the company’s latest Data Plus 2 equipment
With eight new tankers being added to Crown’s fleet over the coming months, Emco’s electronic pump metering will soon be at the heart of many of its deliveries.
Glynn Mitchell (pictured here), who joined Crown from Samuel Cooke last year, is one of the lucky drivers to have been given one of the brand new DAF CF tankers. “In my time as a tanker driver, this is definitely the easiest system I’ve ever used. Its speed, coupled with ease of use, makes my job very efficient.”
Also impressed with the equipment’s simplicity and quality is Crown Oil fleet engineer, David Goodall, who has been with the company for 10 years. “Implementation has been so easy. The driver of our first new truck took to it straight away without the need for any further training.
“Plus the back-up given by Emco Wheaton’s sales and service team has been excellent. Based on this experience, we decided to fit further trucks with Data Plus 2.”
Asked about what he looks for when sourcing a new tanker, David said: “Price is the main criteria, along with proximity. Located in Lancashire, Crown’s only an hour away from south Yorkshire. We’ve used both RTN and Tasca for 10 years, and both are always asked to quote for each new tanker we source.
“We’ve standardised our fleet so that trucks are identical. They all work in exactly the same way which really helps drivers who use a variety of vehicles.
“We started using Emco products awhile ago and were blown away by a system that’s methodical and essentially both driver and mechanic friendly. It’s a fabulous system that guides drivers through the whole process, especially useful for drivers working from remote depots.
Jonathan Wiltshire, Emco Wheaton’s territory sales manager, added: “We were very pleased to hear that Crown’s drivers have found the simplicity of the Data Plus 2’s litre counter to be such a huge benefit. The equipment is extremely intuitive; it guides each decision the driver has to make, facilitating faster and more efficient deliveries.”The benefits of Data Plus 2
The system comprises a lightweight aluminium pneumatically actuated manifold assembly with gas extractor, an electronic litre counter/control unit, meter, pump, printer and product transfer system.
A newcomer to the UK, the Valero Energy Corporation entered the UK market last summer following its acquisition of Chevron assets including the Pembroke refinery, pipelines, terminals, an aviation fuels business and a network of over 900 Texaco-branded service stations in the UK, Plus around 230 in Ireland. This Fortune 500 company has headquarters at San Antonio in Texas with total assets (at the end of 2011) put at $42 billion.
Market opportunities
Keen to know what attracted Valero to the UK market, Fuel Oil News editor Jane Hughes recently met with Eric Fisher, president – Europe and Mike Lewis, director – product supply, at the company’s UK headquarters in London’s Canary Wharf.
“Valero has had a keen interest in acquiring an asset in the UK or ARA (Amsterdam Rotterdam Antwerp) markets for some time,” said Eric. “Having a North Atlantic position enables us to do commercial trades here and to gain a much better insight into the European market.
“The Chevron acquisition has given us an excellent entry into the UK – it was a good opportunity that came with good people and good logistics. With this European foothold, Valero has the ability to ship excess gasoline back to the north east US, where many refineries have closed. And, on the flip side, we can bring diesel back to the UK and ARA region.”
Now firmly focused on profitably growing its inland volume, Valero has already made significant investment to move more barrels into the Midlands market and to offer its customers quality products at a competitive price.
The company has an interest in four pipelines and owns five terminals – Avonmouth, Cardiff, Kingsbury, Manchester and Plymouth, and is part owner of a terminal in Dublin. The Mainline pipeline which connects the Pembroke refinery with the Midlands and Manchester is also under Valero ownership.
To further strengthen its supply position in the Midlands and north west of England, Valero will be reopening the Manchester Fuels terminal this spring. “This terminal is very conveniently placed; former and prospective customers are very enthusiastic about its reopening,” said Mike. “I am pleased to say that Valero has been very well received in the UK market place and our work force is proud of what we’ve achieved to date. We’ve had some excellent feedback.”
An experienced refiner
“The refining market is volatile, seasonal and cyclical but we’ve got the experience in this business,” said Eric. (Valero is now the world’s largest independent refiner with 15 refineries producing 2.8 million barrels of oil per day.) “Western Europe is a challenging market to operate in, and it’s very competitive. That said, we’ve been here 14 months now and we’ve found nothing here that we had not already anticipated.
“Valero is very pleased with its UK acquisition. There are still more opportunities to reduce costs, to be more effective and to ensure we continue operating safely – we work to improve on these things every single day,” Mike added.
Valero’s refined product customers include its network of Texaco sites, branded wholesalers, jet fuel handlers and supermarkets.
Kerosene is a sizeable market for Valero. From allocated crude stocks, the company currently sells 83% as kerosene and 17% as jet fuel but acknowledges that kerosene demand is ‘steadily decreasing.’ Ireland is one of Valero’s biggest kerosene customers.
Asked if they thought the UK’s kerosene market would be quickly eroded by the UK government’s renewables drive, Mike replied: “Not yet, such transitions take a lot of time. The good thing about kerosene is that it’s a dual purpose fuel. In an area that’s short on fuel, we could easily switch more kerosene sales to jet fuel.”
Introducing E10 and the possibility of a Valero brand
The challenges of introducing E10 into the UK market were also discussed. “E10 is difficult as the rules are far from clear,” said Mike. “By early January, it will be possible to put up to 10% ethanol in petrol but will that be introduced on the forecourt? The industry is waiting for some guidance as to when, where and what. We look to the government for direction and to communicate with consumers.”
FON also asked about the possibility of a Valero brand being introduced to UK forecourts. “We’re evaluating our options with respect to re branding. Texaco is a strong brand with a long history in the UK so this is clearly something we have to consider very carefully,” said Eric.
So have there been any regrets about entering the UK market? “Valero is a positive story for the UK, the company is well-capitalised and we’re still excited about being here. Make no mistake the UK market is very different, but it’s been a great transition and we’ve got a great team here. We’re here, we’ve identified the assets and we’re continuing to invest.”
Developing a sense of community
A recognised community leader, Valero likes to give back to the communities in which it works. Eric explained: “Well established in all the countries in which Valero operates, we’ve got volunteer schemes, charitable giving and governorships going in the UK and Ireland. To date employees have volunteered 785 hours to local projects.”
Valero was formed as a pipeline company in Texas in 1980. The company acquired a shutdown refinery site at Corpus Christi, now one of the newest refineries in North America. In the mid 90s, Valero chose to sell its pipeline business to grow the refining side. Valero is now the world’s largest independent refiner with 15 refineries producing 2.8 million barrels of oil per day. With 21,000 employees, Valero operates in the US, Canada and the Caribbean and also owns 10 corn ethanol plants in the Mid West, a biodiesel plant in Louisiana and 6800 branded retail sites.
Out on the road – Pete, Lindsey and Guy at Old Trafford
A few months after the Conoco Phillips demerger to create a business dedicated solely to its downstream operations, Phillips 66 took to the road in a uniquely branded bus to do what it does best – talking, and building customer relationships
Over 200 dealers and distributors turned up to the Phillips 66 roadshow at exciting locations across the country, to take a seat in the specially designed double-decker bus, talk to members of the team, and learn more about the company after its introduction to the UK market earlier this year.
It was a whirlwind journey around the UK, designed to allow as many customers to attend as possible. The dual-branded Phillips 66 and JET bus visited eight iconic venues, including the Falkirk Wheel, Bristol Planetarium, Twickenham and the Imperial War Museum. Fuel Oil News joined in the fun at the last event at Old Trafford football stadium, for a chat about the benefits of the recent reorganisation, and a peek into the Phillips 66 future.A seamless split
“Looking back at the demerger, it has appeared seamless – but there has been a lot of work from those behind the scenes in the organisation,” said Pete George, managing director, UK and Ireland marketing.
Lindsey Grant, manager, national sales, added: “The roadshow has been about showing that although operations are under a new name, we still have the same culture, mind-set and strengths. The name has changed, but we haven’t changed who we are.
“Our objectives from the outset were to introduce customers to our team and highlight our new customer-centric structure and approach. It was also just as important for us to get feedback from customers and find out more about their needs directly from them. We feel that we have achieved this and more.”
Phillips 66 was introduced in the UK in May this year, when the downstream business split from the ConocoPhillips name to create two independently operated companies. As a result, Phillips 66 focuses on downstream refining, marketing operations and trading in the UK, while also continuing to market its fuel brand as JET. The move also included a company restructure, involving the creation of a separate national sales team, led by Lindsey, to look after UK-wide brands, such as GB Oils and Watson Petroleum. Independents with a regional base are now looked after by Guy Pulham, manager, regional sales, and a team of regional managers.Distributor benefits
“We have introduced a number of changes during the reorganisation to further support our distributors. For example, regional account co-ordinators have been introduced to be on hand for customers when a member of the sales team is on the road or unavailable,” said Guy. “A new online system has also been installed at Bramhall, Immingham and Kingsbury which calculates the daily amount of fuel a distributor has lifted. If needed, they can request to lift additional product, meaning no wasted journeys.
“The service we provide for each customer depends on the type and level of support they require,” added Lindsey. “Whereas national customers need a UK outlook, regional customers now have a contact within their local area to match the needs of their business. Matching technology and different planning strategies are also tailored for each customer.
“The reorganisation addresses the way the industry is heading, and means Phillips 66 is at the forefront for the benefit of our customers,” said Lindsey.
Busy ensuring that the split and restructure was as smooth as possible for customers, the company has been less vocal than usual. The roadshow presented the perfect opportunity to show customers that it’s business as usual and shout about the benefits of the structural changes.
“We’ve seen a lot of people and it’s been a lot of fun,” Lindsey continued. “Our biggest strength is our service focus and the relationships we have with our customers, so the bus acted as the ideal mobile venue for us to talk informally to people in a friendly and relaxed atmosphere.”Culture of success
The company recognises its culture as one of its core strengths, emphasised by the name change to Phillips 66 – which has been one of the leading fuel brand names in the United States for decades.
“The Phillips 66 culture is very family oriented,” explained Pete George. “Our values of safety, honour and commitment are a perfect fit with the UK business.
“We like to think we have a different approach. We listen to our customers and they have almost unlimited access to us – most have got my mobile number. We’ve got a very responsive and energetic team who don’t have to answer calls at 10pm, but they want to. You can’t buy that culture, you have to create it.”
Pete was planning to retire later this year, but accepted his new position as part of the reorganisation and has no regrets about continuing.
“It didn’t take a lot to persuade me to stay on after the restructure. I love the unique culture of the company, which was shown at its best throughout the roadshow. It’s a breath of fresh air in a corporate world.”An earlier interview with Pete George was published on page 6 of the September 2012 issue of Fuel Oil News.
Jeremy Hawksley (director general, OFTEC), Martyn Bridges (new OFTEC chairman), Nick Hawkins, DESO Engineering (new OFTEC vice chairman) and Barry Gregory, Riello (outgoing OFTEC chairman)
This was just one of the many questions asked at OFTEC’s AGM last month when the long term future of the oil heating industry was under debate.
In the first quarter of 2013 oil boiler sales increased by 22% compared to last year.
Sales at the end of 2012 also showed an improvement on the previous year. Commenting on the news, OFTEC director general, Jeremy Hawksley said: “Most boiler sales are distress purchases and the healthy results are due partly to the cold weather the UK has experienced this winter. However, it also underlines the public’s continued enthusiasm for oil heating and the fact that upgrading to a modern oil condensing boiler will bring an immediate saving in heating costs. This is by far the simplest and most cost-effective change that existing oil heating users can make”.
OFTEC is promoting the benefits of oil heating to rural households with Oilsave leaflets and flyers. The flyer offers homeowners a booklet about energy efficiency which is available FREE from OFTEC.
http://www.oilsave.org.uk/
Visitors to FPS EXPO 2013 admire WCF Fuels’ latest tanker. Built by RTN Lakeland, it features WCF Fuels’ new logo
Visitor numbers at this year’s FPS EXPO, where 98 exhibitors displayed the latest advances in oil distribution technology, were up 7% on last year.
“There was a real buzz about the place this year and that showed in the level of enquiries we received, as well as the general atmosphere we experienced,” reported Kiran Shaw, operations manager at IFC Inflow.
“It is our most important show of the year, we really enjoy attending and catching up with both customers and suppliers, old and new.
“FPS EXPO is a very focused show, targeted specifically to our customer base” said an Emco Wheaton spokesperson. “It offers an opportunity to showcase our latest developments to a large audience.”
New FPS president Mark Nolan addressed an audience of industry professionals at the awards dinner where John Bussell of Moorland Fuels took the coveted Driver of the Year award, sponsored by OAMPS Petrochemical. The runners up were Bob Cook of GB Oils and Mark Summerfield of Heltor.
Planning has already begun for the 34th FPS EXPO which will again be held in Harrogate on 9 & 10 April 2014. Many of this year’s exhibitors will be returning and 41% of the stand space has already been sold.www.fpsshow.co.uk
The UK produced less oil in the fourth quarter of 2012; the closure of Coryton in July 2012 was a key factor says a recently published report.
Last month the Department of Energy and Climate Change published its Energy Trends and Quarterly Energy Prices covering new data for Q4 2012 and provisional annual data for 2012.
Key findings
• The UK’s total energy production was 10½% lower than in 2011
• Imports in 2012 were at a record high, with exports at their lowest level since 1989
• Oil production was 14½% lower than in 2011 – the lowest annual production volume since the current reporting system began
• Production of petroleum products was down 8½%, with the closure of Coryton in July 2012 a key factor
• Compare to Q4 2011, the cost of heating oil increased by 2.7%
• Based on a fixed consumption level of 3,300 kWh, the average electricity bill in 2012 increased by £26, compared to 2011
• Based on a fixed consumption level of 18,000 kWh, the average 2012 domestic gas bill rose by £81, compared to 2011
Oil quarterly tables ET 3.1 – 3.7 are available on the DECC section of the gov.uk website at:
www.gov.uk/government/organisations/department-of-energy-climate-change/series/oil-statistics
Energy Trends and the Quarterly Energy Prices bulletins, published quarterly, are available in hard copy from DECC on subscription, price £40 per annum and on the DECC section of the gov.uk website at
www.gov.uk/government/organisations/department-of-energy-climate-change/about/statistics
Moving the load was a complex technical operation – it took six hours to transport the head from Ellesmere Port docks to the refinery four miles away
Vital to Stanlow’s annual production of three billion litres of petrol, Essar Oil (UK) recently took delivery of a 450 tonne steel regenerator head for its residue catalytic cracking unit.
Its delivery is part of a planned £23million refurbishment project for the unit, which is the largest of its kind in Europe. The unit is being prepared for a major refurbishment later this year, of which the replacement of the giant head is a key element. It will give the refinery unit another 25 years of life.
Volker Schultz, chief executive officer, said: “The project represents a significant multi-million pound investment and is further proof of our determination to ensure Essar Oil UK is sustainably profitable and growing moving forward.
“The Stanlow refinery – the UK’s second largest refinery producing 15% of the UK’s transport fuels – is a major economic driver in the north west and this is a clear demonstration of our confidence in its future growth.”www.essar.com
Since the incident at Buncefield in December 2005 changes have been made in the regulatory approach to fire precautions at such installations. The EI Model Code of Safe Practice Part 19: Fire precautions at petroleum refineries and bulk storage installations provides updated guidance
The Energy Institute (EI) has updated its guidance on fire precautions measures to reduce the risk from fires at installations that process and store crude oil, petroleum, intermediates and refined products
The updated EI Model Code of Safe Practice Part 19: Fire precautions at petroleum refineries and bulk storage installations covers prevention through to detection, protection systems and mitigation measures and looks at selecting, implementing and monitoring the continuing performance of installation-specific justified risk reduction measures.
It supersedes the second edition which was being finalised at the time of the Buncefield bulk storage installation major accident in December 2005. Since then there have been changes in the regulatory approach to fire precautions at such installations, encompassing fire prevention measures, incident detection techniques, fire-fighting and response and emergency planning requirements. Among others, there have also been major changes in Part 19 to:Enhance guidance on consideration of environmental impacts of fire-fighting and the need for environmental risk assessment Provide guidance on fire response for ethanol and related polar substance handling/storage.Include guidance on potential scenarios, the role of congestion, incident consequences and examples of substances with a propensity to form large flammable vapour clouds.Clarify basis for determining whether scenarios are credible by referencing their likelihood to risk tolerability criteria.Provide guidance on passive fire protection (PFP) maintenance, fire water systems and detection systems.Provide guidance on vulnerability and siting of critical equipment and resources.
The guidance in this publication should assist process safety engineers/advisors, designers, emergency planners or others with responsibility for fire and explosion hazard management to meet the requirements of the European Seveso II Directive.The EI Model Code of Safe Practice Part 19: Fire precautions at petroleum refineries and bulk storage installations can be ordered at www.energypublishing.orgISBN: 978 0 85293 634 4Price: £165.00
“Failure to install a storage tank correctly can cause irreparable damage and significantly reduce operational life,” says Carbery’s John Switzer
An all Ireland oil tank survey has revealed that 78% of installations completed in the last 10 years were non-compliant with at least one OFTEC tank installation requirement.
The Carbery Plastics survey analysed compliance with OFTEC storage tank installation requirements at 150 domestic heating oil storage installations across Ireland.
In the Republic of Ireland, environmental protection was the biggest issue with 72% of surveyed tanks incorrectly specified as single skin tanks at installations where a bunded tank was required.
In Northern Ireland, fire protection was the biggest issue, with 60% of tanks non-compliant with fire safety requirements.
Carbery’s John Switzer said: “When installed in accordance with OFTEC requirements, modern plastic oil tanks can provide many years of reliable, dependable service. However failure to install a storage tank correctly can cause irreparable damage and significantly reduce operational life. Non-compliance with installation instructions and statutory requirements means that some technicians are exposing themselves and their customers to unwelcome and wholly unnecessary risk and liability.”www.carberyplastics.com
Is the present obligation on suppliers to hold stocks the most efficient model or would a centralised stocking agency be more appropriate? Your views are sought by 7th June.
“We are launching this consultation to ensure our oil stocking system continues to follow best practice, remains fit for purpose and provides the foundation to a vibrant UK oil industry,” said energy and climate change secretary, Edward Davey.
At UKPIA, director general Chris Hunt welcomed the government’s consultation: “We would support the establishment of an independent stockholding agency to manage the Compulsory Stock Obligation (CSO) going forward. We welcome DECC’s commitment to examine the case for this approach, and look forward to responding to this key consultation.”
The Downstream Fuel Association also supports the consultation and DECC’s consideration of a centralised stocking agency, in particular. Chief executive Teresa Sayers said: “This is a unique opportunity to ensure the UK finds the most cost effective way to comply with its international oil stocking obligations.”
Have your say in the consultation by clicking here.
Responses are requested no later than 7 June 2013 and should be emailed to deccdownstreamoilteam@decc.gsi.gov.uk or, if in hard copy, to David Rolfe Department for Energy and Climate Change (Area 3E), 3 Whitehall Place, London, SW1A 2AW.
Official published figures in Energy Trends March 2013 showed the UK had stocks equal to around 84 days of average consumption are available by clicking here.
The removal of proposals for a much reduced NOx emission level and a penalty on non-modulating domestic oil-fired boilers are ‘extremely positive for our industry’ says Jeremy Hawksley
When the European Commission published the draft Energy-related Products Directive six years ago, the future of the oil-fired heating sector looked bleak. Following a long campaign OFTEC has won a ‘significant victory’.
The proposed directive would have required NOx emissions levels from boilers of well below 100 milligrams per kilowatt hour. Had these limits been accepted it would have destroyed the UK and Irish oil heating industry overnight because it would have been impossible to reduce boiler emissions to the proposed levels.
However, after extensive lobbying by OFTEC and its European industry partner Eurofuel, the recently published directive has set the maximum NOx emission limit at 120 milligrams per kilowatt hours for oil boilers – a figure manufacturers believe is achievable, and are happy to work towards.
Commenting on the news, OFTEC director general Jeremy Hawksley said: “We’ve worked tirelessly with our industry partners in Europe to secure this realistic figure for NOx emissions, which is extremely positive for our industry. The new standard for oil boilers has been deferred until 2018 instead of 2016 as previously proposed, which will give manufacturers the necessary lead time to implement any product changes.
“The proposed penalty for non-modulating domestic oil-fired boilers has also been removed, which was also a significant threat to the oil industry. These positive outcomes are a direct result of the important work that OFTEC does in lobbying for the oil fired sector both at UK and European level. Without this action it probably would have been unfeasible to manufacture an oil fired boiler after 2015/16.” www.oftec.org
Although the government says it ‘remains committed to introducing a Renewable Heat Incentive (RHI) scheme for householders,’ the scheme’s introduction has been further postponed. It is now expected to be up and running in spring 2014.
Details about how the RHI scheme will work, together with tariff levels, will be published this summer with research into householder views on renewable heat helping to inform the scheme’s design.
In the meantime, the Renewable Heat Premium Payment (RHPP) scheme, which offers money off biomass boilers, solar thermal panels and heat pumps, has been extended until the end of March 2014. RHPP is targeted largely at those living off grid.
An RHI scheme for industrial and commercial customers was launched in November 2011. DECC plans to carry out a review of the tariffs under this scheme to drive forward further uptake.
Due to be launched on 1st January 2014, the scheme manager for the Petroleum Driver Passport (PDP) is the Scottish Qualifications Authority (SQA).
The scheme manager appointment follows a tendering exercise which saw SQA meet the quality and delivery requirements set by the UK Downstream Oil Distribution Forum (DODF).
Brian Worrall, DODF independent chair welcomed the appointment: “We continue to make rapid progress towards the launch of the PDP. SQA bring valuable experience and expertise which will ensure the quality and credibility of the PDP.
Detailed work is now underway to ensure that the PDP will be launched on schedule. The PDP will give assurance to fuel terminal operators, customers and the wider public that all tanker drivers have a common core of tested knowledge and competence in the loading, driving and off-loading of fuel tankers. It is supported by the PDP training standard which all tanker operators will be able to use as the basis of driver training and development.
The PDP builds on the knowledge already tested in the ADR certification process, incorporating additional knowledge and a practical assessment of skills. It includes content specific to five industry sub sectors; home heat, commercial, aviation, retail and marine.
Delivered through a combination of in-house or third party training and assessment providers accredited and audited by SQA, the passport will be valid for 5 years and will include an annual refresher day and both a written and practical assessment.
Email: john.bowman@skillsforlogistics.org
Officially launching the new filling station – CNG Services John Baldwin and Edward Timpson, MP for Crewe and Nantwich
The UK’s first compressed natural gas (CNG) filling station opened recently in Crewe. Local MP Edward Timpson officially opened the event, which attracted interest from companies across the UK.A range of cars, light commercial vehicles, buses and trucks which can run on CNG are already on the market but as yet there has been little interest from the fuel tanker market.The filling station is the largest such facility in the UK, offering a reliable fuel supply with capacity to fill 500 HGVs a day via three fast-fill hoses. The unmanned station will be used initially by commercial vehicles, providing transport and logistics operators in the area with a chance to incorporate CNG vehicles into their fleets.John Gavin, managing director of CNG Services, which will operate the station said: “The interest in CNG is being driven by the huge cost savings it offers – between 30 and 40% in comparison to diesel – and also because it is much cleaner. There are very significant savings of CO2, NOx and particulates from biomethane compared to diesel. It’s an excellent fuel as it performs well with low emissions and almost no carbon residuals.”
www.cngservices.co.uk
Operations manager, Helen Lewis believes loadsfortanker.com is a fantastic way for hauliers to create new opportunities
Lateu Logistics is to launch a new service. Loadsfortankers.com is a free to register web based portal, marrying hauliers and load placers.
Operations manager, Helen Lewis, explains: “There are so many sites out there that provide a similar service for the likes of palletised loads and do it well. But tanker loads can be a bit trickier to find.
“Loadsfortankers.com is aimed at those that move any product in a tanker. It’s a fantastic way to create opportunities for small, medium and large hauliers seeking new work or looking for backloads, and to ensure that the load placer gets a fair quote for the transportation of their product.”
The service provides a cost effective way to move loads without the hassle of dealing with multiple companies.
Charlie McLoughlin joins as commercial manager, bringing 20 years experience in the tanker business. “With so many companies under economic pressure, this is a great tool you can access from your desk to find work and grow your business,” he adds. “It’s a low cost, pay as you go service based on a flat payment, not a percentage of the quote. This way we ensure that those who use our service know exactly what the pricing will be upfront.”www.loadsfortankers.com
Director of Reynolds Training Services, John Reynolds (middle)
Reynolds Training Services (RTS) has been awarded a contract to produce training material for the National Skills Academy Process Industries (NSAPI).
The Lincolnshire-based health and safety specialist will develop six modules for the SkillsAcademy’s new process safety management for operations (PSMO) course. The course will also be supported by a train the trainer package that will provide the skills and resources for an employer’s own training personnel to deliver the PSMO in house.
“This gives us the chance to impart our knowledge and skills to a wider audience,” said director, John Reynolds.
The SkillsAcademy has worked with the Process Safety Management project board, since 2011 to develop three process safety courses which comprehensively cover all rungs of the workforce ladder.
Jill Turner receives the award from councillor John Loughnan
Carbery Plastics has been recognised at an awards ceremony hosted by its local town council.
The company was nominated for a Spirit of Clonakilty Award by councillor. Cionnaith Ó Súilleabháin. The award which recognises Carbery’s contribution to the local economy, continued commitment to innovation and sales success in Ireland, the UK and Europe, was presented to the company’s Jill Turner at a recent ceremony in the West Cork town.
“I’m delighted to receive this prestigious award on behalf of everyone at Carbery,” said Jill. It recognises the contribution and commitment of the entire team to the continued growth and success of our business. Despite a challenging macro economic environment, Carbery continues to invest in its production processes and products, ensuring the company is positioned to capitalise upon the market opportunities of the present and the future.”www.carberyplastics.com
l-r From Corrib Oil in Co Galway – Tom Connolly, Gerry Mullen, Matt Stratford, Eamonn Dalton, with Neil Stewart, Stewart Oils, Co Roscommon
70% of distributors who completed the feedback forms at the Distributor Debate in Templepatrick earlier this month, rated too much competition and poor margins as their biggest concerns.
Poor image, supply, prices, variable fuel quality, gas oil changes, legislation and the future of the oil heating market were lesser concerns to attendees, with no-one expressing worries about sharing information online or the threat from renewable energy.
Attendees reported the Distributor Debate to have been a really useful event with some good information provided by the five industry speakers – Mark Askew, Federation of Petroleum Suppliers, Angus Fraser, BP, David Kingsman, Fuelsoft, Julia Mansfield, Fuel Additive Science Technologies and David Blevings, Northern Ireland Oil Federation.
“I felt the mix of speakers was interesting,” wrote John Switzer of J Switzer Associates. “The FAST and BP presentations in particular provided a great insight into the technical and distribution side of the industry, which are both often overlooked.”
Paul Hackett, business development manager – Direct for DCC Oil Ireland, who attended the second half said: “The content of the meeting was good although I think the distributors from ROI might have wanted more reference to their issues, etc. I enjoyed the questions and the interchanges between Donall O’Connor, Sam Chambers and David Blevings.”
A report on the Distributor Debate appears in the April issue of Fuel Oil News.
________________________________________________________________Perhaps your concerns about and hopes for the fuel oil distribution industry in Ireland differ……If you’re visiting FPS Expo next month, the Fuel Oil News team hopes you will call at stand C40 to share both your concerns and your hopes about the industry’s future.We also look forward very much to seeing you at future Fuel Oil News events in Ireland.
Pictured at the pay as you go launch in 2012 (l-r) Charles Burns, commercial director Kingspan Environmental; David Blevings, OFTEC’s Ireland manager; Nelson McCausland; Philip Browne, brand director, Kingspan Environmental; and Jillian Ferris, client and stakeholder director of Carillion Energy Services
Designed to reduce heating bills for struggling families, an initiative by the Department of Social Development in Northern Ireland has been shelved following the failure of its pilot scheme, according to an Irishnews.com report
Rolled out in February 2012, the scheme – partnered by Kingspan Renewables and Carillion Energy – involved the installation of meters at 17 low income households across three counties in Northern Ireland.
Social development minister, Nelson McCausland, pulled plans to continue the scheme saying: “The results of the pilot were disappointing regarding the proportion of participants benefiting from lower oil costs.
“There are two crucial issues around the cost and delivery of introducing a pay-as-you-go oil system into the department’s mainstream energy efficiency improvement schemes:
(1) Costs associated with production and administration of the pay-as-you-go oil scheme.
(2) And, who will supply the oil to the customer?
Departmental economists have serious concerns about the feasibility of the pay-as-you-go oil scheme from a cost/benefit perspective.
“I have considered all of the information available and concluded that it’s not feasible to introduce the scheme into my department’s energy efficiency improvements’ schemes.”
Encouraging the uptake of high efficiency oil-fired appliances is Martyn Bridges, OFTEC’s new chairman
….That is the challenge for Martyn Bridges, Worcester, Bosch Group’s director of marketing and technical support who has been appointed as the new chairman of OFTEC
The appointment, which takes effect on 25th April 2013, sees Martyn commence a two-year spell as chairman of the organisation, for which he has sat on various committees since its inception in 1991.
Having started his Worcester career as a technical services engineer in 1986, Martyn has since worked in a number of roles and departments before taking up his present position, which he has held since 2005. Martyn is responsible for the training, marketing, engineering services, product management and standards departments and is also involved in a number of Bosch-wide design and product committees.
Martyn commented: “I am extremely honoured to be given the opportunity to take up this role within an organisation which is key to the ongoing development of the domestic heating industry.
“I have been in the heating industry for 35 years and involved with OFTEC for over 20 years so I look forward to helping OFTEC continue the challenge of preserving the oil market, encouraging the uptake of high efficiency oil-fired appliances and growing the combination of oil and renewable solutions.”www.oftec.org
www.worcester-bosch.co.uk
Upgrade your skid with IFC
Distributors can now cost effectively convert existing loading skids from old mechanical registers to the latest electronic automated equipment with IFC’s skid upgrade kit which brings terminal loading technology to depot distribution.
When IFC originally started building skids for depot loading, electronic batch control was still new to tanker loading and was mainly installed in refineries and terminals. Although it offered many benefits, the costs were prohibitive for smaller distributors and many chose skids with traditional mechanical registers, presets and ticket printers.
As the advantages of electronic control and automated depot loading became clearer and costs dropped, IFC started fitting electronic batch control to new skids, mainly for larger distributors with multiple sites.Why upgrade?
Although many customers have had mechanical registers for years, there are numerous benefits to upgrading. These include higher levels of security and reliability, operational flexibility, temperature compensation and data storage capacity.
Following years of discussion with customers and further developments in electronic batch control, IFC has come up with a conversion kit that allows operators of existing mechanical skids to take advantage of the benefits of electronic loading and control.
With a number of options to suit all needs, from individual electronic registers mounted at each meter point, to a central multi-point controller for the whole skid, all variations offer storage of loading data and connection to a separate printer or PC. www.inflow.co.uk