Cliff Thrussell, managing director, Optimum Oils and Andy Dixon, country manager, Q8Oils Optimum Oils has signed a further three-year contract with Q8Oils for the supply of Q8 lubricants for the automotive, bus, coach and industrial industries. The companies have been working together for the last 15 years. Cliff Thrussell, managing director at Optimum Oils, commented: “Q8Oils is a fantastic brand for us to be working with, and having built a strong relationship over the past 15 years we are looking forward to continuing this success going forward.” Andy Dixon, country manager at Q8Oils, added: “We always aim to provide high quality service, alongside our high quality products, and it is a true testament to the hardworking team at Q8Oils that Optimum Oils have re-signed its contract with the company for another three years.”http://www.optimumoils.com/http://www.q8oils.co.uk/

Adler and Allan’s marine response unit Adler and Allan’s latest contract win sees the company provide Tier 2 marine pollution response for Associated British Ports (ABP) – Britain’s largest and leading port operator. ABP owns and operates 21 ports in England, Scotland, and Wales, including two of Britain’s biggest – Immingham and Southampton.  The company’s activities cover transport, haulage and terminal operations, ship’s agency, dredging and marine consultancy. Adler and Allan, with a national network of depots, highly trained teams and specialist equipment, will be on standby with strike teams to respond to environmental emergencies for some of the largest ports in the UK.  The contract commenced in August 2012 for tier 2 pollution response and hazardous and noxious substance cover on a rapid mobilisation on a 24 hour basis for 365 days a year. Adler and Allan will also run exercises for ABP as part of its training capability. The three year contract reinforces Adler and Allan’s position as a premier spill response company in the UK. Renowned for its leading role in the Buncefield disaster, the company brings a wealth of best-practice in spill response, environmental awareness and health and safety, to the contract.www.adlerandallan.co.uk

GB Oils has announced it is working together with Scandinavian Bunkering AS, an approved NATO supplier, which has a bunkering contract for Ministry of Defence (MoD) vessels. The GB Oils’ marine team has been supplying gas oil (A2) to the MoD police launches, Excalibur and Endeavour, which acted as patrol and support vessels during the Olympic and Para-Olympic Games. In addition, the two vessels were supplied with oil during the Queen’s Diamond Jubilee, demonstrating GB Oils’ ability to meet demand during a very busy time period, when many vessels were requiring oil. Gary Byers, national sales manager at GB Oils, said: “We are proud to be able to bunker the Ministry of Defence vessels with a reliable supply of fuel when they need it. Over the years, we’ve built up a wealth of knowledge and expertise in the marine industry, which means we can offer a large range of quality marine fuels and exceptional standards of customer service to meet very specific needs. By collaborating with Scandinavian Bunkering, we have created a strong team and we look forward to building a strong future together.”

FPS chief executive, Mark Askew The Federation of Petroleum Suppliers (FPS) has joined forces with the government, Action with Communities in Rural England (ACRE), Citizens Advice Bureau and Consumer Focus to launch the Buy Oil Early campaign. Energy minister John Hayes said: “Previous severe winters show that it is better to stock up before the cold weather sets in, when suppliers have spare delivery capacity. I would also encourage all consumers to save money on heating their homes by ensuring their homes are fully insulated.”  FPS chief executive, Mark Askew said:  “In winter, the UK can experience shortages of heating oil at terminals.  Demand is obviously governed by the weather and a prolonged cold snap, means that the terminals are unable to provide product quickly enough and consumers can run out whilst waiting for deliveries as distributors have to go further afield to get supplies.” www.fpsonline.co.uk

The Federation of Petroleum Suppliers (FPS) has teamed up with OFTEC to mount a marketing and public relations campaign to protect the market share for oil heating and cooking. The initiative will include flyers, leaflets and web-based information. The website www.oilsave.org.uk/  will be refocused and updated to act as a focal point for the campaign. It is hoped that delivery staff and OFTEC registered technicians will play an important role in getting the message out to oil customers. www.fpsonline.co.uk  In a related development, the Heating and Hot water Industry Council (HHIC) is developing a new consumer marketing campaign called Hole in the Wall. Set to launch in November, the campaign is designed to stimulate consumer interest in residential heating and energy efficiency across all sectors of the industry. It will centre around a website that will act as a hub, providing general information and energy saving tips, and pointing visitors to other websites for specific information on each topic. www.centralheating.co.uk

Total energy production – Q2 2012 Oil production fell by 12.2% in the second quarter of 2012, compared with a year earlier. Oil consumption fell by 2.4%. The Department of Energy and Climate Change has published the figures in Energy Trends and Quarterly Energy Prices, publications which give statistics on energy production and consumption. The data showed that the price of heating oils fell by 4.5% between quarter 2 2011 and quarter 2 2012, and by 5.6% between the first and second quarter of 2012.  Natural gas production fell by 13.9%, while total primary energy consumption rose by 6.3%.  The falls in production of oil and natural gas have been attributed to maintenance activity and a slowdown in a number of fields.  Total energy consumption in the second quarter of 2012 was recorded at 31.5 million tonnes, with oil producing 12.2 million tonnes of that figure. Natural gases accounted for 10.2 million tonnes. Total primary energy consumption rose by 6.3%, but when weather differences between 2012 and 2011 were accounted for, the figure was 0.8%.www.decc.gov.uk

Millers Oils officially opened its state of the art Research and Development (R&D) centre in Brighouse, Yorkshire, last month. Millers, which has been supplying lubricants that help save energy for 125 years, has invested more than £500,000 in the new facility, providing it with the capability to develop low friction oils that set new standards for efficiency. “The new R&D centre is essential to ensure we continue the steep growth we have experienced for the last decade,” said Nevil Hall, joint managing director of Millers Oils. “As a relatively small company it is important that we develop innovative solutions to meet the challenges our customers face.” The company was recognised for its commercial success in 2012 with a Queen’s Award forEnterprise: International Trade. Through products like the revolutionary Nanodrive oils, efficiency-boosting Solform gel and independently endorsed VSPe fuel additives, the company has built its reputation, while almost trebling its turnover in the last 11 years. While motorsport users of Nanodrive oils have reported power increases of up to 5.6 percent, the technology is set to reduce fuel bills by up to 2.5 percent for the everyday motorist. Underlining the value of motorsport, both for development and exposure, Millers Oils has extended its support for Callum Black, British Rally Championship driver.

Paralympian Josh Cassidy reached a speed of 45mph during the race Simon Storage and its Canadian parent company, Inter Pipeline Fund, were among the proud sponsors of Paralympian, Josh Cassidy, as he stormed to victory in the Tyne Tunnel 2K International (TT2K). Josh won first place in what has been dubbed ‘the fastest wheelchair race on the planet’ for the fourth time. Clocking an incredible 45mph on the downhill stretch of the race, he finished the 2.3km course in just 4.40.2 minutes. Cheering him on during the race on behalf of Simon Storage, was Gary Lacy, engineering director, and his wife, Linda. Gary commented: “Simon is delighted to support such an exciting and inspiring event in the region. The TT2K always draws a good crowd.  This year’s race, also attended by special guest Baroness Tanni Grey-Thompson, generated even more interest after the incredibly successful Paralympics in London this summer.” The event is held at night along a closed section of the road tunnel under the river Tyne, and attracts elite wheelchair athletes from around the globe. Afterwards, an elated Josh said: “I love the adrenaline-charged super speeds on the Tunnel downhill and the challenge of the gruelling uphill. I’ve been here six times now and there is no race quite like it anywhere in the world. ” Just two days after winning the 2012 TT2K Josh successfully defended his title in the wheelchair category of the 2012 Great North Run.www.joshcassidy.comwww.SimonStorage.com.

Andrew Gardner, PetroIneos Refining commercial manager The biggest strengths of Scotland’s Grangemouth refinery are its products, its logistical capability, including excellent road/rail links, and a pipeline from the east coast to the Finnart ocean terminal on the west coast  On a recent visit, Fuel Oil News spoke to Andrew Gardner, commercial manager, PetroIneos Refining and Gordon Grant, CEO, Services & Infrastructure, to find out why INEOS entered refining, what the joint venture with PetroChina brings and to discuss trading conditions. “When BP sold its olefins and derivatives chemicals business in 2005, the Grangemouth and Lavéra refineries were part of the package,” explained Andrew.  “At the time, chemicals had suffered a downturn but refining was doing well.  I don’t think INEOS would have chosen to buy a refinery, however, it’s a good natural hedge in terms of profitability – one being a feedstock of the other.”Investment INEOS has invested in infrastructure such as pipe tracks, jetties and tank farms at the 90-year old refinery. “We value the refinery. In order to maintain the value we invest every year in the plant and infrastructure and the investment produces results,” said Gordon. “However, buying a plant in theUKis like buying a used Morris Minor – it’s still got a good engine, it’s had good drivers but its bodywork is poor and the brakes don’t work!  Catch up remediation was required.” Since mid 2011, PetroChina has had a 50% stake in INEOS Refining’s European business. Although not many people knew of the company, there was wholesale support from customers, the local community, industry and service industries.   The joint venture was one of the biggest deals seen in the UK for some time.

Margins in the Republic of Ireland The market for both distributors and equipment manufacturers in Ireland can, at best, be described as challenging, says marketing consultant John Switzer “Product and fuel volumes have decreased significantly from just a few, short years ago.  Economic confidence remains subdued, with consumers hesitant to spend and borrow. Consequently, it’s no surprise that the new build and new to oil markets have both ground to a halt. For distributors, last winter was the mildest for several years with many tanks unfilled since before last autumn. And on top of all this, renewables are becoming an ever-more significant competitor. “But, despite the doom and gloom, it’s important to remember that opportunities for growth and success do remain.Margins holding steady “Across Ireland, we’ve noticed a reduction in the number of new entrants to the distribution industry, during recent years. In some areas, this has also been accompanied by consolidation amongst existing players, to the benefit of remaining suppliers. And whilst product volumes are down, margins are holding steady. At the same time, distributors are re-evaluating their business models; some are moving away from peripheral activities to concentrate solely on fuel distribution, whilst others are expanding into businesses such as boiler servicing and tank installation.

Pete George Phillips 66 ‘brings with it a proud and successful heritage ready to move forward into a promising future as one of the world’s largest downstream companies,’ wrote chairman and chief executive officer, Greg C Garland, as the downstream business split from the ConocoPhillips name in May.  Wishing to learn more about the transition to this ‘advantaged downstream company with an impressive portfolio of highly competitive businesses,’ Fuel Oil News recently quizzed the company.  “The name may have changed, but what’s in a name?” said Pete George.    With its Humber and Whitegate refineries and product portfolio, Phillips 66 – remains a strong mid-sized company following its demerger from ConocoPhillips earlier this year.  “This is first and foremost a relationship business; the Jet name remains on UK forecourts and we’re still working alongside our former ConocoPhillips customers,” added Pete.  Pete had planned to retire later this year but recently accepted the role of manager, UK and Ireland marketing. “One of the main reasons I chose not to opt for my pipe and slippers just yet was the huge amount of excitement surrounding the company’s transition to a pure refiner and wholesaler. So, when the opportunity to stay on came about, it was simply too good to resist.    Focused team work aids customer relationships “Earlier this year, we undertook a strategic review up to 2015.  Having looked at where the market’s going, we responded with a new organisational structure very firmly focused on delivering the best possible service to the customer – both large and small,” says Pete.   Lead by Lindsey Grant, Phillips 66 now has a dedicated national sales team to look after UK resellers and dealers with a national presence such as GB Oils and MRH.  Customers in Ireland, supermarkets and specialty fuels, such as marine, aviation and LPG, also come under the remit of Lindsey and her team.   The needs of independents working from local and regional sites are looked after by Guy Pulham and his team of seven territory managers. Working across seven key regions, they are supported by a dedicated customer account co-ordinators based at the company’s headquarters inWarwick.  A large proportion of the Jet branded distributors – there are currently 18 with another due to join early next year – and forecourts, are also covered by Guy’s team. To support both teams, Phillips 66 has also created the position of demand manager. Taking up the new role, Ken Johnson will be responsible for ensuring that product is available where and when customers need it. The new teams are a combination of unrivalled sector experience sprinkled with the fresh thinking of newcomers. Since January, customer facing time has increased with Andy Viens, the company’s US-based global marketing director, taking the time to visit distributors and dealers.Good communication to ensure a seamless transition “Customer relationships are precious, that will never change. Some dealers have been with us for 50 years and we have branded distributors with over 40 years of trading history,” explained Pete.   Ensuring customers are well-informed of the recent changes has already kept the Phillips 66 brand and communications team busy.  A series of ‘top secret’ road shows are planned for October, there is a conference in the offing and a special promotion for forecourts and distributors has recently been unveiled.  Phillips 66’s heartland remains in the north of England, Scotland, London, the south east and the Midlands.  With the company looking to strengthen its northern presence, its Bramhall terminal has been expanded. The south west is still an important hub for the company and Phillips 66 still sells product through this location, working with leading branded distributors such as Heltor, Opie Oils, Kinch Fuel Oils and F J Emerys.  With the Plymouth-based terminal being able to be fed from both the Whitegate andHumberrefineries, it offer customers piece of mind and security around supply.Key issues facing the industry “The industry faces two key issues as I see it – consistency of supply and price volatility,” said Pete.  “I’ve been in the industry for a long time and sometimes I don’t understand the price volatility from one day to the next. We can’t affect the latter but we do appreciate the difficulties and constantly try to understand customers’ issues.    “Would I be a distributor? It’s tough and it’s competitive but in a consolidating market – the right business with the right financial model and the right attitude can do well; new entrants are certainly seeing opportunities.  The dilemma for any distributor is – do you pick up and deliver straight away or keep a lot in stock?  This is still a great industry and its volatility keeps you on your toes. “When I came into this industry, my father asked me: why are you joining an oil company, they’ve only got 10 years left – that was over 40 years ago.  Now, I’m very positive about Phillips 66’s ability to cope; we’re bullish about theHumber refinery and what we can offer our customers.  I wouldn’t be staying if I didn’t believe in it – I’d be sitting on a beach!  “After making the decision to stay, I received some great emails and phone calls which just reinforced that I know I made the right decision to stay with Phillips 66. I now want to drive our culture of a customer focused organisation that delivers on its promises, to an even better place as we go forward.”

A new challenge for Chris Chris Dalton, formerly of Heil Trailer International and Reynolds Logistics has established a new company – Lateu Logistics. Having worked in the industry for many years, managing director, Chris has experienced first hand, numerous changes within the logistics chain. He believes that as a result of rising fuel costs and banks holding back credit, there is a considerable case for fuel and lubricant distributors/suppliers to dispose of their fleets entirely, freeing cash to build their business. Chris has taken the opportunity to fulfil a growing need for a specialist, non-asset based company in offering a flexible logistics management service, which works as an extension to an oil company/wholesaler or distributor. Located in Albrighton near Telford, Lateu can manage in-house fleets or utilise approved sub-contractors (pre vetted to meet the high standards of the industry). In addition to logistics management the company can set up and operate all back office services, telemetry, customer care service and order taking. “As the retail sector changes and ex rack becomes a growing part of the business, the asset based logistics industry needs to reinvent itself to meet what is a logistical nightmare of multiple pick up points, split loads and relocated vehicles,” explains Chris. “I’ve identified a need for an independent logistics company to help oil companies, wholesalers and distributors to manage their distribution requirements more cost effectively by taking a critical look at in house fleets, logistics management and outsourced contracts. “There’s a growing case to consider 4PL managed through an experienced logistics team – a procurer of effective logistics services which  integrates internal and external resources into a logistics model. The company acts as an extension to organisations and manages the supply chain within tight KPI measurements, regularly testing the market for newer, better or more cost effective solutions. Asset based logistics companies are just not independent or flexible enough to do this well and in house logistics departments are often under staffed or lacking experience. Lateu Logistics integrates into the customer’s business and can offer experience and total transparency without the in-house cost, skills need and risk associated with employing people.” Former Heil operations director, Wendy Dalton joins Chris on the board as Lateu’s operations director.info@lateulogistics.com

Mick (second from left), joins colleagues at Suckling’s Race Day in June Mick Smith, transport manager, Suckling Transport reports from the Freight Transport Association’s recent dangerous goods seminar.ADR photo cards Fraser Talbot from the Scottish Qualification Authority (SQA) explained pending changes to ADR certificates. Certificates will now be issued by the SQA on behalf of the Department for Transport instead of the DVLA. Although the format will change from paper to a photo card, the good news is that there will be no additional cost. Drivers will simply have to produce a passport-style photo when attending a refresher course. It is expected that this will take place in October.Fire extinguisher failures Terry Laker of the Health and Safety Executive spoke about the carriage of dangerous goods and road enforcement. He was particularly concerned that historically, hauliers are continuing to make the same mistakes and highlighted the high percentage of fire extinguisher failures.Changes to OCRS The Vehicle and Operator Services Agency’s (VOSA) Matt Barker was on hand to talk about recent changes to the Operator Compliance Risk Score (OCRS) system. Key changes include:- Targeting priorities Points OCRS bands Timescales of point allocation for prosecution Removal of predictive scoring Weighting factor according to age of event Larger data sets calculated more frequently Straight-to-red for prosecutions and most serious infringement New events included Matt explained that the changes have been designed to help examiners to target non-compliant hauliers. www.vosa.gov.ukwww.fta.co.uk

The Seal Sands terminal, located at the mouth of the River Tees Harvest Energy is expanding its presence in the UK road fuels market through its partnership with Simon Storage. Less than three years ago Harvest Energy began storing fuels at Simon’s Seal Sands terminal. Now it utilises a substantial proportion of the terminal’s fuels storage. As well as fuel storage, Simon provides Harvest Energy with specialist biofuels blending to help the company meet the Renewable Transport Fuels Obligation. A bioethanol in-line injection system is provided for the company’s unleaded and super unleaded gasoline products, while diesel and FAME are blended in-tank. Harvest Energy took over a biodiesel production plant at Seal Sands two years ago.  Simon stores and handles raw materials for the plant, including used cooking oil. FAME produced by the plant is transferred by pipeline from the plant into the terminal for use in Harvest Energy’s biodiesel blending operations or for export to out-buyers. Simon Davis, head of sales and logistics, Harvest Energy, believes reliable supply partners like Simon Storage are vital. “Simon’s expertise in storage and handling helps us to provide products that are competitively priced, supplied and delivered with a customer-focus. The Seal Sands terminal plays a critical role in Harvest Energy’s UK-based storage and supply network and we look forward to developing new market opportunities with Simon’s support.” Harvest Energy has recently announced that Trafigura has invested in the company, providing a long term financing platform and enabling future growth in the UK market.www.SimonStorage.comwww.harvestenergy.co.uk

Emco Wheaton has been named as a preferred supplier to Vopak. Under the terms of the three year partnership agreement, Emco Wheaton will supply, install and maintain marine loading arms for Vopak. The partnership, which has a further two year option, also covers the erection and servicing of marine loading arms, designed to ensure the safe loading and unloading of gas, oil and other fluids from super tankers to storage facilities on shore. Emco Wheaton designs and manufactures a wide range of highly engineered marine loading arms to load and unload almost any liquid and compressed gas product from river barges, ships and ocean going super tankers. Each loading arm incorporates advanced safety features combined with pantograph balanced mechanical link technology, to provide stability and strength. www.emcowheaton.com

Hertel staff celebrate six years of safety Six years of safe working have been achieved by maintenance and services provider, Hertel, at the Phillips 66 oil refinery in Humberside.  The period spans a total of 823,857 hours without an Occupational Safety and Health Association (OSHA) recordable incident. A ceremony was held onsite to mark the occasion. The company’s UK operations director, Nick Henderson, was joined by Phillips 66 senior management to present the team with certificates of achievement and a commemorative jacket. Nick commented: “Six years without a lost-time incident is a significant landmark both for Hertel and the client. It’s a demonstration of the commitment of staff to achieving a world-class performance through safe working practices.”www.hertel.com

The National Skills Academy has launched a one day Petroleum Safety Training course. Aimed at contractors working at top tier COMAH petroleum sites, the course has been designed to supplement existing safety passport schemes such as Client Contractor National Safety Group (CCNSG). The first train the trainer event is being held on 3rd October. To book a place email industry@process.nsacademy.co.uk