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

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

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

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

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

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

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

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

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

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

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

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

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