Despite the unpredictable spring weather, we’re coming up to agricultural and county show season when thousands of visitors flock to their local show grounds to learn more about country life.

The threat of a tanker drivers’ strike was lifted last week when drivers narrowly voted to accept a new pay and conditions offer. Unite, which represents 2000 drivers, said 51% of their members had voted to accept the new proposals. Turnout was 69%. “This narrow vote in favour lifts the threat of strike action, but leaves the companies with no room for complacency,” said Diana Holland, Unite assistant general secretary. According to Unite, a strike could have hit 90% of the UK’s fuel forecourts, and stocks would have begun to run dry within 48 hours of any action. The Road Haulage Association is reported to have said “common sense has prevailed”, but added that they were “not out of the woods yet”. Yesterday, Unite called for the grounding of all Super Puma helicopters which serve oil and gas rigs in the North Sea.  The move followed the ditching of a Bond Aviation helicopter off the coast of Aberdeen last week.  Having completed an investigation into the cause of the ditching, Bond Aviation announced that its full fleet of helicopters would be returning to service over the next 24 hours. Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

Speakers at OFTEC’s spring conference debated oil’s future  role in home energy provision. “In the face of the government’s agenda to move rural communities to air and ground source heat pumps and biomass, we’ll consider the threats and meet them,” said OFTEC chairman Barry Gregory. “With over 60,000 oil boilers sold annually in the UK to more than one million domestic and 250,000 commercial oil users, we will not roll over,” he added.  “We’re reasserting oil in the marketplace.  To this end, we’re working with members and oil distributors to promote the use of high efficiency boilers and bio liquids.” Francis Bean of the Energy Saving Trust spoke of ongoing heat pumps trials which have so far shown that the technology is not competing adequately with incumbent heating systems. Jeremy Hawksley remarked:  “Although favoured by government, there’s still a long way to go on heat pumps.” Francis stressed that greater acceptance of heat pumps was dependent on many factors, not least better installer skills, greater knowledge and more independent testing to raise consumer confidence.   “As consumers wait to be convinced, there’s a chance for oil to hold on to its market share,” added Jeremy. www.oftec.org Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

Keyfuels has embarked on a nationwide tour to showcase its range of services to key figures in the fuel and oil industries. The company’s Forecourt & Fuels Roadshows  enable retailers, fleet managers, and distributors to meet with the Keyfuels’ team, and discuss how fuelcard and fuel management solutions could help save them money, and increase forecourt business. Brian McKee, general manager of sites and supply, commented: “The Forecourt & Fuels Roadshows are a great opportunity for us to get in front of key industry decision makers to discuss the right solutions for the profitability of their businesses. The first show in Falkirk was a huge success.”   www.keyfuels.co.ukForecourt & Fuels Roadshows eventsToday (16th May) – Stanhill Court Hotel, Gatwick5th September – Exeter Rugby Club, Devon15th November – Cedar Court Hotel, Wakefield. Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

GB Oils has overtaken BP as UK market leader in terms of the number of forecourt sites, whilst Harvest Energy added 53 sites to its forecourt list. According to figures released by Experian Catalist last week, following its acquisitions of Pace and Total, GB now has 1199 forecourts – including 476 Total, 305 Gulf, 135 Pace, 95 UK, 73 Power and 23 Scottish Fuels, plus 92 other brands. BP now has 1175 forecourt sites. Site closures slow slightly Experian Catalist also reported that the UK forecourt network has shrunk by less than 90 sites in the past year. There are now 8677 open forecourts, compared to 8765 this time last year, showing that the rate of site closures has slowed slightly, as site numbers fell by 119 the previous year. Esso, Jet and Shell took the greatest hit on site numbers during the past 12 months, losing 32, 48 and 37 respectively. After GB Oils, Harvest Energy made the biggest inroads with the addition of 53 sites. Murco added 25 forecourts. Volume share                      ____________ Tesco = 15.5% BP = 14.9% GB Oils = 6.4% _____________ Experian Catalist figures show that Tesco has grown its volume share leadership to 15.5% with only 492 petrol stations. BP’s volume share is 14.9%, while GB Oils is in eighth place in volume terms with 6.4% market share. The average fuel volume on dealer sites is 2.28mlpa, while hypermarkets are selling an average of 11.2mlpa, and company-owned sites 4.77mlpa.   www.catalist.com Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

Change management consultancy, Reliable Manufacturing, is holding its next master class on 19th June at the Thistle Hotel, Middlesbrough. The one-day event is designed to equip leaders in distribution and manufacturing with the operations excellence and reliability principles to improve business performance. The master class, jointly led by Andrew Fraser, managing director of Reliable Manufacturing, and principal consultant, Ron Moore, will explore the strategies and practices that underpin some of the world’s best distribution and manufacturing companies. Through case studies, attendees will learn how top-class operations achieve maximum production capacity, and will have the opportunity to benchmark their own company’s capabilities against best-in-class. The event will also show how market leaders achieve low cost performance through the relentless pursuit of defect elimination, asset productivity and workforce engagement. The fee for a delegate to attend the event is £695 +VAT. For more details and to book online, visit www.reliable-manufacturing.com Return to emailshot http://www.andpublishing.co.uk/fueloilnews.co.uk/email/index.php

When Alastair Campbell suggested the transport industry should communicate more effectively on the essential nature of logistics, Suckling Transport’s Peter Larner rose to the challenge. Speaking in February at a Motor Transport Directors’ lunch in Birmingham, Tony Blair’s former spokesman said key messages, placed on the side of trailers, could emphasise the vital role of logistics. Less than two months later, that proposal has been put into practise by Peter Larner, one of the logistics industry’s most innovative directors. Visitors to this week’s FPS Expo, can see Suckling Transport’s new tank trailer on the Lakeland Tankers stand.  This tanker is the first to carry a new Love Logistics livery developed in association with the Freight Transport Association. The first two trailers, which were built by Lakeland, bear the message I’m delivering fuel to your local filling station … … to save you collecting it from the refinery  Logistics – essential for everyday life These tankers will operate on Suckling Transport’s contract with Shell at Avonmouth terminal. Following Larner’s initiative, Abbey Logistics’ managing director, Steve Granite has also pledged to follow suit, saying: “It is important that the industry acts as a group on this one.”

From May, the EU will be introducing changes that will affect the majority of live websites.

The UK had 18 refineries, it now has 8.  Fuel Oil News recently put a series of questions about the state of the country’s refining industry to Chris Hunt, director general of the United Kingdom Petroleum Industry Association (UKPIA)   “The reduction in the number of UK refineries is very much progress driven and, reaction to changing market demand,” said Chris.  “Refinery capacity has increased due to technological advances.  Yes, the UK has fewer plants but the ones remaining are more efficient.“Plus, an inevitable consequence of the UK and EU drive for energy efficiency is demand destruction.  With more efficient engines, demand for refinery products such as petrol continues to decrease but, until the recent recession this has been offset to a large degree by increased consumer mileage.“On the other hand, being more efficient in our oil consumption is a good way to achieve our carbon reduction without sacrificing our mobility.  It also helps conserve supplies of this finite resource.” In with the new As most majors have retreated from downstream, new players have entered the refining arena.  “We welcome these newcomers, they’ve brought a fresh dynamic to UKPIA,” said Chris.  “Whilst they don’t have the deep pockets of the integrated oil majors, their flat command and control structure offers a different business model.Q: So what do investors like Petrochina, Essar and Valero have to gain in our mature industry?   “A very handy toehold in Europe,” says Chris.  “In Stanlow and Pembroke, Essar and Valero respectively, have acquired good assets relative to European standards.  At Grangemouth, Petrochina and INEOS are using the site to develop an impressive chemicals portfolio.” A large refinery reputedly contributes £60 million to the local economy.  “Closed in 2009, Petroplus’ Teesside refinery was an ex-ICI plant, very simple in refinery complexity terms but closely integrated with petrochemical activities. The loss of that critical mass, and the associated high value jobs at these plants, has had a big impact on an area of the UK which can ill afford such a hit.” Q: So will the UK ever see a new refinery?  “It would be difficult to see a case for building a new refinery – capacity wise we just don’t need it.  But, under the right conditions and, with the right incentives, investment could be made at the remaining facilities.” Q: What are the right conditions? “They will be when the vital contribution of the UK’s oil industry to our energy security is fully recognised.  It also requires a level playing field where UK refineries are not disadvantaged against European or global competitors. Q: Will there ever be a level playing field?  “There could be,” said Chris.  “It could be achieved if the UK and EU recognise that we can’t go it alone on some aspects of environmental policy.  We may be world leaders in climate change policy but we must also consider the cost to our manufacturers.” Coming soon – a refining strategy for the UK and a stock holding agency In his introduction to UKPIA’s report on Fuelling the UK’s future: the role of our refining and downstream oil industry published in November 2011, Brian Worrall, then UKPIA president, said:  “Given the right policy environment, the UK refining and downstream oil sector can continue to play a pivotal role. KPIA and its members look forward to continuing to work with government and policy makers to achieve this goal. Q: So, how receptive is the UK government to the oil refining industry?  “Very receptive,” reports Chris.  “We’re finally moving forward on a proper refinery strategy for the UK which will be published in the third quarter of this year.  We started lobbying in spring 2011 so this is quite a step forward. “We also have a green light to progress an independent industry-funded agency to manage the UK’s compulsory oil stock holding.  Administered by a board via obligated companies, the agency is expected to be functioning by 2014.” Q: Does UKPIA now believe the government will apply policies that do not place the UK at a commercial disadvantage?  “We certainly hope so,” said Chris.   “We expect that the refinery strategy exercise will lead the government to this conclusion.  The problems at Coryton really galvanised the government into action – it provided clear evidence that refineries can and do shut; although in the case of Coryton, we very much hope a buyer will be found. “For years, UKPIA has been saying that refineries could shut but, it took the demise of Petroplus to move refining up the political agenda.  It reminds me of Spike Milligan’s epitaph – I told you I was ill.” More challenges in the pipeline Marine fuel – “Imminent changes in the specification of marine fuels will have a big impact.  Under MARPOL proposals, the 2020 specification will see sulphur levels move closer to that of diesel.  The effect on both the refining process and bunkering will be colossal. A substantial price increase may see ship owners chose the cheaper option of onboard scrubbing of exhaust gases to remove sulphur. “Even by 2035, the International Energy Agency expects 80% of EU transport fuel demand to still be met from oil derivatives with most demand met by ordinary fuels particularly for the aviation and marine sectors,” added Chris. Biofuels – UKPIA’s communications director, Nick Vandervell, who was also present at the interview, told FON:   “Most biofuels currently used are first generation with complex sustainability issues in some cases. Second generation biofuels from biomass or advanced biofuels from algae for example, may have potential in the future. “We see a more diverse fuel mix for transport including electric vehicles,” added Nick. “Technology favours hybrids unless there’s a breakthrough in battery technology in the short term.” Q: Will we achieve 10% biofuels by 2020?  “Biofuels bring many issues, such as approval by vehicle manufacturers, storage and use and sustainability” replied Chris.  “It’s likely that only by incentive – make the price the same or even cheaper – that people will switch to higher blend biodiesel.“ Kerosene – “Relative to the grand scheme of things, heating kerosene is a tiny market,” says Chris.  “It’s very much a commercial issue. Distributors are not willing to invest in storage – an expensive asset for such a seasonal product.  Demand patterns are difficult to predict, supplies can be problematic particularly in times of severe weather when supplies can be drawn down rapidly.  Co-operative buying could be a way forward or maybe we need to switch to gas oil….? The future Q: Does UKPIA expect further UK refinery closures? “No, we don’t expect more closures.  As the reality of future supply problems has started to bite, UKPIA doesn’t believe that Europe will give up on refining. “Total retaining the Lindsey refinery for the foreseeable future was welcome news as this plant has had the most recent major investment to increase diesel output.” Q: Will the UK become just a storage facility?  “I can only contemplate the UK relying on more imported product if we lose the existing refinery structure. And, I cannot conceive that a government of any colour would allow this to happen. “Some say that the UK could be supplied by imports, but that wouldn’t last forever. Being reliant on supply at the end of a long chain is problematic.   Plus, bringing in finished product comes with shipping, jetty and pilot issues. “The government, the industry and the country needs to ask the question – would we be happy being at the end of a supply chain from challenged areas of the world? Q: What is the prospect for a ‘healthy, robust oil refining industry’ in the UK?  “We’ve got to be optimistic; we absolutely believe that a healthy, robust oil refining industry is achievable.”

    FON recently reported on a Shropshire-based charity that had secured a government grant to help people join a fuel-buying scheme. The £3000 grant is being used to make the scheme available to people who would otherwise be unable to pay for membership     The above group is just one of a growing number of community schemes across the country. And it’s not just in oil that such schemes are spreading… The Big Switch campaign, a collaboration between Which? and pressure group, 38 Degrees, already has more than 60,000 participants. The ‘trailblazing scheme’ offers energy customers the opportunity to club together to secure optimum prices from energy suppliers. Group-buying firms, Incahoot and Utility Warehouse also offer discounts on energy. In Oxfordshire, an organic farmer is encouraging community ownership of renewable energy projects. In 2004, Adam Twine, gave locals the opportunity to own shares in the wind farm on his land. Eight years on, he is offering the local community ₤4.5m shares in a new 30-acre solar project. Back to oil, The Times recently reported on a free website which is taking the idea of community buying onto a national level. www.oil-club.co.uk, which was founded by Chris Brown, combines smaller purchasers into one big body. Distributor views Although popular with consumers, community fuel buying groups are not viewed favourably by all distributors. Tony Deakins, of Shropshire based Deakins Fuels, told FON: “I’m very much against such schemes. I don’t supply any buying groups, as the majority of deliveries involved tend to be minimum delivery (500 litres) and are often not straightforward. Most of our customers seem to value our level of service and realise that another tier of ordering – for a minimal saving – simply removes them from any close relationship they may have with their distributor.” Shropshire distributor, Oakleys Fuel Oils is not totally against buying groups, but does have some reservations. “There’s nothing wrong in principle if a group consists of a few houses and involves a sensible size load. One tanker delivering to a small, close-knit community is a sensible option for both parties. When groups start to spread county-wide, deliveries are scattered and the members want the oil unrealistically cheap, then it simply doesn’t work.” Talking about the aforementioned Shropshire scheme in particular, Richard says he was shocked that Oakley’s, as one of the county’s biggest distributors, was not asked to supply the group. He also thinks that distributors are inadvertently giving buying groups more leverage by quoting inflated prices when they are not interested in supplying, rather than simply declining. When the group is eventually quoted a more realistic rate, it will then claim to have delivered its members a large saving. Richard makes the point that the industry should have a format to adhere to when dealing with buying groups. He also questions: “What do the group organisers get out of these schemes? A lot of these groups are run as businesses. Are they in fact taking a wage? Why don’t they just make an honest living out of it and buy a tanker themselves?” This is a sentiment echoed by Tony Deakins, who also questioned the role of group co-ordinators. Hingley and Callow director, Helen Needham, made her feelings on the subject quite clear:  “Community buying groups – now there’s a topic! The bane of our life! And, which bit of community buying allows the organiser to take more of a margin than us the supplier?! I had one the other day wanting to take 4ppl!” Mark Askew, chief executive of the Federation of Petroleum Suppliers was recently quoted in The Times as saying: “Small, local buying groups in a neighbourhood can benefit from the saving the distributor makes on travel time and costs. However, size is not always a benefit when purchasing oil through buying groups. People should be realistic about the level of savings.” Oxfordshire initiatives In a bid to save money and make their village a cleaner and safer place to live, residents of West Challow, Oxfordshire, operate an oil buying group. Local distributor, Sweet Fuels, has been supplying the group for three years, and also supplies a number of others in the area. Owner, Adrian Sweet said: “We supply about 20 groups in total. For the majority of these groups, we deliver once a week, offering members a discount off the ring round price. It works really well. However, we don’t supply the larger buying groups who routinely contact at least 10 companies to negotiate the cheapest price.” According to a recent article in the Banbury Cake, residents across Oxfordshire are benefiting from the roll-out of a scheme, which has already saved thousands of pounds.  The scheme, which was originally launched in 2010 by Oxfordshire Rural Community Council (ORCC) and Chris Pomfret of Community Buying unlimited, has saved householders a reported £71,151. The initiative, which requires residents to pay an annual fee of £20 and place their order through a local co-ordinator, has now been rolled out in 19 of Oxfordshire’s 37 Rural Community Partnerships. Peart partners housing association In North Yorkshire, F. Peart & Co has partnered with Broadacres Housing Association, offering an oil scheme to help residents take control of their energy bills. Broadacres Housing Association, which provides a range of services to over 5200 homes, sought a solution for its tenants, who sometimes find it difficult to purchase heating oil in bulk. “We were concerned that a number of our residents were living in fuel poverty and couldn’t afford the cost of their oil upfront, so we decided to set up a contract with an oil distributor to resolve this issue,” explained a company representative. As part of the scheme, residents are not required to pay any bills at the time of delivery and instead a direct debit is set up with the housing association, which then pays F. Peart & Co direct. Laura Jackson, business manager at the company, said: “Paying by direct debit is the safest and simplest method of payment and gives the tenant peace of mind that they’ve paid on time. A regular monthly payment also makes it easier for customers to budget for their heating oil.” Since its launch, 154 residents have joined and are now benefitting from the initiative.  

Kingspan Environmental’s SonicSignalman electronic oil-level monitoring system now has a NEW SMS feature, allowing oil companies to send text messages to end-users. The SonicSignalman is a onepart device that uses the latest ultrasonic and GSM technology to remotely monitor the level of oil in a customer’s tank. The new text message facility will enable oil companies to send updates to customers about promotions and planned delivery runs. Messages can be broadcast to all customers or sent to those in specific geographical locations. The information received back can be used to improve logistics, reducing the number of wasted deliveries and spreading periods of peak demand. www.sensor-systems.com

There are two million off-grid homes in the UK and Ireland.  Over the next 20 years, these homes will slowly but surely need to decarbonise. Along the way, greater energy efficiency of equipment and buildings will play a vital role; alongside the probability of an increasing number of new renewable technologies working in harmony with existing oil-fired systems. The energy behind the show Facilitating the way into this evolving marketplace is the Oil & Renewable Energy Show.   Organised by A&D Publishing – publishers of Fuel Oil News, Oil Installer, and Renewable Energy Installer – this national exhibition will be held at Manchester Central conference and exhibition complex on October 17th – 18th. Speaking at the official launch earlier this year, the show’s commercial lead, Jonathan Hibbert, said:  “This show is about oil working smarter and more efficiently alongside complementary renewable technologies such as solar PV, solar thermal, heat pumps and biomass.  It’s a chance for everyone connected to the oil heating industry to broaden their knowledge; to discover and to discuss future options for off-grid domestic and commercial properties and to watch practical demonstrations which will illustrate how the technologies can work together.” The show’s main trade association sponsor is OFTEC; director general Jeremy Hawksley said:  “OFTEC was formed 21 years ago to create technical standards for the oil heating/cooking industry.  Now, the 10,000 plus OFTEC-registered technicians serving this rather unique niche market, have a new mission to  get the low carbon message across to their customers.  The show will help oil installers find the most economic and do-able solutions to assist their customers in this transition period.” Well-known to FON readers as a tank manufacturer, Kingspan Environmental is a main commercial sponsor. Marketing manager, Cheryl Graham, said: “We’re delighted to be associated with the Oil & Renewable Energy Show – we’ll be launching new products at the event and showcasing the complete Kingspan Environmental product portfolio of traditional and renewable technologies.  We’re committed to the development of environmentally friendly products; one being rainwater harvesting, now being retrofitted in many homes and businesses.” “With fuel prices as they are, there has never been a better time to recommend renewable technologies as the perfect partner for oil-fired boilers in off mains gas properties,” said Martyn Bridges, director of marketing and technical support for Worcester, Bosch Group.   “We’re delighted to be one of the show’s key sponsors. Worcester has always been a strong advocate of combining solar thermal panels with oil-fired boilers for the energy efficient provision of hot water. Combined with the prospect of biofuels now on the horizon, those keen to introduce a renewable element to their homes have plenty of choices.” “October’s Oil & Renewable Energy Show has already attracted huge support,” reports Jonathan Hibbert.  “We’re particularly delighted to have a distinguished group of big name sponsors and exhibitors. Their support is testament to the show’s national significance.” To find out more about the Oil & Renewable Energy Show, call the team on 01565 653283 or visit www.oilandrenewableenergyshow.co.uk. 

Roger Creswell, director of the Oil Recycling Association (ORA) writes: “Never far from the environmental scene, and despite its wide utility, oil is a word that seems to catch the attention of governments, regulators and commentators, especially when it’s lost or spilt. That seems fair and just; so it means we all have to be focused, particularly so when it comes to managing waste oil” Obligations for producers In 2010 the UK introduced the revised EU Waste Framework Directive (rWFD) into national legislation and this placed a number of obligations on waste producers. While all oil streams will at sometime incur a waste, in general, our reference to waste oil is essentially that of used lubricating oils, for example engine oils, and those more common fuels. If something is discarded (and this has many legal meanings) it is a waste, even if that something is unused. Once a waste, it is to be managed under waste legislation. While offering a high degree of environmental protection, it can create barriers to subsequent reuse or recycling objectives. Waste oil has been one of those difficult areas for regulators. Having the obvious potential for use as a fuel, and recouping its energy content through combustion, then the Waste Incineration Directive (WID) would probably apply, though very few applications can conform to the rigorous emissions standards that are imposed. In the last few years, a tremendous effort has been channelled by authorities, and the oil recovery industry, into establishing waste policies that have been translated into guidance. These have then been turned into standards, in order to achieve a position that allows for an End of Waste status to occur.  All devolved regions of the UK have adopted such a standard that defines the conditions for End of Waste for used oils, in what is generally referred to as the Quality Protocol For Processed Fuel Oil. Quality protocol This quality protocol is usually abbreviated to the term ‘QP for PFO’. Essentially its core is a technical standard that seeks to emulate certain classes of industrial fuels, described in BS 2869. This together with certain restrictive additional parameters is designed to ensure that on combustion the fuel will be no more harmful to man or the environment than a comparative virgin fuel. It achieves this through the setting of detailed sampling and test limits/methods, and notably the use of accreditation to demonstrate compliance. There are further restrictions as to what may be incorporated into its feedstock, and on those permitted to produce a PFO, but additionally on users of the fuel. Higher oil prices in 2010 and 2011 have formed attractive outlets for PFO. The result has been that supplies of waste oil inputs are readily sought out on a commercial basis and a potential polluting stream is economically and efficiently removed from the environment. UK markets for the historic waste oil status, Recovered Fuel Oil (RFO), are now very limited, with the consequent need to export some volumes to continental based lime kilns that are WID compliant and where duty differentials make it an attractive fuel. Twists and turns? The rWFD transposed legislation referred to earlier, has required waste producers to declare that they have considered the hierarchal requirements that place an option of material recycling higher than that for energy recovery. What this means, is that for used lubricating oils, can the inherent basic lubrication oil fraction it contains be recovered for reuse? – a process known as re-refining. This also says that where combustion is the selected option, it needs to be justified through Life Cycle Thinking, and that is recovery usage and not recycling, a fine point in law. The Department for Environment, Food and Rural Affairs’ Hazardous Waste Guidance was published recently.  www.defra.gov.uk/environment/ waste/business/hazardous-waste Finally, in 2011 government’s National Policy Statement on Hazardous Waste and Planning for Infrastructure, puts forward a specific policy to encourage investment in a modern high technology lubricants re-refinery. This reflects waste hierarchy policy, but substantial monies will be required from the private sector. www.oilrecyclingassociation.co.uk