The Federation of Petroleum Suppliers (FPS) is introducing a new Fuel Certification scheme to improve the quality of fuel oil and raise quality standards in the industry.  The new initiative will be responsible for the quarterly testing of kerosene, gas oil and diesel storage tanks for particulate, water content and biological contaminants. The tests will allow the FPS to accurately predict trends in fuel quality and help its members improve quality standards across-the-board. FPS chief executive Mark Askew said: “Those accredited under the scheme will be able to rectify potential fuel problems early, allowing for quick and inexpensive remediation to take place for any issues found during testing. Moreover, the new scheme will provide mitigation against claims from customers for ‘faulty fuel’, which may be caused by the customer’s storage or buying patterns.” The member price to join the scheme is £1000 per tank per year, but the first 30 member depots to sign up will receive a discount of £200 per tank for the first year. Non-members wishing to join the scheme will be charged £1500 per tank per year. http://www.fpsonline.co.uk/

OFTEC has launched a new consultancy service, which has already provided independent reports on oil heating systems at a school, police station and several private residences. Developed in response to customer demand, and designed to meet individual needs, the flexible service offers on-site assessments to ensure compliance with Building Regulations and industry codes of practice. A detailed, illustrated report is provided with recommendations for any work that is required to make the installation compliant. In some instances, OFTEC is called upon to provide an impartial assessment as part of a dispute; for example a bad installation by a rogue trader, or where a tenant has caused problems themselves. OFTEC’s technical director Paul Rose said: “The new service is designed to be flexible and can be tailored to suit the particular requirements of the client. We will also be working closely with Local Authority Building Control (LABC) to provide additional expertise when required.” OFTEC can also provide advice on major system upgrades such as help with preparing tenders, and evaluating submissions. http://www.oftec.org/

Cameron Forecourt’s new fuelling site installation and web-based management system is helping Malvern Hills District Council keep tighter control on fuel supplies and achieve greater efficiency. The council’s transport team is already benefitting from more accurate management information on fuel movements, stock levels and vehicle performance after the turnkey package was installed earlier this year. The system comprises a new three-compartment above ground tank for diesel, gas oil and Ad Blue; three new pumps in a security cabinet, and Cameron’s Eclipse web-based fuel management system. Cameron Forecourt also installed aTLS2 tank gauge and environmental monitoring system, together with a bund alarm, spill kits, lighting and electrical system. Danny Healey, transport and logistics manager, explained: “The old installation presented a risk that we might have a leak at some stage and lose fuel, together with the potential detrimental effect on the environment. The capacity of just 5,000 litres of diesel meant we had a maximum of one week’s supply on site at any one time, which made us vulnerable to any industrial action or other disruption to supplies.” The new tank has a 15,000 litre diesel capacity and 2,000 each for gas oil and Ad Blue. Using the system to monitor vehicle performance, adaptations have been made to increase fuel efficiency. Danny explained: “We have made changes which include the introduction of magnetic devices to the fuel supply on the vehicles which we hope will increase efficiency by 10-12 per cent.” The link to the monitoring system and safety alarm means the council are in a position to act immediately in the event of a leak or spillage. www.cameron-forecourt.co.uk

Greenergy, which supplies almost one quarter of the UK’s road fuels, reported an 82 per cent rise in profit due to cheaper feedstock and increased sales amid a growing market share. Profits in the year ended April 2012 climbed to £25.3m versus £13.9m a year earlier, according to an annual report. Sales increased to 10.9 billion litres of fuel from 9.9 billion litres, increasing the company’s UK market share to 23.2 per cent. Greenergy mainly uses naphtha as feedstock in petrol, which is trading close to the lowest price in almost seven years. “This year, the price of naphtha fell relative to petrol, making it a cheaper component than at any time in the past five years,” the report said. “The outlook for the next twelve months is for relatively cheap naphtha to continue to support our petrol manufacturing margins.” Andrew Owens, Greenergy’s CEO, said: “Our petrol manufacturing margins were significantly stronger this period than the previous year due to lower raw material costs.” Greenergy has agreed to buy the Coryton refinery, with Shell UK and Vopak, and may make an initial public offering if additional capital is required for further opportunities. Greenergy is number 3 in the Sunday Times Top Track 100 of British private companies with the biggest sales.

An international search for a new fuel marker to help in the fight against diesel fraud has been announced by revenue authorities in the UK and Ireland. Millions of pounds in revenue are lost each year through fuel laundering – the removal of the chemical markers from low duty diesel to sell it on as road fuel. Working in partnership, HM Revenue & Customs (HMRC) in the UK and the Revenue Commissioners in Ireland are seeking submissions aimed at finding a replacement for the current fiscal fuel markers. Andy Wiggins, oils policy team leader at HMRC, said: “Although the UK’s current fuel marker is actually one of the better quality markers in use, we are not complacent and appreciate the need to keep one step ahead of fuel launderers. “Consequently the search for an even more robust marker capable of foiling 21st Century fuel launderers is essential to ensure that opportunities for fraudsters attempting to exploit fuel supplies are reduced and illicit fuel can be detected.” Revenue Commissioner Liam Irwin said: “Fuel laundering and trading in illicit fuel represents a significant threat to the Exchequer and hurts legitimate businesses. We are determined to take every action necessary to stamp out this form of criminality.” The joint invitation to make submissions can be found here

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.