APRIL 2016
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Noting the Orwellian symbolism of Everyone in the world of fuel oil The monthly magazine for the fuel distribution, storage the number 101 – that being the distribution has his/her own individual and marketing industry in the UK and Ireland. number of the Fuel Oil News stand at fears, hopes and dreams for the this month’s FPS EXPO - Fuel Oil News industry and their own business in 4-7, 11 NEWS is very tempted to encourage visitors particular. Whilst these will often to the stand to discuss their pet hates differ from others’ views, the industry 9 TALKING POINTS about the fuel distribution industry…. always welcomes the chance to share Options available to visitors would thoughts and exchange views with then be to consign their particular fellow fuel distributors and suppliers. 12 IN CONVERSATION Chris Hunt, UKPIA pet hate to stand 101, which on this In this issue of Fuel Oil News we When they’re gone, they’re gone occasion will represent the more usual have some brave new world news room 101, or request that their pet with advances in technology, a new 16 IN CONVERSATION Alan McCann, BP hates be discussed and debated in a electronic buying/selling concept, Distributors – mission survive future issue of Fuel Oil News. improved efficiencies, celebrations It was apparently a meeting room of industry successes alongside 17 IRISH NEWS Optimistic about the future in the BBC’s Broadcasting House that fears about our long-established was responsible for George Orwell refining industry, the implications of 19 INSIDE OUT coming up with the concept of room oversupply and future scenarios for 101. It later inspired the torture room kerosene. The kerosene market – future scenarios in his dystopian novel Nineteen Eighty- Not everything is perfect in our Four published in 1949. industry but whilst it may not be 20 ANALYSIS James Burgess. Argus Media Rather than containing the utopia, being a community that’s somewhat tame pet hates of the neither undesirable nor frightening, 23 KNOWLEDGE A new concept for the tech-era television programme which shares we’re still a long way off reaching its name today, the actual room 101 dystopia! 28-61 THE TOP PRODUCTS & SERVICES in the novel was supposed to contain PS: Do Orwell’s references to the FOR THE FUEL DISTRIBUTOR IN 2016 the worst thing in the world for every superstate of Oceania and Big Brother with special feature articles – Trial run (39), Essar individual that entered. also ring any bells? expansion (45), Safety in the fuel supply chain (57) and Adler and Allan demo-day (60)
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01565 653283 Irish News Subscriptions Founded in 1977 by James Smith www.fueloilnews.co.uk Aine Faherty Hannah Curzon [email protected] [email protected] Published by Managing director Ashley & Dumville Publishing Ltd, Nick Smith Accounts & copy chasing Annual subscription for the UK Caledonian House, Tatton Street, Hannah Curzon & Republic of Ireland is priced at Knutsford, Cheshire News desk / Editor [email protected] £95 or €113 inc. p&p. Overseas: WA16 6AG Jane Hughes £112 or €134. Back issues: £8 per [email protected] copy. Sales director Credit card payments Jonathan Hibbert 01565 653283 [email protected] WALK, JOG, RUN, STORAGE & WALK, JOG, RUN, TERMINALS CCLIMB,LIMB, CCYCLE!YCLE! YEARBOOK & DIRECTORY WALL MAP Over the years, we’ve supported some Collect your NEW 2016 brilliant fundraising efforts for many 2016 fantastic causes. Fuel Oil News Directory If you are raising money for charity, stand 101 Extra Copies required? we’d like to help you. FPS EXPO Please email: Telephone Hannah 01565 653283 [email protected] 01565 653283 www.fueloilnews.co.uk/category/directory/d [email protected] COMMUNITY & CHARITY FUND
Volume 39 No 4 Fuel Oil News | April 2016 3 ISSN 1757-1057 News
Fleet expansion for Rix Petroleum
ix Petroleum is investing more than £1m to update and TOP 4 Rexpand its fleet of fuel tankers. A total of six new Scania tankers FUEL OIL DISTRIBUTORS: UK MAINLAND and two new tanker units for use at depots in East Yorkshire, East Anglia and Shropshire have been ordered, at a total cost of £1.1m. The vehicles – four six-wheel tankers, one four- wheeler, one eight wheeler and two tractor units – are all due to be delivered in the first quarter of 2016. “These vehicles will replace some of our tankers that are around 10 years old and as such, have served their time with us,” said director Duncan Lambert. “The vehicles, which have a Scania truck chassis and liquid flow meters from Alpeco, are being assembled by Tasca Tankers. Each truck is equipped with the latest equipment including heated driver’s wing mirror and fully air-conditioned cabs with all conforming to Ad Blue Euro 6 emissions standards.” Duncan Lambert beside one of the new Rix tankers which will soon be on the road
Craggs Energy wins BESMA award aving been named in “We were surprised but Energy in 2011 I was keen to “With our aim to build the The Sunday Times top absolutely delighted to win this try new approaches to help best possible sales force, we allied 100 fastest growing award,” said CEO Chris Bingham. bring what is an old-established the sales operation to bespoke H st companies last December and “We were up against some industry into the 21 century,” technology that we’ve built highlighted as one to watch, big household names – large scale explained Chris who sold his ourselves, and this was what Yorkshire-based Craggs Energy companies with sophisticated Aspire software company in the apparently impressed the judges. has just picked up a British operations which like us run a same year. “We take an academy Excellence in Sales and Marketing sales team of less than 50 people. Being an oil user himself approach to employing sales (BESMA) Award “When we started Craggs and having Ralph Thornber as staff and train in house. Craggs his father in law (Ralph sold his now employs 56 people of which Townson Thornber business to 22 are sales staff, many have Shell in 1988 – see page 9) Chris been recruited from outside the took on his next challenge. industry, some having previously “Not being an expert in sold advertising space in fuel, I saw an opportunity to magazines. drive business utilisation through “Receiving this award has sales and marketing, an area I given our sales strategy a level understood. As a result we’ve of external ratification and invested more significantly in recognition of its benefits outside technology than logistics. the industry.”
(l-r) Lee Chadwick, award category sponsor, CommuniGator, Robbie Rouse, customer experience manager and Byron Smith, sales manager from the Craggs Energy sales team with host Dara O’Briain
4 Fuel Oil News | April 2016 www.vopak.co.uk Changing the face of PEOPLE MOVES sponsored by bulk fluids
• Anna Pajaron has joined Coryton Advanced Fuels as key account manager transportation • Alex Colston is now contract manager for TankShare at Suckling Transport • Scully Signal Company has appointed Eric Kirleis as CEO. • Harrison Colgate has been appointed business development manager at the Star Tractor & Motor Oil Company • Loadtec Engineered Systems has appointed Martin Dicke-Künitz to oversee its marketing, strategic business partnerships and sales strategy for its Zip-Load range of marine loading arms • Phil Eltham has taken over as dealer business manager at Harvest • David Peart is now contracts manager at Meller Flow Trans
Inter Terminals has welcomed Elliot Dell as commercial manager oils, while Chris Tanner’s role is redefined as commercial manager chemicals and completing the new line-up is Rachel Mundy as sales and marketing manager.
Elliot Dell, Rachel Mundy and Chris Tanner, Inter Terminals
WANTED An established small/medium oil distribution business with a storage facility in the Manchester or Birmingham area. All enquires treated confidentially. Visit our Please contact Fuel Oil News on 01565 653283 or email FPS stand B3 - [email protected] for more information. 20th - 21st April Distributor dinner date
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n opportunity to relax for David Hodge, Ribble Fuel Oils, Jo Ritzema, WCF Fuels, Janet AKettlewell, Kettlewell Fuels and David Todd, Gleaner Oils at a recent Phillips 66 dinner. News
INEOS makes first shale gas shipment to Europe
ast month the INEOS Intrepid, the world’s largest LNG multi gas carrier left the Markus LHook terminal near Philadelphia bound for Rafnes in Norway carrying 27,500m3 of US shale gas ethane. To receive the gas, INEOS has built the two largest ethane gas storage tanks in Europe at Rafnes and at Grangemouth in Scotland. INEOS will use the ethane from US shale gas in its two gas crackers at Rafnes and Grangemouth, both as a fuel and as a feedstock. A long-term investment by INEOS, the shale gas is cooled to -90ºC (-130ºF) for the journey of 3,800 miles. US shale gas will complement the reducing gas feed from the North Sea. “We’re nearing the end of a hugely ambitious project that has taken us five years,” said Jim Ratcliffe, chairman and founder of INEOS. “Shale gas economics have revitalised US manufacturing. When US shale gas arrives in Europe, it has the potential to do the same for European manufacturing.” The shipment arrived on 23rd March; shipments The INEOS Intrepid – with ‘SHALE GAS FOR PROGRESS’ emblazoned along its 180 metre length – is one of four specially designed Dragon class ships that will form to Grangemouth will start later this year. part of a fleet of eight of the world’s largest ethane capable carriers
Forward fixing – could this be the smartest way to buy fuel?
THE OIL MARKETS HAVE BEEN IN TURMOIL FOR AROUND 18 MONTHS NOW, WITH TRADING BEING THE MOST TUMULTUOUS SEEN IN YEARS
n fact, oil price volatility has climbed to its been importing fuel and selling wholesale to With rates that are unanimously highest since 2009 as traders try to price- the UK for nearly 60 years and has built a very acknowledged to be some of the lowest since Iin the uncertainty around supply cuts and loyal customer base. 2003, forward fixing is almost certainly going project demand for petroleum products as the “Our customers trust us to deliver to pay dividends down the line. Moreover, global economic recovery falters. reliability of supply, fair and transparent pricing there are definite benefits to having a Global oversupply has dramatically driven and excellent customer service,” said marketing guaranteed, consistently fair fixed price for down the price of oil, a welcome relief for manager Martin Cook. fuel. distributors, hauliers, businesses and indeed “We go out of our way to provide advice “Our experienced marketers can provide anyone buying and using fuel. However, there and support, and make it easy for them to forward pricing indications to help customers is growing consensus that these super low purchase fuel regardless of changes in the make an informed decision on exactly when to rates cannot last. The big question is how long market. Now, with the market trading at a 13- fix over an extended period and offer guidance will this trend continue and when will prices year historic low, we’re offering our customers on the choice of deal mechanisms available to start to rise again – as rise they surely will. the opportunity to lock-in some of these low further minimise exposure to price volatility,” rates for up to 24 months, and we’re one of said Martin. “LOCK-IN SOME OF the very few wholesalers willing to offer this “Customers can choose to forward fix a THESE LOW RATES FOR facility.” percentage of their contract, and then spot buy the remainder, thus retaining a degree of UP TO 24 MONTHS” Make forward fixing part of your flexibility. purchasing strategy. “Customers know that we will always go Forward fixing buys certainty and for the extra mile to ensure that they achieve Wholesale trading of fuel is, and always businesses looking to plan ahead and manage value. The option to forward-fix really is a has been unpredictable – the markets are their future fuel expenses this makes a lot of fantastic way to lock in the current low rates ever-changing, temperamental and a law unto sense. It can help guard against unexpected and allow our customers to budget for the themselves – but it is what Mabanaft knows peaks and troughs in operating expenses that coming year. To find out more about forward and does very well indeed. The company has can literally turn a profit into a loss overnight. fixing call us on 0207 802 3300.” 6 Fuel Oil News | April 2016 Lubricating team spirit
y providing all the lubricants for the inter-service military competitions, comprises “As an engineer myself, I have ridden a motorbikes, Morris Lubricants has 12 riders aged between 17 and 47 years and mixture of two and four stroke bikes and have Bbeen supporting the Army Air Corps’ covers ranks from junior soldier to officer. always found Morris Lubricants products to motorcycle enduro team for 12 years. Team members predominantly include pilots, be very reliable,” said team manager, WO2 Based at RAF Wattisham in Suffolk the crew and technicians from the Apache attack (AQMS) John Hughes. team which competes in British, local and helicopter.
We’re a patriotic British company and proud to be supporting the British Army in this small way,” said Adrian Hill, automotive products manager
Looking forward to seeing you in Liverpool
egular visitors to FPS EXPO, about the latest technology and to Jones Oil is looking forward catch up with recent developments in Rto making the trip across to the oil industry,” Seamus Flynn, head Liverpool later this month. of operations at Top Oil, told Aine As previous owners of several Faherty. UK-based oil distributors between “One of our latest rigid delivery 1986-2008, company representatives trucks will be on display at the always enjoy the opportunity to exhibition. This brand new vehicle has renew friendships and catch up with been equipped with the latest safety the many people in the industry with features to assist the driver together whom they worked in that 22-year with in-cab technology to ensure period. smooth delivery of product and an “Networking is the primary efficient customer service. attraction for us to return each year,” “We’re always keen to learn about said Pat Nevin. the latest oil industry innovations and “We’re also in the market for best practices. FPS EXPO is excellent several new tankers this year and for networking and for developing New branded tankers have recently next, and this event provides us with a new profitable partnerships; several great opportunity to keep up to speed members of our management team joined the Essar fleet at the Stanlow with new ideas in tanker design and will be attending.” refinery. For more about Essar’s construction and the best practices.” Fuel Oil News looks forward very expansion into retail, see page 45 “Attending shows like FPS EXPO much to welcoming visitors and their enables the business to stay informed ‘pet hates’ to stand 101 – see page 3. Fuel Oil News | April 2016 7
Talking Points How do you view the Is it possible to reverse probably going to changing face of fuel this decline and do you be a divergence where the mega distributors concentrate on distribution? believe that a corporate large volume work at which they excel while industry can co-exist the smaller independents service the niche As smaller distributors sold out to larger markets – the local buying groups and smaller companies, I believe this led to the rise happily with family commercial customers who demand good, of more village community/website- businesses? reliable service for a fair price – an area where based buying groups in a fight against the big ‘uns are demonstrably less good. unfair pricing. Gone are the days when Probably not as times have changed with Kevin Bennetts, Consols Oil competition was just two or three the modern education system seeming to companies within your area – through plant a compliance chip in those who pass Whilst some websites have excellent benefits buying groups and websites – it’s possible to through it. I’ve been very lucky to have led an for the distributor, such as quick payments access all areas. adventurous lifestyle right through from junior and director access to a customer base, they This is a tough, competitive market school in ways which are probably not possible can cause price wars and drive margins down. where some have the philosophy that if they today. Growing up on a farm meant that a At an extreme level this could be so serious it can’t have the work, the one who gets it will strong work ethic was developed at a very could cause an uprising from oil suppliers, who have to do it for next to nothing! In cold young age allied with an interest in what was could swithc off their prices by way of a strike weather, more distant suppliers often drop going on that fostered an ability to question against low prices. buying groups by pricing themselves out. It everything. Later on fishing taught us to think Simon Lovell, Lovell Fuels would be nice if the local oil supplier always for ourselves without constantly resorting to an got recognition and loyalty for consistent operations manual. This instilled self-discipline, customer service….. a survival instinct and self reliance with a Would Brexit have an More corporate people are coming into natural ability to think on one’s feet without impact on the UK’s the industry, with generic business ideas and having to refer to a committee every time a philosophies around efficiency, that don’t situation develops. downstream oil industry? suit this industry, where local management Good businesses of all sizes will always be can work better. around whether they will co-exist peacefully I can’t see Brexit having any impact on the Busy, price-focused people order from is a matter for those concerned. My policy downstream oil industry in the short term. the comfort of their electronic devices. is that if someone comes looking for a war However, the referendum result could Not bothered where their oil comes from, they’ve found one! I also feel that a good little facilitate major changes in Europe because, if they neither speak nor interact with us so ‘un is quite capable of holding its own against Brexit happens, there’s a risk that Scotland will there’s no chance of relationship building to a big ‘un more particularly on service levels. seek independence to remain in the EU; this increase loyalty. There are still people out Kevin Bennetts, Consols Oil will affect the UK’s downstream oil industry. there who appreciate our service and efforts, A UK exit, followed by the departure they order from us because we’re a small of some other countries, may see the EU friendly team. Loyal customers are always In which direction do you disintegrate….but on the other hand there’s our priority. see the industry evolving also a chance that this would strengthen Simon Lovell, Lovell Fuels relationships between the remaining countries in the future? and lead to a real United States of Europe. The economic impact of Brexit on EU Do you believe that there Two years ago who could have foreseen the citizens is not clear. There’s talk of a potential has been a ‘decline in collapse in oil prices – in previous times the cut in services – education, health, etc – to EU tragic war in Syria would have sent the price of citizens from other countries resident in the UK individuality’ in the fuel a barrel of oil into orbit... and that this would also impact on UK citizens distribution industry? Inevitably prices are going to rise sooner or living elsewhere in the EU including the half later which will impinge on our costs and those a million UK citizens who live in Spain. As a “I think there’s no doubt. In the late of our customers who are currently the real result companies and people may find it more 80s when Shell purchased my original winners. I would like to see more transparency difficult to invest in the UK and the economy distributorship you could see a definite change in oil prices which is unlikely to happen. The could suffer. starting to happen as things moved more kerosene market is shrinking as renewables Jesus Ciria, Suckling Transport corporate. Now there’s only a handful of impinge on domestic sales but that said we’re Three years ago Jesus Ciria and his family family-run distributors left and a lot of the currently seeing a noticeable upsurge in new oil relocated from Spain to the UK on a temporary larger companies are doing the same things in installations with some customers returning to basis when SBG acquired Suckling Transport exactly the same way!” oil as the price has dropped and the novelty of Ralph Thornber, wood burners wains. Come and share your opinion on any of former owner of Townson Thornber The real survival essentials are sound the above Talking Points with the Fuel Oil which was sold to Shell in 1988 finances, a reliable product source and News team on stand 101 at FPS EXPO or skilled motivated staff. Essentially there’s email [email protected]. Fuel Oil News | April 2016 9 THE NEW DAF CF: LEADING IN VERSATILITY
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New oil customer gets a warm glow
aith Archer was delighted when an article she had written about how to save money on heating oil was picked up by The Sunday Times recently. F Having moved from London to Hadleigh in Suffolk in 2014, the Archer family swapped a connection to a gas main for a large oil tank lurking in the garden with central heating, hot water and an elderly Aga all oil-fired. Getting quotes for a shiny new gas boiler, a heating engineer pointed out that the inherited oil boiler was a good model and only about 5-years old, and suggested keeping it until it keeled over. “I’ve now bought oil five times since we moved and my bill for 2,000 litres has halved from £1,008 to £498 which makes us rare winners in Britain’s energy market,” said Faith. Norfolk-based Goff Petroleum was delighted to help halve the heating oil bills for this rural Suffolk home owner. Faith who writes an entertaining and informative blog – http:// muchmorewithless.blogspot.co.uk – describes buying heating oil as being ‘more like the Wild West than the regulated prices of gas and electricity — and it pays to have your wits about you. I have to keep an eye on the oil gauge on the tank, monitor volatile oil prices, look at comparison sites and haggle with different suppliers and then organise a delivery before our fuel runs out.’ As everyone in the industry knows there’s many a tanker driver who appreciates a slice of home made cake whilst out delivering and with a recipe for lemon drizzle cake posted on Faith’s blog last month, who knows there may be a tasty treat waiting when the next delivery is made…. Oil heating pocket guide nswering all the most frequently asked questions received by its technical helpline, a Anew edition of OFTEC’s popular domestic oil heating pocket guide has been published. The guide has been fully updated in line with BS 5410 Part 1 2014 and the new expanded edition includes a comprehensive New oil customer Faith Archer by her elderly Aga says that the first time the oil man came with a delivery, the whole family lined up to see what happened! risk identification section to help classify immediate and potential risks and respond accordingly – taking the guesswork out of risk assessment. The guide covers such subjects as: oil storage tanks – environmental protection, fire protection and bases; oil supply – general installation Good Value at FPS EXPO requirements, layouts, pipe sizing, pressure testing procedures and fire valve positioning; appliances – condensate disposal, flue termination, pre- calculated air supply requirements, nozzle sizing/selection information and basic fault finding procedures; systems – minimum controls packages, expansion vessel sizing for sealed systems and minimum F&E cistern capacity and associated pipe size requirements; procedures and useful information – safe electrical isolation, oil spill response, documentation/notification flowchart, unit conversion table and essential fuel characteristics.
For a chance of winning this £1,200 Felt Z6 road bike, visit the ValueOils.com at Priced at £4.50 (€5.85) the guide is available from www.oftecdirect.com stand 87 at FPS EXPO. The draw will be held at 15.00 on Thursday 21st April
Fuel Oil News | April 2016 11 In Conversation
WHEN THEY’RE GONE, THEY’RE GONE!
UKPIA’S DIRECTOR GENERAL CHRIS HUNT WAS IN A RATHER SOMBRE MOOD WHEN FUEL OIL NEWS MET UP WITH HIM IN LATE FEBRUARY TO CATCH UP ON EVENTS IN UK REFINING
“The question the UK really needs ensuring growth. But, when cost UK’s refining assets are worth $4 last spoke with Chris, Total’s to ask itself is – Do we actually and compliance expectations billion per refinery, at replacement Lindsey refinery is reducing value our manufacturing industry? lead to no return on investment, cost, and with oil still likely to capacity by 50% – did you – says Chris, who prior to joining it may represent a bridge too be needed for transportation in expect more casualties in this UKPIA in 1997, headed up Elf’s far for many businesses. With 2050 and beyond, a burdensome period? retail operations. so many regulations making legislative background, UK and Yes, I did expect that there would “The UK’s energy intensive manufacturing life increasingly EU, could result in refineries have been more casualties across industries which include difficult, these industries should being put ot of business with Europe. Stanlow and Fawley have refining, chemicals and steel are be rallying together to ask for consequent severe risks to supply undergone major changes with having a tough time. Instead a long term commitment from disruption and national resilience. capacity adjustments made to of overburdening them with government. realign their operations to a new excessive regulation, government “It’s a constant battle to ‘It’s a painful time and there reality. should be looking at making them defend the refining sector – it’s will be casualties as well as Going forward, we still face stronger, nurturing their skills and a fight that shouldn’t be. The survivors’. Since Fuel Oil News overcapacity and production not being aligned with demand, in addition to the crushing cost of Fuel Oil News editor Jane Hughes at Grangemouth in 2012 regulatory compliance.
Fawley
Humber
Lindsey
Stanlow
Pembroke in 2009 with Phil Thompson and Jane James
12 Fuel Oil News | April 2016 Essar recently announced Roadmap for a UK compulsory it’s an uphill fight and it will never fail to remind officials that positive figures, do you feel strategic stockholding agency, be ever more so unless there’s right now we’re around 50% more heartened about the which was then presented to a government covenant that dependent on diesel, mostly longer term prospects for the DECC as a way forward supported clearly states that manufacturing from Russia, and 60% reliant on survivors? by the entire downstream oil is important, especially energy aviation fuel, mostly from the I do have hope for UK refineries sector. However, It was deemed intensive manufacturing industry Middle East. – across the whole of Europe by Eurostat that a stockholding subject to global competition. they’re amongst the best of the agency as proposed by industry What is the current position as bunch. They stick to the task and had to be a government Do you still believe that ‘if to the refinery Fitness Checks? strive to be the very best they entity. The option for a public there were no refineries in the The overall findings were that EU can be with the kit they have. stockholding agency was then UK, the UK supply condition regulations have had a significant All have taken a serious look presented to government – alas, could be very grave’ and impact on the profitability and at their business and adjusted this was not taken on. Despite what are feelings about the robustness of refining, particularly accordingly which is no mean the lack of ultimate success with country’s energy security? with respect to energy costs and feat. Total’s Lindsey refinery, as an the project, it was a good exercise UK fuel supply with no refineries its impacts on competitiveness. example, has recently realigned in terms of the sector coming under external disruption would The Refinery Fitness Check is its manufacturing operations and together, overcoming differences be untenable – that was also available to view on the EU dealt with the inevitable impact and agreeing a very well thought- the finding of a MOSGITF Commision’s website. on jobs. We’re match fit here in through plan. resilience study – unless the Last month Chris attended the UK, but the question is can we government recognises the a Refining Forum in Brussels ever get that level playing field? So will there now be no importance of refiners to the which is responsible for keeping compulsory stockholding nation’s supply resilience. We’re an eye on the refining sector. What other work has UKPIA agency in the UK? ok at the moment but if we lost With a packed agenda, over 100 done with MOSGITF and has No. Regrettably after an more refineries and, if there delegates registered with most this now ceased? enormous amount of work, it’s was an external threat from, major refiners and trade bodies in The Midstream Oil Sector effectively dead in the water. say, a severe external event attendance. Government and Industry Task which severly restricted finished At the Forum, presentations Force (MOSGITF) has now Does DECC still show ‘a clear product supplies from Europe were made by representatives concluded its work. The issues on understanding of the issues and elsewhere, then that sort of from the director generals of key its agenda were those on which faced by the refining industry’ crisis would be crunch time. The EC functions, Member States, UKPIA had been working for some and does the industry still feel resilience study also examined oil companies, the IEA and time. All the arguments were supported? the ability of our internal NGOs, such as UKPIA. Industry already set out and MOSGITF I have nothing but praise for the infrastructure to cope – and could reiterated the case for continued took them up and encompassed part of DECC that deals with our internal supply logistics be oversight of EU regulation and wider downstream industry input. downstream oil – they all ‘get’ the made more robust? We’ve had its impacts, together with a All praise must go to the industry and understand our case. regular discussions with DECC plea for a sense of realism when entire sector which produced the With the rest of the government around resilience issues and developing policy, one which takes into account the exposure of the refining sector to global What further legislation is still waiting in the wings? competition not subject to the same regulatory burdens. On a The crunchers in legislation include the following: positive note, the Commission has agreed to continue with Industrial Emissions Directive (IED) the Refining Forum for this very http://ec.europa.eu/environment/industry/stationary/ied/legislation.htm purpose. (Driven by the Environment Agency, the Scottish Environment Protection Agency and Natural Resources Wales) – there are major challenges with these regulations. Are regulations still likely to ‘kill off huge chunks of this fine EU Emissions Trading Phase 4 (EU ETS) industry’? http://ec.europa.eu/clima/policies/ets/index_en.htm It’s like death by a thousand cuts This will have a multi million pound impact on Europe. with severe lacerations being suffered by a few. Where these The Fuel Quality Directive (Article 7A) regulations go rests the future http://ec.europa.eu/environment/air/transport/fuel.htm of any number of refineries. The effects may not be instant but The Renewable Energy Directive (RED) they will have an impact on the https://ec.europa.eu/energy/en/topics/renewable-energy/renewable-energy-directive wishes of investors to carry on refining in Europe.
Fuel Oil News | April 2016 13
escalator that would thereafter be 3% above PORTLAND inflation. Fast forward to 2010 and the UK comfortably had the highest fuel duty rates in MARKET Europe, although the duty freeze since 2010 has since enabled some of our European neighbours to “catch-up” (see attached graph). REPORT Contrary to popular opinion, Britain does not now have the highest fuel duty rates in Europe, with that honour being bestowed on our Dutch April Update status would mean it was duty free), the cousins. But the UK is certainly unique in that increasingly burdensome working capital costs we apply the same duty rate for both petrol Such was this year’s pre-Budget conviction were bringing the commercial viability of the and diesel, whilst all other European countries that the Chancellor would increase fuel duty, site into question. apply a diesel discount to support their that many motoring campaign groups had As part of the research for this report, we indigenous haulage industries. Britain does no already started their publicity to denounce the had a look at duty rates back in 1996 to see such thing, much to the chagrin of our haulage rises. This trend was also reflected in the UK what all the fuss was about. 20 years ago, fuel industry at home and particularly those in the fuel market, with many of the big diesel buyers duty was 37 pence per litre (ppl) and suffice south-east of England, who have to compete frantically increasing their orders into the to say this was seen as unacceptably high, with mainland European operators. Further salt Bunker Networks, in an attempt to get ahead although no doubt the fact that the fuel itself is also rubbed into the trucker’s wounds when of the expected rise and in doing so, save a only cost 9ppl, probably exacerbated the they look over their shoulders to their transport precious few pence per litre. Therefore there sentiment. But to the weary 57.95ppl duty brethren in the bus industry, as the latter was genuinely considerable surprise, when the payers of today, these lower figures seem receive a fairly hefty 34ppl rebate, as part of Chancellor announced that fuel duty would not pretty manageable. In fact between 1996 and the Bus Service Operators Grant (BSOG). increase, meaning that for the 6th consecutive 2010, fuel duty had risen on average by 1.5ppl But similar generous treatment by year, a duty freeze has been maintained. each year (a 3,25% annual rise, give or take), the Exchequer is rare indeed, such is the ack in 1996, Portland was an analyst so no wonder many motorists began to feel importance of fuel duty revenue. On current UK for a large oil company and at the time was that the Government was taking advantage of fuel consumption, current duty rates generate working on a project to evaluate the viability them in the 1990s and 2000s. tax income of £28bn per annum and if you of a sea-fed oil terminal in the UK. It was a Fuel duty was first introduced in 1908, add VAT (on the duty element alone), a further complex project involving pipelines, jetties, was scrapped after the First World War and £10bn is added. For a Government trying product exchanges and crude oil exports, then did not reappear again until 1928, to balance the books, this kind of revenue is but most of the work was around tank sizes when fuel usage was rapidly increasing impossible to forgo and quite frankly, it does and the cost of working inventory. On this and ahem…the Government was skint! For beg the question why the Chancellor did subject, one of the sentences in the report’s the next 60 years, duty rates slowly ticked not take this opportunity to impose a duty introductory paragraph nicely frames the main up, but very often actually remained static increase on a fully expectant population. A consideration; “this investigation will look at (the 1960s virtually saw the same rate for 1ppl increase would have generated an extra whether duty bonded status will improve the the whole of the decade). But then in the £0.5bn revenue and for motorists now paying long-term viability of the Terminal, now that 1990s, successive Governments discovered over 30ppl less for their fuel than 18 months higher duty rates are detrimentally affecting the immense “easy” value in raising taxes ago, the impact at this stage would have been oil storage rates across the network” (sic). The on fuel. Whilst most people associate the minimal. issue at the heart of the matter (and the main much despised fuel escalator (increasing fuel And finally a quick word on the 1996 Oil reason the report was commissioned) was duty above the rate of inflation) with recent Terminal? Well it’s still going, although never the size of the fuel tanks at the terminal in Labour Governments, it was in fact Norman did get its bonded status. Perhaps a long- question and the resultant large inaccessible Lamont and the Tories who set the ball term view on duty rates was taken and it was inventory at the bottom of each tank. As this rolling in 1993, with an eye-watering 10% decided that 37ppl wasn’t such bad value inaccessible stock was duty paid (duty bonded duty rise followed by an statute binding duty after all!
Fuel DutyFuel Duty in selected selected European Countries European as at Jan 2016 (UK penceCountries per litre) 70.00ppl as at Jan 2016 (UK pence per litre) 60.00ppl
50.00ppl For more pricing 40.00ppl information, see 30.00ppl page 62
20.00ppl
10.00ppl
0.00ppl Austria Belgium Denmark Finland France Germany Greece Hungary Ireland Italy Netherlands Poland Portugal Spain Sweden Britain Portland Fuel Price Protectionection Petrol Diesel www.portland-fuel-price-protection.com Fuel Oil News | April 2016 15 In Conversation
DISTRIBUTORS – MISSION SURVIVE
HAVING JOINED BP IN OCTOBER 1987, AND SPENDING MOST OF HIS TIME IN CUSTOMER-FACING ROLES, ALAN MCCANN IS VERY WELL-KNOWN TO FUEL OIL DISTRIBUTORS IN BOTH NORTHERN IRELAND AND SCOTLAND. FUEL OIL NEWS SPOKE WITH ALAN, WHO RECENTLY RETIRED, ABOUT HIS REFLECTIONS OVER THE PAST 28 YEARS
“The most striking aspect for me has been well with the distributor working on its own the fuel distributor’s resilience and survival business interests whilst also delivering product instincts in a changing market where for BP negotiated accounts. technology has both helped and hindered.” “This model eventually led to oil Joining BP as an account manager in companies moving back to terminals and Northern Ireland, Alan had responsibility for refineries and distributor businesses being sales of fuels, lubricants and fuel cards in a sold. It also started the chain of events that couple of counties within a wider team that led to the creation of larger distributors and was around 30 strong. consolidation as larger businesses acquired “There were four of us on the commercial smaller family distributors. side with a manager and customer service “With no mobiles, it was important to team all based out of the Belfast field office. keep change handy and to know the location Alan McCann – lots of happy memories This set up was replicated in retail which of all the pay phone boxes in your area so you looked after BP’s forecourts in Northern could ring in for messages. At month end I fuelcards or even retail are best placed to Ireland with an order taking and logistics went round and collected customers’ cheques succeed. scheduling team also based at the terminal. also checking the levels in lube oil tanks to see “Used wisely the excellent variety and Now just two people cover these commercial if I could get a bulk order processed too! flexibility of today’s purchasing options can and retail customers.” give distributors a balanced, risk-managed The impact of technology approach. Rather than perpetually chasing the The days of fuel oil “With online access to almost everything from lowest price, distributors should offer a good Moving to Scotland in 1992, Alan looked after smart phones and laptops, processes have quality service and value for money to help an area from Perth northwards. simplified, costs have reduced and much more secure a core of long term customers. And, “For a keen golfer and fisherman, this is now done by far fewer in a shorter space of whilst it may seem counter intuitive offering was a dream location and a fascinating time. time. On the whole that’s good for progress one of the many energy efficiency tools/ I looked after most of the Scottish distilleries but it can be a double-edged sword. devices alongside oil products would help and although I still don’t like whisky or Irn Bru, “In Northern Ireland, which has not seen differentiate. I learnt a lot. On my first trip along the Spey the same level of consolidation as the GB Valley I was paying so much attention to the market, there are over 250 fuel distributors still A recipe for great craic salmon fisherman that I nearly drove off the serving a very small geographical area where “I’ve worked with many fantastic people, road! online pricing and price comparison sites made a host of new friends and have lots of “Between distilling, brewing and paper- have led to a race to ensure your company happy memories. making hundreds of millions of litres of the is the one at the top of the list. This has “Sometimes difficult negotiators, black stuff made its way into industrial boilers led to miniscule margins at levels that are distributors are always willing to lend a helping all over the country. But as gas entered each not sustainable in a market where vanity hand. In 2008, the FPS EXPO in Dublin large site converted and when the pipeline for volume amongst some operators seems coincided with the strike at the Grangemouth extended to Inverness and beyond, volumes preferable to a more measured and mixed refinery. What a time to have all your fell away dramatically. approach that would be more profitable in the customers in one place with 40% unable to “In the early days around 70% of longer term. get any fuel supplies! Over dinner a number customers were on annual fixed price deals “There will always be customers who of new friendships were made enabling with price changes or customer set ups chose the lowest price but they’ll never be Scottish-based companies to travel over the completed on forms and mailed to the office. ‘your’ customer as their volume goes just border to pick up products to fill the gap. That A volatile period was one when prices may be as easily as it arrived. Having been resilient was my highlight of the evening, for others it changed once or twice a month! and worked their way through all the market was watching a certain long-standing credit “We worked closely with authorised changes, this attitude has made it almost manager being taught how to Irish dance! distributors such as Robertson’s Oils, Ellis impossible for the smaller family-owned “Resilient, innovative and entrepreneurial, & McHardy and Scottish Oils as well as our distributors to compete – for me this is their distributors are a very hard working bunch Dominion Oils south of the border. We had biggest survival challenge yet. with a good eye for a deal and great survival national coverage for our accounts and could “In a market which now seems to have instincts. Bear Grylls would be proud of them offer any range of delivery drop size. The a shorter and shorter busy period, those who and I would like to wish them all every success retained accounts business model worked diversify from heating oil into lubricants, for the future.” 16 Fuel Oil News | April 2016 Irish News OPTIMISTIC ABOUT THE FUTURE
LIKE MANY OTHERS, JONES OIL CAN SEE LIGHT AT THE END OF THE TUNNEL, OR SHOULD THAT BE TANKER, WRITES IRISH CORRESPONDENT, AINE FAHERTY
A 100 % Irish owned company, “Everything you read says that duties, levies and different VAT Oil has seen demand increase Jones Oil came about when oil will stay low for a long time rates and the market is rife for from 53% of total commercial Esso ceased trading in branded particularly with over capacity and cross-border trading which will product in 2014 to 61% in 2015 oil products in Ireland. a worldwide fall in demand.” continue says Pat. “But with with the company saying this Geographically the company prices so low, people will be less could rise to 80% in 2016. serves Dublin, the North East, Challenges and inclined to look north. North West and North Midlands. opportunities “However, the single biggest Online sales, initiatives and In 2006 Kilkenny-based Another reason for an increase challenge for our sector is that the future Three Rivers Oil was acquired in business is attributed to the market is very fragmented Online marketing and strengthening its presence in the Revenue Commissioner’s and it has lots of players. With keyword searching are hugely Leinster and beyond with depots handling of illegal and washed so many, it’s hard for players important for website sales. that serve the lower Leinster produce which Pat says was really to differentiate themselves. Offering transparent prices region. squeezing the market. Some consolidation could take to customers, the company’s According to managing website experiences good traffic director Pat Nevin business was volumes. “Customers can see slow from 2008 up to 2014 when that the same price is applicable there was very little positivity all over the territory –and around but things have started customers like this. Offering to turn. tokens and stamps that lead to “2015 was good for us and discounts are other initiatives 2016 is feeling a little better that have worked for us. already,” said Pat. “Falling oil “Jones Oil sat quietly prices have helped hugely with back for awhile but an overall customers who hadn’t bought oil improvement in the economy has from us in two or three years – or inspired confidence to consider indeed from anyone else – now expansion,” said Pat. buying again. We had 201 new 2015 was a busy year customers in the last quarter of TOP 6 which included the company’s 2015 which highlights that more successful takeover of an Esso Oil people are turning to oil now as a FUEL OIL DISTRIBUTORS: REPUBLIC OF IRELAND depot at Claremorris in Co Mayo. real home heating option.” In the next three years, With over 95 employees on Jones Oil – aiming to be the number one brand the company hopes to have the Jones Oil’ books – some are “Despite the administration place,indeed there could be a a presence in each of the 26 seasonal so the figure will drop involved in meeting the demands great opportunity out there which counties and is presently looking back to 90 in spring – but having for reports on business, Jones Oil some business may consider….. for a new venture around the risen from a low of 70, things are has never considered this to be a Pat sees the increase in Galway region. on the up. burden as the outcome of your demand for low sulphur gas oil as “We’re optimistic about the Pat believes that industry and efforts is worthwhile,” said Pat. a positive for the industry as it will future as good things are coming consumers can look forward to Distributors operating in the avoid dual stocking and eliminate together all at once. We aim to low prices for some time to come: Republic are subjected to higher another area of confusion. Jones be the overall No 1 brand.” Topaz transaction Now part of Couche-Tard, Topaz Energy has expanded rapidly in recent years. Jørn Madsen, Couche-Tard’s EVP for Central & Eastern Europe with responsibility for the business in Ireland said: “We’re very pleased to have closed the transaction in such a timely manner and are ready to shift our focus to fully integrating Topaz into the Couche-Tard family.” Fuel Oil News | April 2016 17 Never miss the action on markets with the OMJ
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Our range of Storage Tank Monitoring Systems: www.dunravensystems.com • Local Level Monitoring Units • Overfill Warning Systems • Fuel Tank Security Systems • Remote Tank Monitoring Inside Out The kerosene market revisited
INSIDE OUT FIRST LOOKED AT THE WIDER PERSPECTIVES OF THE UK’S KEROSENE MARKET IN SEPTEMBER 2012, FOLLOWING THIS UP WITH A CLOSER LOOK AT THE HEATING OIL MARKET IN JUNE 2013 WHEN THREE DIFFERENT DEMAND SCENARIOS UP TO 2020 WERE ALSO CONSIDERED
For some years, a feature of kerosene has been the reliance on imported material, with much Future scenarios for heating oil sourced from the Middle East. For the past five or so years indigenous UK refinery production NB: Three underlying assumptions were attrition of existing heating oil users. When of Jet A-1 has covered slightly under 50% common to these scenarios – that the combined with the efforts described in the of requirements with indigenous production requirements in the Code for Sustainable above best case, this scenario is assumed covering 60-65% of standard grade kerosene/ Homes would result in negligible new build to result in an average decrease in oil use of regular burning oil requirements. potential for oil-fired systems, so enabling 3%/year up to 2020 to a total of 2.15 billion Looking at the UK’s six refineries, with the little/no scope for market expansion; that litres, a decline of 14%. Again, the slower exception of the Phillips 66 Humber facility, B30K (bio kerosene) will not qualify for RHI rate of decrease vs. 2013, which projected the lion’s share of kerosene production is incentives; and that oil boilers will be capable falls of 5%/year, reflects the trend since then. earmarked for use as aviation fuel. of meeting the maximum permissible NOX As a consequence of gas oil being used emissions limit of 120 milligrams per kilowatt Worst case (2013) – a 90% probability of a for heating across mainland Europe, there is hour set by the EU for 2018. better outcome very limited liquidity in the spot market for refined products in either north west Europe Best case (2013) – only a 10% probability Worst case (2016) – builds on the previous or the Mediterranean for standard grade of a better outcome case, except that in pursuit of its 2020 goal kerosene. This has possible implications for for adoption of renewable heating sources, heating kerosene’s longer term availability Best case (2016) – assumes that efforts to the government pursues a more aggressive and puts into perspective Esso’s decision to promote improved boiler efficiencies, better promotional stance through more generous/ discontinue supplying this some years back. insulation and lower emission levels from attractive RHI incentives such as upfront installations will enable heating oil suppliers funding. This scenario is projected to lead What developments have taken place to hold on to the lion’s share of existing to a 25% fall in oil demand by 2020, to a since 2013? users. It is assumed that the resulting fuel total of 1.88 billion litres. The lesser reduction In recent years, Jet A1 aviation fuel has savings from these initiatives will lead to an vs 2013, which projected a 50%, decline accounted for just under 80% of the overall average 1% per year reduction in heating oil reflects the 2012-2015 actual trend. kerosene market. The received wisdom demand to 2020. suggests continued growth in demand at a From 2.5 billion litres (2015), this would The RHI has now been extended to 2020/21 relatively modest annual rate of around 2%. result in a market of 2.38 billion litres in with its annual budget rising from £430m Just prior to the recession, demand 2020, a decline of 5%. This is a slower in 2015/16 to £1.15 billion in 2020/21; peaked in 2006 at 15.8 billion litres. For the rate of decrease vs. 2013 when a 3%/year these changes are not considered material past five years demand has stabilised at just reduction was projected; this reflects the in framing the above outcomes. A key over 14 billion litres per year. While most actual trajectory/trend in market demand impediment to adoption of one of the five projections suggest a continuing rise in annual since. eligible renewable technologies remains the passenger numbers, significant improvements upfront installation cost. in aircraft engine fuel efficiency and benefits Average case (2013) – a 50% probability The key milestone date is 2020 when from the use of lighter construction materials of a better outcome, deemed to be the most the government hopes to have met its GHG such as composites in the Boeing 787 are representative future case emissions reduction target and raised the resulting in a lower burn. contribution of renewable energy sources Experiments in the use of bio-kerosene Average case (2016) – assumes that for heating to 12%; the future state of the have been ongoing with airlines such as government efforts/initiatives to promote kerosene market will perhaps be clearer at KLM and Lufthansa burning bio-blends of renewable sources will result in a measure of this point…. up to 50%. The International Air Transport Association projects that such blends could constitute up to 6% of total worldwide UK heating oil market demand, spanning a Much will depend on how proactively aviation fuel consumption by 2020. minimum/maximum range of 500 million and aggressively the government promotes Over the past 5 years demand for heating litres. On the basis of the relatively stable, its 2020 targets for GHG reduction and oil has also plateaued and now stands at just unchanging level of usage over the past 5 renewables. It will also depend on how under 2.5 billion litres per year. years, the most plausible outcome may fall effectively the heating oil supply sector is able Thes above scenarios attempt to present somewhere between the projections in the to nurture its 1.1 million users. The challenge projections of possible outcomes for future average and best cases. is there! Fuel Oil News | April 2016 19 Analysis LOWER FOR LONGER
THE PROLONGED DECLINE IN GLOBAL CRUDE OIL PRICES CONTINUES TO UNDERPIN LOWER FUEL COSTS FOR CONSUMERS, AND A RETURN TO SIGNIFICANTLY HIGHER PRICES SEEMS INCREASINGLY UNLIKELY IN THE NEAR TERM SAYS JAMES BURGESS, EDITOR FOR EUROPEAN PRODUCTS REPORTS AT ARGUS MEDIA The consensus is growing that the lower Third, Opec has thrown in the towel. The oil price environment is set to remain for production cartel led by Saudi Arabia has the foreseeable future. Barring a major capitulated, abandoning its policy of propping “THE REALITY OF THE geopolitical event, the upside to global crude up prices, succumbing to the reality of market oil prices should be fairly limited, and no-one dynamics in an attempt to force high cost GLOBAL OIL PRICE expects a return to $100/bl crude any time producers to cut production. After declaring no DECLINE HAS FORCED soon. For all the talk of an agreement between change to its production ceiling in late 2014, A REVIEW OF SEVERAL Saudi Arabia, Russia and other producers in a year later Opec removed any pretence of Qatar in February, there has been no affect on a production cap, adding further downward ASSUMPTIONS” production, and in fact the countries agreed momentum to an already over-supplied nothing more than to cap production at market. historically high levels, when the prospect of increased production from those countries was limited. And crucially, major producer Iran has not joined the agreement, wanting to regain the market share it lost when the US imposed sanctions on the country. The reality of the global oil price decline has forced a review of several assumptions. Crude oil prices at 12-year lows have surprised many, with prices below $30/bl at the start of the year. The International Energy Agency points out in in its latest Medium-Term Oil Market Report that the expected strong boost to demand, a large-scale shut-in of high-cost crude production and a cut in Opec output simply have not materialised. Oil demand did receive a boost last year, particularly for light products. The increase in gasoline demand in the US and China caught many by surprise, leading to multi-year high Global oil oversupply is expected to last throughout 2016, and as demand fails to keep pace with margins for gasoline in the peak summer increasing regional supply and high levels of imports, the supply glut for diesel is particularly acute demand season. But global diesel demand has stuttered on concerns over economic growth in emerging markets. And growth in US gasoline The global oil oversupply is expected to Diesel scandal demand, still a major driver of European prices, last throughout this year, with the surplus UK diesel car registrations appear to be is expected to be flat this year. running at 1.2mn b/d in 2016. The supply glut largely unaffected by the Volkswagen Secondly, US shale oil production – the is particularly acute for diesel, with demand scandal, in which the German car game-changer in global oil markets over failing to keep pace with increasing regional manufacturer was found to have cheated the last five years – has proved much more supply and high levels of imports from Russia, emissions tests for its diesel cars. Diesel and resilient than the market expected, with the Middle East and India. Lower prices gasoline car registrations both grew last producers able to adapt to the lower price boosted diesel demand in Europe last year, year, though the growth in diesel cars was environment as fracking technology has but much of the boost could be a one-off much less pronounced than for gasoline developed and by cutting costs. Output has response to lower prices. Refineries in Europe vehicles. But the pattern of growth for now started to decline for the first time in appear vulnerable to closure again after last diesel cars after the VW scandal broke was around six years, but remains at over 9mn b/d. year’s strong margins, as competition from largely unchanged from the trend earlier US shale could now become the swing crude lower cost foreign refineries remains fierce. in the year. In the US, however, new diesel supply, with Saudi Arabia and Opec committed Europe remains increasingly reliant on imports car purchases have virtually ground to a to maintaining high production, and shale to meet diesel demand, despite the current halt, as consumer confidence in the vehicles production able to respond relatively quickly to regional glut. collapsed. higher prices. 20 Fuel Oil News | April 2016 See us at FPS FIRST FOR Stand 46 FUEL POLISHING
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A NEW CONCEPT FOR THE TECH-ERA
“MY AIM IS TO PUT A SYSTEM IN PLACE THAT REMOVES INEFFICIENCIES IN THE BUYING AND SELLING OF FUEL,” JAMES STAIRMAND, INSTIGATOR OF ONLINEFUELS TOLD FUEL OIL NEWS
“The OnlineFuels concept is a downstream oil different location or from a supplier that they develop further as we listen and react to the market platform connecting buyers and sellers wouldn’t automatically think to contact. market’s evolving needs. of oil, electronically. For those buying from importers and/or refiners – whether that’s What additional benefits will Is OnlineFuels suitable for both large ex-rack or delivered in – it offers an exchange OnlineFuels offer fuel distributors/ and small distributors? format where companies can ‘bid’ and ‘offer’ suppliers? A tool which allows a buyer to see everything on fuel quickly and efficiently,” explained For the distributor, the benefit is the ability to clearly is of value to both large and small James. purchase fuel simply and quickly from a range distributors. Enabling the distributor to also of suppliers based on their specific buying bid for fuel, helps them to buy well. We’re also What sparked the idea for criteria – location, product, credit terms etc. looking at integrating the model with hauliers OnlineFuels? For suppliers it’s having the ability to see to help on optimising delivered in loads. Having seen the growth of internet sales customers and traded prices in several areas. Buying habits in the industry have during my years in the oil industry, I believe Sellers tend to know only what price their changed and whilst many distributors will have the industry and its customers have a growing product is sold for. This tool allows them to contracts in place, more are buying on a spot appetite for a much simpler way of buying and see if changing margin aspirations will impact basis. We’re also working closely with suppliers selling. volumes. to combine their contract prices on the A very high proportion of the newest and And, there’s just a small fee payable on a platform with certain customers. We believe most innovative companies are tech-based throughput basis – if nothing is bought or sold, that offering this level of transparency to both and don’t own assets – Uber, doesn’t own it will cost nothing. buyer and the seller will prove to be of great a taxi, Amazon doesn’t publish books and value to both parties. Airbnb, doesn’t own a hotel – globally our How has the concept been received buying habits are changing and as long as a by suppliers/distributors with whom system is trusted we’re increasingly happy to details have been shared? click and buy online. On the selling side, people have been very positive – they can see the advantage of How will the platform work? having an online presence, and knowing where Prices will be visible but anonymous. Similar the market is at any time. We’re working on to Rightmove’s search capacities, buyers and some exciting things on the delivered in side to James Stairmand has been in the oil industry sellers will enter certain criteria – grade of fuel bring more opportunities for both buyers and for 10 years. As a student he had a placement required, when they want to collect, credit sellers. at V-Fuels, a Northumberland-based biodiesel terms etc. Suppliers will be able to see the With distributors having had another company, where he stayed for a further six buying interest in their markets and decide relatively mild winter, this platform brings months after graduating from the University whether or not they wish to sell at the bidding an opportunity to buy smarter whilst for of Newcastle. Attracted to a wider fuels role levels received from interested buyers. suppliers it brings more selling opportunities. James joined Mabanaft in late 2008 where We’re very clear that simplicity is the It’s all about adding tech value and creating he spent almost 7 years in marketing, biofuels, key. We want users to be able to buy and sell efficiencies for the industry. operations and supply roles gaining a good with ease on a daily basis so initially there will As we’re introducing buyers and sellers knowledge of the import market within the UK. be just a delivered in price and ex rack price to a new method of buying and selling, we For more information call James on +44 option. OnlineFuels will allow buyers to look expect buying interest to build up over time as (0) 20 3675 5000. To register for an account at different options – to try buying from a the added value is realised. The platform will log on to www.onlinefuels.com Fuel Oil News | April 2016 23
Analysis DEALING WITH A NEW DIVIDE THE FALL IN THE PRICE OF OIL FROM OVER $120 PER BARREL TO A 12-YEAR LOW OF AROUND $27 PER BARREL HAS EXPOSED THE CHALLENGES FACING PRODUCERS. DR CRAIG LOWREY OF UX ENERGY SERVICES GIVES HIS OPINION ON RECENT DEVELOPMENTS AND CONSIDERS WHAT THE FUTURE HOLDS
Prior to the financial crisis, oil price rumours began to circulate to coordinate with Russia unlikely. attempt to reduce production predictions were up to $200 per of discussions regarding a There is also a distrust of to increase price will ultimately barrel on expectations of rising production cut by OPEC – Russia within OPEC after the be self-defeating, as it will only demand and the need to tap one that could be met with last attempt to coordinate a encourage more US oil onto unconventional sources to meet cooperation by Russia, the world’s production cut ended in failure. the global market if more wells it. In the wake of the 2008 global largest non-OPEC producer. Over 15 years ago, and after become economic. economic slump, prices dropped Mid-February saw the initial almost two years of negotiations, Barring ‘a major geopolitical to around $30 per barrel, but in outcome of these talks – a OPEC and Russia both agreed to event’ latest indications from the the early part of this decade the production freeze agreed by the reduce oil output – again to help International Energy Agency are market rallied to nearer $120 world’s two largest oil producers support prices. However, instead that oil prices will only start to in response to rising Chinese – Saudi Arabia and Russia – as of scaling back its output, Russia recover in 2017 with the healthy demand. well as by Qatar and Venezuela. increased its production while supply situation and high level One of the consequences Although initially seen as a OPEC nations complied – the of oil in storage muting any of this rebound was to make positive step for the producers arrangement collapsing soon potential rally in the short term. American shale oil increasingly and one with the potential to after. However, with the recent slump commercially viable, boosting support prices, the details of the in the market having resulted production in the US market deal showed little fundamental “AGAINST THIS in a slowdown in investment in and, in turn, challenging OPEC’s change. BACKDROP, CAN exploration and production, time dominance. In November By agreeing to freeze output will tell as to its impact on prices 2014 OPEC, and Saudi Arabia at the levels seen in January ANY DEAL TO CUT in the long term. in particular, made a crucial 2016, the nations had committed PRODUCTION In the short term, those oil decision. Instead of focusing on to maintain production close producing nations hoping for a price, the defence of market share to record highs. Furthermore, BE ACHIEVED, rebound in the market may do emerged as the key objective, in the presence of limited AND MORE well to look at the “prisoners’ with the expectation – or perhaps demand growth, by failing to cut IMPORTANTLY, dilemma” scenario, which is well hope – that the resultant increase production there would be no known in a branch of economics in supply by OPEC would push the erosion of the current supply glut. SUCCEED?” called game theory. This scenario price down to a level that would More crucially, the deal did not shows how rational individuals make US production uneconomic. have the participation of Iran. often refuse to cooperate, even However, with US wells Also an OPEC member, With national budgets in though it is in their best interests proving much more resilient Iran is seeking to rebuild its oil these key producing nations to do so. Here, the best outcome than expected, OPEC members production and exports following coming under increasing pressure, for the game’s participants is are now struggling with the the removal of most economic it is possible that the collective yielded when they trust one consequences of both their sanctions imposed by the US and self-interest will ultimately yield another. Unfortunately, unlike actions and a slowdown in the EU. Iran wants to re-establish its a deal, provided that compliance oil, trust among the producers Chinese economy – a massive share of the global oil market, and with it can be suitably policed. appears to be a commodity that global supply glut of oil. Although has stated that it will not be part In the short term, however, is in short supply! beneficial to consumers, the of any arrangement that runs no deal on reducing production resultant oil price slump has counter to this objective. can be reached without the had considerable adverse These statements only serve commitment of Iran – Tehran consequences for nations that to highlight the deep seated indicating that it would need rely on revenues from fuel sales divisions within OPEC, particularly to be treated as a special case. to balance their budgets – not to between Saudi Arabia and Iran. Even without the involvement of mention those companies that These have been exacerbated by Russia, OPEC nations have always operate in the sector. recent events in the Middle East struggled to rein in production that could make cooperation in line with any quotas, with the Something had to be done on oil matters between the two reliance on a third party to do For nations hardest hit by the difficult, if not impossible. Failure likewise only further complicating falling oil price, something had to resolve these internal problems matters. Longer term, there to be done. In recent months, makes putting on a united front is also an argument that any
Fuel Oil News | April 2016 25 FPS Expo, 20/21FIND April US 2016AT Stand 130
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Why not talk to Wincanton? Call 0844 335 0502 or go to www.wincanton.co.uk/energy The top products and services for the fuel distributor in 2016 K U N P O G W R IL A N E W IDE AS D ND E OG LATEST DEV ELOPMENTS AB TE NETW ORK I NG S O PPOR TUN I T IES N ANSW ERSP D INFOR MA T I ON V A I C C SOLUT I ONS E I C EFFICIE NCY
Many of the items detailed will be on display at this month’s FPS EXPO which takes place in Liverpool on 20 and 21 April. Fuel Oil News | April 2016 27 InTanker Conversation & Depot
Since the launch of automatic closure of the tanker delivery the NEW CHECKMATE manifold at a predetermined point before with TRUCK III register a pre-set delivery ends. This leaves the ALPECO has seen manifold and associated pre-meter pipe significant orders for work empty of product after every delivery. its MF truck metering The benefits being reduced line change systems, from new and volume and minimal cross contamination existing customers who recognise the when switching between grades. benefit of the new anti-cross over, inventory alpeco.co.uk and Acti-clear features which the new Bridgewater-based Western Fuels has recently system offers. taken delivery of three new tankers from Road As revealed in last month’s Fuel Oil Tankers Northern, all are equipped with Alpeco’s News (see page 19) Acti-clear facilitates bottom loading and MF400 metering systems
ANTON PAAR’s NEW APPLIED PUMPS offer a complete fluid The NEW Tera-TX non- SVM™ 3001 Stabinger equipment program for fuels and oils. metal antistatic and FR Viscometer™ is a highly Jessberger drum pumps economically workwear range from precise kinematic empty 200 litre drums and IBCs. Available Tranemo Workwear is now viscometer with an hand operated or with 110v, 230v, 400v or available through ARCS integrated density pneumatic motors they are also ATEX certified. N SPARKS Corporate measuring cell. SVM™ Victor S series self-priming, centrifugal Clothing. 3001 gives you more parameters than any pumps will transfer petrol and fuel oils at Tranemo Workwear has over 80 years’ other kinematic viscometer on the market. high rates. Quality engineered, they are used experience of manufacturing high quality and A single measuring cycle on a small sample for transferring bulk fuels. Gear pumps are functional workwear. Its TeraTx inherent FR volume yields kinematic viscosity, density, available often from stock to move moving range has been a big success across sectors dynamic viscosity, viscosity index and more. viscous heavy fuels and lubricants all can be that require lightweight inherent flame As the density cell of SVM™ 3001 is supplied with matching flow meters, pipework, retardant, antistatic and electric arc protection. integrated, the density measurement does valves and filters to suit requirements. Screw The new TeraTx range is available not need to be carried out separately. One pumps become the perfect solution when high in both hi-visibility and non-HV options. combined measuring cell covers the entire pressures and high flows are important. They Completely metal free, FR plastic zips and measuring range for viscosity, density and are extremely quiet too! These pumps are buttons are used making it a perfect solution temperature and is filled in one go. Due to available with API certification and also have for fuel logistics, ATEX environments and its measuring principle, the measurement approval from Lloyds, ABS, DNV and many electrical installations. duration is independent of the sample’s others. [email protected] viscosity. A minimum sample amount of only appliedpumps.co.uk 1.5 ml is sufficient for the multi-parameter results including calculation of API degrees. anton-paar.co.uk
The new SVM™ 3001 is designed for testing of lubricating oils, base oils and additives but also Fabric weight is only 260gm and the range grease and wax in compliance with ASTM D7042, Applied Pumps also custom build skid sets and offers both trouser, jacket and boilersuit D2270, D4052, D7152, D6074 and EN ISO 12185 pump packages with purpose built control panels options with ripstop construction
28 Fuel Oil News | April 2016 CivaStar is the next evolution of advanced overfill prevention from CIVACON, part of OPW. CivaStar’s unique design, construction and LED visual verification feature are ‘light years ahead of today’s conventional probes’ says the company. By including an LED-lit tip at the end of each probe, technicians can quickly verify the active status of the probes and the connecting wires. CivaStar’s optic sensor head is easy Aztec Oils will be on stand 21 at FPS EXPO where examples of its high quality labels can be seen to install and incredibly accurate. With no need to reset probe heights and pinpoint diagnostics of non-permissive probe readings, Now one of the major independent suppliers brand labels along with a confidential toll technicians spend less time in the garage and of an extensive range of lubricants and blending service. drivers spend more time on the road, keeping greases, AZTEC OILS offers nationwide and The company, which attributes its success deliveries on schedule and customers happy. international distribution from its two sites in to its commitment to customer service has civacon.com/civastar the Midlands. accreditation to ISO9001, ISO14001 and A full range of container sizes can be OHSAS18001 which is assessed annually. supplied, from one litre bottles to 28t bulk aztecoils.co.uk tankers. Aztec can also offer bespoke, own-
BLACKMER® recently evaluated its TX Series sliding vane pumps against imitation or “knockoff” versions in a variety of lab tests – results of these lab tests can be viewed at www.blackmer.com/txstrong. For more than 100 years, Blackmer has been building pumps that work flawlessly in even the toughest conditions. Blackmer TX Series pumps offer reliability, durability and efficiency that inferior knockoff pumps simply cannot provide says the company. Blackmer backs its TX Series pumps with a 5-year standard warranty, and a two-year performance assurance. blackmer.com
Blackmer TX Series pumps are available in Backed by a 5-year warranty CivaStar is 1.5-, 2-, 2.5-, 3- and 4-inch port sizes with flow available in a 2-wire format for use with rates from 2 to 113 m3/h (10 to 500 US gpm) onboard monitors, and 5-wire format specifically and pressures up to 8.6 bar (125 psi) designed for straight optic loading racks
Fuel Oil News | April 2016 29 InTanker Conversation & Depot
The COLLINS YOULDON brand has long been synonymous with high-quality Now with over 90 years’ experience hosereels which are used for the delivery of a large range of products including water, in workwear manufacturing, fuel oil, aviation fuel, LP gas, lubricants and chemicals. DICKIES WORKWEAR has The company’s reels are used in an extensive range of applications worldwide introduced a number of NEW and are offered in zinc-coated and polyester powder-coated mild steel, galvanised mild products and ranges – all can be steel and also stainless steel. found in the NEW 2016 catalogue A range of manlids and breather vents are offered for use on road tankers and launched last month. static tanks as well as aluminium roller shutters, which have been specifically designed Employing the latest developments in fabric to meet the needs of the aviation and petrochemical industries. technology and manufacturing techniques, Dickies’ high [email protected] performance workwear is suited for even the harshest working environments. dickiesworkwear.com
DIXON GROUP EUROPE will be exhibiting its FloTech branded overfill prevention system and Bayco petroleum products at FPS EXPO. ATEX approved FloTech equipment is compatible with rack monitors found throughout the UK and Ireland whilst the FT555 truck overfill prevention system tester allows for single operator wet test operation and can test 2 and 5 wire systems. The stand will also feature the unique FloTech Plug & Play wiring system that has been proven to significantly reduce the installation time of the tanker mounted probes and sockets. dixoneurope.co.uk
An on site spares and maintenance service is now available from Dixon
Print, media and marketing services – with documents and marketing collateral. 20 years’ experience working with fuel An ever increasing number of oil distributors around the UK and Ireland, distributors are using the company’s
ECONOPRINT has gained extensive services to help promote themselves, Performance, comfort and protection knowledge on how a distributor operates streamline operations, gain more market at an affordable price and what they require to maintain a share and help improve profit margins. successful operation in terms of printed econoprintgroup.co.uk
ELAFLEX produces light weight reeling hoses and nozzles for AdBlue, aircraft refuelling, heating oil, LPG, and pumps. The hoses are of an extruded construction giving high flow rates and low pressure drop and are available in lengths of your choice up to 80 metres. The company also supplies the Elaflex Mann Tek range of DDC dry disconnect hose and tank couplings. The couplings comprise two halves that connect and disconnect for a spill-free operation. Complementing these, the company also offers an extensive range of safety break-away couplings and full flow ball valves with optional pneumatic actuation. The Elaflex range of ERV-rubber expansion joints allow for large axial, lateral and angular movement and absorb tensions caused by temperature changes. They are suitable as a pipe insert. www.elaflex.co.uk Elaflex hose available in lengths of up to 80 metres
30 Fuel Oil News | April 2016 EMCO WHEATON exists to meet its clients’ being trustworthy and producing only well- Now well into its 11th year supplying exocet- growing need to sustainably transfer oil, gas designed, quality equipment. branded fuel additives to the fuel distribution and chemicals. emcowheaton.com industry, FAST continues with its intent to Through our design and manufacture offer class-leading products and technical of tank truck equipment and DRY-BREAK support to new and existing customers. couplers we have built an enviable reputation “A big push for 2016 is to promote for reliability & durability and delivering those products in our range well beyond the quality products. kerosene additives for which we have become With more than 100 years’ experience known,” said managing director Neil Ryding. working in the fluid transfer industry, along “This includes products for gas oil, diesel with the pedigree, knowledge, innovative and fuel oil, all designed to enhance the fuel attitude and skills required to produce world supplier’s offering and to optimise combustion leading equipment, we provide strength performance for the end user, with view to and stability to get the job done and are meeting the ever-increasing demands to proud of the quality products and services demonstrate sustainability. we deliver. fastexocet.co.uk Our decades of experience have helped us grow into a world-leading fluid transfer Working with colleagues at Gardner Denver Energy, Emco Wheaton is helping clients meet the world’s company that is recognised by our clients as growing need for energy both today and in the future
With 35 years experience From its pump workshop in Sussex in the pump industry, EPS can supply on and off site servicing, re- EUROPEAN PUMP manufacture of obsolete parts, and overhaul SERVICES (EPS) has been pumps to an ‘as new’ condition. manufacturing Ex ATEX [email protected] pumps for the UK’s fuel oil market for 15 years. EPS has gained extensive application and site knowledge ensuring the correct solution to any pumping requirement. The NEW range of positive displacement offload/stripping pumps, with capacities up to 1000l/min, complements the standard range of DIN 24255 Ex ATEX centrifugal loading pumps. From receipt to delivery EPS pumps will take care of your pumping requirements. The comprehensive ‘catalogue’ range of pumps and pumping equipment from The development of additives for bespoke submersible pumps to hoses and fittings are fuels and applications was a growth area for all ready for immediate despatch. Pumps are built from EPS stock and FAST in 2015 and is something that FAST is typically delivered in 2-3 weeks always keen to discuss with customers
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Fuel Oil News | April 2016 31 Visit us at FPS Expo 2016 on stand 92
Liverpool Exhibition Centre 20/21 April
Stanlow Refinery has been fuelling Britain for over half a century, providing the high quality products behind many of the leading brands. Essar has invested significantly in Stanlow’s infrastructure, enabling key production units to be re-lifed for the next 25 years. In addition, continuous upgrades to our terminal facilities and back office systems ensure we provide quick, safe and efficient loading operations and administration that are amongst the best in class in the industry. For further information contact our Sales Support Team on: +44 (0) 151 350 4003 or email: [email protected] www.essaroil.co.uk
The customer’s supply point of choice. InTanker Conversation & Depot
Struggling to secure HYTEK Fuelling funding to purchase the Equipment supplies a equipment you need? wide range of products Why not consider hiring as for transferring fuels & an alternative. lubricants. FILTERTECHNIK Traditionally known has recently launched for handling refined its filtration hire fleet, capable of removing fuels & lubricants, Hytek’s NEW Flow Meters contamination from a wide range of stored division now has the capability to meter, fuels and oils. The fleet is the largest available monitor, batch & blend many industrial in the UK with a comprehensive choice of products from aggressive chemicals to more systems to suit any application and budget. inert liquids and process solutions. From flow rates up to 500 L/min alongside low Amongst Hytek’s NEW products are the running costs and immediate deployment, Alpha commercial diesel dispensing pumps, Filtertechnik’s hire fleet can be counted on for ATEX approved to meet the requirements of clean and dry fuel and oil. the CPL regulations and the revised flash point All systems are suitable for a wide range of diesel. Pick up a copy of Hytek’s new 32-page Flow Meters of industries including plant equipment hire, www.hytecgb.com catalogue and the 236-page full product catalogue or request digital copies at the Hytek stand mining/quarrying, rail, injection moulding, marine, banking, data centres and stand by power generation. filtertechnik.co.uk IFC INFLOW will be available to answer all your depot loading questions at FPS EXPO. “Whether you’re planning a new depot or upgrading an existing one, IFC’s stand (81) – complete with a fully featured bottom loading skid – is the best place to find all the answers,” says operations director Kiran Shaw. “The main focus No matter how large or small your this year will be on application, contact the Filtertechnik team This IFC mechanical skid was part of an upgrade for to discuss your project in more detail electronic tanker loading Ukay Fuels’ Somerleyton depot in Suffolk control with our MPC100 batch controller, depot FMA SYSTEMS provides flow measurement automation software and & automation solutions to the petroleum integrated temperature industry. Our terminal automation from compensation for new and systems to solutions and products are industry existing loading systems. recognised, and offer simple yet reliable, user Also on display will be our friendly automation solutions, used by satisfied range of Man-Tekk dry oil companies internationally. disconnect couplers and Focusing on a customer centric approach, safety breakaways for safer FMA offers – terminal automation systems handling of hazardous (DepotVisor and taOpen); meter skids, loading products. arms and grounding/overfill prevention IFC also offers a systems and smart additive injection systems; range of other bulk liquid maintenance and support services; meter handling solutions for the oil proving and calibration/certification services; distributor, including intake engineering, procurement, construction and meters, bulk transfer pumps, commissioning of loading systems, including top and bottom loading metering and all associated loading, blending arms and safe tanker access A new electronic skid from IFC for Estuary Oils’s Caldicot and safety equipment. systems. depot in Monmouthshire – read the interview with fma-systems.com ifcinflow.com Andrew Mould in FON’s November 2015 issue 34 Fuel Oil News | April 2016 New owner and seen many hours on the test rig to simulate years of use. Before new equipment being released, all products undergo vigorous development at Liquip and quality assurance and meet all certifications for Now part of OPW, each distributor’s particular a Dover company, geographical area. LIQUIP was Having looked after founded in 1968 Liquip’s terminal equipment by Bill Currey with interests in the UK since 2002, a $500 investment. with the occasional visit to the Having worked for Shell for many Sydney factory, Mike Green was years Bill had good knowledge of recently invited to visit Liquip’s the tanker industry, he listened Australian operation. to what drivers had to say, then “The factory is buzzing and started to manufacture driver I can see that change has been and industry friendly products be a good thing. OPW is driving eventually building up a worldwide forward with an energy not seen organisation. since Bill ruled and I believe this Liquip not only offers a range will be good for us here in the UK. of terminal and tanker equipment, “For 15 years, Liquip UK it also has the facility to build/ has continued to supply loading test tankers and to manufacture/ arms and couplers and earth test loading skids within their overfill monitors to many major home markets. A full size loading petroleum companies and we look bay within the factory grounds forward to this continuing under enables all terminal products – the OPW/Dover umbrella,” added such as the NEW LBM 800 bottom Mike. loading arm and NEW 800 series liquip.co.uk This latest depot skid equipment package was supplied bottom loading coupler – to have to AT Smith who manufactured and installed it
MECHTRONIC will be launching two innovative NEW products designed to provide Based in West Yorkshire MELLER simple and cost-effective discharge solutions FLOW TRANS specialises in for the customer. engineered product transfer OptiMate: MechTronic’s NEW metering solutions for the transport system – OptiMate answers the industry issue industry. From ATEX approved of fuel contamination, both on & off the vehicle liquid handling cargo pumps to and increases productivity with a simple three high volume powder blowers, from button driver interface and automatic line simple hydraulics to specialist change function. Optimate features gravity cryogenic metering systems. metering giving operators an increased range Meller can design, supply, install of delivery options. and service product transfer VisiLevel MK. 3: The VisiLevel technology regardless of your gauging system is now ATEX-approved and market sector. available with product colour recognition Meller Flow Trans also to detect between red and white diesel. specialises in ADR and Safe With temperature, density and volume Load Pass upgrades on both measurement, VisiLevel ensures the driver tractor units and rigid chassis. avoids costly contaminations. This process is supported by Also on display at stand 14 will be the fact that Meller holds its MaxFlow, StockSmart and a variety of service own European Community upgrades. Whole Vehicle Type Approvals mechtronic.ltd.uk OptiMate – the new metering system from (ECWVTA) on many truck models, MechTronic which ‘answers the industry issue of fuel contamination both on and off the vehicle’ eliminating the need for IVAs. melleruk.com Fuel Oil News | April 2016 35 Brian Edwards 07831 617 616 Doug Watts 07770 837 829 [email protected] [email protected] Adrian Mason 07703 715 701 [email protected]
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36 Fuel Oil News | April 2016 Tanker & Depot
OPW’s Kamvalok® dry connected in any orientation onto With its range of customisable systems provide video footage for disconnect couplers bring unique the adaptor and a dual protection camera systems, vehicle safety reference in a defence or claims poppet action to eliminate design, which provides automatic specialists SENTINEL SYSTEMS situation, or for live viewing and spillage of any residual liquid closure from both directions – the offer complete visual protection surveillance. contained within the line after coupler and the adaptor. for HGVs. reversewithsafety.com disconnection. Perfect for transfer opw-es.com A variety of cameras are points where product loss is available with up to eight unacceptable and ideal for fuel oil channels viewable on an in-cab transfer applications. monitor. The camera systems Available in a variety of sizes, assist drivers in every day stainless steel and aluminum manoeuvring and offer greater materials, and 360 degrees of protection to cyclists, pedestrians orientation, couplers can be and other vehicles. optimised for your needs. Plus, Sentinel Systems offers no matter the material being a range of reversing, side and transferred, connections and forward facing cameras, all disconnections are a snap. of which can be combined to The couplers also feature provide an all-round view of the locking operating handle and vehicle’s surroundings. When Camera systems for live viewing OPW Kamvalok couplers – particularly and surveillance, they can also cam arms, and a 360-degree well suited for handling petroleum combined with Sentinel’s mobile provide video footage for reference orientation so the coupler can be products such as fuel oil DVR device with GPS, the camera in a defence or claims situation
SOS upgrades its ultimate suction pump After seven successful years on with polystyrene for trouble-free what was wrong with the pump SOS will be at FPS EXPO the market, Specific Oil Solutions shipping and carries a 5-year to which he replied: ‘One of where the company will also (SOS) has upgraded its Ultimate warranty (excluding vacuum our guys has driven over it in a be launching its NEW Ultra Liquid Suction Pump. gauge and semi sacrificial final/ tanker so it’s definitely had it – Compact fuel tank valve. Mark Green, technical short hose connection).” it’s now completely flat!” [email protected] manager at Rix Heating which has used the Ultimate pump for The first customer many years, said: “We wouldn’t Seven years ago Ludlow-based be without this pump. We’ve combustion technician Jamie used other types of oil suction Pearce was Stuart’s very first pumps in the past but none have Ultimate pump customer. been as reliable and clean as the “Jamie has now taken Ultimate – our engineers say delivery of a new upgraded it’s one of the best tools in their pump,” explained Stuart. “And van!” that’s not because his old pump Amongst the pump’s has reached the end of its life…. upgrades are new labelling and “His 7-year old pump, which a purpose-made highly durable is still going strong, is now being suction hose assembly. used for dirtier gas oil jobs whilst “The bespoke version for his new pump is reserved for the oil-fired heating & cooking cleaner kerosene work.” industry is future proof,” said SOS owner Stuart Bratt who Tanker drivers beware designed the pump at his Stuart recently had a call from a Shropshire base. fuel distributor enquiring about “This pump is suitable for buying a new suction pump. all fuel oils including biofuels “He asked me if I had up to B100k concentration. any new pumps in stock. But Plus the full bore hose design knowing that the original renders blockages from debris Ultimate pump is ultra reliable, removal all but a non entity. I did suggest that there was no Jamie Pearce (l) with his 7-year old pump and Stuart Bratt (r) with The pump comes in a sturdy need to replace it. With spare the upgraded pump which includes an anti-blockage full-bore hose double-skin cardboard box lined parts always in stock I asked assembly suitable for kerosene, gas oil, diesel and biofuels
Fuel Oil News | April 2016 37 InTanker Conversation & Depot
TECALEMIT – part of the HORNGROUP of companies which offer TOUCHSTAR TECHNOLOGIES has been supplying mobile computing products and services related to air, fluids and fuels – is a premium solutions to the petroleum industry for over two decades. supplier of equipment that is rugged, reliable, easy to use and cost Specialising in the design and supply of ATEX certified mobile effective. devices, the company’s solutions include bespoke software for a wide Proud of its Made in Germany heritage, the company offers a variety of in-cab and mobile applications, including driver navigation, standard two-year warranty on all products. Full technical, marketing fuel delivery, driver communication, telematics, routing and scheduling, and after sales support gives confidence that you have the best and proof of delivery. products and services available. touchstar.co.uk Products available include – fluid, fuel and oil transfer pumps; fluid and oil management; level control systems; diesel dispensing stations; AdBlue® transfer, dispensing and storage equipment; hand pumps; electric pumps. tecalemit.de
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38 Fuel Oil News | April 2016 Tankers & Logistics
Trial run
BOBBY BLAIR HAS BEEN DRIVING TRUCKS SINCE HE WAS 21-YEARS OLD. SPENDING THE FIRST 10 YEARS IN CHEMICALS, HE HAS BEEN A FUEL TANKER DRIVER FOR 23 YEARS
Starting with Scottish Oils, control perspective, this system Bobby – a driver coach at BP’s lets us see exactly what’s Grangemouth terminal for the happening every step of the way past 12 years – has been trialling and if anything should go wrong, new equipment on his tanker for we’re right there bang on target the past year. Fuel Oil News spoke at the point of control to switch with Bobby about his findings. off the equipment and minimise The equipment trialled – the any damage. For me personally, Emco Wheaton EW Selector and I would like to see these changes the Combi-Cabinet – offers a applied to all trucks. system whereby the driver has no need to travel along the tanker’s A winner API envelope in order to operate “Looking back to when tankers it. were first manufactured, there haven’t really been that many What differences did changes and most have been Bobby find between this cosmetic; in fact this system is new equipment and that Emco Wheaton engineers. Bobby Blair the biggest change that I’ve ever previously used on his “With Scotland seeing more seen. The equipment looks better, tanker? severe weather than elsewhere it’s more robust and it’s safer – I “The basic fundamentals are the in the UK, my only concern was think it’s a winner!” same but with slight differences that all the pipework and airlines on the functionality of the valves. were exposed to the elements The foot valves are located but there’ve been no problems directly above the handles so if whatsoever.” there’s any failure you’re right at Bobby shares the vehicle with the point of control which makes two other drivers and reports that the whole operation much safer,” all three soon got to grips with the said Bobby. new equipment. “The older box cabinet had a “Our work is not about massive control button making it how quick we can be, it’s about fiddly to operate, this one is more procedures and safety. The most compact and it’s much easier to important point with gravity get your fingers on the button.” feed is that product is loading/ offloading at 1000 litres a minute, Were there any concerns? meaning that if there’s an issue, “There were some initial issues a couple hundred of litres of fuel Both the EW Selector and the Combi-Cabinet are designed to be retrofitted with the grade level indicators can be on the ground in no time. onto tankers already in the field or provided as part of a new tanker which were quickly rectified by “We all agreed that from a system. Both can work hand in hand or as part of other current systems
Ellesmere Port-based BRIT EUROPEAN is a privately-owned logistics provider whose niche markets include fuels and chemicals. “We pride ourselves in being able to offer the safety and standards of a first tier supplier whilst operating as a second tier supplier,” says group managing director, Graham Lackey. “We have proven competence operating in this hazardous and safety critical environment and have been successfully audited by BP, Greenergy and Hoyer and now operate out of Ellesmere Port, Kingsbury and Immingham with more in the pipeline.” briteuropean.co.uk Brit European now operates out of Ellesmere Port, Kingsbury and Immingham Fuel Oil News | April 2016 39 TankersIn Conversation & Logistics
CLUGSTON DISTRIBUTION has announced To compliment its semi-trailer range COBO Continuing its a further £1.2m investment to develop (UK)/HDE and partner Talleres Cobo are relationship with Volvo, its tanker fleet capabilities. As part of the relaunching a 26 tonne rigid tanker design at Cobo is using the FE 26 investment the company has ordered three FPS EXPO. tonne chassis launched Renault T460 6x2 tractors and three 42,000 Built in co-operation with Thomas at Euro 6, 2013. Sitting litre fuel tankers from Cisternas Cobo UK Hardie Volvo, who will offer the tank truck as on a heavier chassis than to support expanding operations in the a demonstrator unit to their customer base, the FL, it has a greater petroleum sector. this 19m3, 4 compartment tanker has MF800 choice of axle capacities and chassis heights. Clugston Distribution will be at FPS EXPO discharge equipment from Alpeco. Featuring It shares the same 8-litre power unit as the FL with partner Cisternas Cobo UK. the unique SKD modular design it is readily but, due to the higher GVW, the 320hp option clugston.co.uk suitable for any chassis and offers ease of is also available. The FE cab is available in day, installation and reduction in maintenance/ comfort or sleeper options. repair costs hence reducing life-time costs. cobouk.co.uk
“This new investment will not only allow us to Ideal for bulk oil distribution – Cobo is relaunching a 26 tonne rigid tanker consolidate our position as a growing player in the – available as 6x2 tag or rear steer or as a lightweight 6x4 fuel logistics sector, it will also allow us to build on it further,” said head of logistics David Heath
COMPTON TANKERS along with sister HAARTZ TANKERS has just confirmed more orders for NEW fuel trailers and fuel rigids. company Tanker Rent UK specialise in the These orders are in addition to the new GRW, Magyar and Cobo vehicles that joined the purchase and supply of all types of road Haartz rental fleet in 2015. Ordering new tankers on a regular basis is core to Haartz’ continuing tankers – new and used – for both sale and policy of maintaining a young fleet available for its customers. rental in the UK and further afield through the Although we order tankers that we believe will suit many customers, we do insist on certain company’s export arm. items which, over the last 11 years, we’ve found do add to the reliability and operation of the Catering for all sectors including aviation, tankers. For instance we’ve found drum brakes to be more reliable than disc and cheaper to run. bitumen, fuel, gas, rigid and stainless steel haartztankerrental.co.uk tankers, the company has been established for nearly 50 years and the past year has seen further growth. With the acquisition of new trailers, the fleet has been substantially expanded enabling the company to offer customers a huge variety of quality vehicles at unbeatable prices. [email protected]
To find out more about how Haartz Tankers can assist with your fuel operations, please call Tim Heaton, Ian Walkden or Dean Leggett on 01937 520093
40 Fuel Oil News | April 2016 NO NEED TO SEARCH FOR THE BEST FUEL SUPPLIER AT FPS EXPO JUST GO TO STAND 67
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E C I O H C F O R E I L P P U S E F F I C I E N T T A R B S O E S E C A E D C N T J L E A T H C S S P I H S N O I T A L E R S U S U S T A I N A B I L I T Y N R R Y A A C A A A A A A A S T L I A L A I N A A A A A A B A N E T A A F I E A A A A A A I F E U Y A F O A A A A A A A A L A M F O E H O I O A A A A A A I Y T Y F C W U C B A A A A A A T X I T S Q D C R U O N O H N A Y W M I U Y T E F A S O N O H B Y A M L P C E B A C C E S S I B L E O A P A J E F A F F D E N T R G C U L H U M B E R R E F I N E R Y Q Y
Quality fuel • Safety • Security of Supply • Reliability • Humber Refinery Accessible • Efficient • Focused • Supplier of choice • Honour Commitment • Relationships • Sustainability • JET
www.phillips66.co.uk | 01926 404 000 | @Phillips66uk JOIN EUROPE’S When you need exceptional FASTEST GROWING people talk to the experts Our team of dedicated specialists have a proven track record FUEL NETWORK sourcing experienced candidates for key roles in:
FPS EXPO 2016 - 20TH & 21ST APRIL 6 Terminal Management and Storage COME SEE US AT: STAND 53 6 Wholesale Fuels and Operations 6 Fuel Sales and Marketing 6 Lubricants and Chemicals 6 Aviation Fuel 6 Fuel Cards 6 Retail Fuels If you are seeking the ideal candidate or to find out how we can assist you if you are looking to develop your career please contact a member of the team at FPS Expo Stand 101
Contact John or Anne Tel: +44 (0)1565 626754 www.oilrecruitment.co.uk
42 Fuel Oil News | April 2016 Tankers & Logistics
OPG, which provides a full range of vehicle graphics services, reproduced Inver Energy’s corporate colour palette and graphical elements on the striking livery of the Inver Energy tanker which took the title of 2015 Fuel Oil News tanker of the year. “The demanding scale and profile of this tanker, particularly the 3D contours of the rear dish end, did present considerable challenges for film and OPG fitter alike,” said general manager Alan Watson. “However the flexible nature of the HP latex inks and the highly conformable properties of 3M premium cast wrapping films enabled the fitters to wrap the printed film around complex shapes and difficult, deep recesses; without creasing, peeling or visibly stressing the printed Made to withstand the harshest environments, the graphics are protected with a clear, protective film image.”
The Army building and maintaining bulk An RTN build for Barton Petroleum – see more has created fuel storage facilities on overseas tankers on display on stand 80 where the RTN team looks forward to welcoming you a NEW deployments. The unit is already RESERVE deploying 56 reservists on a FUEL peacekeeping tour of Cyprus in SUPPORT support of the United Nations. REGIMENT in Northern Ireland. “Converting to a fuel support 152 (North Irish) Regiment The unit has its challenges but Royal Logistic Corps recently I’m proud of the gains we’ve switched from being transport made,” said commanding officer, specialists to being the British lieutenant colonel Paul Smith. Army’s only fuel regiment. “We now have a storage and Based at Holywood, distribution capability proven Coleraine and Londonderry through the creation of simulated they have retrained to serve military bulk fuel Installations and seamlessly alongside regular we’re ready to support the regular counterparts as fuel tanker Army wherever required.” drivers and petroleum operators, The RTN GROUP – Road Tankers Northern, Lakeland Tankers, RTN Vallely, RTN Clayton, Tank Testing UK, Central Tankers and RTN Falkirk – saw a surge in demand for products in their respective market sectors. In particular orders for new rigid AD tankers and petroleum semi-trailers were exceptionally strong with an unprecedented amount of orders going into 2016. “RTN Falkirk, which was added in 2015 to further cement our UK coverage, offers our customers in Scotland a base for repairs and warranty work keeping downtime to a minimum,” said Brian Edwards. A selection of used tankers and trailers can always be found in stock for immediate delivery or hire, along with a range of stock tanks and chassis that can be built to customer specifications on short lead times. The Army Reserve is always recruiting – search 152RLC www.rtnltd.co.uk or ArmyJobs or visit the stand at FPS EXPO
Fuel Oil News | April 2016 43 TankersIn Conversation & Logistics
Maidment continues to flourish under the management of Paul and Mark Mihell becoming the WINCANTON, which operates and manages bespoke, special project tank builders of the group whilst TASCA TANKERS pushes ahead with many supply chains including fuels, will be on tank testing, calibration and new projects. stand 130 at FPS EXPO. “A challenging 2015 has paved way for an extremely busy 2016 with a promising order book Wincanton transports crude oil to the and healthy pipeline,” said Shaun Harte. “For the first time in a number of years the tank building onward fuel transportation to industrial and industry looks almost like an industry on the up.” commercial customers, rail terminals and tascatankers.ltd.uk manufacturing plants with driver controlled deliveries made to retail forecourts, airports, RAF and Naval bases. The company won the Energy Institute’s safety award category in 2011 for a behavioural safety initiative implemented on one of its fuels distribution contracts. wincanton.co.uk
Have you taken delivery of a new tanker recently?
Why not enter your tanker for the title of 2016 Fuel Oil News tanker of the year
[email protected] A Tasca Tankers bespoke articulated semi-trailer for Rubis Aviation in the Channel Islands
44 Fuel Oil News | April 2016 Supply
Essar expansion
HAVING ACQUIRED THE STANLOW OIL REFINERY ON 1ST AUGUST 2011, ESSAR OIL UK HAS RECENTLY LAUNCHED AN ESSAR-BRANDED RETAIL OFFERING Fuel Oil News editor Jane Hughes met up 17% of that network. Despite the growth with chief commercial officer, SB Prasad and of larger dealer groups, many independent commercial business manager Bryan Hayes dealer sites have good presence and it is these at an Essar-branded site in Walkden near sites and with the large dealer groups, where Manchester to talk about the company’s Essar looks to expand. decision to move into the UK’s retail sector. “From Stanlow there’s a logical flow up Speaking first to Mr Patel, operator of the to Cumbria, Yorkshire, across to Wales, the Walkden site, which switched from the Gulf Midlands and beyond. Our aim is to have brand to Essar just before Christmas, he was a national footprint within 4-5 years with a keen to stress that the straight from our UK target of 300-400 sites to give us a reasonable refinery to the nozzle message displayed on presence in Britain,” said SB. every pump had been particularly well received “Very few will be brand new sites as that’s by his customers. a significant investment but we will certainly look at all options.” Heritage backing Asked how he sees the UK’s retail market “Essar is not only a UK refiner, the company developing in the future, SB said: also has a strong retail brand in India,” said SB “I believe closure has been arrested – who joined Essar in India in 2004 when there there’s even been some growth over the last was just one retail site; there are now 1900 year. Petrol retailing is more stable but there sites across India. will always be a tussle with hypermarkets and “We’re rightfully proud of our heritage others but hats off to the independent dealers and as refiners we can give dealers clarity right who have invested in sites and moved this down the pipeline tracing everything back to business on.” source. Bryan Hayes (l) and SB Prasad at the Essar- Awareness of the brand is growing and “Since entering UK refining, we’ve always branded retail site in Walkden, near Manchester the Essar-branded tanker fleet was recently had a desire to enter UK retail – when you joined by a further five tankers. have a downstream asset like Stanlow, retail site look much brighter and safer particularly “Moving into retail has been a logical offers the last mile in the value chain -but we at night. Equipment manufacturers have expansion,” says Bryan. “Essar is already the had to get the refinery on track first. (The supported us well – from the day of signing, fuel supplier to many leading brands and refinery’s latest financial results can be found sites have been rebranded within 4-6 weeks we’re a very experienced business which can at www.fueloilnews.co.uk). from survey to installation. share the good practices learned from a strong “Dialogue with the dealer is important, a heritage.” From research to a simple package suite of options is available to them and we do “Going into this market, we didn’t want to understand that no one size fits all.” make any assumptions so we spent a year “In a market with many old established doing research,” explained Bryan. brands, it’s been very challenging for a new “Firstly we wanted to know what retailers brand to break into the market,” said SB. would like that was different. With much “Initially, for those who expressed interest confusion reported around pricing, we devised we just had a virtual retail site to show them a very clear, simple offer where the price but now with four Essar-branded sites up offered is always the price paid.” and running, word is spreading with several Essar brainstormed its own ideas, interested parties coming to look at the designing its own promotional material and branding first hand and feedback has been the new look brand to be simple, clean and very positive.” smart. Future expansion Getting off the ground Last month a fourth site opened at Sale in “Customers have plenty of choice in retail so Cheshire. This followed Coalville (November we wanted the Essar brand to be very visible 2015), Walkden (December 2015) and and appealing. You can’t miss it or confuse it Middleton in Lancashire (January 2016) with with any other brand.” said Bryan. plans to add more stations in the coming “Having done the first site we made some months. Site operator Mr Patel beside the pumps with the last minute enhancements, adding LED lights The UK has around 8,500 retail sites with message straight from our UK refinery to the nozzle on the canopy and pole signs to make the the top 5 independents operating around Fuel Oil News | April 2016 45 In ConversationSupply
GREENERGY is the UK’s largest supplier of petrol and diesel and last year supplied more than 17 billion litres of fuel globally. Over the last decade Greenergy has made significant investments in fuel storage, manufacturing and distribution infrastructure and continues to acquire, develop and improve its strategically located assets across the country. To meet the requirements of customers nationally, Greenergy supplies from 26 locations in the UK and holds its own physical oil in 9 terminals. This means it can provide unparalleled supply resilience. Greenergy’s infrastructure platform in the UK has allowed it to meet the needs of its customers - but it’s not just about infrastructure. The experienced commercial team are committed to delivering the company mission; to earn the loyalty of customers in the long-term by being the fuel provider with the lowest costs, highest service and easiest people to deal with. greenergy.com By investing in deep-water import terminals, Greenergy can source, blend and manufacture its own fuel and buy direct from the lowest cost suppliers with cost efficiencies passed onto its customers
Established over 30 years ago, INVER customers with a secure, reliable and cost “At Inver we appreciate the tough market ENERGY is a leading independent fuel effective source of fuel, managed by an our customers face. By developing long-term importer, supplying the distribution, experienced and personable supply team. relationships with our customers and listening commercial, marine, industrial and retail fuel Tony Wilson, Cardiff’s commercial director to their needs, we offer a variety of pricing markets across the UK and Ireland. Investing states: “A popular choice in the agricultural options in order to give our customers a heavily into large import terminals, we now sector currently is a fixed price contract ready competitive edge.” operate out of two major COMAH sites in for the harvest. This eliminates the risk of inverenergy.co.uk Foynes and Cardiff. A multi-product oil hub volatile oil prices and allows them to forecast has been developed at each location providing their spending more accurately.
“Adopting a very flexible pricing structure, Inver Energy is able to offer a range of options to customers to ensure that they receive the best price the market has to offer at any time,” says commercial director Tony Wilson
46 Fuel Oil News | April 2016 THE LUBRICATION SPECIALISTS
RELIABLE FUEL SUPPLY. COMPETITIVE PRICING. WHEREVER YOU ARE.
With more than 25 supply locations across the country, we are the only national fuel supplier.
Meet us on Stand 21 at the FPS Expo to discuss your requirements
FOODGRADE BIODEGRADABLE COMMERCIAL AGRICULTURAL For quick and easy ordering, CONSTRUCTION AUTOMOTIVE short loading times and on-time deliveries, call the commercial team Aztec Oils Limited Intake Road Bolsover on 020 7400 4745 Business Park Bolsover Derbyshire S44 6BB UK www.greenergy.com
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Fast production time & delivery 24 month warranty All skids wired & fully CompEx compliant including third party certification SEE US ON STAND 81 AT THE FPS EXHIBITION, LIVERPOOL 20th & 21st APRIL Tel: +44 (0) 1268 596 900 email: [email protected] web: www.IFCinflow.com
Fuel Oil News | April 2016 47 In ConversationSupply
MABANAFT is one of the UK’s largest independent fuel wholesalers. PETROINEOS FUELS’ Grangemouth refinery, provides continuity ‘Big enough to depend on and small enough to care’ the company and security of supply, allowing the company to meet both UK and takes pride in providing competitive, transparent pricing backed up international market demand by offering a broad range of refined by the highest standards of customer service. products from its road, rail, pipe and sea distribution centres at MabaLIVE, Mabanaft’s FREE online price information and fuel Grangemouth, Dalston (Cumbria), Belfast Road Terminals and Finnart Sea ordering service allows customers to view live prices and order fuel Terminal. online. MabaLIVE is mobile-friendly, so customers can check rates “The company looks forward to greeting customers and visitors to FPS and place an order even when away from the office. It’s quick, EXPO alike and to discussing how we may partner over the long term in the convenient and saves valuable time. delivery of your strategic petroleum products sourcing requirements,” says “MabaLIVE is changing the way customers choose to buy fuel,” David Hayes, account and business development manager. says marketing manager Martin Cook. ineos.com “In September 2015 we reached a landmark one billion litres of fuel traded online since launch. MabaLIVE embodies the way we like to work; transparency of pricing, a highly personal service – our experienced marketers can offer advice and help customers make better buying decisions – and flexible deal mechanisms that help minimise exposure to price volatility”. mabanaft.co.uk
The Grangemouth refinery – ‘Petroineos Fuels remains committed to its wholesale supply model, supported by accurate, timely and efficient back office support based at Grangemouth’
“Our own Humber Refinery is at the heart of the UK’s energy landscape, supplying 15% of the UK’s fuel requirements,” said Mary Wolf, managing director of UK & Ireland Marketing at PHILLIPS 66. “Phillips 66 is a key player in securing the UK’s long-term energy future, providing superior quality fuel where it’s needed. FPS Expo 2016 provides a platform for us to showcase our important strategic supply role, and also allows us to catch up with friends, old and new,” added Mary. One of the UK’s leading suppliers of domestic, agricultural and industrial fuels to JET-branded distributors and independent resellers, Phillips 66 has aggressive growth plans, so head to stand 67 to find out more about the company’s predictions and long-term commitment to the UK fuel industry. The Humber refinery – ‘Phillips 66, a long-term member of the FPS, recognises the networking opportunities phillips66.co.uk offered by FPS Expo 2016 and is looking forward to meeting with customers from across the industry’
48 Fuel Oil News | April 2016 PRAX TERMINALS, “These acquisitions will provide VALERO is one of the world’s a subsidiary of State the group with the power to maximise largest independent refiners Oil, has completed market movements, to exploit arbitrage and marketers of finished oil the acquisition of the opportunities and will provide synergies products. Our 15 refineries Jarrow fuels terminal between the wholesale and trading arms process around three million from Shell. Located near of the group. Ultimately, it will differentiate barrels a day, delivering Newcastle Upon Tyne, the the group from a simple and singular oil consistent high quality fuel 40,000cbm terminal will store diesel, gasoil, trading business and is another milestone at competitive prices. In the UK and Ireland, our kerosene, gasoline and aviation fuel. in the group’s resolute ambition to become extensive supply network takes fuels produced “This acquisition represents the a leading and dominant global oil business at our Pembroke refinery to strategically located group’s continuing aspiration to procure supported by a portfolio of storage assets.” company-owned terminals. further strategic storage assets in the UK State Oil has trading offices in Zug Valero continues to strengthen this network and globally,” said State Oil’s managing Switzerland, Houston, Texas and Singapore. and its reliability, investing over £250m in our director Sanjeev Kumar. praxpetroleum.co.uk refinery and terminals. Valero values and supports its customers by providing reliable supply and highly competitive prices, and our team of experienced and knowledgeable sales managers is justifiably acknowledged by customers to be one of the best in the business. If you’re not already working with us, let us know how we can help support your business! valero.com
WORLD FUEL SERVICES provides Established for over 30 years, an alternative to the traditional fuel the company has been involved in suppliers, offering commercial grades the UK inland market since 2006 and of fuel and speciality fuels, tailored to has a nationwide supply and delivery reduce customer operating costs. World infrastructure. Fuel Services also offers risk management The supply network covers ex-rack and services and alternative pricing options, direct delivery options, as well as supply delivering valuable product and budgeting into the major fuel card bunker networks. flexibility. wfscorp.com
The WFS London wholesale team (l-r) Russell, Sofia, Dominic, Charlotte, This year will see Valero triple capacity at its Mathieu and Eric with Mark Waddington behind the camera Avonmouth terminal so that all grades of fuel will be available to commercial and retail customers Fuel Oil News | April 2016 49 EssentialIn Conversation Services
THE OIL MARKET heating oil, gas oil, ULSD and petrol are OIL RECRUITMENT started recruiting in fuel JOURNAL (OMJ) will be delivered using a range of innovative sales and logistics in 1998 and placed its very unveiling its latest product technologies with a live prices website, ticker, first job advert for an area sales manager in offering for UK and Irish wallboard, email, text messaging and smart the July issue of Fuel Oil News that same year. oil distributors at FPS Expo phone applications. The sales, supply and storage of fuel has 2016. In addition to oil prices, OMJ also provides remained a core sector for the company with The company clients in the UK and Republic of Ireland with the downstream team sourcing candidates provides live oil pricing and analysis for the reliable advice on oil price trends along with for roles in sales, operations, distribution and Rotterdam spot market and the oil futures energy news and comment. See also page 18. logistics from both major and independent markets in London and New York. the-omj.com companies involved in the oil and affiliated Services including live prices for home industries. Building on these successes and with a strong belief in developing longstanding and trusted relationships, Oil Recruitment has continued to identify and access high calibre candidates. oilrecruitment.co.uk
OMJ is a Dow Jones Energy News partner and a Platts licensed distributor
INTER TERMINALS is one of the largest independent bulk liquid storage providers in northern Europe, and the largest in Scandinavia, with more than 4.25 million cubic metres of storage capacity (approximately 27 million barrels). The company’s 16 terminals are located across Sweden, Denmark, Germany, Ireland and the United Kingdom. Terminals provide comprehensive storage and handling solutions for the oil, chemical, and biofuel markets. These activities are complemented with a wide range of services for the general chemical, food, agricultural and pharmaceutical sectors, as well as considerable expertise in the handling and management of technical wastes. InterTerminals.com
Inter Terminals has the capability to receive and redistribute products via ship, barge, For more information please speak rail, road and pipeline, providing complete intermodal solutions for many customers to John or Anne on stand 101
50 Fuel Oil News | April 2016 Tanks & Tank Equipment
ALLIED STORAGE TANKS are specialists in all aspects of storage or process tanks. If a tank can be transported by road, it can be shop built at the company’s 120,000 sq ft factory in the West Midlands and then delivered, offloaded and positioned on site with access and ancillary control equipment installed. Design calculations and drawings are part of the service and supply and laying of sand/bitumen bases can also be carried out. Site built new tanks, demolition or refurbishment of existing tanks – the company’s mobile team can deal with anything further such as site built new tanks, demolition or refurbishment of “Safe working is our highest priority at site existing tanks. or at works, says director Phil Doughty. “Why not try us and see if our experience [email protected] can save you time and money.”
ATKINSON EQUIPMENT manufactures oil heating tank equipment The NEW Interactive software allows and this year will be focusing on top off take equipment. innovative the manager to set up and view Taking the lead from the UK’s environmental agencies, the Self Service units on site, monitor real time company developed Tanktop – a product that includes all the 2.0 fuel fuel levels of all tanks, supervise components required in one unit to meet with agreed best practice for management drivers and monitor their activity oil heating tank supply lines. range is and manage company vehicles Built into one product is a floating suction line, a non-return valve, available from CENTRE TANK and their fuel consumption. The a replaceable filter and most importantly, an anti-syphon valve with the SERVICES (CTS). Benefiting user can easily view on screen and Tanktop having just one connection for simple and quick installation. from a ‘plug and play’ real time, export their customised data in a atkinsonequipment.com PC-based software interface, it range of formats. provides improved monitoring of centretank.com fuel, drivers and vehicles from the computer via internet connection.
“The Tanktop is available from The Self Service 2.0 all leading tank manufacturers range includes all the and can be installed on traditional Piusi models request,” says sales/marketing including the MC Box director, Peter Carter and Cube 70MC
Graham Baker +44 (0) 7802 422409 [email protected]
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Fuel Oil News | April 2016 51 TanksIn & Conversation Tank Equipment
Part of the Franklin Fueling Systems group, COOKSON & ZINN DUNRAVEN monitor their tank population on (CZ) designs and manufacturers above and below ground fuel SYSTEMS any web-enabled device backed storage tanks and pressure vessels for all commercial and industrial designs and up by expert tank monitoring applications in a wide range of configurations and capacities. The develops support. product portfolio includes bespoke bulk storage tanks built to client state of the The company now offers specific requirements for distribution depots of all sizes. art tank modern remote tank monitoring czltd.com. monitoring for consumers through the OilPal solutions. The latest addition App. The app allows the user to to the offering is a turnkey, monitor their heating oil levels, supply, installation and data usages and receive threshold provision, cloud-enabled Remote notifications anytime, anywhere Monitoring System. again via any web-enabled This NEW system allows device be that a smart phone, fuel distributors and multi-tank tablet or a pc. organisations to simply remotely dunravensystems.com
Automatic tank gauging systems, piping and containment, submersible pumping “The Apollo brand offers an unrivalled product range for both local and remote systems, service station hardware and dispensing systems are all offered by Franklin tank monitoring solutions,” says business manager, Michael McCaughley
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52 Fuel Oil News | April 2016 ENVIROSTORE UK has be annoying for the fuel J SEED & CO manufactures one of the most secure and safest tanks a NEW 750ESB bunded distributor,” said director currently available on the market. The company’s LABC-registered oil tank. With a footprint Richard Marsh. range of fire-protected tanks, developed in conjunction with Envirostore, of only 1615mm x “As this tank has a are proving very popular with installers up and down the country. 680mm, the tank is ideal brim-full capacity of 850 The whole tank system has been extensively tested at a leading for smaller application litres we feel that we’re research establishment and can be made to any size. The company properties where space is not only providing a supplies to fuel companies and tank installers up and down the country at a premium. useful addition to our range but with no enquiry being too large or too small. ‘We didn’t want to produce also encouraging the end user to jseed.co.uk a really small oil tank as they take a good fill of fuel when re- can tempt users to simply order ordering.” small top ups of fuel which can envirostoreuk.com
Although the new Envirostore UK tank will be officially launched Family-owned and run, J Seed has been established for 50 at FPS EXPO, the tank is available to customers now. “Early sales years and offers high quality tanks for any purpose have been very encouraging,” reports Richard Marsh
THE PLASTIC TANK MANUFACTURER, FOR TODAY’S FUEL INDUSTRY 20 YEAR LIFE EXPECTANCY ON BUNDED TANKS - DOES YOUR PLASTIC TANK SUPPLIER GIVE YOU THIS? FOR A FRESH AND SAFER APPROACH TO FUEL STORAGE
MORE NEW PRODUCTS FOR 2016
Contrary to popular belief, great ideas don’t STRONG SECURE LOCKABLE LID simply appear out of thin air. The great ideas which appear at Envirostore are born from TANK EXPERIENCE years of experience manufacturing tanks, z utilising traditional skills and blending them TANK IDEAS with challenging thinking and innovative use z of materials and technology. The result is the Inner TANK INNOVATION Envirostore range of fuel tanks – designed spill for the future to deal with today’s storage tray problems. UK Sales 07540 - 299917
See the Phone/Fax New 01267-241026 750ESB 00353-41-686-2968 Bunded CHECK OUR WEBSITE FOR NEW PRODUCTS Stand 113 Translucent inner tanks to all bunded range, at including fuel dispensers FPS Show NOW EVEN SAFER FILLING FOR YOUR DRIVER NEW Inner spill tray Welsh office base UNIQUE TO ENVIROSTORE now open www.envirostoreuk.com email: [email protected]
Fuel Oil News | April 2016 53 TanksIn & Conversation Tank Equipment
KINGSPAN TITAN has LEDBURY WELDING & ENGINEERING (LWE) covers petroleum storage as well as bulk supply unveiled the very latest depots and road transport logistics. concept in slimline oil Diesel storage requirements are covered by three basic design specifications, each of which tanks. meets different cost/benefits, according to the various operational requirements. The NEW ESSL2000 Recent installations include three self-bunded above ground tanks each providing 120,000 is the latest addition to litres capacity; two are assigned to road diesel with the third tank divided into two compartments the Titan EcoSafe slimline for red diesel (80,000 ltrs) and AdBlue (40,000 ltrs). range which includes the popular ESSL4000, LWE works in collaboration with suppliers of pump dispensers and fuel stock management ESSL1400 tanks. services. The ESSL2000 was designed in close LWE’s managing director Kevin Powell is the chairman of the Petroleum Equipment Installers consultation with industry partners including and Maintenance Federation (PEIMF) which will also be exhibiting at FPS EXPO. installers, contractors, and consumers. It is a weltd.co.uk totally enclosed, bunded tank, ideally suited to premises with limited space and access restrictions, with a total footprint of only 2m2. kingspantitan.com
An LWE build for Waitrose – the company can provide impartial advice on security and fuel usage monitoring and work with customers to integrate these services within an existing fuel management structure
TUFFA has more than 30 years’ manufacturing experience in the design and manufacture of plastic and steel tanks up to 200,000 litres. As with all EcoSafe tanks, the new ESSL2000 tank A trusted manufacturer of bespoke/custom tanks, Tuffa also comes with a ready to fit Watchman Alarm tank pack manufactures a tried and tested fire-protected tank range. The company offers competitively priced products with quick lead times “How do we measure diesel now the classification has been changed and smart, flexible delivery options an excellent personal and friendly to hazardous?” Nick Lambourn of OLE UK responds service. “If the area has been determined to require ATEX-certified All Tuffa plastic tanks are specifically designed to provide the equipment (above 52 degrees C and possible ‘misting’, or near other user with full regulation and environmental compliance and all are flammables) then ATEX-zoned tank gauges and alarms are required. CE-marked in accordance with the mandatory Construction Products OLE UK has released a low cost ATEX tank gauge for diesel and Regulation 2011 (CPR). kerosene. Sensors are certified for use in ATEX Zone 0/1, and the [email protected] barriers provided isolation between the tank and the gauge which is suitable for mounting in Zone 2 or safe areas. [email protected]
The Z2000 tank gauge provides the ideal solution to end users as well as The Tuffa FireStop tank manufacturers who wish to comply with the ATEX requirements
54 Fuel Oil News | April 2016 Software
At the centre of DREAMTEC’s every drop counts,” says CEO Paul “Joining our commitment to the market place i-Meter fuel application is the Foley. “I-Meter provides you with established by strengthening all aspects of electronic flow meter. Customers the vital information you need to product our business. who have invested in these make business decisions.” portfolio is a “Building on our core meters can take full advantage of dreamtecsoftware.com NEW version philosophy of user choice, CODAS the valuable information they are specifically Vantage is available in licence collecting and use it to enhance tailored to the purchase, subscription and business performance. needs of the local, independent subscription with hosting – i.e. Benefits – each fuel delivery distributor – CODAS Vantage,” Cloud-accessed – guises. can be viewed on Google maps; said business development “CODAS Vantage will be on one solution for a mixed meter manager, Henry Wilson-Theaker. show at FPS EXPO. As the only fleet, 98% of meters covered; “ Representing a true ‘out-of- industry-specific software package every drop is tracked; store all box’ solution, this exceptionally which can genuinely evidence delivery tickets online; make more feature-rich variant true scalability – with deliveries every day by identifying of our market-leading client deployments busy areas; no software software suite provides ranging from three up installation required so it can be a step-change in to the many hundreds up and running in an hour. business efficiency, – CODAS Vantage is DreamTec’S i-Meter has “At DreamTec we believe more than 500 users in UK, as we continue to the self-evident choice that the flow meter operates as Ireland, USA and Canada demonstrate our for distributors of any the cash register of the business, strategy for long-term size.”
With the opening of the As part of the package EA Projects transactions was developed for this project, new Geos Group marine delivered a 4” 2 arm bottom loading skid this fully links into the core stock accounting terminal in Blyth, a sea fed for the delivery of MGO onto road tankers functions and month end stock processing installation designed for designed to deliver fuel at a rate of 1700LPM. routines of the system. the storage/distribution of The skid was provided as fully temperature Last year New Ross-based Campfreight in marine gas oil (MGO), compensated and provides throughput the Republic of Ireland also chose EA Projects’ EA PROJECTS has volumes to the host system in natural litres, terminal automation platform to control its continued to expand the features within its standard litres and metric tonnes. road tanker loading facility. iSupervisor automation platform. A NEW module to record ship bunkering ea-projects.com
The EA Projects installation at the Geos Group’s marine terminal in Blyth – the system database contains operational and safety data for all drivers/vehicles using the facility and provides tanker loading authorisation and control
Fuel Oil News | April 2016 55 In ConversationSoftware
FUELSOFT develops pricing model is used, with only training costs the Fuelsoft application to pay at the outset. for fuel distributors and “It’s the ideal model for companies fuel card agents while entering the marketplace as there is no Compuserve provides CAPEX,” says managing director, David hosting facilities to Kingsman. enable Fuelsoft to run With racks of servers at the hosting successfully in the Cloud. centre, the investment has been significant The partnership is working incredibly but it has paid dividends and facilitated the well, with Fuelsoft and Compuserve both growth in both companies. growing at a significant rate. As a result, New software functionality developed Group turnover has more than doubled by Fuelsoft in the past 12 months includes to £1.7m since 2009. With 34 companies enhanced integration into Microsoft connected, comprising over 400 end users, Dynamics CRM, Apollo integration for top up it is the ideal offering to companies that do customers, and an Application Programmers not want or need to be involved in running in interface to allow web developers to create house servers. their own web front end to the Fuelsoft The start-up costs of switching to application. Fuelsoft are therefore very low if the Cloud fuelsoft.co.uk
HERBST OIL is a package “A number of new distributors have entered the marketplace in the past few years and customised specifically for they’ve all moved onto the Fuelsoft Cloud the oil distribution industry offering,” says Fuelsoft’s David Kingsman to increase margin and boost sales. It is an owner- “Having alliances with many of the major oil orientated solution that companies, retailers and distributors worldwide gives your company a LOMOSOFT is the world leader in stock, competitive edge by planning and logistics optimisation,” says Chris eliminating paperwork, Dalton, business development and support. empowering sales teams “Our software looks at fuel stocks and and giving management live by monitoring the stock levels and patterns, information at the touch of automatically generates a replenishment order. a button. Non VMI orders can be interfaced from your It offers live handhelds ERP system into the planning software, which for drivers work offline and will automate loading and journey planning for in real-time and integration delivery vehicles and at the same time ensure with Alpeco/Drum/ legal load compliance.” MechTronic meters, and POS integration with Petro System’s fuel pumps. Fully SEPA compliant, other Herbst’ features include GIS Module to geographically plot customers/ orders on maps and herbstsoftware.com a ROM1 Module for Irish revenue oil movements reporting
Coming soon – Technology for the fuel oil distributor – what really works and why?
56 Fuel Oil News | April 2016 Training
Ensuring a joined up approach to skills and safety in the fuels supply chains
FROM THE 1980S ONWARDS THERE HAS BEEN SIGNIFICANT CHANGE IN THE FUELS SUPPLY CHAINS, LEADING TO THE MORE FRAGMENTED INDUSTRY WE HAVE NOW WRITES PETER DAVIDSON, UKPIA DIRECTOR OF SAFETY, COMMERCIAL & PROJECTS AND JENNY CLUCAS, COGENT SKILLS, HEAD OF STRATEGY, INDUSTRIAL SCIENCES
To ensure consistency of skills and have a PDP card regardless of A recent addition to these safety industry has championed their employer, type of vehicles, skills and safety schemes the development of national grade(s) of petroleum product, or is the Forecourt Operator schemes at key stages of the loading point. Training Guidelines. The Petrol supply chain. These include the To gain their passport all Retailers National Steering Safe Loading Pass Scheme for drivers must pass a written Group – consisting of retailers, petrol tankers, the Petroleum assessment and a practical on trade associations, forecourt Driver Passport (PDP) for petrol the road assessment, as well The Forecourt Contractor engineering and service tanker drivers, and the Forecourt as undertaking further annual Safety Passport is a UK wide providers and other relevant Contractor Safety Passport for training and practical assessment voluntary scheme to ensure all stakeholders – has developed contractors working at petrol to maintain it. New drivers are contractors working on a forecourt these guidelines. Their aim is to stations. Recently the Forecourt not expected to hold a PDP card understand the specific risks help improve the competency Operator Training Guidelines for as PDP training and assessment associated with the potentially of forecourt staff by providing staff working at petrol stations should form part of their hazardous products present on clear understanding of the has been added to this portfolio. induction. This voluntary scheme site. The scheme is supported principles of safe operation was launched at the start of 2014 and enforced by a majority of and practice on petrol retail and fully implemented in terms the 8,500+ petrol forecourts, sites. Forecourt operators now of enforcement by the terminals with these forecourt operators have the opportunity to review in January 2016; since December requiring that a valid Safety their training material against 2015 enforcement at the Belfast Passport is held (and verified) these industry guidelines and terminals has also commenced. before any type of contractor amend where necessary. In the Over 7,000 passports have been work can commence. There future forecourt operators may issued, illustrating the widespread are now over 20,000 contractor be able to use an independent adoption of the PDP scheme. passports in circulation. desktop assessment scheme to www.pdpassport.com www.safetypassports.co.uk/ demonstrate the compliance www.safeloadingpass.co.uk courses/petrol-retail/ of their training with the guidelines. The PDP scheme has www.ukpia.com/safety- been developed to provide the skills-and-training/industry- knowledge and skills required by schemes.aspx a petroleum tanker driver that are The development of these not covered by ADR. The scheme, schemes is a testament to the which results in a passport style power of collaborative working card, ensures all petroleum tanker between industry, regulators drivers are trained and assessed and unions to maintain high to a consistent industry standard. levels of safety with the fuels All petroleum tanker drivers should supply chain.
REYNOLDS TRAINING SERVICES brings and performance are verifiable through the underpinned by an Individual Training Record industrial strength safety to bulk liquid storage system’s competence tracker. (ITR) that tracks eLearning, classroom and sites. Operational safety and competency iLearn is a true competence management competence assessment. Track by date. should be accessible to all. So, alongside face- system. New updates will enable site Keep apace of renewal requirements. Ensure to-face and classroom-based training, RTS managers to manage the competence of personnel are informed of training needs. continues to evolve its eLearning system. different work roles across different locations Keep your site safe. Foster legal iLearn adds a new dimension to the and multi-language sites. compliance. Reduce training costs. way operators train. With a range of courses The CMS allows tracking of personnel Contact RTS reynoldstraining.com for a available at the click of a button, knowledge by company, site and department. This is demonstration. Fuel Oil News | April 2016 57 EnvironmentalIn Conversation & Insurance
Setting standards at Envirostore INNOVATIVE AND PROACTIVE IN THE SAFE STORAGE OF FUEL, ENVIROSTORE UK WAS THE ONLY PLASTIC TANK MANUFACTURER TO SUPPORT THE OIL CARE CAMPAIGN’S 20TH ANNIVERSARY EVENT IN JUNE LAST YEAR
“We’re also the only plastic tank further new products this year. of the public being confused about UK’s Declarations of Performance manufacturer to offer a 20- As always we welcome opinions the CPR regulation and what it that are available on all relevant year life expectancy as required and comments to help us further means in relation to oil storage. products in our range. under the Control of Pollution improve our products. We’re in contact with OFTEC to http://ec.europa.eu/growth/ Regulations Regulatory Guidance give advice on this topic and will tools-databases/mandates/ which is now included in the Querying the Construction continue to help with information index.cfm?fuseaction=search. revised BS5410 Standards.” said Product Regulation (CPR) which we have been asked to detail&id=24 director Richard Marsh. “Both customers and members supply. “The only European Standard “This further demonstrates of the public have contacted us “Envirostore UK would for oil storage plastic tanks is the confidence Envirostore has in with queries and concerns relating like to take this opportunity to EN13341:2005+A1:2011 which its integrally bunded storage tanks to the Construction Product clarify – the Construction Product is only applicable to single skin with their unique spill tray and, Regulation (CPR) which came into Regulation (CPR) requires that rotationally moulded polyethylene equally important, access cover lid force on the 1st July 2013. any product used in construction tanks as integrally bunded tanks which is covered by our warranty. http://ec.europa.eu/growth/ that is covered by a Harmonized manufactured form polyethylene This lid prevents the ingress of sectors/construction/product- European Standard must have a are not covered by this or any other water into the bund chamber, regulation/index_en.htm Declaration of Performance and European Standard, we believe something which is posing a “Coupled with a lack of be CE Marked in keeping with that that it would be misleading, if not major problem with other tanks. understanding of the regulation, advised by the relevant European illegal, to CE Mark such a tank to a Envirostore now offers a retrofit we believe that misleading and standard; Heating oil storage standard to which it does not apply. access cover that will fit most of inaccurate statements made tank products are covered by the A very helpful Guidance note these inferior tanks not covered by through various mediums, both Mandate M/131 Pipes, Tanks and version 3-2014 is available as a warranty by other manufacturers. by OFTEC and some plastic tank Ancillaries not in contact with water free download or please contact us “Now in our 7th year of manufacturing members, have intended for human consumption. and we will forward a copy,” added trading we will be launching resulted in customers and members Customers can request Envirostore Richard.
58 Fuel Oil News | April 2016 In February LCM in his career, he managed aircraft Control of Pollution (Oil ENVIRONMENTAL refuelling operations in the Royal made a NEW Navy. Storage) (Wales) Regulations – appointment LCM Environmental works when Darcy Lane exclusively in the downstream fuels 15th March 2016 joined the senior industry delivering products as diverse management team as fuel asset decommissioning In early February, Welsh Government laid the Control of as chief operating officer. to cleaning tanks at terminals Pollution (Oil Storage) (Wales) Regulations before parliament. Previously with Aircraft Services and on forecourts, to fuel quality The scope and principal requirement of the regulations is International Group, Darcy has management. Increasingly managing summarised below together with the transitional provisions previously been responsible for fuel fuel facilities for users, LCM can be affecting its application. operations at Gatwick Airport and at found providing companies with The proposed regulations apply to all oil storage facilities: Charlotte International Airport, the support wherever fuel is a critical asset. • with a capacity exceeding 200L fourth largest airport in the US. Earlier lcmenvironmental.com • installed above ground • installed on any premises, including domestic and agricultural oil storage, except oil distribution depots and oil refineries
The principal requirement The regulations set standards for oil storage facilities which aim to prevent the escape of oil and the resulting risk of water pollution and/or damage to land and property. The principal requirement is for secondary containment (bunding) to prevent any leaks from the oil storage facilities escaping into the wider environment.
Transitional arrangements “This is a significant appointment for LCM as we continue to invest in the foundations The requirements apply to all new oil storage facilities from for growth over the next five years,” said managing director Mark Orr the date that the regulations came in to force on 15th March. This means that for the installation of new domestic oil storage As one of the UK’s leading providers in the UK. We offer clients a tailored facilities (tanks up to 3,500 litres capacity installed at a building of insurance to perceived high-risk insurance package at a sustainable used primarily as a dwelling) the tank risk assessment in building industries, PEN UNDERWRITING price together with a 12-person regulations Part J will no longer apply. incorporating OAMPS is proud to be strong in-house claims team with Existing oil storage facilities, other than domestic, will need the insurance manager to the FPS. vast experience within the specialist to comply between two and four years later, depending on the “We design insurance trades with whom we operate.” risk they pose to the environment. The transitional arrangement programmes for businesses ranging penunderwriting.co.uk taken from the draft regulations was as follows: from single vehicle operators Where oil is stored in a container which was first used delivering fuels, oils, chemicals to for that purpose before the regulations came into force, the decanters, wholesalers and national container must comply with the regulations: companies,” says sales manager (a) within two years after the regulations come into force David Gardiner. if the container is situated less than 10 metres away from any “We provide a high level of inland freshwaters or coastal waters, or 50 metres away from a service that’s underpinned by over 20 well or borehole; years working within the fuel Industry (b) within four years after the regulations come into force in any other case.
Now part of Henderson Insurance Brokers more than 90% of the UK’s oil companies, through the sophisticated monitoring Group, REYNOLDS has become Europe’s traders, distributors, fuel card agents and processes undertaken by the underwriters. largest independent specialist credit insurance operators. “Premiums for this type of cover are at an broker placing premiums in excess of £50m “Aside from the obvious bad debt all-time low, coupled with a greater scope of per annum. (The Henderson Group will protection, credit insurance can be a powerful cover and policies are tailored to cover each now achieve an overall turnover of £300m sales tool giving you the confidence to take individual business,” adds Paul. in premium via its fourteen offices and 400 on more exposure and new customers whilst reynoldsinsure.co.uk staff). protecting you against the unexpected failure Credit insurance is a widely utilised tool of your customer,” says joint managing within the UK oil market. Reynolds has a team director, Paul Martin. specialising in advising, constructing and “It can also help steer you away from managing credit insurance programmes for walking into a potential delinquent debtor Fuel Oil News | April 2016 59 EnvironmentalIn Conversation & Insurance
First-hand experience at a demo-day
With a highly inventive R&D department “WALKING ON WATER constantly coming up with new ways to solve a MAY BE A BIT OF FUN, host of problems, including the award-winning ethanol coalescing filter, ADLER & ALLAN BUT IT REALLY GETS needed a place where customers could see its ACROSS THE STRENGTH wide ranging products and services first-hand. The company has been quick to diversify OF THIS PRODUCT,” to the fuel industry’s needs, not least during EXPLAINED ALAN the devastating floods experienced by “TANK LIFE CAN BE northerly Britain over winter. “The new Demo Centre provides an ideal Demonstrating the EXTENDED AND TANK showcase facility where we can invite potential REPAIRS ARE EASY and existing customers to see for themselves polyurea spray coating what we offer and how it could benefit their AND EFFECTIVE. business,” explained Alan Scrafton, head of At the tank coating section polyurea coating is SURPRISINGLY, THE marketing. used to contain water in a cardboard box after POLYUREA COATING The Demo Centre is split into three areas which visitors are invited to stand on it – see – fuel services, including fuel polishing, tank page 5 FON March. HAS VERY LITTLE cleaning and the ethanol coalescing filter; Once the sides of the cardboard box ENVIRONMENTAL IMPACT, flood services and an outside area for the have been primed, the coating can be applied demonstration of spray linings and bunding directly to the water’s surface, creating a TOO” capabilities – and enables visitors to see fuel durable – and walkable – surface in a matter being polished, linings being sprayed and a of minutes, making it ideal for hydrocarbon ‘house’ flooded with water. containment.
1 2
3 4
60 Fuel Oil News | April 2016 5 6
1. The cardboard box is primed with the coating 7 2. Water is poured inside 3. Spray coating is applied to the water’s surface 4. After a few minutes, the surface is strong enough to stand on 5. And a visitor is invited to stand on it! 6. Polyurea coating is applied to a wall 7. A visitor tests the wall’s strength
Fuel and flooding services “We’re very proud of our ability to respond to market demands, by developing our own products and services, or seeking out other businesses delivering innovation that meet the needs of our clients,” said Alan. “In response to this winter’s flooding, we introduced the A&A SoakBag, a compact, light- weight alternative to sandbags which includes a polymer gel to absorb water. (See page 21 FON March) “Hundreds of SoakBags can be quickly deployed by a couple of people, whereas heavy sandbags need teams to implement them. For end users affected by flooding, our SoakBags can easily be stored for many years, allowing a simple- to-use first line of defence when waters rise.” “We can tailor demo days, depending on the audience, and there’s always a team of experts available from Adler & Allan experts to field questions from our visitors, “ added Alan. For more information and to book your place on a Demo Centre open day, contact Helen John Attridge demonstrating the flood bags – he also explained Adler & Allan’s flood protection system for drains, which closes as the water rises and can prevent flood water travelling through an air brick in a building Dearing at [email protected].
Fuel Oil News | April 2016 61 The Pricing Page
Highest price Biggest up day 21.99 ppl +1.14 ppl Wholesale Price Movements: Thu 17 Mar 16 Fri 26 Feb 16 19th February 2015 – 18th March 2016 Kerosene Lowest price Biggest down day 18.55 ppl -0.68 ppl Kerosene Diesel Gasoil 0.1% Tue 23 Feb 16 Tue 23 Feb 16 Average price 20.35 20.57 19.64 Average daily change 0.36 0.42 0.41 Highest price Biggest up day Current duty 0.00 57.95 11.14 22.29 ppl +1.14 ppl Total 20.35 78.52 30.78 Thu 17 Mar 16 Fri 26 Feb 16 All prices in pence per litre Diesel Lowest price Biggest down day
% 18.38 ppl -0.80 ppl ( ( Tue 23 Feb 16 Tue 23 Feb 16 $
#
" Highest price Biggest up day
21.17 ppl +1.13 ppl ! Wed 09 Mar 16 Mon 07 Mar 16 % % Gasoil 0.1%
$ Lowest price Biggest down day 17.58 ppl -0.83 ppl #
Tue 23 Feb 16 Tue 23 Feb 16 rice in pence per litre " Price in pence per litre Price P US Dollar to UK Pound Sterling US Dollar to UK Pound US Dollar to UK Pound Sterling US Dollar to UK Pound Gasoil forward price ! ! % % $ $ $ $ ! ! $$ ! ! % % ## in US$ per tonne
WeekWeek commencingcommencing $410 $400
$390
$380
The Fuel Oil News Price Totem April 2016 – March 2017
Trade average buying prices Average selling prices Kerosene Gasoil ULSD Kerosene Gasoil ULSD
Scotland 21.97 34.33 80.98 28.60 38.30 83.70 North East 21.70 33.67 80.38 28.20 36.76 83.07 North West 22.46 34.90 81.89 28.43 39.43 84.93 Midlands 21.27 33.34 80.26 26.45 36.95 82.60 South East 22.35 34.14 81.00 29.71 38.87 84.02 South West 22.11 34.07 80.43 27.10 36.49 82.15 Northern Ireland 22.37 34.84 81.51 25.24 36.40 84.44 Republic of Ireland 37.47 41.75 82.28 41.78 44.56 84.48 Platts 20.18 30.79 79.94 The price totem figures are compiled from the results of a telephone survey of distributors carried out on 07/03/2016 Buying prices are ex-rack. Selling prices are for 1000 litres of kero, 2500 litres of gas oil and 5000 litres of ULSD (Derv in ROI). Prices in ROI are in € .
The FON Price Totem includes Platts derived market data, supplied courtesy of Platts and BigOil.net. This allows distributors to make a comparison with the average buying prices. 62 Fuel Oil News | April 2016 Cisternas Cobo (UK) Ltd Carrwood Road Industrial Estate Glasshoughton Castleford West Yorkshire • Experience WF10 4SB • Technology Tel: 01977 604402 Fax: 01977 604403 • Quality Email:[email protected]
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