September 2011

Getting ready for winter

Insurance

Telematics 020 7808 5137 September 2011 www.fueloilnews.co.uk | 3 www.fueloilnews.co.uk Terminals & Storage 20 & Storage Terminals Logistics 22 25 Legal 26 Round-up Prices Portland Disappointed with the performance of his ISA, away, 100 days And with Christmas, just over companies, the country’s public pension retirees public pension retirees companies, the country’s can rest assured that strong revenues are still providing good returns. into councillor has chosen to put money a former panels instead. of photovoltaic the installation bills and Feed electricity that lower He reckons income,In Tariff make afor better return on investment. now is an ideal time to remind those customers to early! order 12 Insurance 21,23-24 Telematics On the Carmarthenshire website – www. website On the Carmarthenshire With the nest eggs of millions of Americans 8-9 The wholesale market Prax 16-18 prepared? we 2011- are Winter regulars Industry News 4-6 Distributor News 10-11,13 Distributors’ Diary 14-15 Irish News 19 Ways to make money to make Ways witnessed an have we weeks past few the Over array of ways to make money - both and fair foul. Firstly, investigations into the phone hacking scandal, introduced us to dubious techniques to boost newspaper sales. Recently, we’ve witnessed children looting shops alongside those who should know better, both using social media to promote their activities and to assist in the sale of their spoils. Looters were also attracted to an 20 at Guangdong in China after tanker overturned tonnes of oil leaked from its tank. carmarthenshire.gov.uk – it was reported that ‘the largest national oil company in the UK had for customers overcharging for been fined £51,000 heating oil in Carmarthenshire and neighbouring counties.’ After 400 customers complained, GB Oils ‘admitted that it had misled consumers by failing to provide the necessary information in to the true unit price of heating oil’. relation oil and gas made by depending on investments The monthly magazine for the fuel distribution, storage and marketing industry industry marketing and storage distribution, the fuel for magazine The monthly Ireland. in the UK and EDITORIAL Fuel Oil News is sold solely on condition that: Fuel photocopying or otherwise, mechanical, means electronic, any or by form in any is reproduced (1) No part of the publication / organisation outside the company will not be circulated The magazine with the publisher. (2) agreement without a prior written Ltd. Publishing & Dumville with Ashley agreement without a prior written to which it is delivered, at the address As a this publication. appear throughout of those firms whose advertisements the support acknowledge The publishers gratefully it for It is necessary however to their announcements. of our readers the attention in drawing pleasure have we gesture reciprocal the publishers it contains, and the statements in compiling this publication has been taken care to be made clear that, whilst every or services advertised. or the products inaccuracies, any for accept responsibility cannot paper. forest on sustainable Oil News is printed Fuel 0161 273 3434 Tel: Manchester Press, Pelican by Printed Ltd. Publishing & Dumville © Ashley features September 2011 Volume 34 No 9 2011 Volume September ISSN 1757-1057 Donall O’Connor has been Antrim. The castle was built in 1177 by John de Courcy, a building up the ValueOils.com about its progress on page 12 about its progress Carrickfergus Castle in County A ValueOils.com tanker beside eBrand fivefor years ago - read Norman adventurer, and stands at the entrance to Belfast Lough. Published by by Published Ltd, Publishing & Dumville Ashley Street, House, Tatton Caledonian Cheshire Knutsford, 6AG WA16 Credit card payments card Credit 01565 653283 Subscriptions Curties Sandra [email protected] the Annual subscription for is of Ireland UK & Republic priced at £92 or €109 inc. £109 or €129. p&p. Overseas: Back issues: £8 per copy. Advertising Jonathan Hibbert manager Publishing [email protected] Trade and Technical Trade Clayton Peter [email protected] Legal Matters, Health & Safety, Issues Environmental Ann Butler [email protected] Features Liz Boardman [email protected] The Irish Column Clayton Peter [email protected] News Desk / Editor Jane Hughes [email protected] [email protected] www.fueloilnews.co.uk 01565 653283 Future energy - a vital topic

Now chairman of Climate Change had created a renewable business within Capital, Vivienne Cox, who retired from an oil company, she pointed out that BP is BP in 2009 after 28 years, was guest an energy company and energy is shifting. speaker in the Vital Topics series at the University of Manchester’s Business If oil companies were to be more involved, School; Fuel Oil News listened to her it could facilitate a shift to renewables. In perspective on the energy markets a difficult investment climate, backing for sustainability is much lower and with long Oil and gas – mispricing risk pay backs on projects, investors need very Although disagreeing with the peak oil deep pockets. theory, Vivienne sees oil’s role in the future Seven years ago, Vivienne was ‘very energy mix becoming less important - optimistic’ about a renewable future but especially as gas production - $54 cheaper although the use of renewable energy has than a barrel of oil - and backed up by new sources of shale gas, is growing. Oil still has a reserve to production ratio of around 40- 50 years; most oil wells have only had 50% Vivienne Cox of their contents extracted and technology exists to extract more but - going deeper, hotter and sourer comes with risk - a risk that Vivienne says the world has been Security of energy supply will significantly mispricing. be the biggest incentive to Achieving renewable production on For some time, the world has been adding more renewables to a global scale will be very hard to achieve deluding itself as to what energy should but many opportunities exist for smaller cost. With huge political risk attached to the energy mix companies offering microgeneration. energy production, project development gets harder - low cost oil production in Libya Reducing CO2 emissions quickly went to no cost in the Arab spring; tripled in 10 years, the sector remains very The much-hyped Copenhagen climate shale extraction attracts complaints and “small. Even allowing for annual growth change talks in 2009 highlighted that a lawsuits; the cost of Shell’s long delayed of 20% over 10 years, renewables would global agreement to reduce CO2 emissions gas to liquid plant in Quatar went from still only account for just 10% of our total was ‘unlikely’. Believing it is too late to $5 to $19 billion dollars; Finland’s nuclear energy mix; a figure insufficient to combat stop temperature rises, Vivienne says we program is 60% over budget and 5 years CO2 emissions. Plus, in common with must accept CO2 emissions and adapt late. As the financial markets have already older energies, consistency of politics and to climate change by reducing energy found to their cost, mispricing risk is consumer acceptance also inhibit further demand and raising efficiency. To mitigate dangerous. Vivienne also highlights public growth. against the issue of environmental migrants backlash as another mispriced risk. Security of energy supply will be forced to flee rising water levels and hotter Risk and volatility comes with oil the biggest incentive to adding more temperatures, the world must help. In production in Saudi Arabia, Iraq, Iran, renewables to the energy mix. China will Vietnam, mangrove swamps have already Kuwait and Venezuela. Plus 17% of energy ‘leap frog the west’ in both technological been created to help combat rising sea supplies pass through a narrow stretch of advances for conventional fuel and levels. water governed by repressive dictators – can renewables; the country is already very we continue to rely on energy from such active in wind, solar PV and in cleaning Solutions to a massive problem sources? up its coal generation. As China has little Concluding that global energy provision was As economies grow, access to energy proven reserves of oil, the driver for such a ‘massive problem’, which will necessitate will be demanded as a fundamental right. technological advances will be the country’s investigation into every emerging China accounts for 20% of global energy energy security and its air quality. technology to help find solutions, Vivienne demand; global energy consumption has With access to both oil and gas, the said the inclusion of nuclear in the energy risen by 6% as a result of its CO2 intensive US does not have a highly developed mix was essential. industries. Is it sustainable for global energy renewables sector although Vivienne Asked by Fuel Oil News what skills use to continue to increase? expects a greater focus on wind power. would help better secure our energy future, In the UK, tidal wave offers ‘promising Vivienne replied ‘communication.’ The Will there be an increasing role for technology’. Good biofuels do make a energy industry is largely run by engineers renewables in the future energy mix? difference, with the carbon footprint of who can’t communicate. Whilst engineers As executive vice president of BP’s gas, cane-based ethanol being lower. Airlines and scientists will still be required, people power and renewables division, Vivienne have shown a willingness to adopt bio- who possess skills to better inform the public created BP Alternative Energy to focus aviation fuels but with very small margins, – perhaps social anthropologists – and raise on solar, wind, biofuels and carbon will higher cost fuels and higher costs flights their perception of the energy industry are sequestration and storage. Asked why she be acceptable? definitely needed.

September 2011 September 4 | www.fueloilnews.co.uk September 2011

www.fueloilnews.co.uk | 5 www.fueloilnews.co.uk Industry News Industry has Oil and Gas has Hays The cost of diesel for on companies is calling Brake  started compiling data for salary guide; its 2012 annual go to www. to contribute oilandgasjobsearch.com/ or to view the 2011 survey2012 guide visit www.hays-oilgas.com  commercial vehicle fleets roseby to April 15.6% in the 12 months Transport the Freight 2011 says Association’s Manager’s Guide 2011. to Distribution Costs was The second biggest increase followed the cost of overheads, by vehicle maintenance. by costs rose operating Vehicle 6.8%. www.fta.co.uk  to support its Bright Day bright . Just wear campaign a £1 to clothing and donate charity. Register safety the road and receive a free poster at [email protected]

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Volatile times, volatile prices On page 6 of the April 2011 issue of Fuel Oil News, Dr Craig Lowrey, consultant for UX Energy Services, asked if 2011’s volatile start was a sign of things to come for the rest of the year

Having passed the year’s halfway point, disagreement with its partners. The country Dr Lowrey says: “It’s fair to say that the said that, by the end of July, it intended answer to my previously posed question is to increase its crude output to 10 million “yes” but, that determining what will happen barrels per day – an increase of 15% on its in the rest of the year is unclear.” Dr Lowrey prevailing level and its highest output in a expands on the subject below. decade. the secondary objective The oil price started at around $95 The extent of the increase quickly of reducing prices was, per barrel back in January - but due to raised question marks as to the feasibility of uncertainty about economic growth in China Saudi Arabia achieving this level of output - however, not as successful and the US, ongoing unrest in the Middle particularly when the country’s pledge that East – particularly Libya – and the prospect it had enough spare capacity to replace of additional fossil fuel demand from Japan Libyan shortfall did not appear to have been The secondary objective of reducing following the earthquake and tsunami in backed up by increased production. As oil prices“ was, however, not as successful. While March – by April, the oil price was at $120 prices climbed to more than $120 per barrel the crude market fell by approximately $8 per barrel. – and the International Energy Agency (IEA) per barrel to around $105 per barrel, prices These factors, which dominated warned that such price levels threatened to rebounded over the course of the 30-day global crude markets throughout spring, push the global economy back into recession period, to again approach $120 per barrel. were joined by ongoing doubts over the – the IEA took action. Eurozone’s stability and the risk of a Greek Financial market instability reflected in debt default and its broader implications. The release of strategic reserves prices Following consultation with member While global crude consumption is still nations, the IEA confirmed that a total of 60 forecast to recover in line with the global million barrels per day of oil and oil products economy – the latest estimate from the would be released from strategic reserves IEA for 2011 oil demand is 89.5 million to compensate for the loss of supply from barrels per day – the risk of financial market Libya. The move represented only the third instability has been ever-present. The how much domestic and time in the IEA’s 38-year history that the potential for a Greek default on its debt, commercial consumers strategic reserves of nations had been used coupled with the risk of contagion spreading pay to heat and light in this manner – the other two being during to other Eurozone members, including the first Gulf War in 1990-91 and in the Portugal and Ireland, has meant that each their properties is being wake of Hurricane Katrina in 2005. The piece of news on this issue has been acutely determined by events well group said the decision had been made assessed by oil market participants and beyond the control of any given the expectation that Libyan crude reflected in prices. “ production would remain offline for the rest Likewise, the risk of default by the US single government or agency of 2011. on its sovereign debt obligations provided An average of two million barrels further volatility for oil markets, given per day of oil and oil products were then the nation’s status as the world’s largest OPEC arguments, Saudi Arabian intentions released to the market over a 30-day period. fuel consumer. While a deal to increase and IEA action The US contributed 30 million barrels or America’s debt ceiling has been reached On the supply front, the loss of more than 50% of the total, with Asia-Pacific nations between the Democratic-led Senate and the one million barrels of crude oil per day from providing 20% and European countries Republican-led House of Representatives, Libya was the main talking point. At its 30%. Despite protests from oil producing the downgrading of the country’s credit meeting at the start of June, there had been nations – particularly those in OPEC, who rating – and its implications for the US and hopes that OPEC members would agree accused the IEA of market interference – wider global economy – remain evident. to a formal increase in production levels. the agency pointed out that the move was Against this challenging and dynamic Those hopes were, however, dashed after merely a stop-gap measure until OPEC or backdrop, it is fair to say that oil market a proposal put forward by Saudi Arabia to Saudi Arabia was in a position to increase volatility shows no sign of abating and, may increase the cartel’s output by 1.5 million supplies, and that the move would be well increase still further. One thing that barrels per day was vetoed by nations reviewed after the 30 days. is clear is that the price of crude oil that including Iran, Venezuela and Algeria – In late July, the IEA announced it had determines – to a large extent – how much resulting in another jump in oil prices. no further plans for another stock release; domestic and commercial consumers pay As OPEC members openly criticised its aim of replacing Libyan production had to heat and light their properties is itself each other, Saudi Arabia was quick to state been achieved and additional production being determined by events well beyond the its commitment to boosting supply, despite had indeed been made available by OPEC. control of any single government or agency.

September 2011 September 6 | www.fueloilnews.co.uk

The Wholesale Market

Prax is owned by The State Oil Group which operates 22 service stations and employs over 100 staff in the Midlands and south east of England. Established in 2000, the Group’s expertise in commodities and derivatives trading soon enabled it to enter the UK wholesale market where it has quickly established a strong presence under the Prax Petroleum brand.

A high quality customer experience With its ethos of providing a ‘high quality retail experience’ on each of its forecourts, State Oil Limited has applied similar principles to the wholesale arm. Its customer-focused approach saw State Oil reach 9th position A Fast Track wholesaler

Weybridge-based Prax Petroleum has been in existence for 10 years. In less than a decade, the company has risen to become one of the largest independent oil importers and suppliers of automotive and industrial fuels in the UK

in last year’s Sunday Times Fast tailor made pricing mechanisms Track 100. Not only ranking as to suit individual customers. one of the UK’s fastest growing “We work out all kinds of exotic private companies, the Group pricing deals, “Don explained. also featured in the 2010 Top “Based on Platts monthly or Track 250 which details Britain’s weekly averages, there are mid-market private companies. at least 15 pricing options With a doubling of revenues available as we speak. And, forecast for the current financial with access to real time prices, year, the Group could be moving customers can decide exactly further up the rankings… has had dedicated storage at Devon, to Bristol in the west, when they want to trigger a Fuel Oil News spoke to Dagenham since 2007, signed Suffolk in the east and north deal. Plus, our pricing software trading director, Don Camillo a contract in January 2010 to to Coventry, through a flexible about the rise of Prax in the continue to store and blend logistics capability able to meet UK’s wholesale arena. Don, who fuels there for a minimum of the most demanding of delivery has a background in law, trading 10 years. The terminal can requirements. and ship broking, said: “State accommodate ocean-going Oil always had aspirations to be tankers of up to 45,000 tonnes; Putting the customer in control an importer and its growth has originally TDG operated, it was Prax counts the Ministry of been quite spectacular.” recently acquired by Norbert Defence, NATO bases in the UK, We work closely Dentressangle. the Royal Mail and Stagecoach with customers to Further storage aspirations “With such good growth in among its many prestigious “Prax, which supplies diesel, our current heartland of south customers. The company is also understand their biodiesels, kerosene, gas oil east and the Midlands, the an authorised supplier of diesel business, asking and petrol, started with 6000 next natural step is to extend to many of the major fuel card cubic metres of storage in storage to other areas in the networks in the UK. questions to ensure Dagenham,” explained Don. UK,” said Don. Presently, several With its aim to ‘provide that they have the “Storage at Dagenham has now fuel distributors draw from quality products at exceptionally “ right pricing deal to increased to over 50,000 cubic Dagenham and, in addition, keen prices’, the company prides metres.” The company, which Prax supplies fuel, south to itself on being able to offer suit their needs

September 2011 September 8 | www.fueloilnews.co.uk September 2011 T US T US ACAC AC OG IN OG IN LL ONTONTONT ONT C C | | SUPPLIERSSUPPLIERS y y OUNTOUNT OG IN OG IN CCOUNT CC LL ABOUT US ABOUT US MY AMY A | | ome a supplier toda ome a supplier toda ASSWORDASSWORD ASSWORDASSWORD ASSWORD ASSWORD Y INFO Y INFO USER NAMEUSER NAME PPP P Not REGISTERED? Not REGISTERED? Create an account NOW! Create an account NOW! USER NAMEUSER NAME PPPP BecBec DELIVER DELIVER www.fueloilnews.co.uk | 9 www.fueloilnews.co.uk | | s At s due. PRICE CHECKER PRICE CHECKER much praise thefor recently Downstream established “As Association (DFA). Fuel ourselves like independents in the become major players UK’s wholesale market, we need to belong to an organisation that has credibility with galvinised Having government. its members into action, the is a body this industry DFA needs - one that’s ready really to act as a pressure group and really lobby government. As a to is vital commodity, energy years, in latter the economy, the government has simply the industry as a cash viewed cow; but with behindthe DFA the the wholesale market combination could become a potent force.” | | s your choice, and it’ OG OG Y BLBL . It’ Y POLIC AC ES ES AIR PRICES F NDITIONS | PRIV TE TE ...... And because we’re proudly independent, we won’t TERMS & CO OW OW Y INDEPENDENT Y INDEPENDENTY INDEPENDENTY INDEPENDENT

PRIC PRIC X BEL X BEL

TING OIL AT The oil industry has had a bit of a bad rap in the past few years, Thanks for being involved. GET A QUOGET A QUO . . EL EL THE BO THE BO T US | SITE MAP | O O s be frank. AC elcome to Sprint Fuels Online. Our ethos is simple: to make it quick and easy elcome to Sprint Fuels Online. Our ethos is simple: to make it quick and easy elcome to Sprint Fuels Online. Our ethos is simple: to make it quick and easy ou can choose who you want to buy from and place your order quickly and ou can choose who you want to buy from and place your order quickly and ou can choose who you want to buy from and place your order quickly and ONT your voice. WE’RE PROUDLWE’RE PROUDLWE’RE PROUDL WE’RE PROUDL WW to purchase home heating oil from genuinely independent suppliers. Simply to purchase home heating oil from genuinely independent suppliers. Simply enter the fuel order you need fulfilled and we’ll show you a range of suppliers, enter the fuel order you need fulfilled and we’ll show you a range of suppliers, their up-to-date prices and their service rating as given by other customers. their up-to-date prices and their service rating as given by other customers. YYY Y securely securely HOME HEA Let’ but there are still many honest suppliers working hard to deliver excellent customer service at a fair price and they deserve credit where it’ Sprint Fuels Online we ask all our customers to rate the service they receive from their chosen suppliers. pick and choose which suppliers you buy from either FU ODE INT ODE INT Y | C C C T T FU ANAN AN OUR POST OUR POST THE REST! THE REST! Y Y EE ODE ODE e TC GE | SPECIAL OFFERS | DELIVER PA JUST POP JUST POP WE’LL DO WE’LL DO LITRESLITRES POSTCPOS DELIVERYDELIVERY HomeHomHom Home Heating FuelHome Heating Fuel Home Heating Fuel Delivery infoDelivery info Delivery info News News Customer Log InCustomer Log In Customer Log In Contact us INSTINSTINSTINST In common with others in In common with others in TEXT follow price. As fuel prices have hitting are customers rocketed, – quicker limits that much credit they’re looking goodfor service a wholesaler who’s willing from to listen and take onboard their requirements.” The wholesale future is ambition “A company’s always to be number one,” aim Don said. “The Group’s the Prax establish is to really forecourt a larger - with brand will carry sites retail presence, the Prax brand; how we get there is currently under review. priority our In the meantime, to other storage is extending parts of the UK, as previously mentioned.” Don had the wholesale market,

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we’ve built up an excellent team to look after cargo trading, stock hedging, sales, credit, and human resources.” control thoughts on the reasons behind in growth impressive Prax’s the UK’s wholesale market. “Flexible pricing with much more choice - whilst companies often to a supplier, to be loyal want thin in a business with wafer nearly always they margins, State Oil always always Oil State to had aspirations and be an importer has been its growth “ spectacular quite Gain more deliveries in your local area. local your in deliveries more Gain account. your up set to today on log or 687729 01622 on Karen Call www.sprintfuels.com

• use to Free • manage to Simple • rates commission Low • independent Proudly

FUEL SALES FUEL INSTANT INSTANT INTRODUCING A REVOLUTIONARY NEW HOME HOME NEW A REVOLUTIONARY INTRODUCING WEBSITE COMPARISON PRICE OIL HEATING “We’re a small team that that small team a “We’re “Phones are routed to a on the ball. In just four years, years, on the ball. In just four slim, and everyone needs to be “In this business, margins are works incredibly hard,” said Don. said Don. hard,” incredibly works August). August). sales team. (see page 5 FON (see page 5 FON sales team. further enhanced the company’s director, Neil Robertson, has has Neil Robertson, director, of a new sales and marketing needs.” The recent appointment appointment needs.” The recent right pricing deal to suit their to ensure that they have the business, asking questions customers to understand their their customers to understand decision. We work closely with closely with work decision. We management team for a quick a quick for team management reach a member of the senior manager who in turn can always access to a dedicated account account access to a dedicated week; customers always have have always customers week; 24 hours a day, 7 days a a 7 days 24 hours a day, member of the sales team team member of the sales mind. customers’ needs very much in much in needs very customers’ was built in house with our with our built in house was Distributor News - expansion, employment and reducing costs

Family firm expands Multi-tasking drivers Since moving to a new depot in Letchworth in 2004, Stevenage Oil With fewer deliveries often made over the summer months, many distributors ask drivers to turn their hands to a variety has gone from strength to strength. With improved storage capacity of different jobs and larger premises, the company has been able to purchase and house additional new vehicles. Maintenance work deliveries all summer.” Drivers at Berkshire-based “Our drivers do perform A larger storage facility Marsh Fuels, carry out essential other tasks; such as tidying the “We recognised a while ago that there may be a requirement for a depot and vehicle maintenance yard and getting tankers up local storage facility,” explains company owner, John Cooper. With as well as delivering to speed with MOTs and other space for two new tanks, we embarked on the construction of a new promotional material. A maintenance,” said Mark Nolan storage site.” The company now owns a 90,000 and a 100,0000 litre similar strategy is employed at at Oxfordshire distributor, tank, both supplied by Suffolk based Regal Tanks, which supplied Express Fuels and Lubricants in Nolan Fuel Oils. “There could Stevenage Oil with its original tanks at Letchworth. Manchester where planned and be even more for our drivers Stevenage Oil is also the proud owner of a brand new two arm on-going vehicle maintenance is to do next summer as we’re loading skid, supplied by Alpeco. “We used Westgate Construction undertaken. Managing director, looking at diversifying into for the new depot’s original excavation and, having built an Tony Mowbray, reported: marquees and bottled gas,” excellent mutual working relationship, we decided to use them for “Throughout the year our driver Mark added. the new tank site,” continues John. “Our new storage, which is being undertakes both driving and used to its full 580,000 capacity by a third party on a throughput warehouse duties including Driver training basis, has proved to be an excellent facility. We’re currently looking tidying the depot and cleaning Although drivers prove to be an at storage facilities for 2013.” out barrels - although I would additional resource for many never ask him to do anything a distributor in the summer, Keeping it in the family that I wouldn’t do myself. several distributors, including Stevenage Oil continues to grow as a family business, with the However, this year and last, Rix, stated that drivers were recent employment of John’s grandson, 18-year old Mitch, son of we’ve been on the go with still kept busy with deliveries, daughter, Lisa Armstrong and her husband, Ian, both of whom work in the business. Having recently passed his HGV and CPC, Mitch is now doing ADR training and looking forward to the arrival of a new DAF 55LF tanker, supplied by RTN Lakeland, later this month. Much construction work had to be undertaken at Stevenage Oil before Mitch Armstrong could stand beside the newly installed tanks and equipment below

September 2011 September 10 | www.fueloilnews.co.uk September 2011 www.fueloilnews.co.uk | 11 www.fueloilnews.co.uk In 2010, Community Buying from PassivEnergy™ Cost reduction Cost Community Buying unlimited, which buys heating oil at a discounted rate morefor than 250 communities across the UK, has joined forces with PassivSystems to enable its members heating costs. reduce to further savings achieved reputedly unlimited of around £80 on every thousand litres of oil purchased. Founder, Chris Pomfret, said: “Our members significant more will see even reductions in their bills, when savings energy managing made from are better.” PassivSystems is a heating and hot that works system control water to a home’s occupancy. according Calder Colin officer, Chief executive user-trial saw an said a recent average energy saving of 23% against the previous year’s energy bill. www.reducemyheatingcosts.com . R allows you to make allows make you to mply. bettemply. I MabaLIVE – the new online fuel purchasing service from Mabanaft MabaLIVE decisionsinformed purchasing with: Live spot prices Price trending graphs Instant ordering It’s easy use to and can be personalised your own for needs. Live oil prices. prices. oil Live go. On the s diversification into throughput storage (see page 10) has also helped business during the quieter summer months.” drivers Creative the most The prize for must use of drivers inventive Hingley go to Worcestershire’s , whichand Callow retains over drivers of team a full Helen the summer. Director, a “They’re FON: told Needham, super bunch who are happy to turn their hands to most things made even - a couple of drivers scarecrows this summer! I hasten to add that there was a point to this exercise - a scarecrow trail at Burwarton’s show annual agricultural always & Callow which Hingley of The handiwork attends.” the Hingley & Callow drivers be seen on page 3. can

For further call information 0207 802 3300 or [email protected] email At Essex based ADAt Fuel over winter so they deserve deserve so they winter over working relaxed a more environment in the summer - I do remind them of this winter!” over frequently Oils, managing director, don’t “We agrees: Alan Paul re-deploy our drivers over summer - it’s a good idea, but it doesn’t work us.for Our drivers just do shorter days this in mention and I regularly ask them when we the winter delivery.” to go out on a third Oils at Stevenage Drivers also do shorter days. “As days, as doing shorter well we encourage our drivers to take their holidays at this time,” says account manager, Lisa Armstrong. don’t “We a ban in place, but have we onwards November from drivers discourage strongly Our recent holiday. taking from Register today: www.mabalive.com else. Our guys work very hard not much time anythingfor some vehicle painting, there’s have had a holiday and done and done had a holiday have speed with their CPC training, the time our drivers are up to we do still need drivers. Plus, by less work over the summer but the summer but over less work commented: “There may be be may “There commented: manager, Ian Macmillan, ’s general ’s general Petroleum Swan A more relaxed approach relaxed A more in new customers.” in new customers.” in prospecting for and bringing and bringing for in prospecting quiet as our drivers are active active are quiet as our drivers Although, we’re never that training and development. of concentration on driver months we increase our level FON: “Over the summer the summer “Over FON: Fuels, Jeremy Cosway told depot supervisor at Cooke driver training. Padiham usedFuels quieter times for whilst others such as Cookewhilst others Insurance

“And, with over 25 years A specialist environmental team are all chemists with an Insurance experience, we can carefully can rapidly be deployed to co- understanding of supply and identify sectors where although ordinate remediation activities transport legislation. the general perception of risk is and provide on-site advice. www.24-7response.org that fits high, our experience can identify For larger spills and In addition to automatically the true hazard. The risk can incidents, a Level 3 – (clean-up) benefiting from Level 2 & Level OAMPS Petrochemical - part then be lowered through the – response enables emergency 3 response, customers can now of the OAMPS (UK) Group - utilisation of our specialist risk spill response and a clean-up have a fully integrated incident provides specialist insurance management services. responder to be mobilised. response with the purchase of to the fuel, chemical and “Claim time is the true test 24-7 holds a national database Level 1 response through 24-7. environmental industries in the UK and Ireland of an insurance programme of pre-screened, accredited and we have a dedicated in- specialist contractors to PTF Training - risk house claims management facilitate the quickest and management and training The company handles in excess team, that works alongside our most effective response for any PTF Training experts are of £45 million in premiums and other specialist support service incident. qualified to DGSA, ADR and manages over 6500 claims each providers, OHES, 24-7 and PTF,” The network is activated on NEBOSH standards and over year. Each policy is written and added Adam. a daily basis and handles over the past 20 years, the company designed with industry trade 900 projects per year. has provided training at home associations and underwritten 24/7 emergency environmental www.ohes.co.uk and abroad for thousands of by leading global insurers and disaster response delegates each year. including Zurich and QBE. OAMPS customers receive access 24/7 Response - Level1 www.ptftraining.co.uk “Our complete selection of to a 24-hour environmental response now available from specialist insurance products emergency response OHES “We fit insurance to your are carefully tailored to the facility operated by OHES 24-7 Response provides business rather than trying to needs of these sectors, bringing Environmental as standard. specialist advice over the fit your business to an insurance peace of mind to a vast range A UK-wide network of Level 2 – telephone on how to handle product,” added Adam Shefras. of clients from sole traders to (advice at the scene) – is offered emergency situations. The “To talk to one of the team, call multinational conglomerates,” with experienced incident incident advisors, who provide 01372 467 266 or says, director Adam Shefras. managers always on call. authoritative and calm advice, email [email protected] “ Volatile oil prices fuel economic recovery doubts

High oil prices in the first quarter Plagued by subdued demand of additional credit in the first first quarter of 2011 one major of 2011 undoubtedly had an “Insolvencies have largely four months of 2011. UK underwriter increased the impact on businesses in a wide occurred amongst smaller level of cover they underwrite range of sectors - with haulage operators who do not have Affecting all sectors on behalf of fuel and energy and logistics being one of the the same ability as the bigger “However, the impact of fuel suppliers by 56%, according to most vulnerable. As a result, players to pass on increased and energy price increases Paul. “As underwriters strive to credit insurance underwriters are input costs. The haulage sector stretches much wider than gain market share lost during expecting volatile fuel prices to may have benefited from lower haulage and logistics, and the recession, we’re currently affect the chances of economic interest rates, but, in addition affects virtually all sectors,” experiencing premium rates, recovery for some time to come. to high fuel prices, it has been says Paul. “In the economy as almost back to pre-recession This is the view of Paul Martin, plagued by continuing subdued a whole, oil and other energy levels,” he says. joint managing director of The demand and overcapacity.” prices not only constitute “During the recession, John Reynolds Group Ltd – Reynolds Trade Credit was a portion of the actual service levels dipped with many the UK’s oldest independent established in 1912 and enjoys inflation measure, but impact underwriters, purely because specialist credit insurance a 90%+ market share of the downstream. Other commodity they were unable to cope brokers for the UK fuel market. UK fuel sector. The company’s prices also have a lagged with the scope and extent of “In the UK, there are around client base ranges from small effect on overall inflation. The the crisis and were receiving 14,000 active limited companies local suppliers through to impact is most pronounced in unprecedented levels of claims. classified as ‘freight transport national distributors, fuel card businesses where energy costs Subsequently, however, they’ve by road’,” explains Paul. “The agents and operators, oil traders form a large proportion of total put considerable time, money insolvency rate relating to these and oil companies. input costs, and where they have and effort into their resources companies increased by 22% Despite the high insolvency a restricted ability to pass the so that the current service levels in the first quarter of 2011, rate, credit insurers have cost increases on to consumers.” we’re experiencing are superb compared to the same period in continued to support both Despite continuing concerns in comparison,” concludes Paul. 2010. haulage and logistics companies for the fuel market, and the www.reynoldsinsure.com by underwriting more than 12% UK economy as a whole, in the

September 2011 September 12 | www.fueloilnews.co.uk September 2011 www.oamps.co.uk www.fueloilnews.co.uk | 13 www.fueloilnews.co.uk The OAMPS Team - your partners - your in Team The OAMPS and risk insurance petrochemical and consultancy environmental management, training. staff Managers to Insurance Distributor News Distributor 9

e “We’re delighted with the uptake of “We’ve invested heavily in the latest “Distributors increasingly need to e e 266 nc 67 spons Risk onmental spons com licensees, including all of Scotland including all of Scotland com licensees, and Northern Ireland. These licensees include some of the UK’s biggest regional oil companies as well as medium and small sized distributors. “And, told FON. Donall the licensee offer,” especially pleased that it has proved to be of the UK’s several option for an attractive most prominent distributors. version of our software, which is ideally suited to the distributor with a strong domestic customer focus. Having an online facility enables all distributors – a 24/7 service. big and small - to offer Our experience shows that a significant actually are of online orders proportion made between 8pm and 7am,” adds Donall. defend market share against third party price comparison sites. believe We our proposal makes good business sense for progressive distributors looking afor quality online solution to grow volumes at a very price.”fair Re vir Re Insura Emergency ment Manage 0118 902 9372 0118 902 9373 0870 240 332 01372 4 En

training Everything you need to protect your business need protectto your you Everything E030 Jun 2011 OAMPS Petrochemical is a trading name of OAMPS (UK) Ltd, Registered in England No 1969267 Registered (UK) Ltd, name of OAMPS is a trading Petrochemical OAMPS no 302649 Reg Services by Authority: the Financial & Regulated Authorised

Authority Authorised and regulated regulated by the Financial Services Licensees have postcode exclusivity distribution. e solution An attractive add-on to a distributor’s existing business model As a licensee of ValueOils.com, a distributor can maintain their traditional sales/ a whilst implementing strategy marketing access option which offers online parallel to a wider customer base. in ValueOils.com made through orders for their licensed date area. almost To 75% ValueOils. by covered are of UK postcodes

to date almost 75% of UK to date by covered are postcodes licensees ValueOils.com “ in fuel

5514 Bad debts are an unfortunate fact of life Credit insurance offers a cost-effectiv and, as acknowledged market leaders in credit providing insurance to the oil industry, we are pleased to make our services to available FPS members. 0161 905 on SPECIALIST CREDIT INSURANCE SPECIALIST BROKERS [email protected]

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A well-known industry figure, Donall “However, even a modest online DON’T LEAVE IT TO CHANCE IT - TO BE DON’T SURE LEAVE TO or e-mail www.reynoldsinsure.com For For a free-of-charge, non-obligatory consultation contact INSURE

guarantees prepayment for every order. every for prepayment guarantees an advanced bespoke online facility which ago. Now an established eBrand, it offers created ValueOils.com almost fiveyears ValueOils.com,” reports Donall. Donall. reports ValueOils.com,” route to the online market as a licensee of distributors are choosing an alternative choosing an alternative distributors are development, an increasing number of number of an increasing development, pitfalls both in time and new software of time to create. Wishing to avoid costly presence can take a significant amount UK and Ireland. only fully online domestic distributor in the says Donall, creator of ValueOils.com, the with many setting up an online presence,” certainly been analysed by most distributors, asks Donall O’Connor have online being of benefits and costs “The embracing the online living revolution?” the average heating oil distributor part of everyday life. “But, how is Going easy online Going accepted online is just an being Today, Tell Wildcat your news 01565 653283 [email protected] Distributors’ Diary by Wildcat

An eight man team from north west distributor, Crown Oil, are in intensive High expectations for intrepid Crown Oil team training in preparation to climb Kilimanjaro, to raise money for the charity MedEquip4Kids

In training are Paul Butterworth, Adrian Greenhalgh, Carl Keggin, Mark Andrews, Matthew Greensmith and Paul White

Flying out on September 14th and something back for all the other poorly to work for Crown, but now operate as returning ten days later, the team will kids,” he said. contractors for the company. “It’s good to climb the mountain via the remote 56km be back with the old team!” commented Lemosho route to reach the 5,895 metre A preference for taxis! Carl. “We are about 50/50 on the (19,341ft) summit. Adrian Greenhalgh (43), is Crown’s finance excitement and anxiety stakes, but it feels “We hope to raise at least £10,000, director. He has no previous trekking great to be doing something for kids.” though it would be better if we could experience and, he says, has a preference MedEquip4Kids is a charity dedicated smash this target rather than just limp for taxis! Adrian’s motivation is to prove to to making children feel safer, more over the line,” explained trek coordinator himself and his family that he can do it! comfortable and happier when undergoing Terry Day. “The team are combining gym Company general manager, 34-year- medical treatment. This can involve the work with hiking trips to the Lakes and old Mark Andrews, also admits to no supply of complex and often expensive Snowdonia at weekends to get used to the previous trekking experience, but says life saving equipment, such as incubators climbing and build endurance.” his competitive instinct is driving him to and defibrillators, or helping set up simple Thirty-three-year-old Terry is Crown’s put everything he can into the project. schemes such as a mother’s milk bank to management accountant and has taken “I’m feeling much more apprehensive allow families with small babies to help the role of coordinator as he is a keen than excited at this time, but expect the each other. Last year the charity raised weekend fell walker with many lesser excitement to build as we get closer to the £700,000 and supported 43 different summits to his name. “I am much more climb.” projects. excited than apprehensive about this Paul White (48), Crown’s national project, but I am aware that altitude accounts manager, has been walking in Follow the team… sickness has no respect for age, fitness and the UK hills and mountains for about 30 FON readers can follow the team at training - so I will just have to see how it years. He has wanted to scale Kilimanjaro www.crown-oil.blogspot.com and make goes,” he commented. for many years and was inspired by the donations at www.justgiving.com/Crown- Crown Oil’s managing director, Matt Red Nose Day Trek two years ago. Head Oil where there is also an update on the Greensmith (37), is also a member of the of blending, Paul Butterworth (37) is also group’s progress. Fuel Oil News which intrepid team. Although Matt has climbed familiar with UK fells and mountains has already sponsored the team hopes Ben Nevis a couple of times, his main and regards the Crown expedition as “an to feature a follow-up article after the motivation comes from his four-year-old opportunity of a lifetime”. Crown team returns victorious from its daughter, Ruby, who was born with heart Excitement and anxiety… expedition. problems, leading to a lot of time visiting The final two members of the team are hospital. “It means a lot to be giving Andy and Carl Keggin who both used

September 2011 September 14 | www.fueloilnews.co.uk September 2011 www.fueloilnews.co.uk | 15 www.fueloilnews.co.uk playing the oil drum in the background playing Jim with Jean whose repertoire did not extend to Jim’s got talent Jim’s A born showman himself, Jim Callow, invited Britain’s Got Talent Star, Jean Martyn, to play on Hingley & Callow’s stand at last month’s Burwarton agricultural show. Bubbly Jean, a retired music teacher, can play grand piano, electronic keyboard, mighty cinema organs. and Wurlitzers ? d l i e s e o f l r o B t e r l u e i Winner l o ? i g s s o i o A n

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BoilerBleedAdvert:Layout 1 10/08/2011 10:47 Page 1 BoilerBleedAdvert:Layout 1 10/08/2011 Diary by Wildcat by Diary Distributors’ Winter 2011 - are we prepared?

We’re ready, so bring it on! say distributors and suppliers

The House of Commons Transport Committee recently published a report into the disruption caused by the adverse weather conditions last December. The report urges the Highways Agency and police to manage blockages on the road network more proactively, making greater use of roadside and in-car information systems, to warn motorists about poor conditions and disruption. As well as stating that resources available to the Met Office need to be re-examined to improve its long-range forecasting capability, the report also calls for the development of clearer snow and ice risk travel warnings for freight vehicles. Although bad weather is normally regarded as good news for the fuel distributor’s order book, the deep snow and hazardous road conditions of the last two winters have caught many out. Lack of adequate severe weather warnings, resulting in inadequate preparation, meant that some companies were unable to capitalise on what should be their busiest time of the year.

Full to the gunnels… But there’s fighting talk at Midlands-based distributor, Hingley and Callow. Director, Helen Needham, told FON: “We’re certainly hoping for a cold/snowy/icy period – preferably starting in early November and extending until the end of March! We shall Distributors and equipment suppliers are already swinging into action to ensure endeavour to be well prepared and, to this everyone’s well prepared for wintry weather end, we have replaced one of our storage tanks so that we now have capacity for 4.5 million litres of kerosene. Rest assured, Five new trucks… winter has fuelled a burst of organic growth, prior to the first flurry, we shall be full to the “We always look forward to a busy season, which should see us busier than ever this gunnels! and I’m pleasantly surprised that last winter. What’s needed is three months of “With regards to any other winter’s momentum has carried through cold, dry easterly winds so that the trucks preparations, we don’t believe we could into summer, with both volumes and can get around unhindered, along with a have a better team – ready to deal with margins satisfactory,” reports Kevin seamless supply of kerosene to pump up the whatever the elements may throw at us. Our Bennetts, owner of Consols Oils. volume.” staff were absolutely superb during the last “The five new trucks that we’ve For Swan Petroleum, who operate in cold snap. purchased from Maidment Tanker Services the north Midlands and the North West, the “On a lighter note,” joked Helen, “We over the last eighteen months are really weather is not normally a major problem – may consider opening a coffee shop to serve paying dividends. The drivers love them but contingency plans are already in place refreshments to the queue of customers and customers certainly notice them – they for another harsh winter: “We can’t use waiting to collect product… either that, or really are the cheapest form of advertising, snow chains,” says general manager, Ian give out carol sheets to lift the spirits! Bring after satisfied customers, of course. The Macmillan, “So we just make sure that we it on!” failure of some suppliers to perform last Continued on page 18

September 2011 September 16 | www.fueloilnews.co.uk

Winter 2011 - are we prepared?

Continued from page 16 likewise,” says managing director, Neil which rely on older pressure diaphragm have plenty of rock salt at the depot, and Ryding. “Remember that once a fuel has operated probes, should have them always carry out vehicle maintenance in waxed out, you can do nothing but wait checked and, if necessary, recalibrated at September so that everything is in good for the temperature to rise – and we saw least annually – and certainly before the working order.” a number of samples of off-spec gas-oil winter freeze. Martyn Gent, the company’s Like most distributors, John Roberts, last winter waxing out at -7°C as opposed sales and marketing director, adds: “Many director of White Rose Fuels in Yorkshire, is to -12°C, as per the specification,” he consoles, which link to the fuel probes in the keeping his fingers crossed for bad weather: explains. “Using Anti Wax pushes the waxing tank, are becoming obsolete and surviving “Hopefully we’re going to get the same as temperature downwards, but it does need on a wing and a prayer. Once they develop last winter. We had one or two bad days last to be added ahead of time – and this year faults, often at the most inconvenient year, but we coped as best we could. We still we have bolstered the performance to allow times – such as the Christmas rush – have some rock salt left over from last year, for the presence of biodiesel, which can spares are difficult to source. And it’s the but at the first sign we’ll get some more. make cold weather protection all the more lost engineering knowledge which makes difficult.” maintenance increasingly difficult.” Purchasing habits… To assist customers, Cameron Forecourt “Despite last winter, you can’t teach punters has mapped out a cost-effective upgrade to buy early,” he adds. “They wait until it’s path, whereby they can link still serviceable freezing cold, and there’s not a lot we can in-tank probes to new more advanced and do about it…” reliable monitoring equipment from Veeder- However, OFTEC – the trade association Root’s TLS range. representing manufacturers of oil firing Sentinel Systems’ fully ADR compliant and cooking equipment – is hoping to do Reverse with Radar system uses the latest something about consumer purchase habits. Doppler radar technology to prevent With analysts predicting that the cost of unnecessary reversing incidents – even in heating is set to rise dramatically, OFTEC the harshest of weather conditions. The has been advising consumers to take action system works by applying the brakes on the over summer to reduce winter heating bills, vehicle should an obstacle come in to range encouraging them to fill their tanks whilst whilst reversing. Trusted by such well-known the price of oil is cheaper. Hingley & Callow prepares for winter names as the Nynas oil company, Turners Several of the larger energy suppliers at a summer agricultural show (Soham) Ltd, Tesco and Sainsbury’s, the have already announced massive price Alpeco is one of the UK’s leading system is in a robust waterproof housing hikes, with more expected before the suppliers of liquid handling equipment to and has fully adjustable radars, which, unlike colder weather arrives. In the height of the road tanker and industrial petrochemical ultrasonic sensors, are unaffected by wind, summer, Jeremy Hawksley, OFTEC’s director industry. Sales manager, Adrian Baskott, told rain, snow and dirt – making it ideal for use general, said: “Rising fuel bills mean more Fuel Oil News: “We are totally prepared and in wintery conditions. households are facing the threat of fuel geared up for winter, because if something poverty, and although we are basking in the is going to go wrong, it is undoubtedly going A simple solution… heat of summer, OFTEC is urging consumers to go wrong in sub-zero temperatures! Gaining in popularity with logistics firms and to do everything possible now to make sure “Alpeco don’t really have any concerns distributors is AutoSock, a reusable textile they minimise their winter fuel bills.” OFTEC about cold weather, as all equipment sock which is pulled over the driving wheels is also hoping to persuade consumers to is designed to cope and operate in of vehicles to give extra grip on ice or snow. replace old and inefficient boilers with newer temperatures of minus 20 degrees.” Adrian The socks are quick, neat and easy to fit, condensing models, which can save at least added that his company will continue the says Martin Gray, managing director of John 18% on fuel bills. customer care service which was in place Jordan, the UK distributor of AutoSock. Even But it’s not just fuel distributors who during last winter, and hopes that bad larger sizes, designed for trucks, fold neatly are gearing themselves up for the winter. weather conditions do not stop the Alpeco to the size of a shirt. “If people carried Manufacturers of certain relevant product team from reaching customers! (see page AutoSock, there would be no roads blocked lines are also eagerly looking ahead. 23). by vehicles when the snow falls faster than it Last December, Fuel Additive Science can be cleared,” he says. Technologies’ (FAST) business took an Tank gauging checks… “We offer a simple and effective unexpected, but nonetheless welcome, turn As many companies are still reliant on solution, and feel a real responsibility to when it was inundated with requests for rudimentary first generation or obsolete get this message out. When we were at the its Exocet Anti Wax product to combat the equipment, commercial fuelling specialists, Commercial Vehicle Show in 2008, there was problem of waxing diesel and gas-oil during Cameron Forecourt advises that an a lot of interest. But because it hadn’t really the extremely cold weather. immediate review of tank gauging and snowed for so long, these weren’t products fuel monitoring systems could help them that people thought they would need. After Cold weather protection… steer clear of problems when the going gets the last two winters, that’s all changed and ”This year we’re already gearing up and tough… and the landscape turns white. there seems to be a real determination not advising customers and end-users to do Cameron recommends that companies to get caught out again...”

September 2011 September 18 | www.fueloilnews.co.uk September 2011 Irish News Irish www.fueloilnews.co.uk | 19 www.fueloilnews.co.uk

The illicit fuel laundering plant, uncovered by HMRC at Derrynoose HMRC by uncovered laundering plant, The illicit fuel Find out more about HMRC’s work over the past 12 months, laundering fuel in uncovering successes and its continued Oil News. issue of Fuel in the October plants Paul Candon, marketing and corporate services director said:at Topaz, excellent who provide by our employees, confidence of “It’s a huge vote Earlier this year,was rankedTopaz 7th in a list of Best Large Workplaces Tim McNulty has won his first International Donegal Topaz the Rally. 70,000 people watched three-day event.. Proud winner is McNulty (left of photograph) at ramp on the victory pictured Paul with co-driver Letterkenny Kiely (right) and Eddie O’Brien, CEO of Topaz. Topaz Donegal Donegal Topaz Rally attracts 70,000 spectators Fuel retailer amongst best in Europe retailer Fuel 25 top Best Large Europe’s for in Paris ceremony awards a recent At in 14th position. emerged Topaz Workplaces, especially Topaz, like company Irish a young for “This is a huge achievement The fact up against. were look at the quality of the companies we when you on the list is retailer and convenience fuels dedicated the only were that we also hugely satisfying. service to our customers on a daily basis. Our employees are our greatest able to maintain are in partnership with them we working and by resource success.” to further us forward and dynamism which will drive the vibrancy www.topazenergy.ie in Ireland. He will

During the same week, an an During the same week, laundered fuel, tanks, pumps and equipment, were removed from the site. unrelated diesel laundering plant, capable of producing nearly 11 million litres of illicit fuel a year, was uncovered when HMRC agricultural officers searched outbuildings at a private residence in the Derrynoose area of Co Armagh. Two HGV vehicles, 21,000 litres of illicit fuel, and associated equipment were also seized a 40’ HMRC removed. containing trailer, sided curtain two 15,000 litre tanks, recently adapted as a mobile laundering plant. He has experience across

+353(0)404 67164 or 1890 22 44 88 sales @ herbst.ie 22 44 88 sales 67164 or 1890 +353(0)404

Aidan said: “IAidan am looking forward to expanding on the Aidan will be developing business FTAI’s services within Aidan joins the association having grown a training HMRC, accompanied by accompanied by HMRC,

of Irish logistics. FTA’s roleFTA’s in Ireland and shares his hopes for the future In next month’s special Irish Focus, Aidan discusses the services to the transport industry in Ireland.” www.ftai.ie industry in Ireland.” services to the transport number one membership trade association and provider of its firstyear, and to the challenge of promoting it as the reputation Irelandthat FTA has already built up during operators as well as government and statutory bodies. and statutory as government as well operators strong working relationships with many local transport management of training solutions, and has developed the Irish logistics industry, particularly in the delivery and safety initiatives in Ireland. transport industry and also managed and developed road services, compliance audits and health and safety. this he worked as a health and safety consultant in the Ireland, particularly in the areas of training and tachograph and tachograph of training particularly in the areas Ireland, to business he set up in 2008. Prior and consultancy FTAI’s offices in Dublin. FTAI’s Aidan will be based at will be based at services. Aidan generally. membership and the benefits of FTAI as general manager of business be promoting the availability of Shopfta members to FTAI the appointment of Aidan Flynn Ireland has (FTAI) announced Freight Transport Association, manager business business appoints appoints FTA IrelandFTA More laundering plants uncovered been adapted to transport the the to transport been adapted Four HGVs, all of which had all of which had HGVs, Four thousands of litres of toxic waste. concrete pen containing officersfound a newly made discovered. During searches, litres of illicit fuel a year, was producing over seven million a laundering plant, capable of premises in Crossmaglen where where in Crossmaglen premises police officers, raided commercial raided commercial police officers, Customs (HMRC) in Co. Armagh. in Co. Customs (HMRC) been uncovered by HM Revenue & loss to the public purse, have with an estimated £12m annual £12m annual with an estimated million litres of illicit diesel a year, a year, of illicit diesel million litres capacity to produce almost 18 almost 18 to produce capacity Two laundering plants, with the with the plants, laundering Two Terminals & Storage www.vopak.co.uk

NEBOSH backs calls for international oil and gas safety standard The National Examination Board in Occupational Safety NEW - international technical certificate in oil and gas and Health (NEBOSH) is backing calls for a stringent set of operational safety international safety standards for the oil and gas industry. NEBOSH has begun to play its part in raising health and safety standards in the industry through its new international technical NEBOSH says that it is time to consider whether the worldwide oil certificate in oil and gas operational safety. and gas industry ought to be governed by a regime similar to that The qualification focuses on safety management systems, operated by the UN backed International Atomic Energy Agency helping those working in the industry to fulfil their workplace safety (IAEA) to cover nuclear safety. responsibilities, both onshore and offshore. NEBOSH recommends NEBOSH chief executive, Teresa Budworth, commented: “The that anyone taking the specialist qualification should already have stakes are too high in oil and gas to depend on inconsistent and an underpinning knowledge of safety issues, perhaps having already varying safety standards. The Deepwater Horizon incident cost studied for one of its other certificate or diploma level qualifications, the lives of eleven workers, and the full extent of the subsequent such as the NEBOSH international general certificate. environmental disaster remains unknown. A global benchmark For further information about the international technical for safety should be set for the oil and gas industry, to be followed certificate in oil and gas operational safety visit wherever it operates.” www.nebosh.org.uk/OilandGas

fuel supply security to businesses in the Long term investment for the UK’s oil Rail link investment Cardiff area. HCB Storage’s terminal is now supply infrastructure secures coast-to- able to receive product by rail as well as by Mabanaft has built a reputation as a reliable ship, and Mabanaft now has the facility supplier of fuel products. Commenting on coast oil supply to provide fuel to any other UK rail-fed the re-opening of the rail facility at the terminal or depot. Cardiff oil terminal, Mark Rolph, Mabanaft’s Investment in new fuel storage and rail At the Immingham end, Simon has managing director, says: “The support of key loading facilities by Simon Storage at integrated new and existing facilities to business partners, like Simon Storage, has its Immingham East terminal, assisted allow receipt of Mabanaft product by sea. contributed to the successful completion of independent fuel wholesaler, Mabanaft, Specialist storage for ultra low sulphur derv, this project, which reinforces Mabanaft’s in creating a new rail-fed fuel supply line kerosene and bio blend diesel is provided by commitment to long term investment in from Immingham, on Humberside, to HCB six carbon steel tanks. oil supply infrastructure to ensure secure Storage’s Cardiff oil terminal. New pipeline systems installed by supplies for the UK market.” Mabanaft has also completed a Simon at Immingham enable product to Simon’s chief executive, Richard modernisation programme of rail heads at be transferred from storage tanks to the Sammons, comments: “This project the Cardiff terminal as part of the 15-month rail loading gantry at a flow rate of up to showcases Simon’s engineering expertise, project. The investment - by Simon, 512m3/hr. Rail cars are bottom loaded and demonstrates our willingness to Mabanaft and other business partners - has via a manual loading operation, designed invest in specialist storage and handling opened a fuel supply line from the east to to allow two adjacent rail cars to be filled facilities to meet customers’ commercial the west coast of Britain, bringing increased simultaneously. objectives.”

September 2011 September 20 | www.fueloilnews.co.uk September 2011 e s r m u t e d m t p s o s a n c y n . c s r a

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again. think Since the trial ended, Vetspeed’s productivity has improved by 200 drops per month, due to due to per month, 200 drops by has improved productivity Since the trial ended, Vetspeed’s Time to In a controlled trial - unbeknown to its drivers - specialist waste management operator Vetspeed Vetspeed operator management - specialist waste to its drivers trial - unbeknown In a controlled week period. for an initial five system, telematics with a new fitted its 40 vehicles of had seven undertaken. were further trials to the drivers, and conveyed was analysed data the first set of After The result was that Vetspeed’s drivers gained nearly half a mile to the gallon (despite the severe around the company saving UK during the trial), potentially conditions that hit the weather £13,000 a year. to both the best and given were Awards behaviour. of driver and closer monitoring routing better small how matter said: “It doesn’t really Julian Barker the trial. FTA’s from drivers most improved is non-compliance even or of performance areas to address data a fleet is; being able to drill down and forward- be done when a responsible what can This trial shows company. any for useful very and applies it intelligently.” technology adopts the latest looking operator Telematics for smaller fleets smaller for Telematics A three-month trial conducted by the Freight Transport Association and (FTA) transport management solutions provider, Microlise, has questioned the widely-held view that telemetry is the sole preserve of large fleet operators. “ or visit

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14328_T&L_210x148.5_AW.indd 1 preview the very latest tracking systems management and fuel from key suppliers, with reference currently to distributors who are using such systems to good effect. larger hauliers that are putting use - to good this technology smaller firms are alsoreaping the rewards, as a trial carried out by the Freight Transport Association See highlighted. last winter, alongside.

With issues such as fleet fleet With issues such as management,driver performance much at very and productivity the forefront of the fuel logistics industry, telematics have an ever expanding role to play. Keeping on track Logistics

Aiding driving with telematics Tough new proposals to penalise reckless drivers have been welcomed by The Fuelcard Company Under a series of changes to tackle aggressive and incompetent driving, those who tailgate or overtake on the inside will face on- The company says the UK’s larger commercial fleets are already the-spot-fines of £100. The new rules will also force disqualified well on the way to resolving the issue through the widespread use of drivers to take extra training and possibly re-take their driving test, telematics and other tracking technologies. before winning back their licence. “Fuel management reports can help identify risky drivers, allowing fleet managers to provide additional training and guidance Jakes de Kock believes logistics companies are in driving efficiencies,” says Jakes de Kock, The Fuelcard Company’s setting a good example sales and marketing director. “Lorry drivers are now monitored constantly behind the wheel which has led to a steep reduction in dangerous driving, accidents, insurance claims and fines for individuals and companies, reducing casualties and bringing cost savings to commercial fleets.” “Data can be readily examined in real time or historically. Examining where drivers have been and the travel times between points might identify other causes of poor driving. For instance, when speeding is due to poor scheduling of appointments, such data enables people to bring in more realistic timetabling.” For the latest in telematics, see pages 21, 23 and 24. Olympic Engine efficiency

measures In order to increase fuel efficiency and reduce operating costs even further, DAF has introduced With the 2012 Olympics less than a a significant number of innovations to its 12.9 litre year away, anxiety over the anticipated PACCAR MX engine disruption to the supply chain, is growing among the Freight Transport New pistons, optimised fuel injection and a unique, Association’s (FTA) London members fully encapsulated exhaust manifold unit ensure substantially lower fuel consumption and therefore lower CO2 emissions. The enhancements fit well within Natalie Chapman, FTA’s head of policy for DAF’s Advanced Transport efficiency (ATe), a full range The improved PACCAR MX engine London, said: “Potential Olympic disruption of solutions designed to increase transport performance is causing the logistics sector many sleepless while reducing environmental impact and costs. The nights. The Olympics and Paralympics will 12.9 litre PACCAR MX engine is fitted to the popular DAF mean that for around 100 days the logistics CF85 and XF105 models. sector will have more to deliver and far less time to deliver it in. We believe that part of the solution can be found in allowing more Transaid total deliveries to be made at night time, but this will require a temporary relaxation of lorry To date, the FTA’s gruelling cycle challenge around the UK bans from some London councils.” has raised £30,000 for international UK development charity, Working alongside the Noise Transaid Abatement Society, the FTA, has pioneered the development of quiet delivery “Potentially, this staggering sum could fund motorbike safety techniques that could be used during the courses for 200 students,“ said regional manager, Tom Wilson, who games to allow deliveries to take place undertook the Northern Ireland leg of the challenge. at times currently restricted. Natalie “The enthusiasm and determination displayed by our Northern concluded: “The logistics sector can play Ireland members and their colleagues was quite amazing. We not the part of Britain’s Olympic hero and help only had one of the biggest competitor turnouts, but, I believe we deliver an amazing event that is memorable also collected the largest amount of money so far. FTA’s president, for all the right reasons. But more can be Stewart Oades, who covered the entire route over two weeks, said Gary Forster (l), Transaid’s done to provide delivery flexibility and this leg had been really enjoyable for its support and camaraderie. CEO, receives a cheque from avoid landing operators with the dilemma He and his support team were impressed with the magnificent Stewart Oades of either breaking the law or keeping their County Antrim countryside and its coastline, particularly on the customers happy.” route from Glenarm to Larne Harbour.”

September 2011 September 22 | www.fueloilnews.co.uk September 2011

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Telematics ELAFLEX reeling hose to Mann Tek dry disconnect couplings (DDC), anti-spill hose and tank units, STANAG 3756, 3150, ISO ow ball full45, valves fl ERV Rubber expansion joints ELAFLEX clamp type safety couplings to EN 14420 On-site hose inspection Hose to EN Standards – embossedcontinuously

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‘Kill the Spill’DD Spill’DD Spill’DD the the ‘Kill ‘Kill Coil lengths uptomtrs, 80 mtrs54 ft) (177 or cut lengths Extrudedconstruction Very fl Veryexible. fl Easy to handle Long service life guaranteed, true bore, highresistance, abrasion electricallyconductive Very lightweight hoses up to% 18lighter than other makes

Lightweight hoses, reeling nozzles & industrial couplings! » » » » » emissions 2 ELAFLEX LTD, Hoddesdon, Herts EN11 OPA phone 01992 452950 fax ex.co.uk sales@elafl ex.co.uk 01992 452911 www.elafl The Deliverer system has recently been expanded into an entire family of products, As the amount of readily available vehicle-related data grows, CDS continues to has a lengthy track record of importing vehicle-originated data into its CODAS software software its CODAS into data of importing vehicle-originated record track CDS has a lengthy and supplying its own and developing systems to third-party interfaces offering system, used , has successfully and Webber Mitchell distributor, on-truck solution. Cornish Deliverer years. many for the system has just Deliverer platforms. operating of the industry’s most advanced advantage taking been adopted by an existing CODAS user with a 100-strong fleet; the company wishes to improve delivery performance through the real-time review of progress against its daily schedule. develop new software solutions, providing CODAS users with the means to effectively utilise, deployments. significant trialling further is also currently it. The company and analyse store www.cds-systems.co.uk truck system A Mitchell and Webber tanker equipped with the Deliverer on- equipped with the Deliverer

In addition, R:COM’s unique (PTO) feature is Take-off Power designed specificallyfor thefuel sector, and enables DCC’s managers to , R:COM Systems connects Blue Tree by and marketed directlyDeveloped to all truck engines to provide detailed and comprehensive

Mitchell and Webber performance Deliverer monitor all fuel deliveries and check the duration, time and location at which fuel was dispensed. www.bluetreesystems.com dispensed. was at which fuel time and location and check the duration, deliveries monitor all fuel improvements and reducing CO₂ emissions. CO₂ emissions. and reducing improvements driver. DCC’s driver trainers have successfully used R:COM to coach staff on improving driving style, achieving significant fuel consumption fuel consumption significant driving style, achieving on improving to coach staff used R:COM successfully have trainers driver DCC’s driver. driving style improvements can be made and presents this data in a format that is unique and user friendly to both driver trainer and and trainer to both driver is unique and user friendly that in a format this data be made and presents can driving style improvements driver performance data, including time in each RPM band, over-speeding, idling and use of cruise control. The system highlights where where highlights The system idling and use of cruise control. each RPM band, over-speeding, including time in data, performance driver

is continuing to significantly reduce fuel spending and CO₂ emissions thanks to the R:COM fleet management system. system. emissions thanks to the R:COM fleet management fuel spending and CO₂ reduce to significantly is continuing DCC Energy DCC reduces fuel bills and CO bills and fuel reduces DCC Telematics

The United Nations has launched a decade of action to improve Increasing driver global road safety - www.makeroadssafe.com - making telematics a must-have for both commercial vehicles and company car fleets. “A telematics solution from Handsfree™ is a complete solution safety providing increased driver safety, efficiency, and ultimately, increased profit, through reduced business overheads,” says Matt Johnson. “Increased driver safety is achieved through monitoring a range of data sets including harsh braking, speed and seat belt use. Data set monitoring combined with other safety products in the company’s range such as reversing cameras and alcolocks, help to make oil transportation as safe as it can be. “The UK enjoys an enviable record on road safety,” added Matt. “We work closely with the European Transport Safety Council and global technology manufacturers to maintain and enhance UK road Increased driver safety and efficiency with Handsfree™ safety standards.” www.handsfree.co.uk Controlling fuel Competency in the MiX distribution The ePOD in-cab/handheld system from IMS is proving popular, with several hundred in operation in tankers throughout the UK and Ireland. ePOD is used alongside the company’s Tankerbase back office suite to provide a complete fuel distribution management system. With MiX Vehicle Conversions under new An optional in-cab GPS/GPRS transceiver ownership - MiX Telematics is concentrating enables ePOD to transmit delivery co-ordinates to on fleet management and vehicle tracking Tankerbase for use in a web-based vehicle tracking system. Functions such as vehicle location, MiX Telematics’ specialist body-building and vehicle equipment fitment division, routing, excess speed alerts, ‘off route’ (geo- MiX Vehicle Conversions, has recently been purchased by Imperial Commercials. fencing) and Power Take Off (PTO) running are Rebranded as Mackworth Vehicle Conversion Specialists, the operation will transfer to all available, as is the ability to control on board larger premises in Derby to enable further growth and development. equipment. “This is a very positive step for the conversions business. As part of Imperial Drivers can send SMS messages to customers Commercials, we’re sure it will go from strength-to-strength,” comments Tony English, via ePOD, choosing either a pre-defined message managing director, MiX Telematics. “This transaction will also ensure that we can or free typing. SMS messaging is also available in concentrate on our core competency of providing fleet management and vehicle Tankerbase. www.ims-integer.com tracking solutions to the UK and European markets.” Productivity benefits for Lintons

Being able to ensure that the correct volume of product is delivered to the right location is vital for fuel distributors. Navman Wireless’ CoNex system integrates with a vehicle’s Power Take Off (PTO) to bring an unprecedented level of transparency and control to deliveries. CoNex works with vehicle tracking to indicate when, where and for how long a fuel pump has been activated; this data can then be used to calculate if the correct amount of product has been transferred. The PTO will also indicate whether products have been pumped at a specified delivery point, providing real time reassurance and additional security. The CoNex is a module of the Navman Wireless Qube, a vehicle tracking device approved to category 3G of the ATEX directive. Graham Binstead, transport manager for Linton Fuel Oils, said: “We were impressed Linton Fuel Oils - impressed with the numerous with Navman Wireless’ focus on service provision. With its system we can improve service productivity benefits and efficiency savings of Navman’s delivery, while having access to the numerous productivity benefits and efficiency savings ConNex system afforded by vehicle tracking.” www.navmanwireless.co.uk

September 2011 September 24 | www.fueloilnews.co.uk September 2011 Legal www.fueloilnews.co.uk | 25 www.fueloilnews.co.uk Uniform misuse Uniform The Serious Organised Crime Agency (SOCA) has recently updated of at the request the misuse of uniforms, an alert about and reissued body, its representative industry and in transit and valuable the cash by serious, organised used frequently are Official uniforms Sa£ercash. cases have high profile Recent activities. illegal criminals undertaking on trucks on the road in robberies uniforms the use of stolen involved sites. and at cash to change licence fees Operator From January 2012, new European legislation comes into force set Currently licence holder fees. operator standard which will affect at €9,000 thefor firstvehicle and €5,000for each additionalvehicle, on rate exchange to the euro annually, according will be reset the rates year. of the previous in October day working the first changes test Vehicle is set to change in January 2012. testing Driven Vehicle by a being are at the annual test inspected law, items change in European and EBS will tale main-beam tell such as airbags, items Extra reviewed. in discussion are and VOSA Transport for be included. The Department ways best to find the Association about how Transport with the Freight on whilst also minimising the impact of meeting the new requirements the annual test.

ErPD is designed to reduce carbon emissions and help the The directive will impose strict minimum efficiency levels of The directive will set out minimum requirements for energy- for requirements will set out minimum The directive

2015, by which time it will have to comply with the legislation. 2013, it is likely that the UK will have a transition period until the directive will automatically take effect, probably in January in January probably effect, take will automatically the directive UK meet Europe-wide 20% reduction targets by 2020. Although system. system. installer label which will state the efficiency of the whole heating appliance. In addition, technicians will have to add their own have to state the combustion efficiency on a label affixed to the currently around 85% for most oil boilers. Manufacturers will will most oil boilers. Manufacturers 85% for around currently on appliance manufacturers to increase efficiencies, which are efficiencies, which are to increase on appliance manufacturers around 90% boilers,for both oil and gas. Pressure is therefore be included. an impact on energy usage eg windows and insulation, will also furnaces. Products which do not necessarily use energy, but have televisions. It will also cover industrial energy-using products, like using products, including boilers, water heaters, computers and including oil-fired boilers. boilers. including oil-fired outlines the eco-requirements for energy related products, Updated in 2009, the Energy-related Product Directive (ErPD) January 2013 January ErPD legislation – Portland Prices Round-up

Crude oil producer (500k bbl per day): operating profit synopsis September update Exploration Costs ($ / bbl) $30 $30 $30 $30 $30 Crude Sale Price ($ / bbl) $30 $50 $75 $100 $150 As the holiday season opened, headlines of impending economic doom rained down, Daily Revenue ($m) $15m $25m $37.5m $50m $75m with both the US and EU confirming long- Daily Operating Profit ($m) $0m $10m $22.5m $35m $60m term stays in respective casualty wards. Both short and long-term economic outlooks did predicted, the impact when it arrives is still feeling a little uncomfortable, particularly indeed look grim and oil prices plummeted profound. The bedrock of the oil industry if it has expensive or inefficient extraction accordingly; down to almost $100 per for the last 50 years has been the wisdom operations. At $50 per barrel, things look up, barrel in just a few days at the beginning of that oil majors have both upstream and with daily profits of $10m, $75 a barrel and August, as markets reacted to a world where downstream operations and ConocoPhillips daily profits are rolling in. By $100 Big Oil Co the two biggest collective oil consumers has now consigned that wisdom to the is bringing in $35m of operating profit every looked likely to go AWOL. dustbin. The next question is who will follow day. Operating 7 days a week, 52 weeks of suit? BP is still searching for easy cash to the year - that’s circa $1bn per month and Markets and not authorities control price help plug the hole of Deepwater Horizon $12bn per annum. The “excitement” of August completely and a downstream asset sale would do overshadowed the ups and downs of nicely. Plus of course, Chevron is exiting Recession? What recession? July which was, in comparison, a rather downstream in Europe and Total is doing The relevance of this is, of course, not how uneventful month. Certainly, the IEA’s stock likewise in the UK. impressive upstream oil companies are, intervention (see FON August) had little but just how impressive a downstream effect other than what we saw at the end of Where did it all go wrong for downstream organisation needs to be to even get a June and the market actually rose. On 1st and how can it be such an unattractive mention in the Board Report. In fact, how July, a litre of petrol was at 125.87 pence, market? on earth can a downstream operation or by the end of the month it was 128.57 - The truth is that there isn’t much wrong heaven forbid a petrol station network, proving once again that for better or worse, with the downstream industry - it’s just compete with these figures? The fact is that markets and not authorities control prices. everything is right with upstream. they can’t and they don’t, so in the brutal Take a standard upstream operation economics of the modern oil major, the Major changes little has changed in its fundamental decision of ConocoPhillips looks entirely July’s biggest news was probably cost-base since the 1990s when crude oil logical. ConocoPhillip’s announcement to separate extraction cost $15 - $30 per barrel; even As this report is written, markets its business into two stand-alone operations: with inflation, this figure remains largely are plunging worldwide and a second upstream exploration and downstream accurate 20 years later. The table above recessionary phase seems ever more likely refining & marketing. This has long been an shows a basic breakdown of profits for an but oil producers can be heard quietly inevitable consequence of high crude prices oil major, based on a “standard” production saying “recession, what recession?” and endlessly squeezed refinery margins. Yet figure of 500,000 barrels (bbl) per day. like all watershed moments, however much At $30 per barrel, Big Oil Co may be www.portland-fuel-price-protection.com Price Totem

Trade average buying prices Average selling prices Kero Gas oil ULSD Kero Gas oil ULSD Platts 48.02 58.08 106.30 Scotland 50.03 61.43 108.96 54.81 64.37 111.35 North East 50.56 61.40 109.14 53.90 63.95 111.70 North West 49.40 60.81 144.55 55.50 64.50 111.25 Midlands 50.16 60.93 108.72 53.65 63.95 111.85 South East 51.95 61.45 108.34 56.09 64.84 111.33 South West 50.05 60.76 108.17 54.28 63.74 111.40 N. Ireland 49.76 61.13 109.33 53.92 65.56 113.05 Republic of Ireland 66.53 70.63 110.89 74.71 76.76 113.95

The price totem figures are compiled from the results of a telephone survey of distributors carried out on the date shown. 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 € . Date: 09/08/2011

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.

September 2011 September 26 | www.fueloilnews.co.uk Trade Products & Services

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