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OCTOBER 2013
WASTE OIL
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Fuel Oil News | October 2013 3
Winning hearts and mindsThe monthly magazine for the fuel distribution, storage and
marketing industry in the UK and Ireland.
October 2013 Volume 36 No 10ISSN 1757-1057
Founded in 1977 by James Smith
Some years ago, the government
highlighted off grid rural areas as being
prime targets to convert to renewables.
But, when off grid homeowners
were asked which heating system they
would consider in the future, an oil boiler
was most commonly mentioned. This
preference for oil is backed up by the
latest boiler sales fi gures which were 23%
up in the fi rst half of the year – the best
result for fi ve years.
Whilst examining the UK public’s
willingness to take up more effi cient
heating systems, Ipsos Mori and the
Energy Savings Trust found that even with
100% grants or 20-year tariffs – less than
9% of rural households were currently
willing to change to micro-CHP, heat
pumps, biomass, solar thermal or heat
networks.
Surprise, surprise, purchase price
and running costs came out top when
selecting a heating system; plus of course
the blindingly obvious need to get your
system working again as fast as possible
when it’s packed in! Even though the
heating may have been off this summer,
constant hot water was still essential.
The research was commissioned by
the Department of Energy and Climate
Change which is struggling to get the
public to engage with Green Deal.
Commenting last month, Ed Davey said:
“It’s still early days but the results from
the latest research really underline that
people want to take action to make their
homes warmer and more effi cient, and to
keep their bills down.”
At present, oil, a tried and trusted
technology is still winning people over
– despite the bad press it will no doubt
receive when the kerosene price goes up
again. Be reassured, when it comes to
energy, winning the hearts of the public
will always be diffi cult whatever the
technology.
Ingoe Oils at the Cheshire Show.
Photo – Jonathan Farber
4-5, 8-9 NEWS
7 ANALYSIS Thin cover for winter?
10 INSIDE OUTThe integrity of the UK oil supply system
11 PORTLAND MARKET REPORT
13 ANALYSISHuman factors
14-15 IN CONVERSATION WITH INGOE OILS
16 TALKING POINT In the light of the Purvin & Gertz report discussed in FON’s
July issue, are you worried about the UK’s refi ning resilience?
17 IRISH NEWS
19-22 SUPER SOFTWARE
23-25 WASTE OIL
26 THE PRICING PAGE
Contact us 01565 653283
www.fueloilnews.co.uk
Managing directorNick Smith
News desk / EditorJane Hughes
Deputy editorLiz Boardman
Sales directorJonathan Hibbert
Business development managerLinda Farrow
Staff writerAine Faherty
SubscriptionsSandra Curties
Annual subscription for the UK &
Republic of Ireland is priced at £92
or €109 inc. p&p. Overseas: £109 or
€129. Back issues: £8 per copy.
Credit card payments01565 653283
Published by Ashley & Dumville Publishing Ltd,
Caledonian House, Tatton Street,
Knutsford, Cheshire
WA16 6AG
01565 653283www.fueloilnews.co.uk/category/directory
If you need to fi nd an
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service quickly, consult your
Fuel Oil News Directory
YEARBOOK & DIRECTORY 2013
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COMING SOONDETAILS OF THE NEXT EVENT
4 Fuel Oil News | October 2013
Feedback from fuel distributors has led the Federation
of Petroleum Suppliers (FPS) to tailor its fuel quality
accreditation scheme to enable users to choose both
the level of service required and to opt for specific tanks and/or
products to be covered.
Introduced last year, the scheme sets standards for fuel
testing, cleansing and the prevention of contamination by water,
particulates and microbial growth in storage tanks. It enables FPS
members to safeguard themselves against the potential risk and
any consequential claims due to post-delivery contamination.
Drawing a line under fuel quality disputes
“Participants in the scheme will be able to show that their tanks
have been certified to current industry best practice levels of
quality, thereby guaranteeing fuel standards,” said Mark Askew,
FPS chief executive. “This should enable fuel distributors to draw
a line under any disputes concerning fuel quality. It should also
encourage best practice for tank hygiene to cascade down to
end users including fleet and plant operators who also have bulk
storage facilities.”
DIY sampling option
Fuel quality certification is based on a minimum of four samples
a year, taken at three monthly or quarterly intervals. Working in
partnership with the FPS, OTS TankCare undertakes the initial test.
The second and third quarter samples can be undertaken by the
tank owners with certification following the final test results taken
by OTS TankCare. Alternatively, the entire test programme can be
conducted by OTS TankCare. All test data can be viewed online in
a simple trend analysis presentation.
To find out more, simply fill out the fuel test enquiry form
at www.fpsfueltest.co.uk. In response an e-mail with log-in
details will be sent enabling a detailed no obligation quotation to
be made. A guide to fuel cleanliness can also be downloaded at
the aforementioned website. See also page 24.
News
Exceeding expectations
Since expanding into fuels last year, Clugston Distribution’s operations have
gone from strength to strength.
This year, a further £500,000 investment has enabled the company
to expand its fleet to better meet the market’s requirements. Now operating a
13-strong fleet of 44 tonne articulated tankers, Clugston can now move motor
spirit, diesel, ethanol, biodiesel, bioethanol, aviation fuel and gas oil, on both a
contracted and spot hire basis from the Humber and Teesside.
Having made over 7,000 full load deliveries to 18 separate customer
accounts, head of logistics, David Heath reflected: “The pace of growth has
outstripped expectations. We have direct relationships for the provision of
deliveries with five forecourts in Yorkshire. We’ve created 17 fuel driving jobs; four
more vacancies are currently being filled. Six drivers from Clugston’s existing steel
and cement workforce have also cross-trained to join fuels. An in-house DGSA
undertakes weekly spot audits on drivers to keep on top of strict compliance rules.
“We believe our ability to respond to last minute changes gives us a distinct
competitive edge, and we’re keen to grow further over the next twelve months.
With 76 years of operational experience, we’re looking forward to making the
same impact in the fuel sector as we have in the haulage of metal, food and bulk
powder.”
The company continues to choose Renault trucks for its fleet. Commenting on
the aforementioned investment, Nigel Graham, fleet services manager, said: “As
a Renault Trucks approved repairer we know Renault Premium offers us the best
overall fuel performance and longevity. We’ve recently taken delivery of 15 new
Renault Premiums, creating a combined fleet of over 70 Renaults, 13 of which are
working on fuels.”
Fuel quality further
enhanced
Clugston – growing its fuel presence
Guaranteeing fuel standards by regular sampling and certification
Fuel Oil News | October 2013 5
www.vopak.co.uk
A cause for
concern?
Over the past fi ve or so years there has been
increasing concern in government circles about the
integrity and resilience of the UK’s oil supply system.
This has manifested itself in the establishment of the
Downstream Oil Industry Forum and several reports; two
in this year alone – Purvin & Gertz in May (Inside Out, July
2013) and the report on UK oil refi ning by the Commons
Energy & Climate Change Committee in July.
Since the new millennium, the share of total UK refi nery
production delivered into the inland market has declined from
just over 80% to 60% (in 2012). Over the same period,
imported sources have increased from 18% to 40%, while
exports (including international marine bunkers) also rose
from 25% to 39%.
These trends mask the substantial, and rising, mismatch
between indigenous refi nery production and inland market
demand.
Gaining supply knowledge
On page 10, Inside Out looks at the integrity
of the UK’s oil supply system.
Checking out the new facilities at Valero’s Manchester Fuel
Terminal with terminal manager Dave Crook (2nd from left) are
Liz Boardman, Fuel Oil News deputy editor, Sandra Curties, A&D
Publishing database manager, Rachel Malley, John Surtees, Mike
Reardon and Grace O’Toole from Oil Recruitment.
Call 0207 802 3300
Email [email protected]
Register at www.mabalive.com
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TO PURCHASE FUEL
As one of the leading independent fuel importers and wholesalers in the UK, Mabanaft makes buying fuel as easy as possible.
On the phone – Our experienced marketers, with their thorough understanding of the fuel oil distribution market can help you make the best buying decisions.
Online – MabaLIVE, our online price information and fuel ordering service, provides live market information and fuel pricing to enable you to make instant, informed fuel purchasing decisions.
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Fuel Oil News | October 2013 7
Analysis
Thin cover for winter?European diesel and heating oil
prices will be supported by a heavy
autumn refi nery maintenance
schedule that is already prompting
some interest to store product. But
storage economics are looking
uneconomic going forward,
threatening thin cover for the
winter, writes Chris Judge, senior
products editor at Argus Media.
Whilst faltering economic
growth in Europe in general, and in
the UK in particular may improve
diesel demand, the picture across
Europe is still not encouraging for
sellers.
The fi rst half of 2013
Over the fi rst half of the year diesel
demand limped along, rarely
achieving the margins sellers had
hoped for at the start of the year,
despite short episodes of market
tightness. The weak demand in
Europe is underlined by car sales
that have been falling almost
continuously for nearly two years,
with supply boosted by refi nery
upgrades. More spot diesel volumes
were expected from Spain and
Greece, while Israel’s ORL started
up a new 25,000 b/d hydrocracker
at its Haifa refi nery, Portugal’s
Galp launched its own 43,000 b/d
hydrocracker, and a slew of Russian
refi neries worked on expanded
diesel production.
Nagging concerns over
margins meant that European
refi neries – particularly those in
the Mediterranean – continually
trimmed output, keeping buyers on
their toes, especially through the
summer months.
Heavily reliant on imports
Refi nery maintenance dominates
on the supply side with weak
motor fuel demand dominating
on the demand side. A key source
of winter diesel, Swedish refi ner
Preem’s 220,000 b/d refi nery
in Lysekil, Sweden, closed last
month for six weeks of scheduled
maintenance. Also on the docket
for autumn works are Exxon’s
246,000 b/d refi nery in Antwerp
and unspecifi ed units at BP’s
400,000 b/d Rotterdam refi nery,
and a variety of key Russian plants.
The UK is heavily reliant on
imports from Europe following the
closure of Russian product exports
are expected to fall sharply from
September to November as a result.
The total capacity loss is forecast
at 5.4mn t, with most of the cut
coming in September-October,
compared with 3.75mn t off line
during the 2012 turnarounds.
Demand concerns persist.
The seasonal downturn in driving
and agricultural consumption is
compounded by weak economic
growth in Europe and forecasts
that western Europe’s automotive
market will not begin to grow again
until at least 2019. That said,
demand fi gures for the fi rst half
of 2013 were mixed. In much of
northern Europe demand continues
to grow, albeit at unspectacular
rates – up 3% year on year in the
fi rst half in Germany and up by 2%
in the fi rst fi ve months in Sweden.
Troubled Mediterranean Europe
saw drops of 6% in the fi rst fi ve
months in Spain and 3.3% in Italy.
While traders and refi ners
expect the maintenance
programme to provide support, it
does not match the abrupt loss of
600,000 b/d of refi ning capacity
with the insolvency of European
refi ner Petroplus early in 2012,
when autumn premiums to the
benchmark Ice gasoil surged to
nearly $60/t and diesel’s crack
spread against Brent surpassed
$25/bl.
With the sale of all but one
of the Petroplus refi neries – the
146,000 b/d Petit Couronne
in France seems doomed to
permanent closure – most of the
company’s former capacity is now
back on stream. And, despite the
general agreement that there is
refi ning overcapacity in Europe,
optimism over longer run prospects
for diesel is driving plans for
capacity additions; Italy’s ENI has
already restarted its idled 105,000
b/d Gela refi nery in Sicily. The
company has also announced a
€700mn investment plan, including
diesel maximisation, in a bid to
return the loss-making plant to
profi t.
UK diesel premium to crude oil
13.000
14.000
15.000
16.000
17.000
18.000
19.000
20.000
02-Jan-2013 02-Feb-2013 02-Mar-2013 02-Apr-2013 02-May-2013 02-Jun-2013 02-Jul-2013 02-Aug-2013
$/bl
Graph produced from combined North Sea Dated, London close, midpoint, USD/bl fob and Gasoil diesel UK ultra low
sulphur cif prompt, London close, midpoint, USD/bl, cif lbetween 2nd January and 29th August 2013
8 Fuel Oil News | October 2013
News
Erratum
Page 7 September 2013 Fuel Oil News A good fi nancial year for Marquard & Bahls
Please note that in the table featured in the above article, the last two sections – employees and
equity – were transposed. The correct table is below.
Group Figures 2012 (in million €) 2011 (in million €)
Revenues
(incl. energy taxes)
18,259 18,565
Cash fl ow
(from operating activities)
336 399
Income before income taxes 162.7 113.3
Net income 106.4 70.3
Non current assets 2,602 1,875
Equity 1,387 1,346
Employees
(fully consolidated and
associated companies)
8,560 8,300
Trailblazing
Mabanaft’s commercial sales manager, Tim
Milford, recently completed a 100km trek in
Sussex’s South Downs. Tim and the team
raised over £2,500 for its two charities – Oxfam
and the Gurkha Welfare Trust.
http://tinyurl.com/nk56zjt
Fuel Oil News | October 2013 9
Producing tanks to a standard, not a price
So confi dent in the quality of its products – in line with British
Standard BS5410-2, and the Control of Pollution Regulations
– Envirostore UK says it is more than happy to state that an
Envirostore bunded tank has a 20-year life expectancy.
“Using only quality materials, our bunded tanks are manufactured
to the very best possible standard,” explains sales director, Richard
Marsh. “Provided the tank is installed correctly, and inspected annually in
accordance with our warranty, customers can have every confi dence that
the bunded tank they purchase from Envirostore will have a 20-year life
expectancy.”
Taking an innovative approach
The only plastic tank manufacturer to exhibit at this year’s FPS Expo
in Harrogate, Envirostore took the opportunity to launch a new 1300
litre vertical bunded tank and its 2500 litre vertical fuel dispenser. “We
had much interest from fuel distributors across the UK – many fi nd our
approach to doing business and our product innovation a breath of fresh
air,” said Richard. With more new products being released this year, the
company has had a busy few months.
Envirostore is working closely with contacts in the steel tank industry –
look out for announcements on new product joint ventures in the coming
months. “Over the last few years, we’ve taken and acted upon advice from
individuals with long standing in the tank industry – Bruce Woodall from Oil
Tank Supplies (OTS), Trevor Seed of J.Seed & Co, and M. Brittain (York). This
advice has led us to set the high standards in our plastic tank construction
and importantly to be innovative.
“We will continue to work closely with customers and industry contacts
to ensure the quality and standard of our existing products and to advance
those new products being launched over the next 12 months.”
A point of difference
Envirostore UK has been quietly and steadily making inroads into the
plastic tank market place since its 2010 launch. With its inner spill tray, an
Envirostore tank offered a point of difference from the outset. “The inner
spill tray was an innovation,” said sales director Richard Marsh. “It offers
users a real advance in overfi ll prevention at the point of fi lling – even on
a single skin tank. Plus, every Envirostore tank is individually wrapped and
delivered on our stacking system vehicle, reducing the risk of tanks being
damaged in transit.
“If your existing plastic tank supplier does not offer you a 20-year life
expectancy, it could be a good time to take a look at Envirostore.”
CUSTOMERS CAN HAVE EVERY CONFIDENCE THAT THE BUNDED TANK THEY PURCHASE FROM ENVIROSTORE
WILL HAVE A 20-YEAR LIFE EXPECTANCY
More new products on the
way from Envirostore
A point of difference
– the inner spill tray
10 Fuel Oil News | October 2013
Your Fuel Supply Partner020 7808 5137
wfscorp.comInside Out
The integrity of the UK oil supply system
Indigenous refining
cover and capability
to supplyThe UK market is serviced from 47 distribution
points (including 7 refineries), with
approximate bulk product movements by
coaster/sea fed (33%), pipeline (52%) and
rail (15%). Below is an assessment of the key
elements of the downstream supply chain –
product sources/sourcing, supply lines from
sources and market coverage.
South (SE, E & SW England and Greater
London)
In deficit on all products, a situation worsened
by Coryton’s closure in 2012. With import
facilities close to capacity, any disruption
of refining operations at Fawley could have
serious repercussions. Supply is neither robust
nor resilient; commissioning of the new
Coryton import/distribution facility will help to
alleviate this position.
The main supply points comprise four
sea fed public storage facilities in the Thames
and two pipeline fed facilities, at Purfleet and
Staines, sourced from Fawley. Some material
is supplied from a pipeline fed terminal at
Buncefield and rail fed facility at Theale, while
the southern part of the region is serviced by
RTW from Fawley and Hamble. Further west,
the market is supplied from two terminals at
Avonmouth, one sea fed and one pipeline fed,
and a rail fed facility at Westerleigh. Parts of the
south west are also serviced from Avonmouth,
with the lion’s share from two sea fed terminals
at Plymouth, with some distillates only supplied
from a sea fed facility at Falmouth.
Central (NE & NW England, Wales, Yorks/
Humberside and E & W Midlands)
In surplus on all products except diesel, being
readily accessible from most UK refining
centres, deemed both robust and resilient.
Supply is largely serviced via three main
pipeline networks – UKOP (Thames-Mersey),
Mainline (Milford Haven/Pembroke refineries)
and the Esso system (Fawley refinery). In
the Midlands, these supply terminals at
Northampton, Bromford and Kingsbury (3
facilities), with one of the Kingsbury terminals
also rail fed from Humberside, from where
products are also moved by rail to a terminal
at Nottingham. There is also a rail fed terminal
at Bedworth. The north western part is largely
supplied from Stanlow refinery, supplemented
by two pipeline fed terminals in Manchester,
a sea fed public storage facility at Eastham
and a rail fed terminal near Carlisle. Yorkshire/
Humberside is serviced by two refineries at
Killingholme and a sea fed public storage
facility at Immingham (which can also receive
directly from two nearby refineries). The north
east is supplied by two sea fed public storage
facilities on Teesside and one on Tyneside and
a rail fed terminal at Jarrow, with material
also sourced out of the two Humberside
refineries. The market in south Wales is serviced
from three sea fed facilities in Cardiff, while
the north is supplied out of Stanlow and
Manchester.
Scotland
Similar in terms of cover to Central, so is
deemed robust, but lacks resilience owing
to the capacity of existing terminals being
insufficient to compensate for loss of
Grangemouth refinery supply.
Most central belt requirements are
supplied from Grangemouth refinery,
supplemented by sea fed public storage
terminals at Grangemouth (also fed from the
refinery) and on Clydeside. Further north, the
market is serviced from sea fed terminals at
Aberdeen (2 facilities, one distillates only),
Peterhead (distillates only) and at Inverness.
Northern Ireland
Entirely dependent on imported sources, it
relies largely on supplies from Central and, to a
lesser extent, Scotland.
The main supply sources comprise two
sea fed facilities in Belfast, one of which is
public storage, with the western part of the
region also serviced from a sea fed facility in
Londonderry.
Our four regional supply envelopes
Indigenous refinery
production v inland market
demand
Since 2000, diesel imports
have risen from 16% of inland
consumption to 44% and
kerosene from 33% to 54%. By
contrast, the share of motor spirit
production exported has risen
from 20% to 49% and that for
fuel oil (including international
marine bunkers) has increased from
55% to 95%. Exacerbating the
motor spirit imbalance has been
an increased import share, from
11% to 32%, which reflects the
much expanded presence of the
importing/wholesaling companies
in the transport fuel sector (also
a contributory factor in the rise of
diesel imports).
Looking at the wider issue of
import dependency, it is noteworthy
that expert witness testimony to
the recent Commons Energy &
Climate Change Committee report
was in broad agreement that a
mix of domestically refined and
imported products was essential for
security of supply, the respective
proportions being best determined
by the market. So, the Committee
advised DECC that, in its review,
it should take an approach that
reflects the integrated nature of
indigenous refiners and importers
as well as associated ancillary
industries.
Is there substantive cause
for concern?
Detailed below, the extensive
physical infrastructure has been
in place for many years, during
which time it has been subject
to much rationalisation. While
enabling comprehensive market
reach, it also has a commendable
record of providing both security
and continuity of supply, as well
as helping the country to meet its
compulsory stocking obligations.
The consequences, in terms
of product supply dislocation,
arising from disablement of the key
Buncefield terminal in December
2005, bore testimony to the
system’s resilience. That is not to
say that there are not points of
potential vulnerability; should there
be loss of supply out of the Fawley
refinery, the consequences for
the South, the UK’s largest inland
market region, are by far the most
significant. The DECC review, to be
completed by year end, is awaited
with interest!
Fuel Oil News | October 2013 11
Portland Fuel Price Protectionwww.portland-fuel-price-protection.com
For more pricing information, see
page 26
October update
The prediction at the end of August from
Quentin Wilson was almost too good to
be true. Now that the traders were back
from their holidays, said Wilson, so oil price
volatility would return with a vengeance.
No sooner had this been said, prices in
September did indeed start to go a little
crazy, although all but the most hardened
of market cynics accepted this was a result
of the escalating crisis in Syria rather than a
certain type of holiday-maker getting back to
their desks.
“But why Syria?” say the
aforementioned cynics. Why should such
a minnow in terms of oil production have
such a profound impact on world oil prices?
On the surface, perhaps they have a point.
Here is a country that prior to the Civil War
was only producing 380,000 barrels per
day – a 12th of BP’s world oil production
and a volume that puts the country in about
30th place in the world production ranks.
More signifi cantly, the country has been
producing virtually nothing for the last 18
months anyway (in industry terms, its oil
production is “shut-in”), so the crisis should
have no impact on world oil. In short, if we
are to believe that oil prices are a function of
supply and demand, then how can a country
that produces nothing have a signifi cant
impact on prices?
On the other side of the argument,
we have the usual refrain from the oil price
hawks who point out that any crisis in the
Middle East will always affect oil prices.
They will remind us that the fear of future
oil shortages almost always has a greater
effect on prices than the actual shortages
themselves and that the situation in Syria
is a perfect example of this. After all, a
confl ict in Syria is likely to pit Saudi Arabia
and the USA against Syria’s main allies, Iran
and Russia. Erm…let’s have a look at that
one shall we? A potential confl ict between
the two biggest oil producers in the world,
backed on each side by the two largest
nuclear super-powers on the planet…..
Isn’t that a good enough reason for oil
Portland
market
report
price volatility? And even if we look at the
best-case scenario (where military action
is avoided), we would still face years of oil
embargoes, sanctions and supply-chain
disruptions, none of which typically do much
for oil price stability.
The truth is that both arguments are
valid and if we look at the market’s response
to the crisis, we can see that actually
prices behaved proportionately and largely
refl ected the factors involved. The attached
graph (showing monthly gasoil volatility)
goes back to 2003 and we can see that this
recent crisis ranks as the 25th* most volatile
month (period) over the last 10 years. Other
more signifi cant incidents (socially, politically
and economically) such as the credit crunch,
the Iraq War and Hurricane Katrina all had a
more profound effect on prices than recent
events in Syria and on balance, this seems
about right.
So yes, in oil terms, the current Syrian
crisis is very signifi cant. But fundamentally, a
country that is producing nothing can only
have so much effect on supply and demand.
Therefore from a pricing perspective, the
impact of Syria has so far been kept in
check and we can only hope that this is how
things remain – for a whole host of reasons
far more important than oil. But if we were
to look simply through the prism of oil and
the consequences of future military action,
then at that point, we would have to say
that the price movements we saw in August/
September would soon be dwarfed by an
avalanche of volatility. If that turns out to be
the case, you ain’t seen nothing yet…
* This rank would be lower still if we
calculated volatility as a percentage of the
total value of oil, rather than the graph,
which looks at absolute values.
Monthly Gasoil VolatilityDifference between max and min price in pence per litre (ppl)
12 Fuel Oil News | October 2013
Contact us on:
www.praxpetroleum.com01932 843354
Prax House, Horizon Business Village, 1 Brooklands Road, Weybridge Surrey KT13 0TJ
Call our sales team now for the best spot quotes, supply contracts and pricing options.
Prax Petroleum is one of the largest independent oil importers and traders in the UK.
Replacement sustainable biofuels for:HeatingOn & off road vehicles/machineryPower generation & CHP
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Fuel Oil News | October 2013 13
Safety culture is essentially an organisation’s
collective attitudes, values and behaviours
towards safety. Put simply it is “how we do things around here” and in particular “how we do things around here when nobody’s looking.”
As companies working within the high hazard
industries, oil and fuel operators’ safety policies
are governed primarily by the COMAH (control
of major accident hazards) regulations. Under
these, operators are required to ensure that
major accident risk potential remains as low as
reasonably practicable. However, just because
a company complies with industry safety
regulations, it does not necessarily follow that it
has a positive safety culture.
A staged progression – individuals,
frontline workers, managers, directors
and the board
Safety culture is often described as progressing
through a series of stages. Early stages of safety
culture maturity involve a focus on technical and
procedural solutions to safety problems. When
an incident occurs, the aim is often to find out
who was involved.
As the organisation matures, managers
increasingly realise that a wide range of factors
cause accidents and that the root causes often
originate from management decisions. This is
where knowledge of human factors plays a key
role. By understanding the individual, job and
organisational factors that influence frontline
workers’ performance, we can analyse individual
human failures and determine what can be
done to prevent them recurring. This moves the
focus away from the individual who was in the
wrong place at the wrong time, to look at what
managers can do.
At higher levels of safety culture maturity,
both frontline workers and managers co-operate
proactively to prevent accidents and their root
causes. So managers and frontline staff can drive
safety culture from the bottom up by improving
understanding of human and organisational
factors throughout the organisation.
However, there is growing recognition
that safety culture needs to be driven from the
boardroom. Moreover employers in high hazard
industries are increasingly being called upon
to demonstrate organisational competence in
process safety management. The UK Health
& Safety Executive states that ‘Directors and
boards need to examine their own behaviours,
both individually and collectively’. Business
leaders need to get out and talk to staff at all
levels about process safety.
Setting Process Safety Performance
Indicators (PSPIs) can be a structured way to
do this. To be able to have these conversations,
leaders need to have sufficient understanding
of process safety including the root causes of
accidents. If this is lacking then a first step is
often to improve process safety competence
at senior levels, not just in operations but also
business support functions such as maintenance,
HR, finance and quality at site and group level, as
well as amongst non-executive directors.
Taking the time and effort to cultivate
and nurture a positive safety culture will pay
dividends not only in terms of overall site safety,
but also in profitability since the two are very
closely linked.
HFL Risk Services, which took part in last
month’s Tank Storage Association exhibition
and conference, offers nationally recognised
qualifications for continuous improvement in
process safety for senior managers and senior
executives. www.hflrisk.com
THE IMPACT OF HUMAN FACTORS WHEN
CREATING A POSITIVE SAFETY CULTURE“CULTIVATING AND NURTURING A POSITIVE SAFETY CULTURE TAKES TIME AND EFFORT,” SAYS JAMIE ELLIOTT, HUMAN FACTORS SPECIALIST, HFL RISK SERVICES
LOOKING AFTER HEALTH, SAFETY AND THE ENVIRONMENT IS ‘EVERYBODY’S PROBLEM AND EVERYBODY’S RESPONSIBILITY’, IN NEXT MONTH’S ISSUE READ ABOUT THE SAFETY INITIATIVE IMPLEMENTED BY A UK FUEL DISTRIBUTOR WITH MULTIPLE DEPOTS
Analysis
14 Fuel Oil News | October 2013
In Conversation
ALTHOUGH STILL A YOUNG COMPANY, ROCHDALE-BASED INGOE OILS HAS BIG AMBITIONS. LIZ BOARDMAN SPOKE TO MANAGING DIRECTOR AND COMPANY OWNER, JORDAN INGOE ABOUT ESTABLISHING THE BUSINESS AND HIS PLANS FOR FUTURE EXPANSION.
A learning curve
Having bought the Fern Street Depot and
existing fuel business in 2009, former industrial
boiler engineer, Jordan, has taken time to
immerse himself in the industry before really
pushing the company forward over the last
twelve months: “I am brand new to fuels,”
he admits. “The last three years have been
a massive learning curve for me. Although
I already held Class 1 and 2 licences I’ve
had to gain the necessary health and safety
qualifications and ADR training and take on
more staff.”
In addition to long-standing yard manager,
Chris Quint and sales manager, Stephen
Gomersall, Jordan has recently taken on sales
advisor, Janet Thornton and a full time tanker
driver, Brian Leach, who is bringing many years
of experience with him, freeing up his time and
allowing him to concentrate on developing the
business further along with his partner, Rebecca
who is also director and company secretary.
“Over the last few months we’ve had some
stumbling blocks to overcome and I’ve been
doing all of the deliveries, but now I have a
full-time driver, I can really focus on moving the
business forward and increasing deliveries over
the winter.”
With 70,000 litres of storage in brand new
tanks from UK Bunded Fuel Tanks, fuel is currently
bunkered in by BWOC and Tate Fuels. However
the company has now started pulling out of
Manchester Fuel Terminal.
Fleet expansion
Yet to experience a full winter heating season,
Jordan’s hoping that recent investment in
equipment and the fleet will stand the company
in good stead. Just over a year ago the company
purchased a brand new loading rack from Maine
Tankers, which has already proved its worth.
In addition to this Jordan has invested in two
brand new rigid Tasca tankers (a 14,000 and a
9,000 litre) and an off-road vehicle for winter
deliveries in difficult to access areas, which if last
year’s bad weather is anything to go by, will be
extremely busy.
GRAND DESIGNS
Ingoe’s brand new Tasca tanker
Attention grabbing – Ingoe’s
miniature tanker – Minnie
Fuel Oil News | October 2013 15
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Mounted on DAF chassis, both tankers are
equipped with Touchstar telematics, Fuelsoft
back office software, Mechtronic metering and
VisiLevel and Collins Youldon reel and hose.
The company has recently built a mini
tanker for promotional purposes. Although
driveable and identical to its bigger relatives,
the tanker, named Minnie, will not be used for
making deliveries. Minnie made her debut at
the Halifax Show in August, where it received a
huge amount of attention – not least of all from
Jordan’s 18 month old son, Chace.
Branding the business
Although Jordan has no formal marketing
training, he and Stephen have done all the
marketing and promotional work themselves.
From the eye-catching smile logo, to the bold
corporate colours, which have been recently
picked out in the company’s newly decorated
offices and the mini tanker, Jordan and Stephen
have worked hard to get the business to its
current position. “I wanted a logo that was
friendly, familiar and instantly recognisable so
that if you removed the company name, people
would still know the brand,” he said.
What’s next?
The website is the next big project for Ingoe Oils.
Although the company already has a website,
changes are afoot, as Jordan explained: “We
have just started using Fuelsoft’s web ordering
software which is great but I now want to soften
the website and make it more accessible to
domestic customers. I use Google AdWords and
seem to be spending more each month, which
is a good sign as it shows people are clicking on
the website.”
At 28, Jordan must surely be one of the
industry’s youngest owners but that hasn’t
curbed his ambition in any way. “We currently
operate a 30-mile radius around Rochdale but
I’m keen to move into areas such as Cheshire,
where we already have one big customer. I’d
like to open a depot in Cheshire in time, and
eventually base the business there, whilst still
keeping a presence in Rochdale.” Before that
though, Jordan is focussing on getting his first
full winter season under his belt and by the
sounds of it, the company is more than ready to
meet the challenges ahead.
Jordan with son Chace at this year’s Cheshire Show
16 Fuel Oil News | October 2013
Talking
Point
Pete George, Phillips 66
“Phillips 66 plays a key role in providing a secure
supply of petroleum products to the UK markets
via its Humber Refinery. We are very pleased
that the recent Energy and Climate Change
Committee Inquiry: UK Oil Refining recognised
the importance of oil products and UK refining
to the UK’s economy. The report supported
many of the recommendations that Phillips
66 made to ensure that UK oil refineries have
a level playing field versus their international
competition. In particular, the report
recommended that:
Regulations and taxes should not be more
onerous in the UK than elsewhere
The elements of UK taxation that impact
UK refineries adversely when compared to
oil product importers should be addressed
The European Commission should urgently
carry out a fitness check to ensure that the
cumulative impact of EU legislation has not
over-burdened its refining industry”
Ian Cotton, Essar Oil (UK)
“The Purvin & Gertz 2013 report demonstrated
that some UK refineries are amongst the
top ranking sites in Europe, having both high
upgrading capability – as reflected in their
Nelson complexity rating – and advantage of
scale. In fact, European refining within a global
context still ranks as competitive, providing it
is not materially disadvantaged by one-sided
EU legislation. The report also highlighted the
International Energy Agency’s projections,
showing oil is expected to account for over 80%
of transport fuel even to 2030 and beyond. The
topic of transport fuel resilience is thus not only
important today but also for the foreseeable
future.
“Whilst we support the UK government
and the EU’s determination to continually
drive further environmental performance
improvements, such measures can only be
effective if they are applied to imports from
non-EU countries and ideally also to the industry
globally (as is the case with bunker fuels). If
such legislation is only applied one-sidedly in
the UK or EU, it could result in a substantial
number of competitive refineries closing. Besides
negatively impacting local economies, closures
can threaten transport resilience. The UK already
imports over 40% of its diesel and nearly
60% of its jet demand, with practically only
Russia and the Middle East able to meet any
incremental shortages.
“So, absolutely key to our national refining
resilience going forward is that UK refiners
and importers are allowed to operate within a
legislative compliance framework which provides
them with a level playing field compared to
competitors in other parts of the world.”
Paul Bray, Valero
“We believe that the UK needs a balance
between the security of having domestically
refined products and the practicality of importing
fuel. The UK has a robust logistics infrastructure
able to efficiently import and distribute product
across the country, while the increasing need for
middle distillate imports will require additional
investment in domestic storage capacity. While
further refinery closures cannot be ruled out, we
believe that UK refining can remain competitive
if it is given a level playing field with importers
and EU/global refineries.”
Andrew Gardner, Petroineos
“Petroineos supports the Purvin & Gertz report
and the subsequent findings.
In particular we believe that fossil fuels
will continue to be the dominant energy source
for transport and domestic applications in the
short to medium term. We also believe that the
refining sector will continue to play a key role in
providing a reliable, resilient and secure source
of this fuel in the future as well as providing
feedstocks for other industries such as polymer
manufacture and synthetic chemicals.
“The Purvin and Gertz report concluded
that UK refineries can be competitive on a level
playing field compared with other refineries
around the world. We therefore believe it is
essential that an even footing is achieved to
enable our business to operate and grow. Future
implementation of current and proposed UK and
EU legislation should be carefully considered,
including the planned EU “Fitness Checks” to
ensure that this is the case.
“To this end, Petroineos continues to engage
with government, both as an independent
company and through UKPIA, to ensure that
our views are represented. We seek to ensure
that we are not disadvantaged in respect of
meeting UK and EU-only legislation which may
not apply to our offshore competitors. In 2013
Petroineos contributed with both written and
oral submissions to an inquiry by the Energy and
Climate Change Committee into UK Refining.
The subsequent report UK Oil Refining(July
2013) concluded: “The UK needs to maintain
the health of its refining industry.” and requested
that DECC carry out a review into the sector by
the end of 2013.
We welcome this forthcoming DECC review
and are understandably participating in it. We
also welcome the support received from the
Rt Hon Michael Fallon MP in writing to the
vice president of the European Commission
regarding the planned “fitness checks” of the
petroleum refining sector.”
In the light of the Purvin & Gertz report
Pete George, managing director, UK and Ireland
marketing with Lindsay Grant, former manager,
national sales, who will shortly be talking up a
new role at Phillips 66’s Houston headquarters
discussed in FON’s July issue, are you worried
about the UK’s refining resilience?
Fuel Oil News | October 2013 17
An increase of 18% in kerosene imports was
reported by Belfast Harbour for the first six
months of 2013 compared to 2012 and, over
the same period, statistics from the National Oil
Reserves Agency (NORA) show an increase of
20% on Republic of Ireland kerosene imports.
While this appears to be good news for local
distributors, remember this only puts us back to
‘normal’ as we saw these sorts of decreases in
2011/12….
The oil sector in Northern Ireland does
still enjoy a dominant market share at around
68%; but this is continually under threat from
alternative fuel sources. The volatile nature
of global oil prices and the ever changing
weather patterns continue to make this a
difficult market to predict with any certainty.
Planning, forecasting and margin management
are becoming even more important given the
unpredictable demand.
The drum still beats as oil boiler
replacement marches on
Another threat to distributor businesses is the
continued growth of the 20-litre drum market.
(See the report from Donall O’Connor, Value
Oils in last month’s Fuel Oil News) Numerous
consumers now keep a couple of drums and
refill these at forecourt kerosene pumps for a
minimal premium over tanker delivery cost.
Given the risk to passengers and the potential for
environmental damage, this is not a safe way to
carry kerosene. However, many consumers see
this as a type of budget payment scheme!
With its mixed reviews, we’re very fortunate
that the Northern Ireland government didn’t
follow Great Britain’s lead on Green Deal.
Minister McCausland listened to local advice and
introduced a straightforward boiler replacement
programme. Launched in autumn 2012, the
scheme offers consumers a grant of up to £1000
to replace a boiler over 15 years of age. The
good news is that the majority of boilers being
installed are new oil condensing boilers. At the
end of August, 7,000 new boilers had been
installed – of these 5,750 are new oil condensing
boilers. In a difficult economic period, this has
been welcome news for those installing oil.
Meeting increased energy obligations
and driver requirements
There’s little doubt that this scheme has added
to the news from OFTEC that boiler sales were up
23% for the first six months of 2013, compared
to the same period in 2012. This ties in with and
helps the oil sector demonstrate compliance with
the Energy Services Agreement. The Northern
Ireland Oil Federation (NIOF) signed up to this
voluntary scheme and members have been
giving energy efficiency advice and delivering
flyers to promote the boiler replacement scheme.
The voluntary agreements are currently under
review and the Assembly has agreed in principle
to move to an Energy Supplier Obligation. This
would basically put a levy on fuel importers that
would then ‘pay’ for energy efficiency works.
Some argue that a levy will increase energy costs
to the consumer further but government are
keen to see more energy improvement measures
introduced, especially for fuel poor homes.
Looking ahead to this winter and beyond,
we’re facing new requirements for drivers in
the form of the Petroleum Driver Passport.
Apparently this will complement the ADR and
Drivers CPC although many distributors see it as
another requirement that may not be enforced
and one that could push costs up further for
legitimate business.
Retaining customers and promoting
the NIOF customer charter
As the winter heating season approaches,
customer retention must play a key part in an
effective marketing strategy. Given the current
economic climate, flexibility in payment terms is
a must – direct debit, electronic payments and
monthly top ups – are all essential retention
tools. Rather than lose a customer, invite them
in to discuss payment plans, and if you see an
elderly boiler advise its owner about the boiler
replacement programme.
Introduced last year, the NIOF Customer
Charter provides Northern Ireland oil consumers
with a guide to the services they can expect to
receive from its members, and it gives access
to a complaints process. The Consumer Council
has indicated that it will publicise support for the
Charter before the winter period. This is good
news for NIOF members and consumers as it
allows us to compete on equal service terms with
other energy providers.
FUEL OIL NEWS WOULD LIKE TO THANK DAVID BLEVINGS, NIOF EXECUTIVE DIRECTOR FOR THIS ARTICLE
Irish News
Negotiating the swings and roundabouts
of fuel distributionFOLLOWING THE VERY MILD WINTER OF 2011/12, MANY PUNDITS WERE PREDICTING THAT 2013 WOULD SEE A NUMBER OF DISTRIBUTORS EXIT THE BUSINESS. LARGELY DUE TO A WINTER THAT EXTENDED UP UNTIL MAY OVER WHICH TIME SALES OF KEROSENE ROSE, THIS DID NOT HAPPEN.
Gathering support for biokerosene
On the renewable front B30K has made it
into the domestic Renewable Heat Incentive
(RHI) consultation. Given that the majority of
homes in Northern Ireland use oil, a drop- in
replacement for kerosene is an easy win for
the RHI, and as we go to press the NIOF and
OFTEC are in discussions with distributors
about mixing, storage and supply of B30K,
on the assumption that biofuels will be
supported by the RHI.
Are you backing biokerosene?
Share your views with Fuel Oil News at
Fuel Oil News | October 2013 19
Super Software
Software to manage sales
“The majority of fuel distributors spend very little
time trying to proactively increase sales,” says
Fuelsoft’s managing director, David Kingsman.
“Generally their customer base is increased by
providing a good quality, reliable service that
spreads the company’s name through word of
mouth.
“Being proactive in sales and employing
sales representatives and telesales staff brings
a different set of issues; not least of which is
increased overheads. It is then imperative to use
software to manage both of these activities; the
resulting sales cycles need full integration into
the back office application.”
To address this area, Fuelsoft is launching
the latest release of its back office software, with
full integration into Microsoft Dynamics CRM,
the world’s leading CRM application.
This software enables sales directors to
manage the sales pipeline, to monitor staff
productivity and to change the daily sales
processes and actions into activity driven events
all controlled by the software. It also allows sales
representatives to use iPads, laptops and mobile
phones to access customer records. Graphical
representation of the sales cycle is visible,
enabling users to check and interrogate the sales
pipeline.
“Our customers have significantly increased
sales within their existing customer base by cross
selling and early recognition of non-buyers,”
continues David. “For new business activity,
the software allows users to import external
databases, de-duplicating against existing
customer records, set up e-mail marketing
campaigns and manage the process from lead
to prospect to account, where it automatically
creates the customer in the Fuelsoft back office.
“This integrated solution has already
been installed at a number of the UK’s leading
fuel card agents. Some larger fuel distributors
employing representatives who work with a mix
of commercial and domestic bulk business and
lubricants have already installed this system.”
www.fuelsoft.co.uk Monument Fuels has recently installed Fuelsoft’s
cloud-based software at its Wellington base, ‘saving
time and copious amounts of ink’ says Trevor Rolph
SUPER SOFTWARE
THE RIGHT SOFTWARE CAN MAKE A HUGE DIFFERENCE TO A BUSINESS AND SAVE PRECIOUS TIME, AS TREVOR ROLPH OF MONUMENT FUELS (SEE BELOW) CAN TESTIFY.
FUEL OIL NEWS LOOKS AT SOME OF THE BEST SYSTEMS ON OFFER FROM THE INDUSTRY’S LEADING SUPPLIERS.
Margate, UK
+ 44 (0)1843 221521
www.emcowheaton.com
Tank TruckEquipment?
Have questionsabout
Aspirational standards for distributors of all sizes
Par Petroleum loads
new software
In its newly-released 2013 guise – with almost
600 enhancements to functionality and
reporting -the CODAS system continues to
evolve to meet the ever-changing demands of
the oil distribution industry and the expanding
ambitions of distributors as they seek new
markets and new ways of doing business.
CODAS now supports over 100 interfaces
to third party products, in order to automate
the export, import and processing of business-
critical data. The count includes websites,
on-truck computing solutions, tank monitoring
equipment, terminal automation systems, fuel
card agencies, banks, print bureaux, payment
card service providers and retail site interfaces.
Innate functionality, combined with
outstanding interface support, makes CODAS
exceptionally versatile and fl exible. As a result,
it is in use at half of the UK mainland’s top
20 distributors and at four of the Republic of
Ireland’s top 10 (as defi ned by Fuel Oil News
earlier this year).
However, this does not mean that the
system is only suitable for larger companies. Over
a third of CDS’ client base comprises distributors
with fewer than ten users, and the system’s
entire functionality is available whatever the size
of the operation.
Over 35 years’ experience of discovering
and fulfi lling the software needs of the oil and
LPG industries provides CDS with an unrivalled
perspective into the requirements of the modern
Par Petroleum can view and control all loading
activities remotely with the iSupervisor system
distributor. Engendering aspirational standards
means making fi rst class facilities available – of
the kind that once might have been affordable
by only the largest users – for the benefi t of
businesses of all sizes.
The modular nature of the software means
that it grows with the user: it is specifi cally
designed to be neither overly complex for the
smaller distributor, nor restrictive to growth for
the expanding, larger enterprise. A wealth of
confi gurable options allows the software to be
tailored specifi cally to the needs of the individual
client.
Major investment by CDS has enabled
CODAS to retain its market position. Over the
last three years, a number of graduate trainees
have joined the business and recruitment is
continuing to meet both current and the future
demands of the industry.
CDS provides comprehensive training to
new users, refresher training as required and
upgrade training whenever a new release is
installed. The company also holds a series of
CODAS classes at its offi ces each year.
www.codas.co.uk
Par Petroleum recently commissioned European
Automation Projects to upgrade the tanker
loading system at its Houghton-le-Spring depot.
Choosing the iSupervisor tanker loading
system to control its four-arm bottom loading
skid used by both rigid and articulated tankers,
the company now has the ability to view and
control all loading activities remotely through the
web based control system.
This upgrade formed part of the company’s
planned continuous improvement programme
and was completed within just a few hours,
causing minimum disruption to site operations.
iSupervisor is a low cost version of EA
Projects’ terminal automation platform,
developed specifi cally for the smaller distributor
and widely adopted by the UK fuel oils industry.
The system controls all tanker loads at the depot
and provides detailed reporting of all loading
activities as well as detailed Bills of Lading.
The system provides live data in the control
room and graphical images of the vehicles
during loading, enabling operators to see which
vehicle is being loaded and by which driver.
It also alerts the control room to any alarms
generated by the batch controller on the loading
bay and allows them to lock out individual arms
for maintenance etc.
Stuart Hardy, Par Petroleum’s operations
manager, said: “We’re extremely pleased with
the new system which has run without issue
since its installation.” www.ea-projects.com
Super Software
22 Fuel Oil News | October 2013
Super Software
Flexible software
MHT Technology is celebrating the sale of
over 700 licenses for its software worldwide.
As suppliers of tank gauging and terminal
automation software and interfacing solutions,
MHT has carved a niche supplying solutions
which interface to all leading manufacturers’
fi eld devices such as level gauges, temperature
and density measurement devices and loading
computers.
Managing director, Steve Spelman, said:
“Customers favour our solutions because of the
great fl exibility we offer – you do not have to be
tied into one manufacturer now or in the future.
“MHT’s VTW tank gauging software
offers real-time calculation of inventory to API/
ASTM standards and increases operational
safety during fi lling and emptying. We can
also offer a fault tolerant architecture for high
availability systems. Our SmartTAS terminal
automation software can be integrated with
VTW and provides secure and controlled loading/
offl oading, plus reconciliation of transactions to
physical stock, allowing customers to identify any
losses and investigate their cause.
MHT’s VTW software in action
“Our solutions are totally scalable and we
have implemented our VTW and SmartTAS on
sites of varying sizes, from small depots to major
oil companies, independent oil storage facilities
and refi neries.” www.mht-technology.co.uk.
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Waste Oil
Margate, UK
+ 44 (0)1843 221521
www.emcowheaton.com
answerswe have the
QP review – rational and scientifi c
Waste collection and
reprocessingThere are two aspects to the waste oil business.
1. The collection of millions of litres of waste lubricating oil and its conversion, by a few key players
in the UK, into a usable fuel oil, sold as a greener and cheaper alternative to virgin fuel.
2. The purchase and collection of contaminated or redundant fuel, usually by the same waste oil
collection and recycling companies, for blending and/or sale to overseas markets.
Since it was accepted in 2011 that correctly processed waste oil ceased to be a waste and could
be used as a fuel by UK industry, a couple of companies invested in reprocessing facilities and
commenced PFO production.
The OSS Group produces over 50,000 tonnes of PFO – see page 24
Roger Cresswell, director of the Oil Recycling
Association (ORA), reports on the recent review
of the Quality Protocol (QP) process.
“Most waste mineral oil in the UK comes
from used lubricating oils,” says Roger. “However,
additional quantities of discarded contaminated
fuels, mis-fuellings, tank bottoms, oils from
interceptors and other sources must be treated
as hazardous waste and disposed of properly.
Suppliers, stockists and users of petroleum
products require this service; often on a 24/7
basis. Cost effectiveness is critical – if disposal
costs rise, so do illegal activities leading to oil
tipping and dumping.
“In 2010 the industry found an answer in
the production of a useful output material which
retained value, whilst also solving the diffi culty
of converting a waste to a non waste output
and satisfying the law in respect of End of Waste
requirements. This resulted in a Quality Protocol
(QP) for Processed Fuel Oil (PFO) – a residual type
fuel developed under the auspices of the Waste
Resources and Action Programme (WRAP), the
Environment Agency and its counterparts across
the UK. This QP was adopted by ORA members
and is the subject of a strict audit process. The
QP was also formally notifi ed to the European
Commission (EC) and received no adverse
comment.
“Earlier this year, the EC asked the UK
government to review the QP criteria to
ensure that PFO refl ected current performance
standards. The waste oil industry is now working
closely with government, providing data and
insight to the QP’s effectiveness as part of the
process. Contrary to opinion, the QP is not being
abandoned, but is being reviewed to ensure its fi t
with more recent legislation.
“ORA is determined to provide a rational
and scientifi c input to this review and hopes to
see the outcome managed in a pan European
context to ensure all Member States behave to
the same prevailing standard. ORA believe it is in
the interests of the wider UK petroleum industry
to support the PFO concept. If not, players in
the supply and use chain will likely see steeply
increased costs in the management of their
waste mineral oil.”
24 Fuel Oil News | October 2013
Waste Oil
Northburn acquisitionNorthburn Industrial Services was recently acquired by Turner & Co (Glasgow).
Formed in 1982, Northburn Industrial Services is a one of the oil re-refining
and recycling industry’s leading companies. As part of the deal, Owen Maze and
Northburn’s management team are remaining with the company.
www.northburn.co.uk
Northburn’s managing director, Owen Maze with Turner Group chairman, Gordon Turner
Operating across the UK on a national basis, the
OSS Group, which was recently purchased by
Hydrodec Group, is the biggest of these waste
collectors/processors.
Virtually all the waste lubrication oil OSS
collects is used to produce over 50,000 tonnes of
its own brand PFO annually, marketed under the
name of Gen3. “Aside from Gen3’s performance
and price advantages, companies wanting to
boost environmental credentials can also benefit
from the product’s recycled status,” said Mark
Bridgens, sales and marketing director.
“It was the OSS Group which originally
challenged the government in the end of waste
criteria argument for recycled fuel oils; and won.
This case resulted in PFO, although this is now
being challenged by the EU; something that is
likely to continue…
“We’re happy to purchase almost any
type of unwanted fuel including bulk loads of
contaminated and redundant fuels,” added
Mark. “Collection by our own tanker fleet – either
in small or bulk loads – is possible anywhere in
the UK. We also operate elsewhere in Europe,
both importing and exporting.
“Having our own production facilities means
we can utilise oils and fuels as feed stock for
our PFO, blend with other fuels, or utilise for our
export market.” See also page 23.
www.ossgroupltd.com
Making the case for PFO
For the fi rst time in 80 years,
companies will be able to use
Simon Storage’s Immingham
terminal to store both
hazardous and non-hazardous
bulk liquid wastes for off-site
disposal or recovery.
Simon recently agreed
the necessary terms of a
Part A PPC permit with the
Environment Agency for the
handling of hazardous and
non-hazardous bulk liquid
wastes at the terminal.
The permission regime for
storing hazardous bulk liquid
wastes is stringent and as an
EPR Part A process, wastes
must be stored in tanks with
impermeable bunding and
managed under strict stock
management systems and
reporting regimes.
Another prerequisite
is competent staff training,
both to meet permitting
requirements and also to
uphold Simon’s commitment
to personal and process
safety. The company has
WAMITAB (formerly the
Waste Management Industry
Training & Advisory Board)
qualifi ed staff at each of its
East Coast terminals, and
where NORM (naturally
occurring radioactive
materials) products are
located, staff also hold an
approved radiation protection
supervisor’s qualifi cation.
The company has also
been permitted to carry out
water separation activities and
the recovery of the separated
hazardous and non-hazardous
waste. In 2010 Simon invested
in new water treatment
facilities, and will now be
permitted to use this plant for
the disposal of the separated
waste water.
“This is exciting news
for both Simon Storage and
the UK waste and recycled oil
industries,” said commercial
director, Paul Oseland. “We
have seen an increase in
demand for suitable storage
and new disposal routes for
hazardous wastes in line with
increasing environmental
awareness. I am delighted that
we are now able to make these
facilities available to a wide
and growing European and
domestic market. Immingham
Storage has a wide range of
suitable tankage and available
capacity within our water
treatment plant, enabling us
to offer some competitive and
innovative market solutions.”
www.SimonStorage.co.uk
answerswe have the
Tank TruckEquipment?
Have questionsabout
Margate, UK
+ 44 (0)1843 221521
www.emcowheaton.com
New waste handling facility
Simon Storage – new bulk liquid waste storage at Immingham
For more news from Simon Storage’s
Immingham terminal see the November issue
of Fuel Oil News
26 Fuel Oil News | October 2013
The Pricing Page
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.
The Fuel Oil News Price Totem
The price totem fi gures are compiled from the results of a telephone survey of distributors carried out on 06/09/2013
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 € .
Kerosene Diesel Gasoil 0.1%
Average price 51.88 53.13 51.46
Average daily change 0.44 0.46 0.45
Current duty 0.00 57.95 11.14
Total 51.88 111.08 62.60
Wholesale Price Movements:
19th August 2013 – 18th September 2013
Week commencing
All prices in pence per litre
48 ppl
49 ppl
50 ppl
51 ppl
52 ppl
53 ppl
54 ppl
55 ppl
24 Jun 01 Jul 08 Jul 15 Jul 22 Jul 29 Jul 05 Aug 12 Aug 19 Aug 26 Aug 02 Sep 09 Sep
1.4900
1.5000
1.5100
1.5200
1.5300
1.5400
1.5500
1.5600
1.5700
1.5800
1.5900Kero Diesel Gasoil 0.1% Exchange Rate
Gasoil forward price
in US$ per tonne
October 2013 – September 2014
Kerosene
Diesel
Gasoil 0.1%
Highest price
54.07 ppl
Thu 29 Aug 13
Highest price
55.18 ppl
Thu 29 Aug 13
Highest price
53.50 ppl
Thu 29 Aug 13
Biggest up day
+1.30 ppl
Wed 18 Sep 13
Biggest up day
+1.39 ppl
Wed 18 Sep 13
Biggest up day
+1.28 ppl
Wed 18 Sep 13
Lowest price
49.34 ppl
Tue 27 Aug 13
Lowest price
50.48 ppl
Tue 27 Aug 13
Lowest price
49.11 ppl
Tue 27 Aug 13
Biggest down day
-1.16 ppl
Tue 10 Sep 13
Biggest down day
-1.17 ppl
Tue 10 Sep 13
Biggest down day
-1.19 ppl
Tue 10 Sep 13
Week commencing
48 ppl
49 ppl
50 ppl
51 ppl
52 ppl
53 ppl
54 ppl
55 ppl
24 Jun 01 Jul 08 Jul 15 Jul 22 Jul 29 Jul 05 Aug 12 Aug 19 Aug 26 Aug 02 Sep 09 Sep
1.4900
1.5000
1.5100
1.5200
1.5300
1.5400
1.5500
1.5600
1.5700
1.5800
1.5900Kero Diesel Gasoil 0.1% Exchange Rate
Pric
e in
pen
ce p
er li
tre
US
Do
llar
to U
K Po
un
d S
terli
ng
Trade average buying prices Average selling prices
Kerosene Gasoil ULSD Kerosene Gasoil ULSD
Platts 52.88 63.69 112.34
Scotland 54.26 67.36 113.93 60.30 71.40 116.90
North East 54.17 67.32 113.75 58.20 70.35 116.03
North West 54.81 67.96 114.41 59.73 71.38 116.73
Midlands 54.10 66.85 113.70 57.95 69.95 116.45
South East 55.44 67.48 114.09 60.00 70.43 116.88
South West 54.54 67.51 113.71 56.95 69.75 116.75
Northern Ireland 54.75 67.85 115.14 58.55 71.10 118.95
Republic of Ireland 79.22 77.70 118.66 80.85 90.25 121.50
$925
$905
$885
Fuel Oil News is sold solely on condition that:
(1) No part of the publication is reproduced in any form or by any means electronic, mechanical, photocopying or otherwise,
without a prior written agreement with the publisher. (2) The magazine will not be circulated outside the company / organisation
at the address to which it is delivered, without a prior written agreement with Ashley & Dumville Publishing Ltd.
The publishers gratefully acknowledge the support of those fi rms whose advertisements appear throughout this publication. As a reciprocal gesture we have pleasure
in drawing the attention of our readers to their announcements. It is necessary however for it to be made clear that, whilst every care has been taken in compiling
this publication and the statements it contains, the publishers cannot accept responsibility for any inaccuracies, or the products or services advertised.
Fuel Oil News is printed on sustainable forest paper.
© Ashley & Dumville Publishing Ltd. Printed by Eastland Colour, Manchester Tel: 0161 273 3434
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