Fuels Market News Magazine Spring 2018 by Fuels Market News

Spring 2018

Your Source for News and Information

Diesel and the Future of Trucking

Cybersecurity Trends for 2018

Long Term Oil Prices:

Challenges Boom or Bust? Facing Commercial Fuel Buyers ACH for Mobile Apps F U E L M A R K E T E R S • F U E L R E TA I L E R S • C O M M E R C I A L F U E L S

features Page 6 Long Term Oil Prices:

Boom or Bust? by Joe Petrowski

Page 26

Addressing Key Challenges Facing Commercial Fuel Buyers by Candace McCraine

Page 38

Diesel and the Future of Trucking by Allen Schaeffer

Page 58

Easy ACH Payments for Mobile Applications by Keith Reid

Page 67

McAfee Labs Previews Five Cybersecurity Trends for 2018

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The Freeways Aren’t Free Will Higher Octane Fuels Make the Grade on the Forecourt? Working With Your Drivers to Prevent Fuel Card Fraud

Fuel Retailing’s Golden Age

contents 4

PUBLISHER'S NOTE

FUELS & SUPPLY

Policy Brief: The Freeways Aren’t Free by Keith Reid

Will Higher Octane Fuels Make the Grade on the Forecourt? by Joe O’Brien

Fuels Institute Launches Fuel Quality Council by Keith Reid

COMMERCIAL FUELS

What Do Lawnmowers and Airplanes Have In Common? by Brian Reynolds

Working with Your Drivers to Prevent Fuel Card Fraud by Glen Sokolis

TMC18 Hits a New High for Fleet Maintenance Professionals

WHOLESALE & FLEET OPERATIONS

Backup Generator Tanks and the Additions to the EPA UST Regs by Allen Porter

Trucking Through the Shows

RETAIL OPERATIONS

Fuel Retailing’s Golden Age by Joe Petrowski

Your Dispenser Filter Might Be Trying to Tell You Something by Dwight Rutledge

BUSINESS OPERATIONS

Trends in Driver Compensation

Trends in Driver Compensation by Mark Murrell

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ADDITIVES ROUNDUP INDUSTRY NEWS ADVERTISER’S INDEX

PUBLISHER’S NOTE

A note from

Gary Bevers, Group Publisher EDITORIAL STAFF

Welcome to the Spring 2018 Issue of Fuels Market News Magazine—although some parts of the country clearly missed the “official start of spring” message. I recently attended the SIGMA Spring Conference in Dallas where the weather was nearly perfect. As I stood, drink in hand at one of the poolside events, I had several conversations with some who had just shoveled snow out of their driveways that morning in order to get to their local airport. There are numerous places in the country where folks are still managing the last assertion of winter with snow blowers while the rest of us are mowing our lawns and planting our gardens. After briefly discussing the weather, we moved on to the events of the day. Isn’t a late-winter analogy similar to the way it always is in our industry? Some parts of the country, or markets, invariably lag behind other markets. Broad-brush, national market predictions are always off target for someplace in the country since some markets are early leaders and others trail behind. Ask any two people a question about an economic metric: interest rates, price per barrel, cents per gallon, etc., and usually one person is optimistic and the other disappointed. As I continued my stroll around the pool, I would find someone who was very upbeat about sales and revenues, but then the next person I encountered would be cautious—or even nervous—about looking forward in 2018. And then I got to the financial traders, environmental regulatory and government relations folks and the story took a new turn. “Managing the chaos” seemed to be the watch phrase with this group as they wrestle with our current political environment and their attempts to gauge and predict the market factors for 2018. Will we have tariffs or not? Will proposed tariffs lead to a trade war? Inflation, interest rates, stock market ups and downs, regulatory actions, RFS relief or status quo, E-15 or higher Ethanol blends, crude prices, refined

CEO & Group Publisher Gary D. Bevers GBevers@FMNweb.com Editorial Director & Digital Publisher Keith Reid KReid@FMNweb.com Director of Production & Managing Editor Kathy Bevers KBevers@FMNweb.com Digital Editor Scott A. Croom SCroom@FMNweb.com Industry Analysts/Editors Frank M. Hunter FHunter@FMNweb.com Nancy Yamaguchi, Ph.D. NYamaguchi@FMNweb.com Columnists and Contributors Greg Cushard Vladimir Collak Shane Dyer John Eichberger Doug Haugh Corey Henriksen Maura Keller Alan H. Levine

products pricing—it’s anyone’s guess. With previous political administrations, things were relatively predictable and we knew their stance on almost all issues, but today, with the opposition party’s historic level of pushback, the only thing we can know for sure is that we have to wait for the dust to settle to see what’s what. For many of us who are asked to make market predictions, this is a challenging year. So, my prediction is unpredictability—or as some say “chaos”—going forward. As my friend Ed Rachins said to me years ago, “Gary, chaos is a good thing! I love volatility. With volatility, we make money!”

Joseph H. Petrowski W. Brian Reynolds Fred M. Whitaker Editorial Board Ed Burke Lisa Calhoun George A. Overstreet, Jr. Joseph H. Petrowski

The good news, despite (or possibly because of) all the chaos, is that all the financial indicators are positive, most breaking records and many at historic highs, e.g., consumer confidence exceeds 40%, the highest level in two decades, and is growing more upbeat every week. Businesses of all sizes are adding jobs, expanding, making capital investments and planning for growth this year and beyond. The stock market has set a record number of new highs, and despite one requisite correction, is still in record territory. So, my prediction is that despite the chaos, it will continue to be a great year for most fuel suppliers, wholesale marketers and retailers in our industry—with no late blizzards in the forecast. I hope you enjoy this issue of Fuels Market News Magazine, and I always appreciate your thoughts and feedback. Feel free to reach out to me personally at GBevers@FMNweb.com or my cell: 832-444-7675. I’m always happy to hear from you.

Art Director Jeff Beene JBeene@FMNweb.com Marketing Director Joe A. Martinez JMartinez@FMNweb.com Advertising Representative Bill Kaprelian 262-729-2629 BKaprelian@FMNweb.com Mailing Address 15201 Mason Road, Suite 1000-288 Cypress, TX 77433 www.FuelsMarketNews.com © Copyright 2018, FMN Media, LLC All Rights Reserved

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FUELS & SUPPLY

Long Term Oil Prices

Boom or Bust?

by Joe Petrowski

When I was a grain trader in the 1970s, some of the very same issues that surround the energy markets existed: Could we continue to produce enough food to feed a hungry world (when prices rose)? Why are we paying farmers not to plant and giving food away to the rest of the world (when prices dropped)? Then, as now, politicians and pundits did not understand markets and that the trend was always your friend (if we are up, we will continue to go up—if we are down, it will not stop until we are at zero). In times of abundance when we were long and wrong, as wheat traders we would dream and postulate possibilities like: If every Chinese person had one saltine cracker a day over one year, they would eat all U.S. stocks and three years of production. Of course, we never

With global crude oil production at 99-million barrels/day (MMbpd) and consumption slightly less (97 MMbpd), can we grow production at 3%/year, which is what consumption normally grows at (world crude demand is closely correlated to global GDP)?

figured out how to get the Chinese to eat an incremental cracker every day. But the point is as an old mentor once said, “When you are in bed with two billion people and they all decide to roll over at once, you will know immediately!” With global crude oil production at 99-million barrels/day (MMbpd) and consumption slightly less (97 MMbpd), can we grow production at 3%/year, which is what consumption normally grows at (world crude demand is closely correlated to global GDP)?

Ten-year calls on daily crude production look as follows:

1% 110 million barrels 3% 133 million barrels 7% 195 million barrels FMNMagazine

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So, what will be the Chinese vehicle count per 1,000 in 10 years? If it is the U.S. number, the incremental demand on crude will be 57 MMbpd. If it is the global average, the incremental demand on crude will be 9 MMbpd. Most experts believe in the next 10 years we can: • Grow conventional oil 20 MMbpd • Grow tight (shale) oil 20 MMbpd •

Lose 10 MMbpd from Venezuela, Mexico and Nigeria

So, 30 million barrels/day increase is attainable with historical 3% global growth, keeping the world in balance. Of course, there are other considerations, such as Russian production—given the sanctions and general Russian ineptitude, as well as potential African growth outside of Nigeria (the Chinese are investing heavily). On the bearish side, it is also technology slowing the decline curve of tight oil, natural gas as a transport fuel as well as hydrogen and the increased efficiency in usage per unit of GDP output. But, like those fantasizing wheat traders of the 70s, the biggest wild card is always China, and specifically transport fuel. To illuminate:

• In the U.S., we have 769 vehicles per 1,000 people • Globally, we have 148 vehicles per 1,000 people

administration (and in some way for the same reason—security). Bridges and roads must have 17-feet clearance to allow the transport of military vehicles, especially missiles mounted on trucks. In addition, China is trying to drain the cities of overcrowding but growing the suburbs (out of Napoleon’s playbook, who created the Arrondissements for just this reason).

So, what will be the Chinese vehicle count per 1,000 in 10 years? If it is the U.S. number, the incremental demand on crude will be 57 MMbpd. If it is the global average, the incremental demand on crude will be 9 MMbpd. Who knows? But, my best guess is some two billion Chinese discovering the freedom of the road, and along with fuel conservation and efficiency gains, we can expect the 10-year call on crude to be between 150 and 160 MMbpd. We better hope we continue to drill onshore and offshore in tight oil and conventional oil. And, if while driving, they’re eating saltines, then Nabisco and my wheat trading friends will certainly be smiling. n

READ MORE at FuelsMarketNews.com

• In China, we currently have 50 vehicles per 1,000 people China led the world last year in new car sales and Beijing is building a network of highways and infrastructure much like the U.S. did during the Eisenhower

Joe Petrowski Joe has had a long career in international commodity trading, energy and retail management and public policy development. In 2005, he was named President and CEO of Gulf Oil LP and elected to the Gulf Oil LP Board of Directors. In October 2008, he was named CEO of the now combined Gulf Oil and Cumberland Farms, whose annual revenues exceed $11 billion and who now operates in 27 states. In September 2013, Petrowski stepped down as CEO of The Cumberland Gulf Group. He is now the Managing Director of Mercantor Partners, a private equity firm investing in convenience and energy distribution. Joe is also a member of the Gulf, Yesway and Green Print, LLC boards.

FMNMagazine

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by Keith Reid A study in 2015 by the Congressional Budget Office projects that by 2026 the cumulative highway shortfall will grow to $80 billion. CBO also projects that the transit account will have a cumulative shortfall totaling $31 billion by 2026.

The Freeways Arenâ&#x20AC;&#x2122;t Free The Highway Trust Fund was established to support

Since 2001 a shortfall in funding has started to become apparent. The Highway trust fund is not supposed to run a deficit nor is it supposed to be able to be financed through debt. With there being some political aversion to raising fuel taxes, especially when the price of fuel was much higher than it is today, one way to get around that funding limitation was to receive deposits from the general fund (so much for no debt financing) to make up the shortfall. For example, the latest $70 billion injection should hold things until 2020.

the federal highway infrastructure and additionally provides support for some mass transit initiatives. It is expected to be self-sustaining with some 90% of its funding coming from a federal fuel tax of 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel fuel and energy-content-equivalent taxes on alternative fuels such as compressed natural gas (CNG). The other 10% comes from taxes related to heavy trucks and tires. The fuel tax rates have not changed since 1993, but fuel demand has fluctuated during that time and there has been constant inflation. We are currently entering a period where fuel demand has been down and where it is not expected to dramatically increase in the long run because of an international push for greater efficiency in new engine technology and an expansion of the pure electric vehicle market. However, those developments do not decrease actual road traffic and the wear and tear on federal highways.

A study in 2015 by the Congressional Budget Office projects that by 2026 the cumulative highway shortfall will grow to $80 billion. CBO also projects that the transit account will have a cumulative shortfall totaling $31 billion by 2026. In a related development, the Trump administration has committed to a large, $1.5 trillion infrastructure plan. This doesnâ&#x20AC;&#x2122;t specifically address the Highway Trust Fund funding issue but there is significant practical overlap and several funding proposals in that plan that directly impact industry retailers in both the convenience and truck stop/travel plaza sectors. These initiatives, commercializing rest areas/rest stops and more flexibility for interstate tolling are linked to a desire by the Trump administration to shift more infrastructure financing back to the states from the federal sector.

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FUELS & SUPPLY

Our Highway Infrastructure It’s debatable just how “crumbling” our current highway infrastructure actually is, but there are clear needs such as bridge repair/maintenance and addressing numerous traffic bottlenecks throughout the country that significantly impact traffic flow. The American Trucking Associations (ATA) has been pressing the Trump administration aggressively to address current highway infrastructure challenges, with the primary motivation being the costs associated with traffic congestion and road disrepair. “Our goal is to educate decision makers and the public about the hidden costs of the status quo,” said ATA President and CEO Chris Spear in a public announcement. “If we’re to secure a better future for our country and this economy, then we can no longer put off necessary improvements to our national network of roads and bridges.” Spear told the House Subcommittee on Highways and Transit of the Committee on Transportation and Infrastructure that motorists spend more than $1,500 each year due to lack of infrastructure investment—$500 spent repairing their vehicles and nearly $1,000 more wasted sitting in traffic. Further, the trucking industry loses more than $63 billion every year because of congestion. “That’s 362,000 truck drivers sitting idle for an entire year,” said Spear. “And as much as we liked the tax cut we got last year, we’re going to give it all back because that $63 billion is like a 9% tax on our industry. These are the costs of doing nothing.” As for the rest area and tolling proposals, Spear is not a big fan. “While the White House’s plan kick-starts this debate, it unfortunately falls short of the President’s campaign promise to go big and bold, because it lacks the required federal investment. A proposal that relies on fake funding schemes like highway tolls and privatizing rest areas will not generate the revenue necessary to make significant infrastructure improvements,” he said.

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“Our retailers have made business decisions on where they locate their stores based on the current environment and if you allow government sponsored entities access to these rest areas, you’re going to see less foot traffic to businesses located on key off ramps throughout the Interstate system. And if they did allow commercializing rest areas, those sites would really have a leg up and we don’t see that as the fair way to go.”

Paige Anderson NACS

Commercializing Rest Areas The debate over commercializing rest areas is not particularly new; in fact, it comes up regularly as budget-pressed states consider revenue options. It is opposed by truck stop and convenience retailers, and the organizations that represent them (NACS, SIGMA, PMAA, NATSO), for some fairly obvious reasons. “We definitely oppose lifting that ban. We want to keep it the way it is,” said NACS’ director of government relations Paige Anderson. “Our retailers have made business decisions on where they locate their stores based on the current environment and if you allow government sponsored entities access to these rest areas, you’re going to see less foot traffic to businesses located on key off ramps throughout the Interstate system. And if they did allow commercializing rest areas, those sites would really have a leg up and we don’t see that as the fair way to go. So, we’re hopeful that when the House and Senate start putting pen to paper they won’t include commercializing rest areas.” One point to consider is that these new locations will not likely provide an opportunity to existing convenience stores or truck stop/travel plaza operators— even the largest players in a region. “The contracts tend to be awarded to one of maybe three or four multinational companies that specialize in consolidating different franchise arrangements, and these are not local businesses,” said NATSO Vice President of Government Relations David Fialkov. “These are the companies who, for example, run operations with most airports.” The reason the ban was implemented, except for some states that already had commercialized rest areas and were grandfathered in, is familiar to anyone who has seen the Pixar movie Cars. The foundation of that animated feature was the negative impact the Interstate Highway System had on numerous small communities that had previously thrived but were now bypassed. FMNMagazine

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FUELS & SUPPLY

Policy Brief: The Freeways Aren’t Free

“When Congress passed the first Interstate bill back in the fifties the policy makers realized that they wanted small communities and the businesses located off these highways to have some traffic,” said Anderson. “They realized that the only way that they could do that is to not allow for commercializing rest stops or rest areas. We’ve been working real closely with the League of Cities, because they’re very concerned with local tax revenue being diverted to the states at the expense of the small towns and other communities.” And the financial rationale is fairly murky. Some degree of additional funding might directly go into state coffers, but for the most part it would simply be cutting out the local businesses that already pay state taxes. It certainly would not increase the total business volume related to highway motorists in a given state. Another claim is that commercialization would increase the availability of truck parking. According to NATSO the opposite actually occurs. “We took a look at the corridors where commercial rest areas are grandfathered in and compared those to the corridors that do not have commercial rest areas in those states,” said NATSO Vice President, Public Affairs Tiffany Wlazlowski Neuman. “We found that there was nearly 70% percent more truck parking available on those corridors that do not have commercial rest areas. I think that’s a really important thing to mention right now just because there are some voices out there that seem to think that commercial rest areas will add new truck parking capacity and it is just not the case. When truck stops, which provide 90% percent of the truck parking, are unable to compete, they do not have money to invest in truck parking or those businesses potentially fail altogether.”

Tiffany Wlazlowski Neuman

Wlazlowski Neuman cited an additional concern. Current rest areas are served by vending machines. This is currently a niche employment center for the blind that will be harmed by commercialization.

She also pointed out that from a revenue standpoint, tolling is highly inefficient, with typically about one-third of the revenue going to administrative costs.

Adding tolling to existing (or new for that matter) highways typically has about the same appeal as an Anthrax sandwich, yet it does represent a potential source of new state revenue that is considered from time to time until public pushback makes it slink away back into the darkness.

“We’re open to tolling on new capacity but oppose adding it to existing Interstates for several reasons,” said Wlazlowski Neuman. “Motorists are inclined to divert onto other roads

NATSO

that weren’t necessarily meant to handle that kind of traffic, creating safety issues, and as with rest area commercialization, they are not then patronizing the established businesses.”

New Interstate Tolling

For the motorist, the objections become congestion and delay (partially offset by radio frequency identification [RFID] technology), combined with the idea of paying for a road essentially a second time with basically a new tax that historically is used for purposes well beyond highway funding. For convenience store operators and truck stop operators, many of the arguments mirror those with the commercialization of rest areas.

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“We’re open to tolling on new capacity but oppose adding it to existing Interstates for several reasons. Motorists are inclined to divert onto other roads that weren’t necessarily meant to handle that kind of traffic, creating safety issues, and as with rest area commercialization, they are not then patronizing the established businesses.”

Mileage Tracking One alternative bandied about, but not being pushed formally so far, is some form of mileage tracking where the motorist pays by the mile. This would probably represent the ultimate in fairness and it would certainly address electric vehicles, but it brings with it a range of practical challenges and big brother concerns. “There are some legislators that are looking at a vehicle-milestraveled type of tax. So regardless of how your vehicle’s fueled, if you’re putting 10 miles on the highway you’re paying for 10 miles,” Anderson said. “But it’s complicated—how do you keep track of that? In a perfect world that would be the fairest way to do it, because the Highway Trust Fund really is a user fee.”

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FUELS & SUPPLY

Policy Brief: The Freeways Aren’t Free The Committee for a Responsible Federal Budget recommended that: Lawmakers could close the Highway Trust Fund’s structural imbalance by raising the gas tax 9 cents and then indexing it to inflation (chained CPI), reducing new highway spending by 30% and then indexing it to inflation, enacting some equivalent spending reduction or revenue increase, or some combination.

“Opponents of a fuel user fee fail to mention a simple fact: deteriorating roads and bridges exact a heavy price on the motoring public—and that cost hits low- and middle-income drivers the hardest.”

Chris Spear ATA

Increase the Gasoline/Fuel Taxes

In a list of unpleasant options, we finally arrive back at increasing the fuels tax, and most specifically the gasoline component (though some proposals similarly raise diesel and alternative fuels). Although not at the forefront of the administration’s current infrastructure efforts, it stands as the most practical option remaining for a problem that will have to be addressed. While increasing the gasoline tax is another toxic issue with the public, it is perhaps the most viable solution currently. The extreme fuel prices seen just several years ago are likely not to return for some time, barring catastrophic international events. A minor tax increase would not likely generate a tremendous backlash if handled correctly. And there are arguments that could be made that such an increase is in fact overdue. A New York Times editorial from May of 2017 noted that when adjusted for inflation the value of the federal tax on gasoline has eroded by almost 40% percent since it was enacted in 1993. Similarly, the Concord Coalition noted that: If lawmakers indexed motor fuels taxes to inflation when they were last increased in 1993, the tax on a gallon of gasoline would be roughly 30 cents today, while the tax on diesel would be 39 cents.

ATA is promoting its plan, the Build America Fund, which would generate $340 billion through a 20-cent user fee collected on wholesale purchases of motor fuel. “Opponents of a fuel user fee fail to mention a simple fact: deteriorating roads and bridges exact a heavy price on the motoring public—and that cost hits low- and middle-income drivers the hardest,” Spear said in an announcement. “A fuel user fee is completely paid for by users and does not add a penny to the deficit. There’s a reason why Ronald Reagan was such a strong supporter of this policy throughout his presidency.” Similar support can be found with other industry-facing associations such as NATSO and NACS. “NACS does not oppose a modest increase as long as those funds go directly to the federal highway system,” said Anderson. “In the past, increasing the gas tax has been a non-starter. Folks wouldn’t even consider it. The interesting thing is the president himself has said that all ideas are on the table, including increasing the gas tax. We’ll see as negotiations really get underway how serious that thought is.”

As industry expert Joe Petrowski pointed out in a recent January 31, 2018, FMN article, our current tax when adjusted for inflation is actually comparable to the first gas tax of 1-cent in 1932. He predicts: There is little doubt federal tax on gasoline will go to 25 cents/gallon with the following arguments being made: on parity with diesel; only 50% higher in real terms than the 1-cent tax in 1932; lower than 50% of state gasoline taxes; will raise $20 billion per year or one trillion over 10 years, given the growth in transport fuels (that our government refuses to recognize is over as evidenced by “blend wall” myopia); and, the Federal Reserve will applaud given their concern over the tax-bill-induced fiscal stimulus as interest rates are rising.

Of course, we could look at cutting questionable spending out of the Highway Trust Fund. The Heritage Foundation noted that Congress and the states divert roughly 25% percent of the Highway Trust Fund spending to nonhighway projects that are not federal priorities. As the foundation stated: The largest of these diversions is the Mass Transit Account, which spent some $8 billion in 2014 on buses, rail, streetcars and other projects that should fall under the responsibility of municipal or state governments. Other programs include the Transportation Alternatives Program, which spent $820 million in 2014 on undertakings such as sidewalks, bike paths, scenic overlooks, vegetation management and recreational trails. These diversions sap funds that could be spent on the highway system—the purpose of the highway trust fund—and shortchange the motorists and shippers that pay directly into the system through fuel taxes.

The U.S. Chamber of Commerce has similarly called for a 25-cent, phased-in increase in the federal gas tax to shore up the trust fund.

But this is Washington we are talking about, where sixmonth spending bills are now in the trillion-dollar range. n

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FUELS & SUPPLY

Will Higher Octane Fuels Make the Grade on the Forecourt?

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by Joe O’Brien

As fuel marketers evaluate what kind of investments to make in

conjunction with EMV upgrades, getting a feel for what fuels might be in demand five or 10 years from now becomes a central part of planning for the future. Higher octane fuels (HOFs) represent a viable possibility. Understanding what factors influence the potential introduction of HOFs to the market will help fuel retailers appraise its value for the future and gauge the need for compatible equipment.

With that in mind, here are answers to frequently asked questions about the issues surrounding higher octane fuels, including fuel economy, regulations, ethanol and market conditions.

Q: What is an

octane rating?

A: According to www.fueleconomy.gov,

octane rating is the measure of a fuel’s ability to resist “knocking” during combustion. In the United States, a fuel’s octane rating is the average of two performance testing methods: Research Octane Number (RON) and Motor Octane Number (MON). On dispensers, this average is represented as (R+M)/2.

Q: What are the

CAFE standards?

Corporate Average Fuel Economy (CAFE) regulations were first enacted by Congress in 1975 to improve the average fuel economy of cars and light trucks. Today, under the CAFE standards, car manufacturers are charged with reducing greenhouse gas emissions while also increasing the fuel economy of their automotive fleets. Updated CAFE standards, coordinated by the U.S. Environmental Protection Agency (EPA), National Highway Traffic Safety Administration and California Air Resources Board, were enacted for Model Year 2012 with the aim of steadily increasing fuel economy to 54.5 miles per gallon for Model Year 2025. FMNMagazine

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According to a report from the Fuels Institute, the internal combustion engine remains the most costeffective powertrain, especially for larger utility vehicles and trucks, which currently account for the majority of the U.S. market.

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FUELS & SUPPLY

Will Higher Octane Fuels Make the Grade on the Forecourt?

Q: What role could octane

play in meeting higher fuel economy targets?

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The original CAFE standards were

Some members of the fuel industry have suggested that higher octane fuels could be a way for car manufacturers to achieve higher fuel economy averages for their fleets. According to a report from the Fuels Institute, the internal combustion engine remains the most cost-effective powertrain, especially for larger utility vehicles and trucks, which currently account for the majority of the U.S. market. But most internal combustion engines aren’t especially efficient at converting fuel into energy (this efficiency is called “thermal efficiency”).

crafted with the expectation that consumer demand for electric vehicles (EVs) would be greater than it is currently. Although sales of EVs are on the rise, consumers are buying substantially more SUVs and lightduty trucks. As a result, automakers are having difficulty meeting the original fuel economy targets.

Octane allows an engine to run at higher compression ratios using more of the energy in gasoline. Traditional engines run at about a 12:1 compression ratio; higher octane fuels can increase the ratio to 14:1. But the octane ratings of traditional gasoline restrict the ability of automakers to increase compression. According to the Fuels Institute report, original equipment manufacturers (OEMs) would like to use fuels containing a minimum of 98 – 100 RON.

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Q: Are fuel efficiency and

fuel economy the same thing?

No, but they are related. Fuel efficiency is the proportion of energy released by the combustion of fuel to what is actually converted into useful energy. A vehicle’s fuel economy measures the amount of fuel a vehicle consumes and the distance it can travel on that fuel. As engines become more efficient, engineers can reduce the size of the engine. This helps to lower vehicle weight, which leads to improved fuel economy.

Q: How successful are the CAFE standards to date?

A: Although progress is being made to improve fuel economy and

reduce emissions, automakers aren’t particularly close to meeting existing targets. According to the EPA, automakers reached an average of 24.7 miles per gallon for vehicles made during the 2016 model year. It represents a modest gain from the previous year (just 0.1 mile per gallon). Preliminary fuel economy for model year 2017 is projected to be 25.2 mpg (the data will not be finalized until 2019). The EPA is reviewing whether the existing 2022 – 2025 standards to increase fuel economy to over 50 miles per gallon by Model Year 2025 are appropriate. A determination is expected by April 1, 2018.

ways to achieve higher octane in a fuel formulation?

A: According to an Environmental and Energy Study

Institute fact sheet, octane has been achieved by utilizing a variety of sources since 1921. They have included lead, methyl tertiary butyl ether (MTBE), benzene, toluene, ethylbenzene and xylene (BTEX) and ethanol. As adverse results have been discovered for lead and petroleum-based octane providers, they have been removed from the fuel supply or their applications decreased. Today, there are two primary sources of octane used in the U.S. fuel supply: BTEX (a petroleum refining product commonly referred to as gasoline aromatics) and ethanol.

Q: Could ethanol play a larger

role in achieving higher octane in the coming years?

Q: Why are automakers struggling to meet the original fuel economy standards?

The original CAFE standards were crafted with the expectation that consumer demand for electric vehicles (EVs) would be greater than it is currently. Although sales of EVs are on the rise, consumers are buying substantially more SUVs and light-duty trucks. As a result, automakers are having difficulty meeting the original fuel economy targets. FMNMagazine

Q: What are some of the

By adding ethanol to finished gasoline, typically done using a process known as “splash blending,” octane ratings can be increased. As an oxygenating agent, ethanol enhances combustion. It also produces lower emissions. According to research conducted by Oak Ridge National Laboratory, higher octane fuels such as E25 or E40 could deliver fuel-efficiency gains of 5% to 10%, compared to engines that run on E10.

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FUELS & SUPPLY

Will Higher Octane Fuels Make the Grade on the Forecourt?

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As the Fuels Institute report points out, in order for automakers to develop and offer vehicles optimized for E25, the fuel needs to be readily available nationwide. But for the retail distribution network to supply E25 to the masses, there needs to be a critical mass of vehicles to support the demand for the fuel.

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Q: How compatible is a higher octane ethanol blend with the existing vehicle fleet?

A: The current vehicle fleet doesn’t widely support the

utilization of higher octane ethanol blends. As a matter of perspective, only about 11% of vehicles in the United States today are required to run on premium-grade fuel. Furthermore, newer, unmodified gasoline engines are only approved to run on ethanol blend concentrations below 15%. Flex-fuel vehicles, which are designed to run on ethanol blends ranging from 0% to 83%, can run on E25. Therefore, most legacy vehicles would not be approved to run on E25. Even if automakers were to respond by aggressively developing and producing new engine technologies, it takes approximately five years for new technologies to fully launch.

Q: What are the challenges

gasoline-based fuels exists, however, this fueling infrastructure would have to be upgraded at significant expense to handle E25 blends. Whether terminals have the existing capacity to store the ethanol needed for blending higher octane fuels is another big question.

Q: Many fuel retailers are

contemplating dispenser upgrades. What considerations should be made for higher octane ethanol blends?

Retailers who are pursuing dispenser upgrades should ask their fueling equipment distributor about ethanol compatibility— both for dispensers and underground infrastructure. Additional information is available on the potential introduction of E25 to the market in the Fuels Institute’s case study, “New Technology Adoption Curves”at www.fuelsinstitute.org. n

associated with bringing a higher octane fuel such as E25 to market?

Joe O’Brien

A: As the Fuels Institute report points out, in order for

automakers to develop and offer vehicles optimized for E25, the fuel needs to be readily available nationwide. But for the retail distribution network to supply E25 to the masses, there needs to be a critical mass of vehicles to support the demand for the fuel. Relative to other alternative fuels, such as hydrogen, a nationwide infrastructure for distribution of liquid

Joe is Vice President of Marketing at Source™ North America Corporation. He has more than 20 years of experience in the petroleum equipment fuel industry. Contact him at jobrien@sourcena.com.

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FUELS & SUPPLY

Fuels Institute Launches Fuel Quality Council

To Evaluate Relationship of Diesel Fuel in Modern High-Pressure Common Rail Engines An Interview with John Eichberger by Keith Reid

As new high-pressure common rail

diesel engines have increased their share of the U.S. market, there has been an increase in reports of engine breakdowns and failures presumably related to diesel fuel quality. While some assert a causal versus a coincidental relationship between the two, there has yet to exist a conclusive answer to why diesel fuel injectors, filters and other engine parts are breaking down with seemingly greater frequency. In November 2017, The Fuels Institute formed the Fuel Quality Council, a non-biased, cross-industry collaborative initiative aimed at better understanding the issue and evaluating potential solutions.

“The Fuels Institute is designed to facilitate cross-industry collaboration to better understand what is happening in the fuels and vehicles market,” explained Fuels Institute Executive Director John Eichberger. “The concerns relating to engine performance and diesel fuel quality represent an opportunity for the industries—on the fuels, vehicles and engines sides— to come together to share knowledge, evaluate available data, and seek greater understanding of the existing challenges and possible solutions available in the heavy-duty market. The Fuel Quality Council provides the mechanism for such collaboration to be successful.” FMNMagazine

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If it costs us, say, $10 billion a year to change the fuel specification but only $1 billion a year to repair the engines, the chances are that the market is going to say keep fixing the engines.

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FUELS & SUPPLY

We don’t know how big, we don’t know specifically the nature of the problem, but there are enough people getting involved to help figure this out and ponying up dollars to start the research, which says there’s something going on and people want to know what it is.

FMN: What is the state of diesel fuel quality today? Eichberger:

FQC will engage in engine maintenance data collection, fuel sampling analysis and research initiatives as directed by the General Council and Steering Committee, to better understand the scope and nature of the issue. The founding members of the FQC include: Afton Chemical Company, Andeavor, Center for Quality Assurance, Detroit Diesel Corporation, Donaldson Company, ExxonMobil, Innospec Fuel Specialties, Kum & Go, Love’s Travel Stops, Mansfield Oil Company, NATSO, NREL, Pilot Flying J, Seneca Companies, Vulcan Materials Company, National Biodiesel Board and Steel Tank Institute. FMN Editorial Director Keith Reid interviewed Eichberger to flesh out some additional details.

Once we quantify the scope of the problem, we’ll look at the fuel. The fuel coming out of the refinery is on specification, but there are some arguing that the specification is not clean enough for modern high-pressure engines. That’s a big deal if that’s true. If that is not true, is the fuel coming out of the nozzle no longer on specification? If that’s the case, then we need to analyze the failure points in the distribution system that are leading to the contamination of product. We would then start evaluating how we get nozzle fuel quality to match or at least be very close to the refinery. One of the challenges is when we pulled sulfur out of diesel in 2006 we lost a lubricity agent in the fuel, so we started adding stuff to diesel. I don’t know that we were really strategic in evaluating the interaction of all those different components, so we need to understand that.

FMN: How well does the current ASTM Specification

meet engine requirements?

Eichberger:

FMN: Is this a clearly established issue? Eichberger: I think the interest we’ve had in the council—those who are coming in and actually contributing to the research—indicates that there is a problem. We don’t know how big, we don’t know specifically the nature of the problem, but there are enough people getting involved to help figure this out and ponying up dollars to start the research, which says there’s something going on and people want to know what it is.

FMN: Are there any initial thoughts on the source of these issues?

Eichberger:

We’re not really sure. Most of what we are hearing is anecdotal so we want to quantify what’s going on. We are working on the protocols for a survey that will go to engine manufacturers, fleet operators and fuel retailers to try to acquire warranty claim data, maintenance logs and customer complaints that we can then catalog and evaluate to find out what are the prevailing trends with the failures. There are some people who believe that the complaints are isolated incidents and there are others who think it’s pervasive throughout the market. So, our first order of business is to quantify the scope of the issue. FMNMagazine

The engine manufacturers are leaning toward the European specification, which is cleaner. Their fuel specification is very different from ASTM, in particular, in terms of the water content allowed in the fuel is orders of magnitude less compared to what ASTM allows.

FMN:

What happens if the fuel specification and engine design aren’t working very well together?

Eichberger:

If that’s the case, let’s not just rush into advocating for a fuel specification change. You have to look at the cost of changing the specification with refinery operations and distribution logistics to deliver a more appropriate fuel compared to the costs associated with engine repairs under the current environment. If it costs us, say, $10 billion a year to change the fuel specification but only $1 billion a year to repair the engines, the chances are that the market is going to say keep fixing the engines. But we won’t know the answers until we started doing the analysis. The Fuel Quality Council will not be advocating any changes regardless. We’re just doing the research to enable the industries to decide what they want to do.

FMN: Trucks—similar to what we are seeing in

automobiles—are currently going through federal regulations 20

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FUELS & SUPPLY

Fuels Institute Launches Fuel Quality Council

to improve fuel economy and emissions. Phase 1 of this was largely accomplished conventionally though such means as improved aerodynamics. Phase 2, if it proceeds without significant adjustments, will likely require notable changes relative to diesel power plants. How will those potential but currently unknown needs be handled?

Eichberger:

Vulcan Materials Company is on our steering committee and they are in heavy-duty construction stuff and so they’re looking at this because they’re concerned and they have their own trucks coming out with diesel fuel to fuel their equipment. It may come down to where those heavy-duty construction units don’t need these new high-pressure engines and will remain using legacy engines—and now you have two different fuels. We did that for a while, but that was not fun. As long as the next fuel is backwards compatible we don’t have that much of an issue. n

Eichberger: That came up in our first meeting last year. If we start considering a change in the fuel specification, which I’ll state again is by no means assured, the desire for the refiners, automakers and engine manufacturers is to design a fuel specification to match both today’s and tomorrow’s engines. What do you anticipate your engine requirements will be 15 years from now? I’m hearing the next generation of high-pressure diesel engines is going to double the pressure to possibly 50,000 to 60,000 pounds per square inch. That puts a lot of pressure, pun intended, on the fuel supply. If we’re going to that system where you have a onemicron tolerance and a 60,000 PSI engine, let’s design fuel specs for that scenario and not the one we have today. Assuming we go that route.

John Eichberger

For more information about the Fuels Institute or how you can get involved, contact John Eichberger, executive director, at jeichberger@fuelsinstitute.org or 703.518.7971. The Fuels Institute is constantly monitoring and evaluating market developments. To join the conversation and share your insights, contact Director of Operations Donovan Woods (dwoods@fuelsinstitute.org) and sign up to receive our new monthly e-newsletter, Fuel for Thought.

FMN: Fuel quality issues with today’s and tomorrow’s

engines become even more interesting in demanding environments like mining operations and construction sites. Filters capture many contaminants but the room for error seems to be shrinking.

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The fully built up retail price of diesel was $2.79/gallon, 45% of which was the cost of crude. Refining accounted for 20% of the cost, distribution and marketing 16%, and taxes 19%. Naturally, the closer the buyer is to the refiner (with prices set before taxes, distribution and marketing costs are added), the larger the share of crude oil is in the fuel price. Therefore, while crude prices and product prices can diverge from day to day and from submarket to submarket, they cannot diverge too wildly and for too long. Imagine a swimmer swimming against the tide. It can be done, for a time, but less forward progress is made if the ocean is going the other way. If diesel prices are rising while crude prices are ebbing, eventually diesel prices will follow crude prices. There are hundreds of crude oils traded, but two key crudes have emerged as the benchmarks for Trans-Atlantic pricing: West Texas Intermediate (WTI) in the U.S. and Brent Blend in Europeâ&#x20AC;&#x2122;s North Sea. Both are light (low in specific gravity) and sweet (low in sulfur) crudes. In terms of quality, WTI and Brent are relatively close. We may liken them to TransAtlantic cousins serving as benchmarks in their respective markets. Contracts for the purchase of many other crudes often are based on discounts or premia relative to these benchmark crudes.

“The Americans are coming” could have been the subtitle of the International Energy Agency’s latest outlook for oil markets. International Energy Agency (IEA) chief Fatih Birol posited that oil-supply growth from outside of OPEC would drive the market for at least the next three years—with one country in particular looking, er, dominant: The United States will put its stamp on global oil-market developments in the next five years. A less-obvious tag line is: “The refineries are coming.” Source: Liam Denning , Bloomberg, “Shale? Here’s the Other Wave Washing Into the Oil Market”

Bottom Line:

America is undergoing more than just an E&P energy revolution. As the article notes, increasing global refining capacity combined with only moderately increasing fuel demand (mainly in China and India) has the potential to squeeze refining margins globally. However, the U.S. sector is well positioned to be the winner in such a scenario.

at FuelsMarketNews.com

ADDRESSING KEY CHALLENGES FACING COMMERCIAL FUEL BUYERS

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COMMERCIAL FUELS

by Candace McCraine

Making successful, timely decisions around fuel buying can be a difficult process for commercial fuel buyers. Buyers need to maximize every dollar spent on fuel, yet inadequate personnel resources, inefficient data management and limited visibility into allocations are major hurdles facing the commercial fuel market. To mitigate these challenges and make more informed decisions around fuel purchases, fuel buyers can turn to advanced technologies that enable greater automation. These technologies allow commercial fuel buyers to take full advantage of cost-savings without adding headcount or sacrificing back-office efficiencies that eat into profits—all while empowering employees to focus on more strategic business needs.

ALLOCATION VISIBILITY

Commercial fuel buyers often rely on common carriers to update them on allocation issues across the industry. This reliance can limit their visibility and reaction time for making quick and more profitable decisions for their company. Limited visibility puts fuel buyers at the mercy of the supplier when it comes to making the best pricing decisions, and the implications of putting common carriers in the driver’s seat include: • Being penalized on a miss-pull, having to pay the rack price due to lack of clarity surrounding allocations or needing to go to another terminal • Sending the carrier to the terminal and then being denied product due to lack of allocations, which in turn, incurs a stop-off loading fee at a different facility • Running the risk of not staying ratable with the supplier

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ACTIONABLE INSIGHTS INTO ALLOCATIONS

The average miss-pull costs an operation approximately $150 per load, and a miss-pull rate of 25 percent costs $172,500 per year in upcharges. Using technology that provides real-time insights into multiple suppliers on a single screen can save valuable time and allows commercial fuel buyers to take back control of their allocations. The latest price optimization technology provides fuel buyers with real-time insights into allocations and offers the information they need to make informed loading decisions. Technology enables buyers to view the status of all of their allocations in one place as well as calculate buying options effectively and efficiently, including transportation. Using pricing automation and allocation visibility tools allows commercial fuel buyers to determine the best rack values and view available allocations. Investing in price optimization tools can help commercial fuel buyers make more informed buying decisions and:

• Incurring a penalty for under-lifting, which may include a per-gallon fee, a cancelled contract or a renewal with a higher differential because of past performance

• Cut costs and avoid contract ratability issues by eliminating the risk of pulling rack accounts unnecessarily • Save time by allowing users to view allocations on one screen and make additional allocation requests from a contract supplier • Evaluate contracts, supplier prices and outages

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COMMERCIAL FUELS

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Addressing Key Challenges Facing Commercial Fuel Buyers

CONSOLIDATING DATA

Commercial fuel buyers often receive data in multiple formats, and back offices often spend too much time manually entering and customizing customer data into the enterprise resource planning (ERP) system. Automation allows businesses to streamline data processes and can save companies valuable time and resources. The average cost to process a transaction manually is $27.50 per transaction, while the average annual cost to maintain a vendor in the database is $1,500. In addition to lost time, manual entry can be costly in other ways such as risk of costly data entry errors, inefficiencies around tracking volume and spend by each location, and long-term work increases to merge fuel volume for full transport load (FTL) and less than transport load (LTL).

AUTOMATE DATA

Data automation offers a cutting-edge solution to common industry challenges surrounding data consolidation. By automating the formatting and integration of documents into back-office systems, businesses can streamline data processes and get the data needed without the manual work of employees. Benefits of data automation include: • Growing a business without adding staff

automate their entire invoicing reconciliation processes and catch errors faster. It can also provide faster and more accurate invoicing to better inform buying decisions and price optimization, match BOLs to supply and freight invoices to validate deliveries, and clear invoices faster for quicker payment and capture potential discounts.

CONTROL HEADCOUNT

Often companies are short on the number of personnel needed to track inventories and optimize load dispatches, with the average fuel desk having 1.5 employees. It is common for commercial buyers to struggle with inadequate resources, and as a result, common carriers often handle this activity. Automated systems help commercial fuel buyers end uncertainty and leverage a price optimization solution that allows for the best buying decisions for each location. Buyers can quickly calculate prices—including transportation—and sort from the lowest to highest, identifying where the “best rack” really is. Businesses can quickly and easily determine best possible loading scenarios, maximize profits without extra headcount and take back control of their operations.

• Sending invoices faster and processing payments instantaneously • Eliminating data entry and errors by automating the gathering, aggregating, formatting, cross-referencing and integrating of bills of lading (BOLs), freight invoices and electronic funds transfers (EFTs)

VALIDATE DELIVERIES AND INVOICES

The average cost to correct an invoice due to a single billing error is $126. While most suppliers invoice correctly, a fuel audit will almost always find a price discrepancy. Verifying proper pricing can cost companies the time it spends checking that the invoice date, time and gallons are correct on every supplier and carrier invoice. In addition, there is on average, a three-day lag between the scanning and receiving of BOLs and trip tickets. There are also discounts with faster payment terms. Automatic verification, integration and insight allow companies to integrate supplier invoices, automate the process of matching critical data from the electronic BOL to the invoice and payment process, all without human intervention. Combined with technology that delivers real-time updates on market conditions and pricing, commercial fuel buyers are able to build unmatched insight into how to optimize fuel buying processes. Most companies do not have the time or resources to look at every market or price from rack suppliers, but leading commercial fuel buyers can leverage technology to do just that. Invoice and delivery validation software can help businesses FMNMagazine

Most companies do not have the time or resources to look at every market or price from rack suppliers, but leading commercial fuel buyers can leverage technology to do just that.

Commercial fuel buyers face different challenges every day, and without visibility, automation, optimization and control, it can be difficult to meet contractual commitments. Savvy commercial fuel buyers can take back control and certainty with investments in leading-edge tools that help streamline business processes— without adding headcount or breaking the bank. n

READ MORE at FuelsMarketNews.com

Candace McCraine Candace McCraine, Director of Commercial Business Development, DTN, has more than 20 years’ experience in the refined products sector, holding various roles in sales, customer experience, process improvement and innovation. Throughout her career, Candace has developed important relationships with customers and key suppliers, enabling her to collaborate in developing and executing important strategies in areas such as fuel procurement, technology solutions, process efficiency and quality of service. Contact Candace at Candace.McCraine@dtn.com.

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What Do Lawnmowers and Airplanes Have In Common?

by Brian Reynolds

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COMMERCIAL FUELS

What do lawnmowers and airplanes have in common? If the lawnmower is owned by Brian Reynolds, then several things. I made an observation several years ago, about the time ethanol-blended gasoline pretty much became the only flavor you could buy at local c-stores. Every spring, I spent about three hours trying to crank up all my garden tools. I also started to notice that after I got my machines running, it would still take about a gazillion pulls to get them re-started. Of course, I didn’t winterize my equipment like it says in the owner’s manual and specific winterizing instructions which are plastered all over the gas tanks. Over the winter, the gas that was still in the machines went bad along with what was in my gas can. My lawn mower is hard to start, my weed eater is hard to start, my hedger is hard to start, my edger is hard to start, my leaf blower is hard to start and my chain saw absolutely will not start (great exercise by the way—trying to start a chain saw that won’t). I also put new spark plugs in all machines, drained the fuel and replaced with fresh gas and they still won’t start. Plus the other thing worth mentioning is that I have gone through at least two weed eaters in the last five years because I just flat couldn’t start them. I figured it’s probably just as cheap to buy a new weed eater as it is to take it to the shop. So, instead of ruining (i.e., saved from having to do any work) my weekend completely, I headed off to the airport to have some fun and crank up my 58 Twin Engine Piper Apache and go flying, which by the way, hadn’t been started for about three months, either. The first thing that got me to thinking about ethanol/phase separation is that I have an airplane tug that I use to pull the plane out of the hangar. The tug is probably about 30 years old, has a Briggs and Stratton engine on it and is likely the same one you would see on a garden tiller. The only basic difference between my airplane tug and my lawnmower is that, for convenience purposes, I actually put the same gas in it as my airplane, which is 100 Octane Low Lead Gasoline. I hook the tug on to the plane and guess what? It cranks up on the first spin after not being used all winter! I also crank up the Apache (left engine first) and it cranks up on about the first spin. I crank on the right engine and guess what? It cranks up on the first spin and both have had the same gas all winter, too! FMNMagazine

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What Do Lawnmowers and Airplanes Have In Common?

After I had my $200.00 hamburger (pilot talk for wasting the afternoon flying somewhere for lunch), I decided to take a gallon of avgas (aviation gas) to the house and see if I can recreate the miracle of getting a small one cylinder motor started on the first spin, too.

to the molecules in the water creating essentially multiple layers of various stages between water and gasoline. The process of phase separation can happen in any size tank and has roughly the same viscosity of brake fluid.

First, I drained all the old gas out of my lawnmower. I also intentionally over-primed the motor to flood it, thus attempting to flush out any phase that is gumming up the works. After waiting several minutes and still a few good pulls, it coughs, spits, sputters, gags, pukes, smokes, burps and about 30 seconds later, it’s running like a champ!

Going back to the question in the beginning of this story, what does my airplane have in common with my lawnmower? ANSWER: They both run on avgas, they start quickly, and I don’t worry about phase. You can still get water in the tank. But guess what? Water and gasoline don’t mix and in the case of my airplane, I always sump the tank and inspect for water before every flight.

For my next trick, I use my new-found magic with the other machines. As most people know who use small two-stroke garden tools, they are usually hard to start under all circumstances. So, I repeat the same process with the weed eater as I did with the lawnmower and amazingly, it starts right up as well!

CONTAINS ETHANOL

I’m thinking that I am on to something here! As of March 22, 2018, at the Arlington Texas Municipal Airport Self Service pump for 100 Octane Low Lead Gas the cost is $4.19 per gallon. (Believe it or not, they have unattended cardlocks for aircraft fueling at most regional airports in the U.S. I haven’t actually researched to find out if self-serve airplane gas is available in New Jersey and Oregon.) I figure I use less than 10 gallons all year for my tools so that is an investment of $41.90 for gas for the entire year—20 bucks more for gas for the year. Whoop-dee-do! A new weed eater costs around $200.00 during the Memorial Day Sale anywhere you go. For the last three years, all my garden tools have run on avgas. I don’t winterize; whatever is in their little tanks in December stays there until March the next year. I don’t run down and refill my 10 gallon gas can just because it’s spring. There are still about two gallons in it from last year and I will bet anybody $100.00 my lawnmower will pull by the third pull. (I know I’ve been saying first pull throughout this story, but if we’re betting money, I’m going to cut myself a little slack!) So, what is phase? Phase occurs when a sufficient amount of water invades a fuel tank whereby the ethanol separates from the gasoline and attaches itself FMNMagazine

Gasoline and ethanol apparently do mix, but can become separated and turn to phase and you can’t just shake it real good to get it to go back to the way it was before it turned to phase. If you don’t have access to avgas, try racing gas from sources such as VP Racing Fuels. Racing gas doesn’t usually have ethanol and is also readily available. Also, some retailers such as Lowes, Sears and Home Depot have started selling prepackaged gasoline without ethanol in small 32 ounce quantities.

High octane does not damage a low compression engine. It’s the other way around. Low octane gas will potentially damage a high compression engine. FYI: a lawnmower is definitely a low compression engine. My chain saw still won’t start, but that’s just because it’s a chain saw. Besides that, who wants to ruin the weekend running a chain saw all day? n

READ MORE at FuelsMarketNews.com Brian Reynolds Brian began his career working as a teenager in his family-owned jobbership in Cisco, Texas, and was at the forefront of many significant industry milestones. Reynolds was an early adopter of cardlock systems in the 1980s, a pioneer of high-volume supermarket fueling centers in the 1990s and one of the key architects of inventing reward-based fueling loyalty in the 2000s. His entire professional career has been an experienced-based building block succession of leading-edge game changer concepts. He currently works for Dover Fueling Solutions in ClearView, wet stock management sales. Contact Brian at Brian.Reynolds@DoverFS.com or cell 325-733-6490.

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COMMERCIAL FUELS

Working With Your Drivers to Prevent Fuel Card Fraud by Glen Sokolis

Fuel cards are one of the most convenient aspects of the modern trucking industry. They ensure that every driver can get fuel when they need it, donâ&#x20AC;&#x2122;t have to worry about receipts or reimbursement and that all company-related refueling stops are charged to the correct account every time. Unfortunately, fuel card fraud is also one of the biggest problems faced by companies with fleets all over the world. From being used to fill non-fleet vehicles to actively being hacked by illegal card-skimming devices, your company could be losing hundreds to thousands of dollars every year to fuel expenses that arenâ&#x20AC;&#x2122;t being used to run your vehicles. Naturally, you need a prevention plan.

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The best way to stop fuel card fraud, in all its forms, is to work with your drivers and get them on your side.

Work With Your Drivers, Not Against Them First things first, do not start accusing drivers of fraud. This is a quick route to angry loyal drivers who haven’t committed fraud and defensive drivers who may have slipped up once or twice and are now worried about retribution. The best way to stop fuel card fraud, in all its forms, is to work with your drivers and get them on your side. Make it clear that you want to keep your books clean and have a solid understanding of your fleet’s operations, including fuel consumption.

Understanding Fuel Card Fraud The next step to stopping fuel card fraud is to know where it comes from. Here are a few examples of how your fuel cards might be paying for more than they should:

Preventing Fuel Card Fraud from Driver Behavior Once you know where fuel card fraud comes from, you can build a number of preventative strategies. The most important tactic is to carefully audit fuel card expenditures with vehicle activity. The most obvious infractions will be charges on days or in areas that you don’t have a particular cardholding driver scheduled. These are most definitely suspicious charges and should be investigated. You also know about how much mileage your vehicles get and the approximate price of fuel. If you’re seeing a daily charge for fuel that accounts for far more miles than were scheduled or traveled, this is another clear sign of suspicious activity. Let your drivers know that you’ll be tracking these stats. This will make it clear that unusual activity will be investigated, and consequences will be enacted for any misuse/fraud. If your audits reveal fuel card fraud in the past, deal with it accordingly but otherwise keep the drivers on your

• Filling up non-fleet vehicles such as personal vehicles or for another driver for cash or charity • Buying food and drink

• Sometimes carelessness • Double-charging by the automated system (not the driver’s fault) • Stolen card information, which could occur by a hacker’s skimming device illegally installed at a pump or one of your fuel merchants’ computer system was hacked

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side. Emphasize that it’s their duty to protect the fuel cards and themselves from fraud. Auditing fuel card transactions is a vital function, but it only detects what has already occurred in the past. To help prevent fraudulent activity, make sure your fuel cards controls are properly configured for your fleet operations. Here are some typical controls that fuel cards may offer: • Limit number of charges per card per day • Limit purchase amount per day • Limit purchase amount per transaction • Limit number of gallons per transaction • Restrict card use to only fuel and specific fuel types • Restrict card use to approved days of the week or time of day The policies that you put into place will depend on your fleet and the specific fuel card services you use and how you want to work with your drivers. While most of your drivers will be on your side, these restrictions will help you stop the occasional driver who thinks they can sneak a transaction through the system.

COMMERCIAL FUELS

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Working With Your Drivers to Prevent Fuel Card Fraud

Preventing Fuel Card Fraud from Skimming Devices Skimming devices are becoming a disturbingly popular way to steal payment card information. What the criminals do is pry out the old card reader and glue on their false, similar looking, reader/skimmers. The transaction will usually still go through and your drivers will get fuel, but the payment data on the magnetic strip will also be stolen and used for things like online orders or Uber rides (no joke!). Let your drivers know that they are being targeted by scammers and that it’s important to protect themselves from fraud accusations by being careful to watch out for situations that could have been caused by skimmers. The best way to do this is to stick with well-lit stations with working security cameras, as it will have been harder for criminals to install their devices. In a sketchy place without other options, pull up to the pump closest to and in direct sight line of the clerk inside for the same reason. Finally, ask your drivers to compare the card scanners at nearby pumps. If they look different, roll on to another filling station and report the suspicion.

Let your drivers know that they are being targeted by scammers and that it’s important to protect themselves from fraud accusations by being careful to watch out for situations that could have been caused by skimmers.

Detecting What You Can’t Prevent

Finally, it’s important to understand that fuel card fraud is often something that happens because details are allowed to slip through the cracks. Drivers may notice if you never review and question transaction reports. Then, they may feel they can get a little extra without hurting the company. By monitoring your fuel card records for signs of over-filling, non-fuel purchases (by driver or scammers) and double-charges from merchants, you can not only save the fleet a significant amount of annual expense, you also show your drivers how important fuel card integrity is. When you simultaneously work as a team to prevent fuel card fraud and exact consequences for infractions, soon your team will be ship-shape, and your finances will make a lot more sense. n

READ MORE at FuelsMarketNews.com

Glen Sokolis Glen is the Founder and President of Sokolis Group, a nationwide fuel management and fuel consulting company. He has more than 25 years of experience with fleet fuel and founded Sokolis Group in 2003. Sokolis Group’s mission is to reduce and control their clients’ fuel spend through tightly managed, customized programs. Sokolis can be reached at GSokolis@SokolisGroup.com or 267-482-6160.

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Diesel

and the

Future of Trucking FMNMagazine

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COMMERCIAL FUELS

“Diesel is the most energy efficient internal combustion engine. It has achieved dominance as the technology of choice in the trucking industry over many decades and challenges from many other fuel types. Still, today, diesel offers a unique combination of unmatched features: proven fuel efficiency, economical operation, power, reliability, durability, availability, easy access to fueling and service facilities, and now near-zero emissions performance.”

Allen Schaeffer Diesel Technology Forum

The following is a statement from Allen Schaeffer, executive director of the Diesel Technology Forum. “Technology for commercial trucking is changing rapidly and that includes all vehicle, fuel and powertrain choices for the future. Aspirations and predictions for new fuels and technologies are high, but must be evaluated in the context of reality. “Diesel is the most energy efficient internal combustion engine. It has achieved dominance as the technology of choice in the trucking industry over many decades and challenges from many other fuel types. Still, today, diesel offers a unique combination of unmatched features: proven fuel efficiency, economical operation, power, reliability, durability, availability, easy access to fueling and service facilities, and now near-zero emissions performance. “Diesel technology is not standing still but rather being enhanced every day across a wide range of applications. From coupling with hybrid-electric technology and battery storage systems, to pushing thermal efficiency boundaries, to utilizing 100 percent non-petroleum bio-based diesel fuels, the new generation of clean diesel power is part of a sustainable future. Clean diesel technology ensures that truckers can deliver their cargo anywhere, anytime, under any conditions. “We all benefit from a more efficient freight system. Fuel and powertrain choices are one part of that. The greatest opportunity for efficiency gains, fuel savings, lower greenhouse gas emissions and cleaner air—now—is to get more truckers into the newest generation of more fuel efficient and near-zero emissions clean diesel technology, as rapidly as possible.”

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Heavy-Duty Trucking in the U.S. There are more than four million Class 8 (tractor-trailer size) vehicles on the road in America today, with more than 98 percent powered by diesel technology. More than 30 percent of these Class 8 diesel trucks use the newest generation clean diesel technology to meet the stringent emissions standard establish for new trucks sold beginning with model year 2010. By the end of 2017, ACT Research analysts expect more than 260,000 new Class 8 trucks on the road in North America, and the overwhelming majority will be powered by clean diesel technology. Truckers continue to demonstrate their preference for clean diesel technologies. Beginning in 2008, when the Ports of Los Angeles and Long Beach started requiring truckers to switch to cleaner technologies, nine out of ten port truckers chose clean diesel over other fuels.

COMMERCIAL FUELS

Diesel and the Future of Trucking

The net result was that the ports have already achieved their particulate matter (PM) emissions reduction targets set for 2023 and are very close to achieving their nitrogen oxide (NOx) emissions reduction goals ahead of schedule. With clean diesel as the foundation, engine and truck manufacturers have successfully achieved goals for Phase 1 of fuel economy and greenhouse gas emissions standards established in 2011 by the U.S. Environmental Protection Agency and the National Highway Traffic Safety Administration. Phase 1 established fuel economy requirements for model-year 2014 through model-year 2018 technologies and is expected to save 530 million gallons of fuel and reduce carbon dioxide (CO2) emissions by 270 million tons over the lifetime of the rule. Phase 2 will address model-year 2018 and beyond. Research and development of new clean diesel and hybrid technologies also continue to push the envelope. Engine manufacturers participating in the U.S. Department of Energy’s SuperTruck program are pursuing 57 percent thermal efficiency for Class 8 trucks. These benefits are delivered by clean diesel technology. Diesel technology offers truckers the greatest fuel efficiency for the dollar. As evidenced in the recent “Run on Less” campaign from the North American Council on Freight Efficiency, after more than 50,000 miles, the seven Class 8 diesel trucks in the demonstration exceeded an average of 10 mpg, even with heavy loads of more than 65,000 lbs., with some trucks exceeding 12 mpg. This represents a dramatic improvement in ton-mile freight efficiency.

newest, cleanest, most efficient trucks on the road in the U.S.

Diesel-powered trucks, trains, ships and intermodal systems move more than 80 percent of all cargo in the U.S. and more than 90 percent throughout the world. According to The Fuels Institute, diesel will remain the predominant fuel for commercial vehicles through at least 2025, when it retains 96 percent of the mediumand heavy-duty market. Ultra-low-sulfur diesel fuel is available at all truck stops and more than half of all retail fuel stations across the country. The clean-air and cost-effective benefits of clean diesel technology are well established. In recent years, the American Lung Association, in its annual state-ofthe-air report, has singled out the turnover to cleaner diesel fleets as a key factor helping achieve progress toward America’s air quality goals. According to the U.S. Department of Transportation, one ton of NOx may be eliminated by investing just $20,000 in clean diesel technologies, versus investing $1,000,000 in electric vehicle charging infrastructure. Over just the last five years, new clean diesel technology in the U.S. commercial vehicle fleet has: • Eliminated 43 million tonnes of CO2, equivalent to carbon sequestration in a forest the size of Ohio • Removed 21 million tonnes of NOx, equivalent to reducing NOx emissions from all cars on the road for six years • Prohibited 1.2 million tonnes of PM emissions, equivalent to reducing PM emissions from all cars on the road for 30 years • Saved 4.2 billion gallons of fuel across the fleet • Earned cost savings of more than $2,640 per truck per year For more, visit https://www.dieselforum.org/aboutclean-diesel/trucking n

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COMMERCIAL FUELS

TMC18 Hits a New High for Fleet Maintenance Professionals

merican Trucking Associations’ Technology & Maintenance Council is considered to be America’s premier technical society for truck equipment technology and maintenance professionals. TMC features a diverse membership of equipment managers, service-dealers, owner-operators, industry suppliers and manufacturers, educators, academia and others that support the trucking industry. The organization’s Annual Meeting & Transportation Technology Exhibition held March 5-8, 2018, in Atlanta was TMC’s largest show in history. It saw over 5,000 registered attendees with record-setting first time attendance. There were a variety of events drawing people to the show.

First off, it’s the council’s business meeting, and as such it saw Jeff Harris, vice president of maintenance at USA Truck Inc., elected 2018 – 2019 general chairman and treasurer during the organization’s Annual Banquet and Reception which closed the event on March 7 at the Georgia Aquarium. “Jeff has been a model TMC member and an example of the type of professional standard our council strives to set. I’m pleased to see him elected as TMC general chairman and treasurer,” said Robert Braswell, TMC executive director. Harris, who served this past year as the Council’s vice chairman and chairman of meetings, will succeed Glen McDonald, director of maintenance at Ozark Motor Lines Inc., in this role at the conclusion of TMC’s 2018 Annual Meeting. A kick-off breakfast featured Carlton Rose, president, Global Fleet Maintenance & Engineering, United Parcel Service.

TMC’s best-attended event, as always, is its Town Meeting and Fleet Operators’ Forum. TMC’s Town Meeting provides an opportunity for the Council to present members and attendees with information about what’s happening within TMC. Topping the popularity list were Fleet Talk and Shop Talk. TMC’s Fleet Talk is a lively dialogue based on TMC’s successful Shop Talk format, but open only to fleet attendees. Topics of interest that emerge from this session were then raised at Shop Talk later in the week for open discussion before the entire Council. This presented attendees with a unique chance to learn and share the tricks of the trade from the industry’s best experts.

TMC Awards Dedication and Excellence The event is also the location where the Council’s leadership awards are presented. The Silver Spark Plug Award is given in recognition of an individual’s outstanding contributions to the cause of improving heavy-duty vehicle maintenance. Retired Silver Spark Plug recipients carry TMC membership privileges for life. “The Silver Spark Plug is our industry’s highest honor, recognizing professional excellence in commercial vehicle maintenance,” said Robert Braswell, TMC executive director. “This year’s winners represent the pinnacle of our industry and we are pleased to bestow this honor on them.” This year’s honorees were: Todd Cotier, director of maintenance, Hartt Transportation, Bangor, Maine; Randy Obermeyer, terminal manager, Batesville Logistics Inc., Batesville, Indiana; Paul Menig, CEO, Tech I-M., Sherwood, Oregon; and Jeff Harris, vice president of maintenance at USA Truck Inc., Van Buren, Arkansas. “I congratulate these tremendous individuals for their efforts to keep our trucks, and America, moving,” said ATA President and CEO Chris Spear. “More than half of the 7.3 million people employed by the trucking industry do something other than drive a truck, and without them, our nation’s goods don’t get to our stores, hospitals and factories. These individuals are examples to all of us in this industry.”

Other honorees at this year’s TMC annual meeting: Peggy Fisher, president of TireStamp Inc., was honored with TMC’s Uncle Darrell TMC Mentor Award. This award is presented to those dedicated TMC volunteer members who have demonstrated exemplary efforts while serving as a TMC Mentor. Travis Crow, general manager, Travel Centers of America, was honored with the Excellence in Maintenance Supervision Award. Candidates for this award were all employed in direct supervision of maintenance technicians and exhibited superior performance in equipment maintenance supervision. Brant Schneider, strategic account manager, Alcoa Wheel Products, was honored as a Recognized Associate. This award is presented to individuals in recognition of their contributions in support of TMC projects or services to the industry. Dave Dettman, general manager, QTC Transportation Holdings, LLC, was honored with the Peggy Fisher Study Group Leadership Award. This award is presented to an individual for distinguished leadership as Study Group Chairman and outstanding leadership and contributions to TMC and the transport industry. Steve Woodbeck, director of sales, LiteCheck Inc., was honored with the Study Group Secretary Award. This award is presented to those dedicated TMC volunteer members who have demonstrated exemplary efforts while serving as a TMC Study Group Secretary.

Task Groups and Education Getting down to business, the event hosts more than 100 industry task forces covering virtually every aspect of maintenance operations. New this year were meetings that covered rim flange wear, demountable tire shop tools and procedures, guidelines for diesel particulate filter cleaning, smoke detection guidelines, updated heavyduty in-cab air conditioning, updated heavy-duty clutch maintenance, disc and drum brake integration issues and heavy-duty collision repair guidelines. In addition, there were more than 10 educational sessions covering a range of issues from last mile delivery solutions to career pathways for fleet maintenance executives.

Trade Show TMC’s annual meeting also features a robust trade show with 11.5 hours for attendees to visit over 400 exhibitors. We’ve provided a variety of photos, courtesy of TMC, to illustrate the scope of trade show exhibitors. TMC’s 2019 Annual Meeting & Transportation Technology Exhibition is scheduled for March 18 – 21, 2019, Georgia World Congress Center. n

The U.S. Energy Information Administration (EIA) forecasts that drivers in the United States will pay an average of $2.74 per gallon (gal) this summer for regular gasoline, an increase of 11% over last summer, according to EIA’s Short-Term Energy and Summer Fuels Outlook. EIA’s forecast price for summer 2018 is 26 cents/gal higher than the average price last summer, but still 15 cents/gal lower than the 2013 – 2017 summer average. The price increase primarily reflects higher forecast crude oil prices compared with last year. EIA projects that monthly average gasoline prices will remain mostly flat this summer, averaging $2.78/gal before falling to $2.65/gal in September. For all of 2018, EIA forecasts U.S. regular gasoline prices to average $2.64/gal. Based on this price, EIA estimates the average household will spend about $190 (4.7%) more on gasoline in 2018 than in 2017 but about $130 (2.9%) less than in 2014, when retail gasoline prices averaged higher than $3.00/gal. Source: EIA’s This Week in Petroleum, Release date: April 11, 2018

Bottom Line:

It’s a great time to be a motor fuels retailer, marketer or customer when the “higher” price predictions for the coming year are dramatically lower than the average prices that were common (and seen by many as the new normal) just a few years ago.

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by Allen Porter

Backup Generator Tanks and the Additions to the EPA UST Regs

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For the first time, starting in October of this year, USTs used [exclusively for emergency power generators] must meet the EPA UST release detection requirements. EPA estimates that 30 percent of emergency generator tanks already have release detection in place and, in fact, approximately 20 states already have requirements for release detection on emergency generator tanks.

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WHOLESALE & FLEET OPERATIONS

hen the EPA announced the 2015 additions to the federal underground storage tank (UST) regulations, the majority of the impact to the UST marketplace was focused on the new secondary containment, facility maintenance and inspection, and operator training requirements that were impacting retail fueling facilities. However, a segment of UST operators who are much lesser known and understood were signiﬁcantly impacted by these additions: those who operate USTs used exclusively for emergency power generators. These facilities were previously deferred from the federal EPA regulations. For the ﬁrst time, starting in October of this year, tanks used at such facilities must meet the EPA UST release detection requirements. EPA estimates that 30 percent of emergency generator tanks already have release detection in place and, in fact, approximately 20 states already have requirements for release detection on emergency generator tanks.

The largest percentage of backup generator facilities with existing underground tanks that we see at Tanknology are in the hospital/healthcare industry. These systems ensure continuity of critical medical operations during a power outage. In our experience, these are the operators facing the biggest challenge with the new regulations.

So, who operates these emergency generator tanks? EPA’s review of state databases revealed these systems are located primarily at hospitals, universities, communication utilities and military installations. In total, backup generator tanks represent approximately three percent of the current UST population. Communication utilities, such as phone companies, have backup generator tanks to ensure consistent phone service. As these tend to be big corporations, they are largely already in compliance with the regulations or are on a course to be so.

in the hospital/healthcare industry. These systems ensure continuity of critical medical operations during a power outage. In our experience, these are the operators facing the biggest challenge with the new regulations.

In our experience, large commercial data centers are also a significant category. This is an industry with explosive growth, due to the role of these data centers keeping our world connected. These electronic centers are critical repositories of the servers, routers, firewalls and backup equipment necessary to run most businesses today. The financial impact of not keeping these centers running smoothly can be staggering.

The hospital industry is highly fragmented, with many small regional operators. Even those that are part of a larger corporation are frequently being operated independently, without a consolidated maintenance role overseeing generators. We approximate that roughly half of the hospital and healthcare facility operators we talk to about their new compliance requirements have a sense of what’s ahead for them and are somewhere in the process of addressing it. The other half are similar to the Mom & Pop retail operators of the 1990s, who struggled with compliance requirements well past the eﬀective date of the initial EPA regulations and will be scrambling to bring themselves into compliance, perhaps as a result of a regulatory infraction.

Delta Airlines can attest to this. Remember the summer of 2016 when a key data center failed, and the airline canceled more than 2,000 ﬂights over three days—at a cost upwards of $150 million? As very large data centers have been built in recent years, backup generators are now typically fueled from aboveground storage tanks (ASTs), which are not subject to the UST regulations. But there are certainly legacy facilities with existing USTs and those not already upgraded are mostly in the process.

A major challenge facing a large percentage of these hospital operators is their UST conﬁgurations, many of which were installed with only a single riser, providing no opening for an automatic tank gauge (ATG).

The largest percentage of backup generator facilities with existing underground tanks that we see at Tanknology are

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Backup Generator Tanks and the Additions to the EPA UST Regs

A recent upgrade program we managed for a regional hospital chain started with the installation of a second riser on their existing USTs so they could add an ATG to their tanks in order to meet the release detection requirement of the new regulations. An ATG for release detection, of course, only scratches the surface. The new reality for these operators demands regular spill bucket checks, monthly walkthroughs, establishing and certifying Class A, B and C operators—all the regulatory activities familiar to most UST operators but that are becoming a regular part of life for facilities providing backup power. Another key maintenance challenge for backup generator operators is maintaining fuel quality. While this issue isn’t really new, more recent biodiesels have wreaked havoc in some backup generator tanks, as they have in the retail environment in some areas of the country.

Many operators of backup generator tanks are beginning to realize that the EPA’s elimination of the deferral of the release detection requirements on their tanks is not going to be simple. It’s also not going to be a one-time event. The routine maintenance and inspections of these systems will be a regular, ongoing requirement. There will be no more “out of sight, out of mind” for backup generator tanks. n

As operators are assessing their systems for the upcoming regulations, some are encountering tank and fuel conditions that require attention. For some, we are performing fuel sampling, remote visual tank inspections utilizing our TankCam™ inspection system, tank cleaning and possibly fuel polishing to bring tanks and fuel back into speciﬁcation and proper operation.

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Allen Porter

Allen is the President and CEO of Tanknology Inc. Tanknology is a leading international provider of tank testing and environmental compliance services for petroleum systems. Now in its 30th year, the company has tested more than a million tanks and provides associated compliance services at more than 50,000 sites each year.

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TRUCKING

WHOLESALE & FLEET OPERATIONS

Through the Shows by Keith Reid

The first quarter of a new year brings with it a range of industry trade shows. FMN staff makes an effort

to rotate its presence at these events and this year was no exception, with the staff being present at WPMA, M-PACT and TMC (covered elsewhere in the magazine). With hundreds of exhibitors it usually helps to focus on one or two sectors to make show coverage manageable. This year we decided to take a look at trucks, trailers, tanks and truck equipment. Here are some of the companies that were putting in a strong presence at either or (in most cases) both shows. Where we can, we’ve highlighted new product announcements at the shows, otherwise we present a general company description. We apologize for any companies that might’ve been missed.

Amthor International

Amthor International showcased its expansive line of truck- and trailer-mounted tanks solutions. Amthor has an extensive variety of tank trucks for the refined fuel, propane, portable restroom, vacuum, septic, water, dust control, well drilling, construction and fire protection industries. Each tank is custom built in America. Hands-on owners Butch and Brian Amthor are always available throughout every step of the process. https://amthorinternational.com

BASE Engineering Inc.

BASE Engineering offered its ProControl, a newly-engineered handheld control center designed specifically for the fuel industry. It features an internal GPS for accurate customer tank location capture. You can preset delivery volume before you pump. ProControl communicates with multiple meters simultaneously. The operator is able to select up to 15 different products or compartments from the display, in addition to the existing 12 functions on the handheld. Hose and product selection allows the operator complete end-of-hose control of the electronic register’s product selection functionality, paving the way for automatic compartment selection/fluid routing. http://www.baseng.com/

Beall Trailers

Beall’s extensive line-up of petroleum trailers offers a wide variety of products to meet the specific needs of fuel haulers. Its semi-trailers, doubles, truck tanks and pull trailers are available in various combinations, all designed and finished to customer specifications. https://www.bealltrailers.com

Betts Industries Inc.

Betts is a leading manufacturer of critical components and lighting systems for the tank truck industry, worldwide. It designs and produces a range of valves, manlids, pressure/vacuum relief valves, accessories and lighting systems for multiple liquid tank, dry bulk and industrial applications. http://bettsind.com FMNMagazine

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Blackmer

Trucking Through the Shows

Blackmer, incorporated in 1903, is a leading manufacturer of positive displacement pumps, centrifugal pumps and compressors for the transfer of liquid and gas products. Blackmer provides product transfer solutions for many markets including oil and gas, biodiesel, refined fuels, liquefied gases, diesel exhaust fluid (DEF), truck and transport, liquid terminals, military and marine, chemical processing, paint and coatings, and soap and detergents. https://www.psgdover.com/en/blackmer/home

Civacon

Civacon was demonstrating its CivaCommand touchscreen interface that seamlessly integrates all tank truck technology giving the operator complete control during the loading and unloading process. This can be integrated with the crossover prevention system (COPS) by adding smart elbows. It operates air controls, directly eliminating the need for an air panel. Security automatically prevents unauthorized access. Among other capabilities, it prevents the driver from leaving the site without acknowledging a retain condition has occurred. http://www.opwglobal.com/civacon

Countryside Tank Company

Countryside Tanks have been designed and built for durability in LP Gas applications. The carbon steel barrel is rolled onsite by Countrysideâ&#x20AC;&#x2122;s workforce to ensure a consistent tank diameter and a flawless fit up. Countrysideâ&#x20AC;&#x2122;s barrel welding is certified by American Society of Mechanical Engineers (ASME) and is done by using state-of-the-art mechanical sub-arc welders to ensure a perfect weld every time. All pressure vessel welds have completed X-ray inspection and heat stress relief per ASME Code and DOT requirements. http://www.countrysidetank.com

Cummins Inc.

Cummins was providing a preview of its X12 diesel engine. While it sits in the middle from a displacement standpoint, the engine is said to have the power of the 13L engine with the weight of an 11L engine and up to 6% better fuel economy. It is said to be ideal for regional haul, intermodal and vocational applications. https://cumminsengines.com/x12#overview

Exosent Engineering

The goal at Exosent is to design the safest liquefied petroleum gas (LPG) transport in North America. The company manufacturers low center of gravity tanks that resist rollovers. Each cargo tank is fully engineered and designed in 3D CAD, including finite element analysis (FEA), and durable. The trailers are designed to last with a heavy-duty 5th-wheel plate (only deflects 1/16" under load). http://exosent.com

Grid Mark

Grid Mark Signs began in 1998 to help businesses make their mark with the highest quality visual branding. Solutions enhance corporate identity through fleet imaging, vehicle wraps and interior and exterior signs of all shapes and sizes. Grid Mark Signs can turn a company vehicle or fleet into a mobile advertising machine. High quality digital printing combined with the best vinyl and lamination will give a long-lasting advertising exposure. http://www.gridmark.com

HEIL Trailer

Some of the big news from HEIL is that their fleet duty petroleum trailer now weighs less than 9,000 pounds. The company used advanced engineering to subtract 900 pounds of tare weight over the previous generation trailer, the goal being to allow the customer to haul more product with fewer runs and less fuel consumed. This trailer provides the base for a range of customer customization. http://www.heiltrailer.com FMNMagazine

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Innocar

Trucking Through the Shows

Based in Québec, Canada, Innocar works to differentiate itself by incorporating a number of small innovations that combine to make a big impression on the operator. For example, a programmable logic controller (PLC) centralizes the controls and diagnostics of electrical-related functions such as air, meters, reels and pumps in an easy to access location. If the pumps are running but not pumping fuel and the motor gets hot, the system shuts down and provides an error code for the truck owner/operator to see what is happening. Similarly, the company only uses stainless steel piping with flexible sections for longevity, special fittings to make hose repair simple, cold-weather gaskets and fittings and provides a sealed hose compartment. https://innocar.ca

Jarco

Jarco has been building propane bobtail since 1959. They are designed to provide high quality that will keep their units reliable and attractive through years of hard service. Jarco uses a powder coat on their propane bobtail and transport barrels. Powder-coating produces enhanced durability, rare in the industry, as the company noted, as there are few ovens capable of handling trailer-sized projects. Jarco was also a leader in the use of stainless steel piping with sweeps instead of hard corners to improve gas flow. Their solutions also feature three-piece deck and fender set to reduce cracking associated with long-term stress and ease maintenance in case of a minor accident. https://jarco.com/

LBT, Inc.

LBT, Inc. is one of North America’s foremost original equipment manufacturers, producing high quality and very durable liquid and dry bulk tank trailers and portable storage units. LBT’s manufacturing facility is centrally located in Omaha, Nebraska. All raw materials used are made in the United States. The engineering team averages over 17 years of tank design and the production supervisors over 27 years of tank manufacturing experience. With 20+ standard models and many options, LBT can tailor its designs to a customers’ needs. http://www.lbt-inc.com

Liquid Controls

Liquid Controls demonstrated its “LC-On The Go” Wi-Fi adapter to control basic function of an LLC-II or LCR600 Lectrocount register using a smart phone or tablet device. Each Wi-Fi adapter has a unique service set identifier (SSID) and password, which can be customized by the user. It can be used to complete either a manual or preset delivery from the phone. Start a meter, select a product, start a delivery, stop a delivery (or the delivery will stop when a preset amount is reached), then complete and print the delivery ticket, all from the mobile phone interface. http://www.lcmeter.com

MAC LTT

Tank trailer manufacturer MAC LTT was highlighting its Total Area Lighting Kit (T.A.L.K.) that greatly illuminates the operational areas of the trailer to maximize safety and efficiency. This includes light rails that swing out, creating an illuminated safe work zone with red lights on each side and white light on bottom; a light bar above the API area that totally illuminates the work area creating a safe and efficient unloading zone for making hose connections; ladder lighting and rear head lighting. http://macltt.com

MID:COM

The E Count was on display in the MID:COM booth. This electronic counter is primarily used on bulk delivery trucks and can be mounted on or connected to any type of meter. It supports 99 products, each with a custom product label, price, two taxes, cash discount and special charges. Preset deliveries can be made by volume or price, and with unlimited presets on each delivery. The hardware is linked to a free configuration software called Matrix which can be used to customize the delivery ticket. http://www.midcomcorp.com FMNMagazine

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WHOLESALE & FLEET OPERATIONS

Trucking Through the Shows

Mississippi Tank Company

From the custom fabrication of large ASME vessels and towers, MC331 LPG trailers and bobtails, repairs and refurbs, to part sales, Mississippi Tank Company provides an array of products and services. MTC Engineers utilize the most up to date equipment and software to design any type of pressure vessel. Compress software enables precise design and 3D imaging utilizing Inventor, EdgeCAM and ANSYS Workbench. Other capabilities include finite element analysis and truck transport weight balancing including bridge formulas for ultimate payload capacity. http://www.mstank.com

Oilmen’s Truck Tanks Inc.

Oilmen’s Truck Tanks offers a range of bobtail solutions for applications including mobile commercial fueling, heating oil, bulk oil and waste oil. The company was showcasing a DEF solution for mobile fueling operations based around a 100-gallon DEF storage tank in addition to the standard fuel tank. This allows for a weights-and-measures-approved metered delivery of DEF to top off a fleet customer’s DEF tanks in addition to meeting that customer’s fuel requirements. Similarly, the company has created custom mobile DEF solutions involving an 800-gallon tank in addition to the 3,700 gallons of fuel storage. https://trucktanks.com

Pacific Truck Tank Inc.

Sacramento, California-based Pacific Truck Tank provides a range of custom-built petroleum and propane delivery units for customers throughout the western United States. These typically include propane and petroleum bobtails and LPG service trucks that are designed to customer specifications and constructed at the company’s 22,000 square-foot building. https://pacifictrucktank.com

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Polar Tank

Trucking Through the Shows

Polar Corporation is a leading North American tank trailer manufacturer. Working with commercial and private fleets of all sizes it designs, builds and supports trailers for hauling dry and liquid bulk freight. Polar Tank Trailer produces custom-built aluminum, stainless steel and carbon steel tank trailers for crude oil, hot oil, refined fuels, propane, chemicals, corrosives, food products and other bulk commodities. http://www.polartank.com

Seneca Tank

Des Moines, Iowa-based Seneca Tank presented a lubricant distribution vehicle based on a traditional “box truck” (Kenworth T880) using a tote system to allow the delivery of up to eight lubricant products from two families from the one vehicle. This is accomplished using a dual pump and host system. http://www.senecatank.com

Scully Signal Company

While Scully had a range of technologies on display, of particular interest was the Intellitrol 2, which is intended to serve as a secondary overfill protection system for loading operations. It is intended for use in hazardous locations and is packaged in an explosion proof (flameproof) enclosure and has both international and U.S. approvals and certifications. The system performs a variety of monitoring functions and provides a number of outputs to control valves, pumps and other systems including terminal automation systems. It has an integrated display to indicate system and monitoring status, a bypass capability and communications for integration with TAS and other systems. http://www.scully.com

Total Control Systems

The TCS 3000 was the highlight in Total Control Systems booth. The TCS 3000 was developed to improve cash flow by allowing the driver to make more deliveries in less time with increased accuracy and security. The large, color video graphics array (VGA) display is visible day or night. Additionally, it is heated to allow it to work even in extreme temperatures. Equipped with state-of-the art software, the TCS 3000 interfaces with a wide variety of equipment. http://www.tcsmeters.com

Tremcar USA

Tremcar was showcasing its range of truck- and trailer-mounted petroleum tank solutions. Canadian-based Tremcar produces stainless steel farm pickup tanks trailers, stainless steel chemical tank trailers, stainless steel food grade tank trailers, aluminum dry bulk tank trailers, aluminum petroleum truck mounts, aluminum petroleum trailer, stainless steel and aluminum crude oil/ ethanol tank trailers, aluminum vacuum trailers or hot product/asphalt tank trailers among others. http://www.tremcar.com

Westmor Industries

Westmor Industries manufactures a full line of equipment designed to store, transport and dispense petroleum, propane and other liquids and gasses as the company says: “From Pipeline to Pump.” Garnering quite a bit of attention was its 80K transporter. This 80,000 gross vehicle weight (GVW) transport solution featured a 4,500-gallon bobtail truck tank, mated with a 5,400 gallon pull trailer. It provided a highly polished and flexible solution (puns intended) on the tradeshow floor. http://westmor-ind.com

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The American Trucking Associations released data from its latest Driver Compensation Study, showing driver pay has climbed as rising demand for freight transportation services has increased competition for increasingly scarce drivers. “This latest survey, which includes data from more than 100,000 drivers, shows that fleets are reacting to an increasingly tight market for drivers by boosting pay, improving benefit packages and offering other enticements to recruit and retain safe and experienced drivers,” said ATA Chief Economist Bob Costello. According to this most recent study, the median salary for a truckload driver working a national, irregular route was over $53,000—a $7,000 increase from ATA’s last survey, which covered annual pay for 2013, or an increase of 15%. A private fleet driver saw their pay rise to more than $86,000 from $73,000 or a gain of nearly 18%. In addition to rising pay, Costello said fleets were offering generous signing bonuses and benefit packages to attract and keep drivers.

Bottom Line:

There are a variety of reasons for the long-running drivers’ shortage. For example, millennials don’t necessarily see truck driving (among a range of solid, well-paying and stable blue-collar careers) as emotionally satisfying. While this new shift in attitude has its impact , fleet operators can’t similarly escape classic supply and demand remedies for those new and existing drivers that are on the ball and ready to work. .

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RETAIL OPERATIONS

Fuel Retailing’s

In 1970, we had 240,000 stations and today, after 45 years of consolidation, we are down to 154,000 stations. Although there are still 58,000 single-site stations ripe for a roll-up, it appears the massive downsizing is over. While few new stations are being built, the trend is deﬁnitely to sell more fuel in fewer stations. In 1970, the average station sold 320,000 gallons per year and today that volume is 975,000 gallons per station year. In 10 years, that volume is projected to be 1.2 million gallons per station year. And, many of the stations of 1970 were bay repair shops, “two-pump dumps,” and fuelonly locations. Today we have trans-formed to full-service convenience stores generating $400,000 gross margin per site year.

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Consolidation

The oil industry has had a history of proclaiming a “Golden Age” of opportunities and proﬁts, as gross margin generation moves along the value chain from exploration and production (E&P) through reﬁning, distribution and retailing. Despite the fears about future usage, all indications are that we are entering a Golden Age in fuel retailing. Some history and current facts will underscore that claim:

Stations

by Joe Petrowski

In 1970, the largest 12 retailers controlled less than 30% of the sites nationwide, and in no region did they have a concentration greater than 10% of the volume. Today, the largest 12 retailers control 80% of the volume nationwide and in 10 states they control over 30% of the volume, which has a positive eﬀect on margins for all retailers.

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In 1970, the average station sold 320,000 gallons per year and today that volume is 975,000 gallons per station year. In 10 years, that volume is projected to be 1.2 million gallons per station year.

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Alternate fuels are an opportunity—not a threat. Retail margins on natural gas are five times that of diesel and gasoline. Potential higher ethanol blends are three times the conventional margin when one considers the renewable identification number (RIN) value. If the feedstock is biogas (a growing source), margins will exceed $1.50 per gallon. Some retailers are also benefiting from partnering with local utilities and pre-loading electric sales on a loyalty card to be used at a series of charging stations tributary to their retail site.

Alternate fuels are an opportunity—not a threat. Retail margins on natural gas are ﬁve times that of diesel and gasoline.

Social Media and Loyalty

The number of vehicles is increasing as are the miles driven. In 1970, we had 112,000 vehicles averaging 4,000 miles per vehicle year. Today that is 234,000 vehicles averaging 14,000 miles per vehicle year. While vehicles are more eﬃcient and will become even more eﬃcient through less weight and more complete combustion, we will still sell eight billion gallons more per year of transport fuels through vehicle growth and miles driven per vehicle.

Alternative Fuels

Fuel Demand

Golden Age

Unlike other retailers threatened by internet and social media, some fuel retailers are leveraging social media and the internet to sell fixed-price term fuel (fuel bank) or pinging customers with special prices and promotions for fuel sales outside the busy 8 AM – noon and 4 – 6 PM blocks. Many retailers are also using loyalty programs to drive traffic by affinity tie-ins, like carbon mitigation (Green Print, with which I’m involved) or donations to local charities or high schools.

So, in sum, the U.S. retail fueling business has never been brighter and it is only exceeded by China, that currently has only 5,000 stations but needs at least another 100,000, given the population, size of country and growth in auto sales (number one in the world). n

See Joe Petrowski's bio, page 7 FMNMagazine

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Easy ACH Payments for Mobile Applications

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With ACH, convenience is always key, and people seem to be irritated by the smallest things. You need a very low impact process for the consumer. But, you have to balance ease of use and security.

by Keith Reid

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On average, we’re 50 to 95 percent cheaper than what merchants are paying today versus branded network tenders—Visa, MasterCard, Amex, Discover—and that’s a huge savings for them. That includes cash, by the way.

uy It Mobility Networks (BIM) describes itself as…a mobile/web ACH-based payment and consumer engagement platform that promises to enable merchants to develop more meaningful relationships with their customers, generate incremental revenue growth, lower payment costs, dramatically reduce fraud rates, drive loyalty participation and create superior mobile and online buying experiences for their shoppers. The ACH capability can be integrated into a merchant’s or third-party mobile payment app and loyalty program to facilitate lowcost ACH transactions. This can allow the merchant to take some of the savings to drive customer-facing programs. In October of 2017, it was announced that P97 Networks and Buy It Mobility Networks had struck a deal with customer Phillips 66 to provide ACH-based payment and consumer engagement services at Phillips 66®, Conoco® and 76® branded locations. The program uses BIM’s technology to expand the capabilities of P97 Networks’ PetroZone® Mobile Commerce.

“U.S. consumers and merchants are increasingly demanding ACH at the point of sale, which is important for the future of mobile commerce; BIM is leading the charge and is the best platform we have seen in the marketplace,” said Don Frieden, President and CEO of P97 Networks. “By collaborating with BIM, PetroZone will help make the company’s vision of a frictionless, safe, paper-free check-out process a reality.” A similar deal was announced in October with Hatch Loyalty, which empowers fuel and convenience retailers to build a configurable customer engagement and loyalty program on the Hatch platform. “We believe in creating a solution where everyone wins. With the ease and convenience of BIM’s commerce platform paired with our personalization capabilities, we’re bringing a solution that will immensely benefit the fuel and convenience store space on many fronts,” said Hatch CEO, Dan Gloede.

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FMN spoke with Adam Frisch,

Buy It Mobility’s chief executive to get some details on his company’s technology works.

FMN: In a nutshell, what

does your technology provide?

Frisch:

We firmly believe that you have to have a dual value proposition for both the merchant and the consumer and that really hasn’t existed in mobile payments. That’s why you’re seeing the Apples and the Samsungs not really hitting the penetration levels that everyone anticipated. With ACH, convenience is always key, and people seem to be irritated by the smallest things. You need a very low impact process for the consumer. But, you have to balance ease of use and security. So, you’ve got to make sure that you’re hitting that balance correctly and we think we are.

FMN: Describe ACH

and how it is different from other payment methods, such as debit?

Frisch: A debit card, or as some

people call it, the ATM card, is issued by the bank and it travels over Visa and MasterCard and a few alternative networks. With debit, those cards enable you to access your checking account via that card going over the Visa and MasterCard networks. ACH is the network that connects all banks to each other. So, when you write a check, it clears through ACH and the same when you do direct deposit from your employer. That’s the platform that we’re leveraging. ACH is a tried-and-true tested platform from the 1970s, and I think in the last quarter it had $5 trillion dollars of volume. A private label ACH platform hasn’t been available to merchants in the everyday/ every week/every month spend categories like petroleum/convenience stores, pharmacy, grocery, quick service restaurants and the like, and that’s what we’re addressing. There’s a huge gap in the marketplace for merchants that have

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most of their transactions, on average between 60 and 70 percent, coming from cash and debit cards. And that is the exact opportunity in the marketplace that we are capitalizing on.

FMN:

What is the merchant cost with ACH compared to the credit/debit networks?

Frisch: On average, we’re 50

to 95 percent cheaper than what merchants are paying today versus branded network tenders—Visa, MasterCard, Amex, Discover—and that’s a huge savings for them. That includes cash by the way. I don’t think there’s ever been a “go-to” study on the cost of cash acceptance, but cash costs money for merchants to accept. Not only the obvious like calling the armored car to pick it up, but also theft and “losing” the money. It’s actually more expensive than debit. Not as expensive as credit, but pretty much in the middle, according to most studies. Being able to reduce one of a merchant’s highest costs is a big, big deal. But then also being able to leverage that into more loyal customers that come more often, spend more and go in-store—well, that’s the ideal scenario on the merchant side. For a gas station, the value proposition can be, “Use our tender and get 10-centsoff a gallon of gas.” On the customer side, I’m ecstatic, I’m getting cheaper gas. And, more often than not, the gas station is also providing me with offers to come inside and buy a candy bar for a discount or fill up my mug with coffee for free or get a fountain drink or whatever. FMNMagazine

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FMN: While ACH is

becoming more common with consumer payment options—online and elsewhere—it is still extremely new compared to cash, credit and debit. Giving up that bank account information can be, I would imagine, an initial hurdle.

Frisch:

Consumers sometimes think, “My bank account is so precious; I’m not going to give my bank account numbers.” But every time you write a check, you’re giving the cashier your bank routing number and your checking number. I don’t even think a lot of consumers understand that. What we’re doing is we’re making the enrollment process easier for a consumer to not only authenticate and validate that they are who they are, but they also have access to the bank account that they say they do and ultimately are making transactions from their phones.

FMN: The second hurdle

would be, I imagine, getting the customer to take the extra time to set up the account. That seems to be a common issue with not only alternative payment options, but loyalty programs and similar initiatives.

Frisch:

We say our enrollment process averages about 40 seconds. And we are not asking the consumer for their social security number, which is very important. We’re also not expecting the consumer to know their ABA routing number or DDA credentials either. We’re able to make it easy on the front end because of what we’re doing behind the scenes on the back end. And so, you’re presenting your phone to give us access to your bank account. We’re literally collecting thousands of data points on the back end to make sure that it is you, that this is your bank account that

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Easy ACH Payments for Mobile Applications

you have access to, and this is your phone or that you’re making the transactions on your computer device. We’re also coaching the consumer, saying this is why we’re asking for this information and here’s what we’re going to do with this information.

payments. Everything that is customer-facing is the merchant’s brand and logo. What they’re able to do is basically take a shopping experience and make it much better by making it more valuable for the consumer because they’re getting either discounts or coupons or conveniences or what have you. Consumers associate that better shopping experience with the merchant brand. This is not Siri getting the credit or PayPal getting the credit. No other brand is getting credit for the customer getting 10-cents-off a gallon of gas.

FMN: Getting back to that first hurdle,

how do you handle fraud protection?

Frisch: On the back end are proprietary fraud

algorithms that we developed that are just fascinating and completely differentiated and on the leading edge. We’re able to have a high degree of confidence that we can make the consumer experience relatively easy, but also protect them and their credentials from fraudulent activity, and that’s why I think we’re generating some really good press with some of the largest merchants in the country.

FMN: How does your solution integrate

into a merchant’s app or loyalty program or website, for that matter?

Frisch: We are in essence a button on the merchant

Frisch:

We don’t have to really get too far deep into the point of sale system, which I think is incredibly important. Three years ago, we wondered how we were going to get into all these software platforms. We don’t really have to do that anymore because we just integrate with the merchant’s app. The app is telling us here is a transaction, do you approve, and we send a message back to the app. So that’s been part of the maturation process in the industry that I think has helped fuel our adoption. n

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app and website. But as a private label program, the button and everything that is consumer-facing is the merchant’s brand, and that’s incredibly important. We’ve been described as a consumer engagement company that happens to do

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FMN: How easy is it for you to integrate with the various point of sale (POS) systems and loyalty programs in the market today?

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Your Dispenser Filter Might Be Trying to Tell You Something by Dwight Rutledge

magine if a routine, relatively inexpensive part of a retail fuel dispenser could tell you when conditions inside your underground storage tank (UST) are deteriorating to the point that operations could be compromised. Well, such a part exists. It’s a dispenser filter. Dispenser filtration is not only a fuel site’s last line of defense against dispensing contaminated fuel, the filter itself often presents one of the first indications of a serious, systemic problem. Although most fuel retailers view filter maintenance as a cost-of-doingbusiness expense, filter maintenance that is performed regularly offers operators an additional benefit: the opportunity to observe signs of trouble in the fueling system and initiate corrective actions.

Making the Contamination Connection

There are two common and serious conditions that occur inside a UST that can destroy fuel quality along with customer loyalty: phase separation in ethanol-blended fuels, and corrosion in tanks containing ethanol, ultra-low sulfur diesel or biodiesel. Both of these problems can be detected in a dispenser filter engineered to filter particulate or react to phase separation.

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Dispenser filtration is not only a fuel site’s last line of defense against dispensing contaminated fuel, the filter itself often presents one of the first indications of a serious, systemic problem.

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Your Dispenser Filter Might Be Trying to Tell You Something For instance, as fuel flows into a Phase Separation Detection, Water Sensing and Particulate Removing dispenser filter, the filter collects debris and senses water and phase separation. The filter alerts operators to contamination by disrupting the flow of fuel in the following ways:

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• As the filter collects particulate, flow becomes restrained. If this happens earlier than planned maintenance intervals, then it is likely an indication of a problem with the fuel, storage and dispensing equipment, or both. For example, when the flow of diesel fuel decreases to about half its normal rate, the dispenser filter needs to be replaced. • If fuel that has completed phase separation passes through the filter, a specially treated polymer inside the filter expands and congeals, increasing the total differential pressure, which significantly slows the flow of the fuel.

The vulnerability of fuel to water contamination creates an extremely challenging quality-control situation for fuel operators. Thankfully, dispenser filters not only help prevent the distribution of contaminated fuel, they help signal fuel site operators to the development of fuel quality problems and potential infrastructure issues.

• Similarly, if the filter senses water, the filter reduces the flow. A used dispenser filter offers a snapshot of the quality of the fuel recently pumped through the dispenser and, therefore, is an indication of the conditions inside the tank. By examining the contents of a used dispenser filter either onsite or in a lab, fuel site operators and technicians obtain insights to the factors contributing to deficiencies in fuel quality. Indications of fuel contamination or tank corrosion include:

Occurrences of corrosion in storage tanks are on the rise. As demand for renewable fuels increases, biodiesel and ethanol become a larger part of the supply. As such, corrosion incidents are increasing. Tanks containing ultra-low sulfur diesel (ULSD) pose a particular challenge. A 2016 study conducted by the U.S. Environmental Protection Agency Office of Underground Storage Tanks found that of tanks containing diesel, about 83% of the USTs in the study were reported to have moderate or severe corrosion.

• Flow becomes restricted prior to planned maintenance intervals due to a clogged dispenser filter • Corrosion of interior metal filter parts • Particulate in the filter—solid or semi-solid contaminants that resemble a reddish-orange metal and/or scaly, granular deposits • Microbial slime in the filter

Clean biodiesel, ULSD and ethanol fuels are themselves not the source of tank corrosion. However, petroleum products are extremely susceptible to contamination. Biodiesel contains fatty acid methyl esters. These molecules grow organic microbes, which eat away at the tank. Water has a similar effect on ULSD—bacteria and fungi flourish in the presence of water, and they need very little of it to thrive. Water also ruins ethanol blends. Ethanol attracts and absorbs water to create corrosive acetic acid. Worse yet, water causes an ethanol blend to complete phase separation.

• Foul odor that smells like rotten eggs • Extreme discoloration/leopard spotting

Last Line of Defense Fuel that contains particulate or that has completed phase separation will damage dispenser components and automotive engines. High Pressure Common Rail fuelinjection systems with small, precision-crafted components are particularly susceptible to microscopic contaminants. Fuel that has completed phase separation can cause a vehicle to experience an immediate failure that requires it to be towed from the fuel site.

Unfortunately, water intrusion happens during many points along the way to distribution: during refining, during delivery, when it rains, as groundwater run-off, as in-tank condensation and more. The vulnerability of fuel to water contamination creates an extremely challenging quality-control situation for fuel operators. Thankfully, dispenser filters not only help prevent the distribution of contaminated fuel, they help signal fuel site operators to the development of fuel quality problems and potential infrastructure issues.

Dispenser filters represent the last chance to capture contaminants prior to fuel entering a vehicle. The lower the filter’s micron rating, the more particulate the filter will capture. With regard to ULSD, the Clean Diesel Fuel Alliance recommends that fuel site operators install a nominal 5micron filter on the dispenser. Further, if the UST has chronic water problems, the Clean Diesel Fuel Alliance reports that a 5-micron water absorbing filter in an equivalent pore size may be needed. PetroClear’s 40505W-AD dispenser filter, for example, captures particulates as small as five microns and prevents them from entering and damaging a vehicle’s fuel injection system. The filter also senses when elevated levels of water are present in the fuel and alerts the fuel-site

It’s Time to Listen to Your Dispenser Filter When…

Dispenser filters are the canaries of the forecourt. By performing a few primary functions—capturing particulate, sensing water and detecting phase separation—dispenser filters can cue operators to deteriorating product quality and infrastructure. (Note: not all filters perform all functions. Therefore, proper filter selection is critical to maximizing your level of protection and warning.) FMNMagazine

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Your Dispenser Filter Might Be Trying to Tell You Something

operator through slow-flow dispenser operation that the fuel contains potentially damaging amounts of water that can cause bio contamination and poor lubricity. Fuel dispenser filters, both as a critical quality control measure and as a reference point for conditions inside the UST, deliver a strong value for their cost. Fuel site operators who heed the filters’ warning and pivot to rectify an underlying cause will position themselves to grow customer loyalty and establish stronger operations over the long term. n

How Micron Ratings Measure Up Dispenser filters feature a micron rating which is an indication of the size of particulate it is capable of capturing. A micron, also known as a micrometer, is a unit of measurement that is equal to one-millionth of a meter or 1/25,000th of an inch. Generally speaking, the human eye can see substances as small as 40 microns. The lower a filter’s micron rating is, the greater its ability to capture particulate. For instance, a 5-micron filter will capture particulate smaller than a dispenser filter with a 10- or 30-micron rating. As engine technologies grow increasingly sophisticated, thorough removal of particulate from fuel will be part of a strong quality assurance program. Many states require fuel sites to utilize dispenser filters with a specific micron rating, and many dispenser manufacturers include dispenser filtration requirements in their warranty statements. Check with your local environmental officials and dispenser manual to obtain your site’s dispenser filtration requirements.

Object at Micron Scale

Dwight Rutledge Dwight is Business Development Manager at PetroClear, a Champion Laboratories brand dedicated to manufacturing fuel dispenser filters. He has over 35 years of experience in the petroleum-equipment industry. For more information on PetroClear, please go to www.petroclear.com. FMNMagazine

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Following the announcement that Assemblymember Phil Ting (D-San Francisco) is suspending AB 1745, his proposed ban on internal combustion engines, Ryan Hanretty, Executive Director of the California Independent Oil Marketers Association (CIOMA) issued the following statement: “It is encouraging to hear of Assemblymember Ting’s decision to suspend his crusade against CIOMA’s small, family- and minority-owned businesses, as well as the hard-working, middle-class families of California. “CIOMA was the first to warn how devastating this policy would be in California and has since worked to inform Californians and the Legislature about the real-world impacts of a misguided bill like this. “Last week, on the heels of CIOMA’s Day at the Capitol, and in just five days, our members flooded the Capitol with over 400 letters, each explaining how idealist bills like this serve only the agendas of politicians and their wealthy political allies.” Source: CIOMA

Bottom Line:

No one has more to lose from bad motor fuel policies and regulations than you, the fuel marketer or retailer. While associations help with the fight, it is up to you to support these organizations with your time and money. You can win these fights, but you cannot count on others to pull your weight past the finish line.

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McAfee Labs Previews Five Cybersecurity Trends for 2018 McAfee Inc. has released its McAfee

“The evolution of ransomware in 2017

Labs 2018 Threats Predictions Report,

should remind us of how aggressively

which identifies five key trends to watch

a threat can reinvent itself as attackers

in 2018. This year’s report focuses on the

dramatically innovate and adjust to

evolution of ransom-ware from tradi-

the successful efforts of defenders,”

tional to new applications, the cyber-

said Steve Grobman, Chief Technology

security implications of serverless apps,

Officer for McAfee, LLC. “We must

the consumer privacy implications of

recognize that although technologies

corporations monitoring consumers in

such as machine learning, deep

their own homes, long-term implica-

learning and artificial intelligence will

tions of corporations gathering

be corner-stones of tomorrow’s cyber

children’s user-generated content, and

defenses, our adversaries are working

the emergence of a machine learning

just as furiously to implement and

innovation race between defenders

innovate around them. As is so often

and adversaries.

the case in cybersecurity, human

intelligence amplified by technology

will be the winning factor in the ‘arms race’ between attackers and defenders.”

“The evolution of ransomware in 2017 should remind us of how aggressively a threat can reinvent itself as attackers dramatically innovate and adjust to the successful eﬀorts of defenders.”

Steve Grobman, McAfee, LLC

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McAfee Labs Previews Five Cybersecurity Trends for 2018

Serverless apps enable greater granularity, such as faster billing for services. But they are vulnerable to attacks exploiting privilege escalation and application dependencies.

2. Ransomware will pivot

The report reflects the informed opinions of dozens of McAfee thought leaders from McAfee Labs, McAfee Advanced Threat Research, and members of McAfee’s Office of the CTO. It examines current trends in cybercrime and IT evolution, and anticipates what the future may hold for organizations working to take advantage of new technologies to both advance their businesses and provide better security protection:

from traditional extortion to new targets, technologies and objectives.

1. An adversarial machine

The profitability of traditional ransomware campaigns will continue to decline as vendor defenses, user education and industry strategies improve to counter them. Attackers will adjust to target less traditional, more profitable ransomware targets, including high networth individuals, connected devices and businesses.

learning “arms race” will develop between defenders and attackers.

The pivot from the traditional will see ransomware technologies applied beyond the objective of extortion of individuals, to cybersabotage and disruption of organizations. This drive among adversaries for greater damage, disruption and the threat of greater financial impact will not only spawn new variations of cybercrime “business models,” but also begin to seriously drive the expansion of the cyber insurance market.

Machine learning can process massive quantities of data and perform operations at great scale to detect and correct known vulnerabilities, suspicious behavior and zero-day attacks. But adversaries will certainly employ machine learning themselves to support their attacks, learning from defensive responses, seeking to disrupt detection models and exploiting newly discovered vulnerabilities faster than defenders can patch them.

“While much about the motives behind WannaCry and NotPetya are still debated, the use of pseudo ransomware is likely to continue, partly due to the ease with which as-a-service providers can make such techniques available to anybody with the means to pay,” said Raj Samani, Chief Scientist and head of McAfee Advanced Threat Research. “Such attacks could be sold to parties seeking to paralyze

To win this arms race, organizations must effectively augment machine judgment and the speed of orchestrated responses with human strategic intellect. Only then will organizations be able to understand and anticipate the patterns of how attacks might play out, even if they have never been seen before.

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McAfee Labs Previews Five Cybersecurity Trends for 2018 national, political and business rivals, which raises perhaps the biggest, unavoidable ransomware question of 2017: Were WannaCry and NotPetya actually ransomware campaigns that failed in their objectives to make significant revenue? Or perhaps incredibly successful wiper campaigns?â&#x20AC;?

3. Serverless apps will save time and reduce costs, but they will also increase attack surfaces for organizations implementing them. Serverless apps enable greater granularity, such as faster billing for services. But they are vulnerable to attacks exploiting privilege escalation and application dependencies. They are also vulnerable to attacks on data in transit across a network, and potentially to brute-force denial of service attacks, in which the serverless architecture fails to scale and incurs expensive service disruptions. Function development and deployment processes must include the necessary security processes, scalability capabilities must be made available, and traffic must be appropriately protected by virtual private networks (VPNs) or encryption.

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McAfee Labs Previews Five Cybersecurity Trends for 2018

4. Connected home device manufacturers and service providers will seek to overcome thin profit margins by gathering more of our personal data—with or without our agreement— turning the home into a corporate store front. Corporate marketers will have powerful incentives to observe consumer behavior in order to understand the buying needs and preferences of the device owners. Because customers rarely read privacy agreements, corporations will be tempted to frequently change them after the devices and services are deployed to capture more information and revenue. McAfee believes that there will be regulatory consequences for corporations that make the calculation to break existing laws, pay fines and continue such practices, thinking they can do so profitably.

5. Corporations collecting children’s digital content will pose longterm reputation risks. In their pursuit of user app “stickiness,” corporations will become more aggressive in enabling and gathering user-generated content from younger users. In 2018, parents will become aware of notable corporate abuses of digital content generated by children and consider the potential long-term implications of these practices for their own children.

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McAfee believes many future adults will suffer from negative “digital baggage,” user content developed in a user-app environment where socially appropriate guidelines are not yet well defined or enforced, and where the user interface is so personally engaging that children and their parents do not consider the consequences of creating content that corporations could use and potentially abuse in the future. In a competitive app environment where “stickiness” easily becomes “unstuck,” the most enterprising, forward-looking apps and services will recognize the brand-building value of making themselves a partner with parents in this education effort. In the corporate world, McAfee predicts that the May 2018 implementation of the European Union’s General Data Protection Regulation (GDPR) could play an important role in setting ground rules on the handling of both consumer data and user-generated content in the years to come. The new regulatory regime impacts companies that either have a business presence in EU countries or process the personal data of EU residents, meaning that companies from around the world will be compelled to adjust the way in which they process, store and protect customers’ personal data. Forward-looking businesses can leverage this to set best practices that benefit customers using consumer appliances, content generating app platforms and the online cloud-based services behind them. “The year 2018 could well be remembered most for how we finally started to tackle data protection and for whether consumers truly have the right to be forgotten,” said Vincent Weafer, Vice President at McAfee Labs. “The large-scale gathering of personal information and user-generated content opens consumers up to the risk of data misuse, abuse and even compromise. Irresponsible service providers can overindulge in the gathering and monetization, allowing user privacy to be carried away by market forces, data to be compromised and user reputations threatened years into the future. GDPR makes 2018 a critical year for establishing how responsible businesses can preempt these issues, respecting users’ privacy, responsibly using consumer data and content to enhance services, and setting limits on how long they can hold the data.” n To find out more about the data protection opportunity for businesses, visit McAfee’s GDPR site: www.mcafee.com/GDPR. 70

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Trends in Driver by Mark Murrell

They say if you ever want to know the truth, ask a five-year-old child. Because out of the mouths of babes…

We’ve found that if you want to know which for-hire trucking companies are the industry’s best at delivering an outstanding work environment, asking their drivers is one good way to help you identify them. The Best Fleets to Drive For, produced by CarriersEdge in partnership with Truckload Carriers Association, is the only annual program dedicated to identifying the best workplaces in the North American trucking industry. Every year, we ask drivers and independent contractors working for any for-hire trucking company operating 10 trucks or more in the United States or Canada to nominate their companies if they believe they work for the industry’s best fleets.

This is just one of the many telling trends, specifically related to compensation, that have emerged from our analysis in determining which fleets will earn a spot in the Top 20 Best Fleets to Drive For. The annual Best Fleets to Drive For survey gathers data used to evaluate fleets across a range of performance criteria—identifying the companies with the greatest success in motivating and retaining drivers. The evaluation process is difficult, requiring the nominated company’s staff to fill out online questionnaires, gather information from all departments and collect surveys from a large number of drivers. As a result, not all companies make it through to the finals. Those that do demonstrate strong teamwork between management and drivers, with the ability to communicate and collaborate effectively. Fleets that make it further—being named a Best Fleet to Drive For—have really figured out their recipe for success.

We then evaluate nominated fleets and collect thousands of driver surveys. The resulting data provides a clear picture of what’s working at fleets of all sizes. Our analysis of survey results has revealed that among these companies, the average pay-per-mile for drivers has jumped more than seven percent when compared to the results from last year’s survey.

Scoring for the 10th anniversary edition of the program wrapped up in early January with the Top 20 announced on January 30, and the program’s two grand champion winners named at the Truckload Carriers Association annual conference on March 25 – 28 in Kissimmee, Florida.

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Compensation

BUSINESS OPERATIONS

Trends in Driver Compensation

Here are some of the emerging trends we discovered this year, specifically related to compensation:

Driver and Owner-Operator Pay Driver pay is always a popular subject, and it’s an area that has seen some interesting developments over the past few years. In the Best Fleets program, participants provide the average annual miles and average income (for company drivers) or gross revenue (for owner-operators). Those numbers are then used to calculate the total pay-per-mile drivers receive. We don’t try to compare the various pay packages among fleets to determine how much drivers might earn. Instead, we have fleets identify what their drivers actually make in a year after all the bonuses are factored in, and the average per-mile-driven the fleets offer their owner-operators. By doing this, we can distill results from the survey into data that can be more easily analyzed, compared and benchmarked among fleets and from year-to-year. This way we’re comparing apples to apples during the scoring process.

Pay Stability In addition to the average income, we’ve found consistency and predictability are also important. This year’s Best Fleets have invested in efforts to improve both. There is a clear increase in the number of fleets providing some sort of guaranteed pay cushion for drivers. While last year’s program saw 50 percent of the participants providing some kind of pay guarantee, this year that percentage jumped to 73. The percentage of fleets providing a full guarantee (comparable to a base salary in many ways) has also jumped from 17 percent last year to 30 percent now. The amounts being guaranteed vary from fleet to fleet, depending on the region and type of work, but the average is about $1,000 per week.

“

A new area being evaluated in this year’s program is payroll accuracy and error prevention. Drivers have long expressed frustration over inaccurate settlements and lengthy resolution processes, so fleets that work to minimize errors have seen their efforts rewarded in driver satisfaction and longevity. This year’s Best Fleets takes a direct approach to avoiding This year’s average pay-per-mile for problems, with separate This year’s average pay-per-mile for company company drivers was 54.32 cents per review and audit drivers was 54.32 cents per mile. Last year, the mile. Last year, the average was 50.71 processes to catch any average was 50.71 cents per mile, representcents per mile, representing an increase mistakes early on. The ing an increase of 7.11 percent year-over-year. of 7.11 percent year-over-year. That most proactive, however, That increase continues the past four-year have added a layer of increase continues the past four-year trend where company driver pay steadily transparency that trend where company driver pay increased every year. allows drivers to see the steadily increased every year. For owner-operators, however, the story is settlement details somewhat different. The average rate for directly through a owner-operators this year was $1.39 per mile, slightly above scorecard, so they’re clear on how their compensation is last year’s average of $1.386 per mile. Owner-operator pay has calculated well before it arrives. That not only allows for any fluctuated substantially over the past four years, reaching a mistakes to be caught and rectified quickly, but also it makes the high of $1.763 per mile in 2015, then dropping to the levels connection between performance and compensation more clear seen recently. for drivers, eliminating a common source of misunderstanding.

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While compensation is an important part of the total work experience for drivers, it’s certainly not the only thing that matters. In upcoming articles, I will showcase the trends in benefits, HR strategy, safety and performance management among survey respondents and the top fleets. n

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Mark Murrell Mark is co-founder of CarriersEdge, a leading provider of online driver training for the trucking industry, and co-creator of Best Fleets to Drive For, an annual evaluation of the best workplaces in the North American trucking industry produced in partnership with the Truckload Carriers Association. He can be reached at www.carriersedge.com. To learn more about the Best Fleets to Drive For program, visit How It Works on the Best Fleets to Drive For website. http://www.bestfleetstodrivefor.com/how-it-works.

This year also marks the first time in Best Fleets history that the Top 20 fleets have average pay higher than their peers—1.8 percent higher. Compensation for owner-operators among the Top 20 continues to lag by 1.3 percent the average pay for owner-operators among all of the finalists. Still, owneroperators’ compensation among all participating fleets is closer than it has been in recent years. FMNMagazine

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Convenience stores sales overall surged 9.3% to $601.1 billion, led by a 14.9% increase in fuel sales. Convenience stores sales overall are 3.2% of the overall U.S. gross domestic product of $18.57 trillion (2016 data). Put another way, one of every 30.9 dollars spent in the country was spent at a convenience store in 2017. Beyond sales, convenience stores are an important part of the economy. The convenience and fuel retailing industry employed 2.48 million people in 2017, wages were up 8.3% and the average wage for a store associate increased to $10.19 per hour. Turnover for store associates was 115%, down from 133% in 2016 but a huge increase from the 73% that was reported in 2010 when unemployment was much higher because of the Great Recession. Turnover for store managers was only 18%, down from 27% the year prior. Source: NACS State of the Industry survey

Bottom Line:

As the late Rodney Dangerfield quipped: â&#x20AC;&#x153;I get no respect!â&#x20AC;? Unfortunately, the convenience store industry is too often the butt of the joke in modern popular culture and entertainment. While there can be bad operators and poor sites, the industry has a fantastic story to tell in the real world. Members of this industry should be proud of their contributions to the success and wellbeing of the associates they employ, and to the strength and vibrancy of the country itself.

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ADDITIVES ROUNDUP

ROUNDUP:

ADDITIVES Advanced Fuel Solutions, Inc.

Afton Chemical Corporation

Biobor Fuel Additives

Advanced Fuel Solutions, Inc. (AFS) develops, brands and markets nextgeneration premium fuel treatments for wholesalers, dealers, jobbers and fleets all over the country. While we will confidently put our suite of advanced multifunctional additive packages (which collectively treat all middle distillate fuels) against any on the market today, our customers tell us it is our commitment to service, reliability and quality assurance that distances our brand from the field. Established in 1996, we have built our business strategically and thoughtfully, one customer at a time. We are mindful that the rate of our growth never eclipses the quality of our service, and that the solutions we provide never cost more than the value they return. We’re proud to say that our very first customer is still with us today. At AFS, we treat our customers as carefully as we treat their fuel. Our field-proven products include OPT-AF™, ODT-21™, AWDA 1500™ and Slipstream® Premium Marine Fuel.

Afton Chemical, with over 90 years of experience in the fuel and lubricant additives marketplace, is one of the largest additive suppliers in the world. Afton Chemical Corporation uses its formulation, engineering and marketing expertise to help their customers develop and market fuels and lubricants that reduce emissions, improve fuel economy, extend equipment life, improve operator satisfaction and lower the total cost of vehicle and equipment operation. Afton Chemical Corporation develops and sells an extensive line of unique additives for gasoline and distillate fuels, driveline fluids, engine oils and industrial lubricants. Afton Chemical Corporation supports global operations through regional headquarters located in Asia Pacific, EMEAI, Latin America and North America. Afton Chemical Corporation is headquartered in Richmond, Virginia.

Biobor Fuel Additives has been a worldwide leader in the treatment of diesel, jet fuel and gasoline since 1965. The company’s flagship product, Biobor JF, is a widely used and recommended biocide for diesel and jet fuel, carrying an extensive list of OEM approvals from some of the world’s largest engine manufacturers. Additionally, Biobor produces a full line of diesel conditioners, cold flow improvers, detergents, cetane improvers and lubricity additives, solving a wide range of today’s fuel related issues. Fuel retailers across the country use Biobor JF as part of a regular maintenance program to keep storage tanks free from microbial contamination, while also offering consumer packaged products to diesel and gasoline customers. Bulk treatment programs are available with summer and winter premium diesel additives to offer your customers a premium fuel with added value.

www.yourfuelsolution.com

www.aftonchemical.com

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www.biobor.com

ADDITIVES ROUNDUP FPPF’s complete line of high-quality products. FPPF Chemical has distributors in all 50 states, Canada, Latin America, Europe and Australia. Virtually every truck stop in North America handles FPPF products. FPPF Chemical Company, Inc. FPPF Chemical Company, Inc. is a major U.S. manufacturer of fuel additives, conditioners and treatments founded in 1975. FPPF is a leader in quality and innovation for diesel fuel additives and treatments in the marketplace. FPPF’s original diesel fuel additive, Fuel Power®, remains a leading year-round diesel fuel treatment in the U.S. and Canada. As fuels have changed, FPPF’s highly skilled technical personnel have researched and developed many new products to enhance the company’s product line. These include Lubricity Plus Fuel Power, 8+ Cetane, Killem (Biocide), Marine Formula, Total Power (complete multifunctional additive), Polar Power (cold weather diesel fuel treatment), FPPF 4000 Cooling System Treatment, FPPF Ethanol Gas Treatment and a complete line of aerosol products and cleaners. Recently, technologically advanced biodiesel fuel additives now augment

www.fppf.com

Howes Lubricator

Fuel Quality Services, Inc. Established in 1984, Fuel Quality Services, Inc. (FQS) is internationally recognized for providing superior and cost-effective fuel system biocides, stability additives, microbial test kits and on-site services to solve client issues in the crude oil and finished fuel markets. www.fqsinc.com

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Howes Lubricator is a fifthgeneration, family-owned company that produces some of the highest quality fuel and oil additives on the market. In 1920, Founder Wendell V.C. Howes formulated a line of preventative maintenance products that would fuel the company to worldwide recognition. Today, the Howes family is more dedicated than ever to giving their customers stateof-the-art, top-of-the-line products that meet the demands of changing fuels and engine designs. Using only the highest quality petroleum-based ingredients, Howes products differ from others because they never use alcohol or harmful solvents. All of their products are safe to use and guaranteed to work, giving your engine the best power, performance and protection available. Howes products include Howes Diesel Treat,

ADDITIVES ROUNDUP a top selling anti-gel in the United States and Canada, as well as Howes Meaner Power Kleaner, Howes Oil Enhancer and Howes Multi-Purpose Lubricating and Penetrating Oil, among others. www.howeslube.com

Innospec Fuel Specialties Innospec is a global specialty chemicals company focused on bringing innovative new technologies to market, combined with a fast and responsive service. To deliver maximum performance, modern engines need the very best fuels. All diesel fuel starts the same and can compromise vehicle operations. They impact power, increase engine noise and affect fuel economy and emissions. Untreated fuels can lead to an excess of corrosion, injector fouling and harmful emissions. Innospec’s Performance Specialties fuel additives offer a wide range of solutions to upgrade the performance of fuels. Innospec is solely dedicated to fuel and fuel additive technology. Our team is focused on the high performance premium diesel and gasoline markets. Whether a customer is looking to open up new markets, develop new products or optimize performance of a particular type of fuel, our team has the market knowledge, technical expertise and capability to deliver customer- and application-specific fuel treatments.

ValvTect Petroleum Products Schaeffer’s Fuel Additives Schaeffer’s Fuel Additives have a reputation for extending engine and component life, increasing fuel economy and improving overall engine efficiency and performance. In particular, Schaeffer’s CarbonTreat™ premium fuel additive line is specifically designed for high-pressure common rail (HPCR) systems, and compares to other products that offer similar technology but without a complete premium package. Schaeffer’s CarbonTreat™ premium fuel additives are multifunctional, ULSDcompliant diesel fuel additives that are highly effective at combating sludge and plugging issues that can impair engine performance. They are also formulated to improve fuel economy, reduce exhaust emissions and increase horsepower. Schaeffer’s CarbonTreat™ premium fuel additive line is available in summer, winter and all-season formulations, and can be used in any diesel-powered vehicle and in all types of diesel fuel, including low-sulfur diesel fuel and biodiesel blends. www.schaefferoil.com/carbontreat

www.innospecinc.com

MidContinental Chemical Company, Inc. MidContinental Chemical Company (MCC) manufactures and distributes petroleum additives that enhance the performance of fuels and lubricating oils. MCC provides comprehensive additive solutions to the petroleum industry, including refineries, pipeline operators, petroleum terminals, fuel distributors/jobbers, retail fuel marketers, c-store chains, aftermarket product packagers and lube oil and grease manufacturers. www.mcchemical.com FMNMagazine

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ValvTect Petroleum Products is a leading supplier of high performance diesel, high performance winterized diesel, heating oil and gasoline additives to fuel distributors, truck stops, fleets, marinas, railroads, terminals and refiners nationwide. ValvTect also supplies a complete line of propane gas additives and BlueMoon filters and filtration systems to propane and gas distributors and dealers. Our registered trademarks—Diesel Guard, XP+, Energy Additives (EA), BioGuard and ValvTect Marine Fuels—represent not only quality fuels sold to millions of consumers, but are also supported by marketing programs, in-field technical expertise and advanced formulas to meet the demands for the ever-changing fuels that are available. We specialize in providing solutions for you and your customers’ fuel problems at an economical cost. www.valvtect.com

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FUELS MARKET NEWS

INDUSTRY

NEWS Matrix Announces the Successful Sale of Brabham Oil Company, Inc. Matrix Capital Markets Group, Inc., a leading, independent middle-market investment bank, announces that it has advised Brabham Oil Company, Inc. on the sale of its 34 E-Z Shop convenience stores in South Carolina to Enmark Stations, Inc. d/b/a Enmarket, a subsidiary of the Colonial Group. The transaction also included Brabham’s fuels transportation fleet, an ethanol blending facility and their consignment, wholesale and commercial fuels distribution business. Headquartered in Bamberg, Brabham’s stores and supply customers are primarily located in southern South Carolina with a handful of commercial customers in Georgia. All of the E-Z Shop stores and consignment sites, along with the majority of the dealer locations, sell motor fuels under Brabham’s proprietary Horizon fuel brand, which Enmarket has acquired. The E-Z Shop stores offer a full array of convenience merchandise, and 11 of the stores also include Subway restaurants. As part of the transaction, Enmarket is acquiring the fee simple interest in the 34 E-Z shop stores as well as three additional consignment locations and the ethanol blending facility.

Matrix provided merger and acquisition advisory services to Brabham, which included valuation advisory, marketing the business through a confidential, structured sale process and negotiation of the transaction. The transaction was co-managed by Managing Directors Cedric Fortemps and Vance Saunders. John Duni, Associate, also advised on the transaction. n

PDI Acquires Excentus—Expanding its Retail Enterprise Software Portfolio to Include Loyalty Marketing Solutions PDI, a leading global provider of enterprise software solutions to the convenience retail, wholesale petroleum and logistics industries, today announced it has acquired Dallas-based Excentus, a leading provider of loyalty and coalition marketing solutions for the U.S. retail, grocery, national brands and convenience retail segments. This adjacency expansion complements PDI’s enterprise software solutions while broadening the company’s capability to serve customers better. The acquisition will add over 600 new customers to PDI’s roster and allow PDI to deliver comprehensive, enterprise software FMNMagazine

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technology and data solutions—adding another facet to PDI’s robust suite of ERP and back office solutions—that customers rely on to drive operational efficiency and increased margin. And as market demand continues to grow for consumer loyalty and engagement expertise, today’s acquisition will better position PDI to provide solutions to convenience retail, fuel retailers and national brands. PDI will create more value for customers with Excentus’ fullservice loyalty technology and marketing services by providing an integrated and unified view of pricing and promotions to help optimize and transform business. n

New E85-Compatible Spin-On Dispenser Filters from PetroClear® Promote Fuel System Integrity PetroClear®, a longtime trusted manufacturer of fuel-dispensing filters, has introduced two 10-micron particulateremoving spin-on dispenser filters—the 40510PE and 40510PE-AD—engineered for compatibility with E85 fuel. Fuels with high concentrations of ethanol, such as E85, can affect the performance of materials used in fuel storage and dispensing systems. Using materials not specified for E85 applications can lead to

INDUSTRY NEWS corrosion of soft metals and degradation of nonmetallic materials, leaving components in the fueling system made of these materials vulnerable to premature equipment failures and leaks. PetroClear’s 40510PE and 40510PE-AD dispenser filters feature a gasket composed of UL-approved nitrile material that is resistant to the challenging properties of high concentrations of ethanol. There are more than 3,000 stations selling E85 in the United States. PetroClear’s 40510PE and 40510PE-AD Spin-On Dispenser Filters provide the following benefits to fuel site operators and service technicians: UL-approved gaskets promote a safe and compliant fuel site; PetroClear filters provide efficient 10 micron (nominal) particulate removal; PetroClear filters prevent the distribution of fuel contaminated by UST corrosion particulate and available in ¾-inch and 1inch flow configurations. Textured paint coating provides a simple, mess-free installation and removal process. n

AIMS Announces the Passing of Founder, Dr. Bobby Canterbury It is with great sadness that AIMS announces the passing of our beloved founder, Dr. Bobby Canterbury, affectionately known as Dr. Bob, on Saturday, April 14, 2018. Dr. Bob was a business and computer programming professor at University of Louisiana at Monroe from 1966 to 1980. Bob founded Applied Information Management Sciences (AIMS) as a computer consulting business in 1968. In 1975, Mike Waller, founder of Waller Petroleum, requested Bob to develop the first “jobber” accounting system. The Complete Oil Marketers Perpetual Accounting System (COMPAS), was created, launching the initial product of AIMS. COMPAS, a revolutionary software system, was an instant hit in the oil jobber community. Fifty years later, Waller Petroleum continues to be a valued AIMS client. In the 80s, Bennie Evans, owner of Evans Oil and COMPAS client, encouraged Dr.

Bob to develop another innovative product using a touch-tone telephone to collect fuel inventory information. AutoSend was developed from this collaboration—another instant success in the petroleum marketing industry. Dr. Bob and the AIMS team in combination with Simmons SIRVEY Corporation, added SIR services to AutoSend creating, AutoSIR, an in-house leak detection system designed for regulatory compliance. Dr. Bob was known and respected for integrity and commitment of excellence to his customers and employees. In 1990, Dr. Bob hired his son, Robert Canterbury. Following Dr. Bob’s retirement in 1996, Robert purchased AIMS, running the business with the same commitment and dedication as Dr. Bob. AIMS commitment is “To do what we say we’ll do.” AIMS is proudly celebrating our 50th anniversary this year. We are grateful for the company and our founder, Dr. Bob. n

Verifone to be Acquired by Francisco Partners for $3.4 Billion Verifone Systems, Inc., a world leader in payment and commerce solutions, and Francisco Partners, a leading technologyfocused private equity firm, announced that they have entered into a definitive agreement under which an investor group led by Francisco Partners and including British Columbia Investment Management Corporation (“BCI”) will acquire Verifone for $23.04 per share in cash, representing a total consideration of approximately $3.4 billion, which includes Verifone’s net debt. Paul Galant, Chief Executive Officer of Verifone, said, “We are pleased to reach this agreement with Francisco Partners. This transaction delivers significant cash value to our stockholders and provides compelling benefits for our clients. We believe this transaction reflects the progress we have made executing our transformation from a terminal sales company to a payments and commerce solutions provider. With Francisco Partners’ resources, expertise and track FMNMagazine

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record growing global technology businesses, we are confident that we will be better positioned to serve the needs of our clients around the globe.” n

Goodyear, Bridgestone Join Forces to Form U.S. National Tire Distributor The Goodyear Tire & Rubber Company and Bridgestone Americas, Inc. announced they are forming one of the largest tire distribution joint ventures in the United States. TireHub, LLC, will provide U.S. tire dealers and retailers with a comprehensive range of passenger and light truck tires from two of the world’s leading tire companies, with an emphasis on satisfying rapidly growing demand for larger rim diameter premium tires. TireHub will combine Goodyear’s company-owned wholesale distribution network with Bridgestone-owned Tire Wholesale Warehouse (TWW). The transaction will enable Bridgestone and Goodyear to grow their respective tire businesses and capture enhanced value for their brands. The transaction is subject to customary approvals and is expected to close mid-year. At launch, TireHub will have the scale to reach the vast majority of retail locations in the U.S. daily. The new distribution company will complement both companies’ networks of existing thirdparty distributors and provide a superior, fully integrated distribution, warehousing, sales and delivery solution immediately following completion of the transaction. Headquartered in Atlanta, TireHub initially will have more than 80 distribution centers and warehouse locations throughout the nation. The company’s physical assets at launch will be a combination of legacy Bridgestone TWW and Goodyear facilities. n

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INDUSTRY NEWS

New Comdata OnRoad Card Sets New Standard for Managing Fleet Spend and Empowering Drivers Comdata Inc., a FLEETCOR company, introduced the Comdata OnRoad Card, the most widely accepted multipurpose fuel and driver funds card in the transportation industry. The OnRoad Card builds on the leading security and controls of the Comdata Proprietary Card and adds increased visibility and security features for fleets while offering more convenience, broader access to personal funds and a fee-friendly structure for drivers. The OnRoad Card’s unique dual-sided setup keeps fleets in control of company money while allowing drivers to easily manage personal funds with a single card that has universal acceptance and zero pointof-sale fees when running debit transactions on the MasterCard Signature Debit Network. In addition, driver funds can be easily accessed at bank tellers and thousands of Cirrus and AllPoints ATM locations across North America. As a trusted resource for managing merchant/carrier relationships across the industry, Comdata also ensures negotiated fuel discounts are properly administered according to contracted price agreements. Similar to the Comdata Proprietary Card, the OnRoad Card’s unique functionality will ensure these discounts are applied in real-time, eliminating the time and expense of retroactively analyzing and verifying transaction data. The card also offers fleets enhanced visibility into the transaction status of authorizations, postings and declines while improving the compliance posture when used for payroll. n

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DM2 Software Launches Petroleum Insights ERP 2018 DM2 Software, Inc., a leading provider of software solutions for petroleum marketers, is pleased to announce the release of Petroleum Insights ERP 2018. A Sage Software Development Partner and Reseller since 1991, DM2’s Sage 100based Petroleum Insights ERP 2018 system capitalizes on the latest features and connected services available on the newly introduced Sage 100 cloud platform. This new platform gives DM2 customers the ability to preserve their investments in on-premise software while taking advantage of all the new cloud-based connected services and subscription-based options offered by Sage Software and Sage’s extensive network of eco-system partners—such as Sage Inventory Advisor, Avalara ExciseRates and Paya Credit Card Processing. Due to these platform improvements, DM2 is now giving customers the choice of continuing to use traditional perpetual license applications or converting to a new Subscriptionbased model that includes support and maintenance as well as the Professional Services required to perform standard system upgrades every other year. n

Grupo Orsan Selects Gasboy’s Fuel Point PLUS® Vehicle Identification Technology to Deploy at Its Network of Fuel Stations Gasboy, a division of Gilbarco VeederRoot and the industry leader in commercial and industrial fuel and fleet technologies, has announced that Mexican fuel retailer Grupo Orsan has selected to deploy Gasboy’s Fuel Point PLUS® vehicle identification technology at its network of fuel stations to offer better fraud protection and enhanced loyalty with their fleet customers. The Gasboy Fuel Point PLUS system uses secure radio communication between a FMNMagazine

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vehicle and the fueling system to automatically identify and authorize a vehicle for fueling so that fueling can only occur when the correct nozzle is inserted in an authorized vehicle. As a completely wireless system, Fuel Point PLUS components are easily deployed both on vehicles as well as on the fuel site and can replace the need for cards or other manual inputs during fueling, which can reduce the amount of time spent fueling. Fuel Point PLUS can also automatically capture odometer readings directly from the vehicle, so fleet managers can proactively manage preventive maintenance for their fleet vehicles based on accurate mileage. n

Ascentium Capital Surpasses $4.0 Billion in Origination Volume Ascentium Capital LLC, a leading private independent finance company based in the United States by new business volume, announced surpassing $4 billion in origination volume since the Company’s founding in August 2011. The Company has provided financing to over 60,000 businesses since its inception. Initiatives during 2018 will focus on sales and marketing efforts in key industries including, but not limited to, healthcare, technology, energy, franchise, hospitality, specialty vehicle, waste and construction. Richard Baccaro, Chief Sales and Marketing Officer at Ascentium Capital remarks, “We invest for the long term as we continue on the path to success. We are proud to support businesses and our vendor partners who serve their needs. Our growth initiatives continue with on-going recruitment across the U.S. as we plan to hire 50 additional sales professionals during the next 12 months.” n

WEX Inc. and Mike Albert Fleet Solutions Extend Partnership WEX Inc., a leading global supplier of corporate payment and fuel card solutions, and Mike Albert Fleet Solutions, a premier provider of fleet

INDUSTRY NEWS solutions and fleet services, today announces that it has extended its longtime partnership. Both companies recently celebrated milestone anniversaries: Mike Albert celebrating its 60th anniversary and WEX its 35th. Their stability in an industry that is rapidly changing is a testament to their leadership and willingness to partner when together they create better solutions for their clients. Mike Albert Fleet Solutions has been a strategic partner with WEX for many years. This mutually fruitful partnership has helped clients gain control of their fleet and fuel expenses, thanks to the core capabilities of both companies. “Our ability to develop and execute our growth plans is supported by our commitment to having strong data and analytics tools, nimble processes and strategic partnerships with key suppliers,” said Jeff Hart, president at Mike Albert Fleet Solutions. “We are passionate experts that combine agility and tailored approaches to define the new ways of the industry. WEX’s ability to support and add to our industry

leading approach gives us the confidence to offer the best outsourced fuel program available.” n

merchants and their technology partner ecosystem, it was of the utmost importance for us to make this investment in Stuzo and our retail clients.”

Stuzo Announces PCI DSS Level 1 Certification

Today’s quickly evolving technology landscape, growing concern over international data security threats and the continuing digitization of payments make compliance a key issue for all merchants, consumers and digital commerce technology suppliers like Stuzo. n

Stuzo, a leading provider of personalized and predictive commerce solutions for retailers, powered by products, services and insights, announced today its achievement, having completed PCI DSS Level 1 compliance certification. The security of cardholder data affects everyone and in today’s environment, is paramount for merchants to protect their trusted relationships with consumers. “As a leading provider of digital commerce solutions for retailers, it is imperative that our company, our Open Commerce products, network, infrastructure and processes meet the most rigorous security standards,” stated Aaron McLean, COO of Stuzo. “As security is an evergreen concern within

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PAGE

ADD Systems......................................................37 American Coalition for Ethanol...........................83

Argus................................................................. 65

Fuel Ethanol Workshop & Expo...........................78

Biobor Fuel Additives......................................... 25

Cummins & White..............................................48

Dennis K. Burke, Inc........................................... 62

DM2...................................................................32

Fuels Market News............................................. 71

FPPF................................................................... 41

FuelConnect 360.........................Inside Back Cover

Innospec Fuel Specialties..................................... 3

Integer DEF Forum............................................. 53

Lock America...................................................... 79

MidContinental Chemical Company...................28

North American Bancard.................................... 50

OmegaFlex.........................................................44

OPW Retail Fueling.............................................. 5

PDI Software.......................................................13

RDM Industrial Electronics.................... Back Cover

REG.....................................................................18

SkyBitz.......................................Inside Front Cover

Source North America.........................................11

Southwest Fuel & Convenience Expo.................. 61

TMC................................................................... 74

Trinium Technologies......................................... 21

ValvTect...................................................... 22 â&#x20AC;&#x201C; 23

World Gas Conference 2018...............................69

Test Your FMN Acumen The list below represents acronyms used in this issue of Fuels Market News. ABA

American Bankers Association

GVW

Gross Vehicle Weight

ACH

Automated Clearing House

ASME

American Society of Mechanical Engineers

HOF

Higher Octane Fuels

IEA

International Energy Agency

AST

Aboveground Storage Tanks

Information Technology

ASTM

American Society for Testing and Materials

LPG

Liquefied Petroleum Gas

LTL

Less Than Transport Load

ATA

American Trucking Associations

ATG

Automatic Tank Gauge

MMbpd Million Barrels Per Day MON

Motor Octane Number

mpg

Miles Per Gallon

BIM

Buy It Mobility Networks

BOL

Bill of Lading

MTBE

Methyl Tertiary Butyl Ether

BTEX

Benzene, Toluene, Ethyl-benzene and Xylene

MVR

Motor Vehicle Record

CAD

Computer-Aided Design

NACS

National Association of Convenience Stores

CAFE

Corporate Average Fuel Economy

CBO

Congressional Budget Office

CIOMA California Independent Oil Marketers Association CNG

Compressed Natural Gas

CO2

Carbon Dioxide

COPS

Crossover Prevention System

CPI

Consumer Price Index

DDA

Demand Deposit Account

DEF

Diesel Exhaust Fluid

DOT

Department of Transportation

E&P

Exploration and Production

EFT

Electronic Funds Transfer

EIA

U.S. Energy Information Administration

EMV

EuroPay MasterCard Visa

EPA

(U.S.) Environmental Protection Agency

ERP

Enterprise Resource Planning

European Union

Electric Vehicle

FEA

Finite Element Analysis

FQC

Fuel Quality Council

FTL

Full Transport Load

GDP

Gross Domestic Product

GDPR

General Data Protection Regulation

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NOx

Nitrogen Oxide

OEM

Original Equipment Manufacturer

OPEC

Organization of Petroleum Exporting Countries

OSHA

Occupational Safety and Health Administration

PAP

Personal Auto Policy

PLC

Programmable Logic Controller

Particulate Matter

PMAA

Petroleum Marketers Association of America

POS

Point of Sale

RFID

Radio Frequency Identification

RFP

Request for Proposal

RIN

Renewable Identification Number

RON

Research Octane Number

SIGMA Society of Independent Gasoline Marketers of America SSID

Service Set Identifier

TAS

unknown term in WPMA/Scully paragraph

ULSD

Ultra-Low Sulfur Diesel

UST

Underground Storage Tanks

VGA

Video Graphics Array

VPN

Virtual Private Network

On the Horizon... The Industryâ&#x20AC;&#x2122;s First Collaborative Fuel Procurement Network

Tr a n s p a r e n t

Scalable

E ff i c i e n t

Optimized

Automated

Digital

Connecting Fuel Buyers and Sellers Through a Digital eMarketPlace

Sharon Schneider 888-575-FUEL (3835) 803-490-7809 sschneider@fuelconnect360.com www.FuelConnect360.com