Fuels Market News Magazine Spring 2020 by Fuels Market News

SPRING 2020

Your Source for News and Information

The Great Oil War of 2020 EMV Migration Time to Get Serious

Keep Your Head in the Clouds

Commercial Fueling

With a Tech Twist

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PUBLISHER’S NOTE

EDITORIAL STAFF 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 Joseph H. Petrowski W. Brian Reynolds Fred M. Whitaker Editorial Board Ed Burke Lisa Calhoun George A. Overstreet, Jr. Joseph H. Petrowski Art Director Jeff Beene JBeene@FMNweb.com Marketing Director Joe A. Martinez JMartinez@FMNweb.com

From the Desk of the Publisher As spring arrives and the sun comes out, the winter gloom usually fades away. We get out of our houses, go outside to play and get back to work. Just being out in the bright sunshine makes us feel a bit more optimistic but, that is not happening this year. We are sheltered in place, not leaving our homes or going to work and definitely no sunshine. Who would have imagined we would find ourselves here? 2020 started out to be a banner year. I wrote about my optimism in our Winter 2020 issue and how great the U.S. economy was performing following a three-year run of record economic growth and stock market gains. Unemployment was at all-time record lows, the stock market set over 27 new record highs and we had the longest running bull market in history.

And then, the contango became the worst seen in decades as the markets collapsed and crude dropped to $14/barrel. The futures market actually set an all-time record low of -$47/barrel. Truly, unbelievable as the news just became more and more grim. As with all crises throughout history there are some winners and some losers: The biggest losers • Retail stores are closed • Bars and dine-in restaurants are shuttered • Retail gasoline sales are down • The stock market lost 3.5 years of gains The biggest winners • Fast food take-out and delivery is up— and hiring new workers

Oh, what a difference a year makes! In the Spring 2019 issue of Fuels Market News Magazine we ran an article about the market’s fear of approaching $200/barrel oil! Now, just one year later, we’re excited when oil returns to the $20/barrel range… and hoping for maybe $40+ oil again someday soon.

• Online shopping and home deliveries are up—and hiring new workers • Trucking transportation is up—and hiring drivers • Diesel demand is up and refiners’ margins are up

Beware the ides of March… First, the Russians started a crude price war with the Saudis who immediately fought back by flooding the market with cheap crude. The Saudis responded by raising production and both countries were off to the races. As most of the world’s economies were already soft, there was no demand to absorb the market oversupply and a serious contango ensued as we ran out of storage. Next, the COVID-19 pandemic hit and most of the world’s economies shut down, exasperating the lack of fuel demand. Worldwide demand for transportation fuels immediately declined by an average 10 percent. The U.S. gasoline demand collapsed by 38 percent. The saving grace for fuel and convenience retailers is sales for grocery and household consumables rose by 52 percent, and average fuel margins are at an all-time high of $0.72/ gallon with $1+ margins fairly common.

• The stock market regained 50 percent of its losses in just two weeks So, in the very same month Wall Street set the record for the longest bull market run, it also set the all-time record for the shortest bear market in history! I’m still optimistic about 2020. My prediction is that despite the current setbacks, the market will recover as this year’s ides of March fade into the past and we all get back to our “new normal.” I hope you and your families and loved ones come through this time of crises safe, healthy and well. As always, please 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. n

Advertising Representative Bill Kaprelian 262-729-2629 BKaprelian@FMNweb.com

CEO and Group Publisher FMN Media, LLC

contents

by Department

PUBLISHER'S NOTE

FUELS & SUPPLY

4 6

by Joe Petrowski

The Great Oil War of 2020 by Keith Reid

RETAIL OPERATIONS

13 16 20 22

Get Ready for Lithium Dependency

Don’t Get Left Hanging by Ed Kammerer

2020 EMV Migration— It’s Time to Get Serious

COVID-19 and Your C-Store

by Joe O’Brien

COVID-19 and Your C-Store by Roy Strasburger

How Foam Media Has Evolved to Improve Customer Satisfaction

by Allen Luce

How Video Technology is Transforming Safety for Fleets

A Case of the Vapors by Keith Reid

Four Mega Mistakes Petroleum Salespeople Commonly Make

6 The Great Oil War of 2020

16 2020 EMV Migration— It’s Time to Get Serious

WHOLESALE & FLEET OPERATIONS

How Video Technology is Transforming Safety for Fleets by Jason Palmer

Four Mega Mistakes Petroleum Salespeople Commonly Make by John J. Kimmel

COMMERCIAL FUELS

45 Commercial Fueling with a Tech Twist

Under Pressure: Five Tips to Keep Tire Pressure at Optimum Levels by Jason Miller

Shell Fuel Rewards Offers Commercial Drivers a Perk by Keith Reid

Commercial Fueling with a Tech Twist by Keith Reid

BUSINESS OPERATIONS

50 Keep Your

Head in the Clouds

Keep Your Head in the Clouds by Brian Reynolds

FMN Magazine

FuelsMarketNews.com

INDUSTRY NEWS

ADVERTISER INDEX

Get Ready for Lithium Dependency by Joe Petrowski

“

With the increasing push for electric vehicles using lithium-based batteries, the U.S. ﬁnds itself facing a global competitor with a greater control over a critical resource than OPEC ever had.

”

FMN Magazine

FuelsMarketNews.com

FUELS & SUPPLY

ust when some Americans are celebrating the end of U.S. dependence on imported petroleum from unstable or unfriendly countries, a new commodity has surfaced as vital to our economy—lithium. Why is lithium so valuable? As you might have guessed, it is a vital component in high performance batteries used to power a range of modern technologies from cell phones to electric cars to electrical grid power storage units.

Now in the “I would rather be lucky than good” department, there are other countries with ample identified reserves, increasing production and friendlier attitudes towards the U.S. including: Australia: 51,000 MT production / 2.7 million MT reserves Chile: 16,000 MT production / 8.5 million MT reserves Argentina: 6,200 MT production / 2 million MT reserves Canada: 480 MT production / 180,000 MT reserves

Lithium is featured front and center in the U.S.-China trade dispute. China, with the largest electric car industry in the world and largest cell phone manufacturing capacity, is the world’s major consumer of lithium. But with one million metric tonnes* (Million MT) in lithium reserves and 8,000 metric tonnes (MT) of annual production (in 2018 according to the United States Geological Survey), it is also a major exporter. Much of those exports are in the form of lithium batteries, where, according to BloombergNEF, it is responsible for 73 percent of the market capacity. The U.S. is a distant second at roughly 12 percent and relies significantly on imports from China to make those batteries. With the increasing push for electric vehicles using lithium-based batteries, the U.S. finds itself facing a global competitor with a greater control over a critical resource than OPEC ever had. The only significant operational reserve today for the United States is the Silver Peak Reserve in Nevada, with an estimated of 120,000/million t and current annual production of 1,000/million MT. There was a burst of excitement in 2013 involving a discovery in the Rock Springs formation in Wyoming that speculated on a maximum potential of 18 million MT of lithium. Not much has happened since involving investment and development. The primary consideration has apparently been the extraction costs from wells over 10,000 feet deep.

On the bad news side, China has been aggressively working to corner the market on production internationally by acquiring stakes in major mining operations. They also heavily subsidize operations and prices have been volatile with the dips discouraging to investment. But several Western countries are waking up and responding to the danger posed by a single dominant player in such a critical market. n READ MORE at FuelsMarketNews.com

Joe Petrowski Joe has had a long career in international commodity trading, energy and retail management and public policy development. He currently serves as the fuel director of Yesway convenience stores and an adviser to their Chairman on Operations and Merchandising, as well as a director of Xebec, a Canadian manufacturer of Clean technology and Green Print, a carbon mitigation ﬁrm. Petrowski previously served as the president and CEO of Gulf Oil LP and was elected to the Gulf Oil LP Board of Directors and then as CEO of the now combined Gulf Oil and Cumberland Farms. He is Managing Director of Mercantor Partners, a private equity ﬁrm investing in convenience and energy distribution.

FMN Magazine

FuelsMarketNews.com

by Keith Reid

Policy Brief:

The Great Oil War of 2020

by Keith Reid

FMN Magazine

FuelsMarketNews.com

FMN Magazine

FuelsMarketNews.com

FUELS & SUPPLY

The current oil war between Russia, Saudi Arabia and the

While it is too early to formally predict how this

United States is grabbing major headlines. Predictions

will play out, it is not too early to take a reasoned

include oil at $20 per barrel or lower and potentially

look at the factors involved and cover some of the

irreversible damage to the U.S. fracking industry. This is

factors that might mitigate worst-case scenarios.

being driven by fears of demand destruction, perhaps

We can start with a $20 per barrel projection.

significant, from the restrictions involved with coronavirus COVID-19 combined with decisions in both Russia and Saudi Arabia to dramatically increase oil production while dropping prices. There is even talk of a potential global recession. This has already resulted in a crude future drop

My observation has been that the most dramatic of public predictions involving markets are often driven as much by financial opportunity or attention for the those pushing the narrative as they are by market dynamics.

of over 20 percent as this article is being put together, which is a rebound from a spike that passed 30 percent. The

Case in point would be Goldman Sachs predictions of $200 per barrel oil back in 2008 right before the

stock market has also taken some significant hits.

market collapsed. The oil analysts I spoke with at the time, such as the late Peter Beutel, who was a nationally known traditional hedger who dealt more in real barrels than paper barrels, were less sure. Beutel had a hard time seeing how the thencurrent prices well short of $200 per barrel were

“If we really do go into recession, then we could see prices continue to soften. Crude oil has support roughly around $24, but I have seen it at $10. And while I’m not predicting anything like that, we’ve been there before.”

being maintained, much less the possibility of $200 per barrel. That position was not prominent throughout the mainstream media (financial and otherwise) and the largest financial houses, but it was quickly proven correct. This time around, there is some support for the idea that prices could hit $20 per barrel (or even less), at least for a short period of time. Some

Alan Levine Powerhouse

voices in the market, such as Goldman Sachs, are predicting a bottom more in the $35 per barrel range. Maybe they will be correct, this time around.

Editor’s Note: This article describes the brewing oil price war as it existed in mid-March 2020. By the time you read this in print the situation could be quite different. However, even then it should provide some solid background on the underlying issues the U.S. now faces as a major player in the global oil market.

“If we really do go into recession, then we could see prices continue to soften,” said Alan Levine, Chief Executive Officer and Chairman of Powerhouse, which specializes in helping energy companies protect against price risk in all energy commodities. Levine is also a FMN contributor, and his Weekly Market Situation for this week further covers these developments. “Crude oil has support roughly around $24, but I have seen it at $10. And while I’m not predicting anything like that, we’ve been there before. One thing I know about commodity trading is that there is no price too high and no price too low.”

FMN Magazine

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FUELS & SUPPLY

Policy Brief: The Great Oil War of 2020

“By yielding our own markets, we remove cheap Arab and Russian oil to clear a place for expensive U.S. shale oil and ensure the effectiveness of its production.” Spokesperson for Rosneft Russia’s leading state-run oil company

Moving on, how long will the price war last and what will be the ramifications? This is another area where the oil punditry is predicting everything from a devastating impact on the U.S. oil fracking industry to short-term setbacks that will quickly be reversed.

At the start of the price war, a spokesperson for Rosneft, Russia’s leading state-run oil company, stated: “By yielding our own markets, we remove cheap Arab and Russian oil to clear a place for expensive U.S. shale oil and ensure the effectiveness of its production.”

For background on the current price war, oil futures started the new year in the $60 range and were on the uptick. International recessionary concerns had been bubbling for some time when COVID-19 hit in January 2020. These concerns were enormously amplified for a range of obvious reasons. Demand destruction for petroleum products is assured, at least to some level and for some time. Recessions, nationally and internationally, are possible depending on how the virus pandemic plays out.

Russia also has been resentful of U.S. sanctions related to Rosneft’s petroleum operations in Venezuela.

The United States, and most publicly President Trump, had been pressuring Saudi Arabia for some time previously to keep oil prices below $70 per barrel. OPEC+, a group consisting of OPEC members plus other countries such as Russia and Mexico, had been working to stabilize prices at a higher level and generally reduce volatility. While all oil producers benefit from higher prices, that is particularly the case for non-traditional production such as fracking. This did not sit well with Russia, as it saw U.S. oil producers stealing its market share, which ultimately represented a more significant long-term threat over the short-term oil revenue.

“Many global players are threatened and have voiced concerns about the U.S. energy revolution, and their decisions are part of the reaction we can expect in the new paradigm of America as an energy superpower.” API President and CEO Mike Sommers

An OPEC+ initiative to drop production and shore up prices in the wake of the COVID-19 market reactions was the last straw. Russia dropped out on March 6 stating there would be no restrictions on its production. This is seen as a direct confrontation with Saudi Arabia’s OPEC leadership as much as with the United States. The Saudis responded by promising to massively increase production to record-breaking levels: “Saudi Aramco announces that it will provide its customers with 12.3 million barrels per day (MMBPD) of crude oil in April; i.e., an increase of 300 thousand barrels per day over the Company’s maximum sustained capacity (MSC) of 12 MMBPD. The Company has agreed with its customers to provide them with such volumes starting 1 April 2020. The Company expects that this will have a positive, long-term financial effect.” It has also indicated a willingness to significantly cut prices. API President and CEO Mike Sommers held a teleconference on March 9 to discuss current developments. He presented a positive message, at least as positive as could be made with the dramatic initial futures price drop. He was not shy in placing blame, and noted this was a taste of what will likely be our future as a major competitive player on in the global oil market: “Many global players are threatened and have voiced concerns about the U.S. energy revolution, and their decisions are part of the reaction we can expect in the new paradigm of America as an energy superpower,” he said. While conventional oil is cheap to produce in both Saudi Arabia and Russia, well under $10 per barrel according to some estimates, both countries have a heavy dependence on oil for their economies. According to Argus Global Markets, 65 percent of Saudi Arabia’s economy is dependent on oil. For Russia that dependence is 37 percent.

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FUELS & SUPPLY

Policy Brief: The Great Oil War of 2020

the producer,” said Levine. “The Banks will lend you the money, but you must buy Put options. Basically, a Put is a financial instrument that increases in value as oil prices fall. So, for many domestic producers, but not all, this should not really be an issue.” Another point has been the break-even price for frack production. This is certainly higher than conventional oil and will vary from company to company and region to region. It has traditionally been stated at somewhere in the $40 range, but for some operations it might be considerably lower as technology has advanced. “Among my clients, we have some who claim they can produce effectively under $30,” said Levine. “One of them said, ‘It’s not like the old days—this is a manufacturing process. You pull up the rig, you drill the well and you’re done. You can get it up and running in less than a month. It’s far different from conventional oil with finding the reservoirs, making sure you’re in the right spot, maintaining reservoir pressure… this is nothing like that. ’ ” On the surface neither will be able to ride out the price war without significant pain. The previous Saudi price war (2014 – 2015) aimed directly at U.S. producers ultimately fizzled out. The Saudis were able to suppress prices below $40 per barrel, which was thought to be the breaking point for U.S. producers, but the main result was the realization that Saudi Arabia was itself far too vulnerable to its own dependence on oil. What followed was a commitment by the Saudis to dramatically diversify its economy. Russian sees itself better positioned for lower prices than Saudi Arabia. Not only is the impact of a price war statistically less painful, but the country has prepared reserves useful for such an event. A public statement on Russia’s official government website projected confidence in the current course of action: “The Russian oil industry has a high-quality resource base and a sufficient margin of financial strength to remain competitive at any forecast price level, as well as maintain its market share,” said Russian Minister Alexander Novak. So, just what peril do U.S. producers face? There are major concerns today with the amount of debt held by oil producers, with fears of catastrophic failure. This has been a common theme since the first big, self-induced natural gas glut of 2012 and has been a regular concern in headlines whenever prices have dropped. Marginal companies have failed, new companies arose, and a core of larger operations have grown stronger and more efficient. If it plays out for an extended time, will this be different? One new development has been that the financial industry learned lessons from the past and initiated measures to safeguard their investments in the sector. “In the last few years, banks have become much more aware of the risk and they have tended to impose a hedging regimen on FMN Magazine

The same applies to shutting down production, if required. Shutting down conventional production is a far more serious decision, because it is far harder to restart a well. That is not the case with fracking. In responding to a question during the API teleconference, Sommers noted: “We’ve seen these kinds of cycles happen in the past and we expect that over time, as we get a better handle on the Coronavirus, prices will rebound. But I think it’s also important that we recognize what the motivation is of Russia in this space. It is to put out of business the producers, particularly in the Permian basin, that have been so productive and led to historic American energy leadership. So, we’re very focused on making sure that these producers can continue to supply the leadership that they provided over the last 10 years of the American energy revolution.” Sommers stated that the industry was not looking for any intervention in the energy sector by the Trump administration to provide temporary aid, at least at this time. However, the administration just announced it will consider such a move. The U.S. also suspended a planned—but certainly ill-timed— sale from its Strategic Petroleum Reserve. As noted at the start, only time will tell how this plays out. I was reminded of that by the headlines I came across doing some online searches to refresh my memory on the timeline of that initial Saudi price war in 2015. There were comparably timed headlines from mainstream sources such as Bloomberg, Business Insider, Forbes, Wall Street Journal, New York Times, etc., dramatically declaring everything from why the Saudi price war is going to be a resounding success to why it’s going to be a total failure. I think we can confidently say at this point that the current oil price war will be a total success, total failure—or something in between. n FuelsMarketNews.com

The recent Crude Oil war between Russia and Saudi Arabia involves Russia leveraging demand destruction from the COVID-19 pandemic to pump up production and crater oil prices—primarily to hurt U.S. shale production. U.S. shale production has surged over the past decade and lifted the country’s total oil output to 13 million barrels a day, surpassing Russia and Saudi Arabia for the top spot globally. That has opened the door to U.S. oil exports to Europe and Asia, traditional Russian markets. “Many global players are threatened and have voiced concerns about the U.S. energy revolution, and their decisions are part of the reaction we can expect in the new paradigm of America as an energy superpower.” Source: API President and CEO Mike Sommers

Bottom Line: Clearly Russia’s goal has been a full-on assault against increasingly dominant U.S. production as well as challenging Saudi leadership in OPEC. Fortunately, due to negotiations with the Trump administration, the Saudis have stepped back from their counterattack and the OPEC+ countries have agreed to a historic 10 percent cut in production.

at FuelsMarketNews.com

RETAIL OPERATIONS

by Ed Kammerer

Don’t Get Left Hanging Answering Critical Questions on Fuel Equipment and Third-Party Approvals perating a retail fueling station has never been O more complicated, with the days when leaded gasoline was the only fuel offered as long gone as those when horse and buggy was the primary mode of transportation. In other words, today’s list of the available motor fuels and additives at a service station can often most closely resemble the menu at an allyou-can-eat food buffet, rather than something along the lines of a simple “vanilla or chocolate” choice. On its website, Underwriters’ Laboratories (UL), the nation’s preeminent third-party equipment testing and certification organization, notes that, “As regulations evolve and expand the demand for additional types of fuel, manufacturers and fueling stations will need to stay up-todate on what requirements they need to comply with and how they can adapt to meet the shifting marketplace demand.” This means that fuel site operators need to not only offer a “bill of fare” that can satisfy the expanding needs of motorists and their vehicles. They must also dispense that fuel via hanging-hardware equipment and systems that are both compatible with the specific and unique handling characteristics of the various fuel formulations and, more importantly, approved by appropriate third-party organizations.

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“ ”

… retailers may not understand that within the speciﬁc product families the common E10, E15 and E85 ethanol formulations, along with B5, B20 and B100 biodiesel, can all have different compatibility requirements.

Deﬁning the Fuel Landscape UL has created a “Guide for Automotive Fuel Ratings” to aid fuel site operators in their efforts to deploy hanging hardware. This is a category of fuel site equipment generally consisting of the breakaways, hoses, swivels and nozzles that are situated between the dispenser and the vehicle’s fill pipe—that is approved for use with the fuel being dispensed. This guide has been designed to “support compatibility with many commercially available fuels and blend levels covered by 40 CFR Part 80, ‘Regulation of Fuels and Fuel Additives’.” The hanging hardware must also be approved to meet the strictures of the National Fire Protection Association’s (NFPA) NFPA 30 fire code, which “provides safeguards to reduce the hazards associated with the storage, handling and use of flammable and combustible liquids.” Currently, UL lists five fuel formula designations that are commonly found at retail fueling locations and are compliant with 40 CFR Part 80, NFPA 30 and meet ASTM International’s standards and limits for fuel specs and blends: • D975: Diesel fuel with up to 5% biodiesel (B5) • D7467: Diesel fuel with 6% to 20% biodiesel (B6 to B20) • D4814: Gasoline with up to 10% ethanol (E10) • D4814/ASTM D5798: Mid-range ethanol/gasoline blends (E11 to E50) • D5798: High-range ethanol/gasoline blends (E51 to E85) To further assist fuel retailers, UL has created a Fuel Compatibility Tool that can be found at productiQ.UL.com. This tool provides information designed to assist equipment manufacturers and fuel retailers as they either develop or deploy hanging hardware that must meet all approved fuel compatibility requirements from the U.S. Environmental Protection Agency (EPA), as well as the full range of state, local and other code authorities. FMN Magazine

Most fuel retailers understand ethanol and biodiesel are structurally different from unleaded gasoline and straight diesel. They probably also know that ethanol has compatibility with such metals as 304 and 316 stainless steel and ductile iron (but not aluminum, especially in higher E85 concentrations). The same is true for polymers such as polytetrafluoroethylene (PTFE, or Teflon®) and polyoxymethylene (POM, or acetal), but ethanol reacts poorly with Buna-N, nylon and urethane. Biodiesel, on the other hand, will degrade some metals like lead, tin, copper, zinc and alloys such as brass and bronze, while aluminum and stainless steel are compatible with the fuel. PTFE, Buna-N, high-density polyethylene (PE) and Viton® are rubber-type materials that play well with biodiesel, while natural rubbers are the least compatible with the fuel. What retailers may not understand is that within the specific product families the common E10, E15 and E85 ethanol formulations, along with B5, B20 and B100 biodiesel, can all have different compatibility requirements. This means that a retailer, for example, who assumes that all formulations of ethanol possess the same handling characteristics can experience difficulties if he outfits a fueling island that is dispensing an E15 blend with equipment that has been approved only for use up to E10. The most common problem in

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RETAIL OPERATIONS

Don’t Get Left Hanging

a scenario like this is the degradation of seals, gaskets and hoses that can lead to leaks. These leaks can grow into dramatic product-release scenarios that can require cleanup and remediation costs for spilled fuel and, in a worst-case situation, a dangerous fueling operation for the driver, site personnel, surrounding community and the environment.

Don’t Get Left Hanging Knowing the added complexities that are now inherent in operating a retail fueling location, some manufacturers of hanging hardware have taken great pains to develop a portfolio of breakaways, hoses, swivels and fuel dispensing nozzles that are constructed of materials that are third-party approved for use in the specific fueling application. For example, at OPW we have taken this retailer assistance to the next level with the creation of fuel-specific Hanging Hardware Kits (also referred to as Hose Kits) that feature hanging hardware that is thirdparty approved for use with the specific fuel formulations. Additionally, the kits can be configured to meet the needs of very specific fueling operation parameters, from basic 3/4-inch nozzles and hoses to 1-inch highspeed truck-stop nozzles and hoses and the new “dripless” nozzles that have begun to enter the market.

FMN Magazine

Conclusion An expanding menu of fuel formulations means that fuel retailers must be in tune with all of the unique and specific idiosyncrasies and handling characteristics of the fuels that they stock. It also means that they must be certain that the hanging hardware components that are featured at the fueling island are approved for use with the fuel that they are dispensing. Some manufacturers of hanging hardware have taken great pains to make it easier for fuel retailers to know that every component in their hanging hardware setup is approved through third-party certification—for the specific fuel they will be selling at the hose point. In other words, these Hanging Hardware Kits have been designed to take the complexity out of the equipment-selection process, resulting in safer, more efficient, reliable and compliant operation for retailers and their employed personnel, drivers, surrounding communities and the environment. n

Ed Kammerer Ed is the Director of Global Product Management for OPW Retail Fueling, based in Cincinnati, OH, USA. He can be reached at ed.kammerer@opwglobal.com. OPW delivers product excellence and a comprehensive line of fueling equipment and services to retail and commercial fueling operations around the globe. For more information on OPW, please go to www.opwglobal.com.

FuelsMarketNews.com

2020 EMV Migration It’s Time to Get Serious One of the retail fueling industry’s major hesitations about the EMV migration is the cost to upgrade versus the perceived risk of fraud liabilities. That notwithstanding, hope for a postponement of the liability shift is fading. As things stand now, another delay for outdoor EMV fuel transactions is unlikely—both Visa and Mastercard have expressed in writing that they remain committed to the October 2020 deadline. With that in mind, here are four reasons why it is imperative fuel site operators advance their EMV efforts immediately.

FMN Magazine

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RETAIL OPERATIONS

by Joe O’Brien

EMV migration is a process, not an isolated maintenance visit.

Simply put, there are several things that need to be accomplished for a fuel site to be ready to accept EMV transactions. Fuel site operators who haven’t already contacted their equipment supplier or certified technician should do so immediately to determine the site’s EMV needs. This audit is most likely only the first of several actions that will need to be taken, but it is key to mapping out the remainder of the steps in the process. Furthermore, as the adoption of EMV in other countries has illustrated, EMV standards will continue to evolve. This first round of EMV updates will not be the last. Other markets, for example, are already on their third cycle of EMV standards.

“ ” Fuel site operators who haven’t already contacted their equipment supplier or certiﬁed technician should do so immediately to determine the site’s EMV needs.

The technician shortage is real, and overtime is expensive.

Industrywide, there are a lot of things to get done for the EMV implementation and not enough trained service technicians to do them. As a result, retailers who continue to delay their site’s EMV migration should prepare to see overtime charges on their installation invoices. During the Conexxus webinar, a representative for a self-service payment solutions provider reviewed installation costs for previous payment processing upgrade initiatives, including payment card industry (PCI) and indoor EMV upgrades. Installation costs increased 14 percent six months before the deadline, 23 percent three months before the deadline, 33 percent at the deadline and 31 percent three months after the deadline.

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RETAIL OPERATIONS

Card fraud CAN impact profit margins.

In an example presented during the Conexxus webinar, a single fuel purchase valued at $75 bought through a fraudulent transaction would conservatively end up costing the fuel retailer $185 in financial losses. This is two to three times the value of the purchase. In a sampling of stations that experienced fraud at the pump, the losses incurred ranged from $5,072 to $101,179 over a 12-month period. Liability costs per gallon can quickly escalate to over a penny per gallon, which translates to a genuine competitive disadvantage, the webinar speakers said.

The United States is a target-rich environment for fraud.

The U.S. outdoor fuel forecourt has been identified as one of the most vulnerable targets in the world, according to the Conexxus webinar. Last year, the Wawa convenience store chain discovered malware on its in-store payment terminals and fuel dispensers. This attack has resulted in at least six lawsuits, according to USA Today. Credit card skimming is organized crime with its origins at the international level. A Visa security alert reported that North American gas stations are increasingly attractive targets for sophisticated cybercrime groups because of the absence of secure acceptance technology, including chip card processing. The last EMV hold-outs will put themselves at the highest risk for fraud-related financial losses.

How to Become EMV Ready In most cases, there are four basic steps that need to be completed in order to become an EMV-ready fuel site:

Step 1: Scope the fuel site’s hardware and software needs. A 2019 Conexxus survey of fuel site operators showed that 87 percent of respondents surveyed had not fully deployed their EMV upgrades. For those that were not fully deployed, 77 percent of sites required new hardware or upgraded hardware. Industrywide, this deployment gap represents a significant amount of service work for the limited number of technicians. The first action fuel sites need to take is to seek the assistance of a trusted equipment supplier or technician to scope the fuel site’s EMV needs. A site survey will likely need to be conducted to understand the capabilities of the existing equipment. Four primary equipment considerations will need to be evaluated:

• Will the dispenser payment terminal need to be replaced to support EMV payments? • Will the card reader need to be replaced to accept chip cards? • Will site connectivity improvements need to be completed? • Will an EMV software upgrade be necessary? For operators weighing whether to replace or retrofit dispensers, Gilbarco Veeder-Root offers this advice: dispensers in the field longer than eight years have higher maintenance costs, which may justify the purchase of new dispensers. New dispensers also modernize a retail station, which helps attract customers. During this scoping phase, also evaluate the value other in-dispenser investments may bring to help drive revenue or offset costs. Consider adding contactless payment readers, advertising platforms, in-store promotional media, loyalty enrichment programs

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2020 EMV Migration—It’s Time to Get Serious

and personalized offers. Get all of the equipment needed for upgrades ordered as soon as possible.

Step 2: Upgrade dispensers and site connectivity. Enlist the services of a certified technician to replace or upgrade dispensers to be EMV-ready. Because fuel sites need high-speed data throughput to facilitate EMV transactions, operators need to ensure the forecourt’s internet protocol (TCP/IP) connectivity also is adequate. The good news? Most solutions do not require the wiring in the ground to be dug up and replaced.

Step 3: Complete software upgrades. Most fuel sites will need to upgrade their payment software in their electronic payment system (EPS) or point of sale (POS) system. Sometimes this requires an in-person installation. Other times the upgrades may be completed remotely.

Conclusion Time is running out for fuel retailers who wish to keep their EMV conversion expenses low. The Conexxus webinar speakers cautioned that EMV migration on the forecourt will likely require two separate visits from a technician for the fuel site to begin processing EMV transactions. Accomplishing all of the steps for EMV deployment in a single visit is theoretically possible, but it requires considerable synchronization among service providers. Immediate prioritization and attentive project management throughout the upgrade process will be key to achieving forecourt deployments that aren’t bloated with unnecessary costs. Learn much more about outdoor EMV activation by listening to the Conexxus webinar, “Are You Ready for Oct. 1, 2020? Part 2: Practical Considerations for Implementing Outdoor EMV,” which is available in the Resources section of the Conexxus website. Visit www.conexxus.org to learn more about upcoming webinars. n

WEEKLYeNEWSLETTER FuelsMarketNews.com

Step 4: Verify the site’s payment host

Joe O’Brien

is enabled for EMV transactions.

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 or visit www.sourcena.com to learn more.

The fuel station’s payment host needs to be contacted to ensure that EMV payment processing is set up and activated on the host’s end.

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COVID-19 and Your C-Store How have you adapted?

by Roy Strasburger

As everyone is very well aware, the COVID-19 (“Corona”) virus has changed the way that we are living life. Public gathering spaces are closed, retail outlets are closed, and social interaction as we know it no longer exists. Shelter-athome edicts? Now we have it. How have you adapted to the change?

In our company, StrasGlobal, the COVID-19 virus has had a major impact upon the way that we operate our stores. It has disrupted our staff, customers and suppliers. Things we took for granted no longer exist. We are having to adjust to a new reality—even if it is only for the next few months. However, we know that whatever the long-term future holds, life will not be the same as it was in January 2020. We have always put the health and safety of our team members first, but now we have to be much more proactive in doing so. When the pandemic started to spread in United States, we immediately issued new instructions and health guidelines for our team members. At the beginning, these were the basic steps that the Centers for Disease Control and Prevention (CDC) was recommending: washing hands, cleaning surfaces and observing “social distancing.” Since then, we have begun implementing more stringent guidelines including issuing gloves, face masks, disposable smocks and sanitizer to all of our store

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RETAIL OPERATIONS

“” It goes without saying that our team members who are keeping our stores open are on the front lines and have done an amazing job.

teams. Admittedly, some of these items

We also put into place more stringent

groups to help get supplies and informa-

have been difficult to obtain and we have

store cleaning protocols such as having a

tion to the most vulnerable of our

not had 100 percent coverage due to

designated cleaning person on every shift

neighbors.

supply issues, but we continue to source

to sanitize all areas regularly touched by

these products for our stores.

the public, placing sneeze guards between our point-of-sale (POS) positions and our

We have put into place more public health initiatives such as removing self-service foodservice items that are not packaged, placing fountain and coffee drink cups behind the counter, only using packaged condiments and banning refillable cups. Signs are being posted in our stores reminding customers about the infection hazard

customers, indicating on the floor the safe distance for our customers to stand apart and putting a decontamination station

It is ironic that in an industry where personal contact and human interaction during the shopping experience has been the traditional norm, we are now trying to put into place programs that reduce the amount of time people are

(sanitizer, wipes and gloves) by the front

in contact with each other or eliminate

door. By implementing these measures,

that contact completely. It will be inter-

we hope that we can prevent the spread

esting to see how this new type of

of the virus to our team and slow the

retail—and by new, I mean more

spread between our customers.

widespread than has been in the past—

and asking them to maintain space

will affect the way we do business in

between each other. We are starting to

It goes without saying that our team

limit how many customers can be in a store

members who are keeping our stores

at one time and asking the others to

open are on the front lines and have done

patiently wait outside.

an amazing job. Even when they have

Regardless of where we end up on the

issues at home or when they are

spectrum of human interaction, we will

concerned about their own health, they

have to continually reinvent ourselves to

have continued to provide a key service to

maximize the services we provide to our

the community by keeping our stores

customers and to our communities

open as an essential business. Without our services, it would be harder for people to find food and fuel. We are trying to help

the future and our customers’ expectations of us.

while at the same time providing the level of safety that our team and customers expect. n

the communities that we belong to. In the future, we are planning on introducing even more programs to help slow down the virus as well as providing a

Roy Strasburger

higher level of comfort and safety for our customers and team. These include curbside delivery, in-store pick up and home delivery services—where we can provide them. An important component is trying to work with community assistance

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Roy is the President of StrasGlobal. For 35 years StrasGlobal has been the choice of global oil brands, distressed assets managers, real estate lenders and private investors seeking a complete, turn-key retail management solution from the most experienced team in the industry.

â&#x20AC;&#x153;â&#x20AC;?

While the inventions of soft-cloth media and closed-cell foam brushes were true steps forward for the friction-wash market, the manufacturers of the technology still continued to work to improve the wash experience.

by Allen Luce

How Foam Media Has Evolved to Improve Customer Satisfaction Every technology, no matter how innovative or standard-setting at initial release, is bound to be upgraded at some point. In other words, no one is using Version 1.0 of any notable technology that has entered the market in the past few years.

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RETAIL OPERATIONS process is that high RPMs are needed in order for softcloth or closed-cell foam brushes to clean effectively. The operation of the wash wheels requires a certain number of RPMs to extend the loose-hanging wash media toward the vehicle’s surface. Then, additional RPMs are needed for the wash media to effectively remove the dirt, grime and road salts from the vehicle, which is the friction vehicle wash’s overriding objective. The shorter wash-media ﬁngers on next-generation wash wheels are not prone to “lassoing” exterior vehicle components, which prevents damage to wiper blades, mirrors, door handles and antennas—and the wash ﬁngers themselves. For friction-wash car wash manufacturers and their clients, there has been a significant evolution in the wash media that the wash system is outfitted with. Early systems featured hard plastic or nylon brushes that were able to clean the vehicle effectively, but could, at times, scratch vehicles and damage other components, such as mirrors, wiper blades and antennas. The industry first responded by inventing brushes that were constructed of soft strips of cloth and then later of closed-cell foam media, which helped protect the vehicle from damage while providing an elevated level of “clean.” High-RPM closed–cell foam media was a step forward even from soft cloth because it doesn’t hold water or dirt, so it stays lighter and is gentler and safer on the car than cloth. However, since traditional foam can only clean with its tips, it is often spun at higher RPMs than cloth so that otherwise “limp” wash media can fully extend, allowing the tips to clean the vehicle. This media cleans by redundancy, relying on lots of overlapping touches to provide cleaning coverage. So, just like some people prefer to drink regular soft-drink products, others might prefer a new version flavored with cherry or lime (and neither is wrong), car wash operators can choose the cloth or foam wash media—both of which deliver excellent cleaning performance—that best fits their needs and the preferences of their customers.

Shhh! Wash at Work

Despite the quantifiable advances in wash effectiveness and efficiency, and along with vehicle protection that next-generation friction-wash media represent, there has always been a perception among some portion of the driving public that actual wash-media contact with the vehicle will damage it. This mindset is linked to the loud noise that results from the wash media whipping the vehicle’s exterior. The quandary that had arisen from the many attempts to reduce noise levels via lower wash-wheel RPMs during the washing

Driven by the need to deliver an expected level of clean and vehicle protection but at reduced noise levels, the manufacturers of frictionwash media have recently come up with a revolutionary answer. It is a wash- wheel system in which the closedcell foam wash media does not hang loose but is selfsupporting and always in an “up” position. In this pose, the wash media can be guided to the vehicle’s surface through the use of precise, deliberate cleaning angles at lower RPMs. In other words, these wash wheels do not “whip” vehicles clean. Instead, the

With spin rates as low as 30 RPMs, new wash-wheel technology is 2.5 times quieter than traditional equipment, making for a more enjoyable trip through the tunnel.

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RETAIL OPERATIONS

How Foam Media Has Evolved to Improve Customer Satisfaction

“fingers” of the wash media, which are constructed of a “grabbier” material, gently caress the vehicle’s surface while still removing all of the dirt and grime. Though it may sound counterintuitive, while the wash wheel is spinning slower— at rates as low as 30 RPMs—it is actually delivering a better clean because the tips of the wash-media fingers, of which there can be as many as 18,000 per wash wheel, are in constant contact with the vehicle. In fact, the slower-spinning wash media can still deliver more than 250,000 cleaning touches per wash wheel. This can create up to 10 times more vehicle touches than traditional faster-spinning soft cloths. As far as actual sound levels go, the new low-RPM wash wheels produce a decibel level of around 40, which is much quieter than standard wash wheels. For comparison, a noise level of 40 decibels is quieter than a normal conversation at three to five feet, which can range from 60 to 70 decibels.

Closed-cell foam wash media does not hold dirt, water or cleaning chemicals, which not only improves the effectiveness of the friction-wash process, but leaves the wash ﬁngers cleaner.

In addition to the winning combination of improved cleaning and reduced noise, the new wash-wheel system offers other tangible benefits for wash operators and their customers: • The shorter wash-media fingers are not prone to “lassoing” exterior vehicle components, which prevents damage to wiper blades, mirrors, door handles and antennas—and the wash fingers themselves • The closed-cell foam media does not hold water or dirt, which not only improves the effectiveness of the wash process, but leaves the wash fingers cleaner • The wash wheels have been designed to be easily removed, which results in easy maintenance and wash-media replacement with minimal downtime; the ability to quickly remove and replace torn or dirty wash media also improves the wash’s appearance and, by extension, its appeal and reputation From a marketing standpoint, there are several ways that wash operators can trumpet the vehicle-washing advantages of the new wash-wheel technology. One of the flashiest is incorporating colorful LED

“” Illuminated wash wheels can also be used to conﬁrm the driver’s washpackage selection simply by saying that the lighted wash wheels will be part of a “blue” package and then having the wash wheels feature a blue light to conﬁrm that the driver is getting what he or she paid for.

lights into the wash wheels themselves, which draws the attention of drivers. Illuminated wash wheels enhance the wash experience of the current customer, but also serve as a beacon to drivers who may be passing by the wash site. Illuminated wash wheels can also be used to confirm the driver’s washpackage selection simply by saying that the lighted wash wheels will be part of a “blue” package and then having the wash wheels feature a blue light to confirm that the driver is getting what he or she paid for. Manufacturers in the ever-evolving friction-wash industry have come up with some notable innovations over the years. The latest is the creation of wash-wheel technology that is able to perform the seemingly contradictory task of delivering a cleaner, quieter and most FMN Magazine

FuelsMarketNews.com

importantly, more enjoyable and memorable wash experience that can lead to repeat visits despite relying on lower wash-wheel RPMs. So, while traditional brush and soft-cloth friction washes still perform admirably, the new low-RPM wash wheel provides operators with another option to consider when outfitting their facilities. n READ MORE at FuelsMarketNews.com

Allen Luce Allen Luce is the Western Regional & Key Account Manager for OPW Vehicle Wash Solutions and can be reached at aluce@belangerinc.com. OPW Vehicle Wash Solutions consists of PDQ Manufacturing, Inc. and Belanger, Inc. PDQ is a preeminent provider of touch-free and friction in-bay automatic wash systems and payment terminals, while Belanger is an innovative leader in tunnel and inbay automatic wash systems. Together, they create a revolutionary single source for all vehicle-wash needs. For more information on OPW Vehicle Wash Solutions, please visit www.opwvws.com.

”

“

“Gasoline evaporating to vapor-phase gas is a big volume—520-to-1. In an

effort to resaturate itself it

builds pressure and then the hydrocarbons escape.”

Ted Tiberi

”

Arid Systems

by Keith Reid

A Case of the Vapors

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RETAIL OPERATIONS

The release of gasoline vapor has long-been considered to be an environmental and health hazard by USEPA. For example, the Clean Air Act of the 1990s required Stage II vapor recovery systems to prevent vapor during the fueling process releases in ozone non-attainment areas. Equipment was installed on the dispensing side to suck the vapors back into the storage tank. Automakers also followed suit with onboard vapor recovery systems (ORVR). The ORVR systems eventually became ubiquitous as older cars left the road. At the same time ORVR systems were having issues with certain dispenser vapor recovery technologies. In 2012 USEPA gave the states the option to discontinue Stage II if the states could prove it would not have a negative impact on air quality. This has generally proceeded with some holdouts, such as California and select non-attainment areas in other states. Which brings us to Stage I vapor recovery, which is still active nationally. This process covers fueling storage tanks from tanker trucks. Vapor is recovered using a closed-loop system where, as fuel is added, the vapor displaced in the storage tank is cycled into the truck’s tank and then removed back at the fuel terminal. This process is considered effective; however, there are some areas where the system can fail.

Vapor and Pressure Fuel tanks and the supporting fueling infrastructure are designed to handle a moderate range of higher and lower pressures. This is safeguarded by the pressure vent (P/V) relief valve on the vent riser. This valve provides resistance to both the intake and exhaust of outside air to help balance the system and should seldom activate. However, various conditions can lead to notably higher pressures and lead to vapor releases. Tank pressure shifts back and forth during the fueling process. While fuel is being sold, the tank tends to be negative. It can be neutral when the amount of fuel being sold balances the amount of expansion. And, it can go positive when the pumping slacks, allowing a volume of air ready to absorb hydrocarbons. “Gasoline evaporating to vapor-phase gas is a big volume—520-to-1,” said Ted Tiberi, founder of Arid Systems, which manufacturers vapor recovery systems. Arid makes equipment that captures vapor and returns it to the tank. “In an effort to resaturate itself, it builds pressure and then the hydrocarbons escape.” For example, vapor releases can potentially occur at high volume sites during the “cool down” period—perhaps two to four hours—after a period of heavy activity, according to Greg Young, president of Vaporless Manufacturing, Inc.

FMN Magazine

“You’re pulling a lot of air into the tank and as the volume of customers drops off after peak periods, that air sits and begins to saturate with hydrocarbon, pops the P/V valve and vents.” he said. Similarly, temperature fluctuations can come into play with Stage 1 during the fuel drop. “During different parts of the delivery we see pressure all over the place,” said Tiberi. “We think is not only the hardware being used, but the differential temperatures. Is the sun out? Is it beating on the top of the tanker truck? It’s 3 p.m. in Arizona where the tanker is heating up but the vapor coming from underground is cool. Or it’s 3 a.m. where you have the relatively cooler tanker versus the vapors coming out of the underground. There’s a whole host of dynamics at play.” As noted earlier, even some Stage II equipment can cause issues with ORVR, as the two competing technologies (ORVR drawing vapors one way into the car’s tank while Stage II tries to draw the vapor back into the tank) resulting in air being drawn back into the underground storage instead of vapor.

Driver Delivery Issues A more significant concern is delivery drivers not following proper Stage 1 procedures, either through poor training, inattention or the desire to speed up the delivery. For example, hooking up the vapor line to the storage tank first instead of the tanker releases the negative pressure in the tank and allows a significant quantity of air to enter the system. Zane Miller, fueling system consultant and owner of Testing LLC, observed 75 bulk deliveries (25 in metro Atlanta, 25 in metro Kansas City and 25 in metro St. Louis) between December 24, 2018, and January 1, 2019, as part of research into the issue. He noted that in each market only one out of the 25 deliveries observed were being made in a condition considered out of compliance due to driver errors in configuring drop and stage 1 vapor recovery connections (though not all resulted in a vapor discharge). The concerning issue was typically where a driver would vent negative pressure when connecting the Stage 1 vapor recovery hose to the tank before connecting to the delivery truck.

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RETAIL OPERATIONS

A Case of the Vapors

What Does This Mean to the Site Operator? Generally, most Stage 1 systems are regulated by having operational, approved equipment installed. According to those interviewed for the article, regulators in a handful of states including California and Colorado are showing an enhanced interest in the issue beyond this. This can include field observations to determine if releases are occurring at a site. It can also include reconsidering existing regulations on vent riser setbacks, etc. It’s also worth noting that most of the potential problems with this issue, to the extent that it exists, seem to lie with the delivery process. He noted that adding to the bypass of Stage 1 problem observed in a number of fuel delivery events was the delivering tanker compartments being intentionally opened to atmosphere, allowing increased out of dynamic balance fuel flows (drops). This can create pressure issues that not only lead to significant vapor discharge but can strain pressure limits throughout the system. This was also noted in the study Vent Pipe Emissions from Storage Tanks at Gas Stations: Implications for Setback Distances from Columbia University researchers Markus Hilpert and Bernat Adria-Mora, along with Johns Hopkins’ Ana Maria Ruleb. This study took a look at vent pipe emissions with an eye on health concerns and setback distances from sensitive populations. Ted Tiberic, also quoted in this article, provided technology solutions to assist the study. Although limited to two high-volume sites, the Hilpert study did find indications of excessive discharges that were likely related to non-compliant bulk fuel deliveries in addition to possible influences from temperature fluctuations and Stage II systems (installed at both sites) conflicting with automobiles’ ORVR systems. As the study noted: “Based on observations and interpretation of time series of the tank pressure data, it is likely that the peak vent emissions were partly due to non-compliant bulk fuel drops where the Stage I vapor recovery system either was not correctly hooked up by the delivery driver or to hardware problems with piping and/or valves.” In some cases, of course, it can also be faulty Stage 1 equipment on the truck or at the site. Solutions to this problem can start with delivery driver education. Placing signage accessible to the driver about the proper procedures and other educational efforts can educate and encourage proper unloading and attention to detail. Vaporless Manufacturing also makes a system that monitors tank pressure to track potential delivery events and sounds a visual and audio alarm to alert a driver that something is not right with the delivery. It can similarly track pressurization patterns that might indicate vapor leaks in the system.

Whatever the sources, though, the site operator can face issues. Over pressurization can involve more than just a vapor discharge through the vent riser. A vapor-porous system under excessive pressurization can lead to vapor leaking into the air well short of the riser (such as through the sump), or into the soil. Both can lead to significant problems for the tank operator including unwanted attention from regulators, expensive environmental remediation and complaints from customers, employees and neighbors.

“

Placing signage accessible to the driver about the proper procedures and other educational efforts can educate and encourage proper unloading and attention to detail.

”

If the leak is in the sump, the vapor finds a ready path to the air. This can lead to unpleasant odors and potential health concerns on the forecourt. In some cases that can also promote acidification inside the sump and corrosion issues, according to Young.

If the leak is through a fitting into the ground, the vapor can travel through the soil until it makes its way to the surface or into ground water. Young noted that this was the driver for the MTBE issue in the late 1990s. When California began exploring MTBE contamination it was not from a liquid release—they tracked it to the vapor plume that traveled through the soil and reached the water table.

There is also a financial angle to be considered. Even with a fully functional Stage 1 system, liquid gallons in the form of vapor end up going back to the terminal. Excessive vapor loss though a riser or other sources through over pressurization only adds to that volume. While gasoline is relatively cheap these days, for high volume sites those gallons can add up. Losses could be between the range of two and five gallons per thousand gallons pumped. A vapor recovery system can help return that product into the tank. n

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As most U.S. cities are in lockdown, retail fuel sales have seen a 38 percent drop in gasoline demand. Fuel margins nationally are averaging an all-time high 72.5Â˘/gal. as fuel retailers dealing with economic realities and the conditions destroying motorist consumption have no choice but to seek higher margins on very few gallons sold. On the positive side, more than half of all fuel and convenience retailers say their grocery sales have increased, according to a national survey conducted by NACS. Convenience stores traditionally sell immediate consumption itemsâ&#x20AC;&#x201D;83 percent of all products sold at a c-store are consumed within an hourâ&#x20AC;&#x201D;but they have pivoted to providing items that can be brought home.

Bottom Line: In the big scope of retail activity, fuel and convenience stores and those who own and run them can often be overlooked and their value sold short. But, when things get serious, their crucial place in society can no longer be underestimated.

at FuelsMarketNews.com

HOW VIDEO TECHNOLOGY

IS TRANSFORMING SAFETY FOR FLEETS

by Jason Palmer

Within

the commercial transportation sector, video-based safety solutions are becoming an increasingly important aspect of companiesâ&#x20AC;&#x2122; comprehensive approach to safety, as drivers and managers continue to recognize the benefits the technology can offer. Given the dangers associated with driving a commercial vehicle, it is critical for companies to invest in the best technology to protect drivers, ensure standard operating procedures are being followed, improve operational safety and secure the bottom line. Video-based safety and analytics offer the ability to improve employeesâ&#x20AC;&#x2122; driving and lower the frequency of collisions and other incidents on the road and during deliveries. As a result, companies see lower overall costs.

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WHOLESALE & FLEET OPERATIONS near-perfect records. But, with video-based safety technology, companies can use video recordings in court to exonerate drivers. Whether the cameras are road-facing, cab-facing or a 360-degree view around the vehicle, video is critical in understanding exactly what happened at the time of the incident.

THE SAFETY BENEFITS OF VIDEO TECHNOLOGY By utilizing video-based safety technology, companies can ensure safe habits among drivers. Video helps identify drivers’ risky habits, including distracted driving, too closely following the vehicle in front of them, hard braking and more. When triggered, these systems record the incident and, coupled with expert review and data analytics, companies can receive actionable insights to effectively coach their drivers to improve. By understanding the most common risks among their drivers, and prioritizing intervention based on company-speciﬁc criteria, companies can proactively correct these habits through safety training and one-on-one driver coaching sessions.

“”

SELECTING A SOLUTION PROVIDER

Video-based safety technology also helps make sure standard operating procedures are being followed, ensuring the safety of workers and the work environment. By reviewing captured video of the area surrounding the truck, managers may monitor for, and quickly intervene, to address any breaches of standard protocol. With delivery mistakes having far-reaching consequences, it is imperative that managers ensure all drivers are properly doing their job. By monitoring and conﬁrming all adherence with standard operating procedures, companies avoid disastrous accidents.

When choosing a video-based safety program, factors to consider include specific offerings, scalability and flexibility. When assessing which vendor will best fit the needs of their company, managers should consider the features offered by the program—for example, do they offer 360-degree views, extended recording and distracted driving triggers? Additionally, managers must consider if the technology is able to grow as their company does—is the platform extensible to accommodate fleet growth and employee expansion? Hardware flexibility is also important, so managers should be certain the solution can meet the company’s needs today and into the future, as operations may evolve. Further, as the technology evolves, it is important that managers consider how each solution provides updates—is it quick or will it require drivers to be off the road while hardware is replaced? Partnering with the right provider can be the difference between success and failure when it comes to adopting video-based safety.

“”

Typically, 30% of a company’s budget is

spent on collisions, violations and citations that could have been prevented.

THE FINANCIAL BENEFITS OF VIDEO TECHNOLOGY

With the dangers involved with commercial truck driving, taking precautionary measures to improve safety demonstrates the company’s commitment to its drivers and the overall safety culture of the company. Video-based safety technology allows companies to improve driver performance as well as avoid costly repercussions like nuclear verdicts, property damage and workers’ comp claims. When examining which technology provider to select, managers must ensure the solution they choose can identify and prioritize risk, support driver coaching and adherence with SOPs, and is scalable and ﬂexible. With these criteria in mind, the company will be well on the road to a safer ﬂeet. n

In addition to increasing driver safety, video technology can help companies save money and improve the bottom line. Today, nuclear verdicts and skyrocketing insurance premiums are the norm. To ensure their very survival, companies must take every measure possible to minimize risk, reduce collision frequency and improve overall safety. Typically, 30 percent1 of a company’s budget is spent on collisions, violations and citations that could have been prevented. According to the Federal Motor Carrier Safety Administration, the average cost of a truck crash resulting in zero injuries is $91,000. When injuries do occur, the average jumps to $200,000 and when a tragic fatality occurs, the average cost is $3.6 million.2

1 https://www.smartdrive.net/revising-the-roi-of-truck-safety-technologies 2 https://www.fmcsa.dot.gov/safety/good-business/safety-good-business

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Given the ROI of video-based safety programs, companies are wise to recognize the beneﬁts of adoption and prioritize this investment in ﬂeet safety to proactively protect the bottom line. By identifying risk and intervening to avoid incidents on the road, video platforms help companies avoid hefty payouts.

Jason Palmer Jason is the COO of SmartDrive Systems, a leading provider of video-based safety and transportation intelligence. As an expert in driver safety and risk mitigation, Jason helps companies and ﬂeets in a variety of industries, including fuel, identify and eliminate the riskiest driving behaviors that lead to collisions.

Debilitating legal judgements are at an all-time high and insurance premiums continue to rise—even for companies with FMN Magazine

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SIZE DOESN’T MATTER

Changing marine fuel regulations can be tough to navigate and costly to follow. MCC is your partner, providing a valuable alternative to high grade fuels and expensive scrubber systems with IMO 2020 and GPP® certi昀ed fuel additive solutions. Whatever the size of your vessel, from ship to personal watercraft, MCC has additive solutions to cover all your marine needs.

Contact MCC today at FuelAdditives@mcchemical.com to learn more about our customized fuel additive programs!

www.mcchemical.com | 877.862.2436

IMPROVING YOUR PERFORMANCE

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Marine Fuel Ch-ch-ch-ch-anges: IMO 2020 & the Marine Industry Impact As you likely know, North American marine environmental control areas (ECAs) have been in place since August 2012. The International Maritime Organization (IMO) has continued to steadily implement regulations to reduce emissions. IMO 2020 is the most recent regulation, which lowers the sulfur content of marine fuels burned outside the ECAs beginning January 1, 2020. This recent IMO change restricts the sulfur content of marine fuel burned on open waters to 0.5 wt%, a reduction from 3.5 wt%. Though some countries were already using very low sulfur fuel oil (VLSFO) prior to IMO 2020, the recent regulation changes affect economics worldwide, resulting in price changes across the globe. The new regulatory requirements in IMO 2020 apply to marine fuel sulfur content. Ship owners have options on how to comply; some have chosen to invest in capital equipment (such as scrubber systems) to reduce emissions, while others are meeting the requirements by changing fuels. Heavy fuel oils (HFOs) containing high sulfur content must be blended with lighter distillates to result in a blend that contains a maximum of 0.5 wt% sulfur. As a result of this new regulation, there have been increases in distillate and desulfurization production by marine fuel refiners. It is important to note excessive refining can alter important fuel properties, such as the fuels lubricity, stability, viscosity, and BTU content. Much of the current fueling infrastructure is suitable for VLSFO use. Careful procedures and adequate quality control (including proper fuel sampling, handling, blending operations, and diligent cleaning) are needed to keep engines running optimally. Procedures need to be strictly followed to diminish

fuel-associated problems, as failing to follow these can lead to erosion, wear and engine damage by residual fuel impurities, piston deposit formations, fuel injector or filter plugging and low engine functionality. VLSFO blends vary in physical and chemical properties. Some can be highly paraffinic in nature, increasing the risk for asphaltene precipitation during fuelmixing operations. Contaminants are commonly present in VLSFOs; these particulates require additional cleaning processes to remove them from the fuel oil, or to keep them suspended and moving through the combustion process. Due to the variability of VLFSO blends, there is a need to monitor fuel quality to meet pumping, temperature control, and other related operating standards. The transition from using heavy fuel oil to very low sulfur fuel oil in the marine industry has resulted in economic impact. The marine industry is working to better understand the variances in VLSFO blends and the operational impact of the

FMN Magazine

FuelsMarketNews.com

use of VLSFOs. Once there is a better understanding, it is almost a certainty that new fuel standards will be developed and implemented to reduce the variability of VLSFO blends. Luckily, there is a more cost-effective option: additizing VLSFOs. In lieu of purchasing expensive high-grade marine fuel or installing scrubber systems, fuel additives can be used to meet the low sulfur requirements. MCC is your partner in all things additives, with IMO 2020ready additive solutions to increase value and improve your watercraftâ&#x20AC;&#x2122;s performanceâ&#x20AC;&#x201D;regardless of size. Contact us today at fueladditives@mcchemical.com to talk more about additive solutions tailored to your business. Dr. Khaled Rashwan is the Technical Manager at MidContinental Chemical Company, Inc. (MCC). Dr. Rashwan can be reached at khaledr@mcchemical.com.

Four Mega Mistakes Petroleum Salespeople Commonly Make by John J. Kimmel

FMN Magazine

FuelsMarketNews.com

WHOLESALE & FLEET OPERATIONS

Recently, I was training a brand-new salesperson named Roger. He was to the point where he was making sales calls on his own and reporting back to me on his success. One day, he called me and said, “I just had the most embarrassing sales call of my life.” “What happened?” I asked. He replied, “After about a minute of fumbling with the conversation, the customer asked me if there was an actual reason why I called him. Since I didn’t really have an answer to his question, I told him, ‘I guess not.’ He asked me not to call him again, unless I had a reason to call and was not wasting his time.” Then Roger added, “I was so embarrassed that I panicked and just hung up on him.”

“”

If you are going to be a salesperson that your customers want to do business with respect, you must verify what they are telling you and be sure you understand.

1 2

As funny as this story may sound, it is the first of the four mega mistakes that salespeople commonly make.

“Winging” Sales Calls

Salespeople, even those who have been in the petroleum industry for many years, tend to be weak in their attention to detail and even weaker in sales call planning. Because of this, they often have no clearly identified objective when they walk through their customer’s door or pick up the phone to call. This lack of planning bleeds into every process they carry out, from prospecting to how they conduct their day. It affects how they enter orders and notes in the CRM, get samples sent into the lab and even when they return their customers’ phone calls. In the example above, Roger failed to make a call plan for the sales call he was about to make. He had no purpose or objective, other than to “sell something.” Before you ever step into an office for a sales call or pick up the phone to make one, you absolutely must know the purpose of your call, what obstacles you are likely to encounter and ways to navigate those obstacles. Failure to identify your objective will not always lead to a tragedy like the one I described, but it also will not consistently lead to sales, either.

FMN Magazine

Assuming You Understand

I cannot tell you how many times I have said to a client, “What I heard you say is…” and after reciting what I think I heard them say the customer responds with something different. Imagine the frustration level of a customer who receives a delivery of 5W-30 but is expecting 15W-40. Telling them you assumed that because their truck fleet was new and they were using the recommended oil will not make the situation better, nor will it be cheaper for your driver to go back out to the site and swap out the drum. If you are going to be a salesperson that your customers want to do business with respect, you must verify what they are telling you and be sure you understand. I have been using clarifying language for decades and I have never had a customer push back on being asked questions.Not once. Clarifying assures your customer that you are listening to them and have their bes interest at heart.

FuelsMarketNews.com

WHOLESALE & FLEET OPERATIONS

Four Mega Mistakes Petroleum Salespeople Commonly Make

“”

Failure to Reduce the Fear of Making a Mistake

Many salespeople will conduct a thirty-minute sales call and never ask their client why they are considering purchasing the product or service being discussed.

Failure to reduce the fear of making a mistake: Everyone making a purchase is afraid of something. Think about the last major purchase you made personally. I will bet that you had one or two primary concerns. Once the organization or salesperson alleviated your fear of making those critical mistakes, you moved forward and made the purchase. Many of your customer’s fears will be similar: • Will they pay too much per gallon? • Will the product meet their specifications? • Will their new brand draw as many customers as their existing one does? • Will your company deliver on time? Your job as a salesperson is to first uncover your customer’s fear. Next, if you can legitimately help your customer, you must reduce your customer’s fear of making that mistake before they will buy from you.

Misunderstanding the “Why”

This one is like number two and just as powerful. Many salespeople will conduct a thirty-minute sales call and never ask their client why they are considering purchasing the product or service being discussed. Let’s go back to the trucking customer I mentioned above. I have heard many shop managers tell me they use 15W-40 in their trucks. I have even heard them say that they drain the engines of the factory-filled 5W-30 and fill them back with the 15W-40 upon arrival. When I ask why, the typical answer is usually, “Because that is the oil we have always used here.” On more than one occasion, I have had reps let the manager know that 5W-30 will get them better fuel mileage only to have the manager reply, “How come someone didn’t tell me that!” The answer to the question “why” can completely alter your conversation and often leads to the answer to number four below, which is the most powerful of all.

FMN Magazine

If you can avoid making these four mega mistakes, it will dramatically improve your closing percentage as well as improve the longevity of your accounts. It will even help you to grow wallet share within your existing account base. Take these concepts to heart. Your accountant and your customers will be glad that you did. n FMN FRIDAY MARKET WATCH

FuelsMarketNews.com

John J. Kimmel John is the author of Selling with Power and has spoken for many state and regional petroleum marketer associations. John provides custom solutions to increase the effectiveness and proﬁtability of sales teams for petroleum marketers all over the United States. To learn more, visit www.johnjkimmel.com.

FuelsMarketNews.com

The COVID-19 pandemic has caused signiﬁcant changes in energy fuel supply and demand patterns. Although all market outlooks are contingent on many risks, the April edition of EIA’s Short-Term Energy Outlook is subject to heightened levels of uncertainty because the impacts of the coronavirus disease on energy markets are still evolving. While initial indications from “staycations” indicated an increase in gasoline demand in the U.S. this summer, analysts are now concerned that the closings of schools, working from home and cancellations of major events and gatherings will cut into on-road gasoline demand.

Bottom Line: In this COVID-19-induced price drop, there are some positive indicators for fuel consumption. Diesel demand is up signiﬁcantly because e-commerce is growing faster as people avoid shopping malls and grocery stores. Transport fuel consumption in the U.S. will increase by one million barrels/day (15 billion gallons) because of increasing truck transport driven by e-commerce. For now, the threat to fuel retailers, while not insigniﬁcant, is mitigated by high fuel margins and gasoline under $2.00/gallon, so the downstream segment of the fuel supply chain should continue to prosper until COVID-19 is in our past.

at FuelsMarketNews.com

UNDER PRESSURE:

Five Tips

to Keep Tire Pressure at Optimum Levels by Jason Miller

COMMERCIAL FUELS

””

One thing is consistent when it comes to tire maintenance. Tire inflation has been, and always will be, a top concern for fleets.

“Every shop has gauges, and many drivers do as well. But the question is, are they accurate?”

“It’s been talked about for as long as I’ve been around commercial tires and that’s close to 40 years,” said Jason Miller, Cooper Tire’s national fleet channel sales manager. “It’s always top of mind since inflation pressure not only impacts miles to removal and the safety of the truck and driver, it also affects fuel economy and retreadability. But keeping consistent inflation levels seems to be a moving target. When I’ve done yard checks with large fleets, I’ve seen the good and the bad. And, likewise with drivers. They have a huge impact since they’re supposed to check tires daily—with a gauge, not a thumper.

Jason Miller

What can be done to ensure a top-tier tire inflation program? Miller offered these tips.

“The best fleets have tire inflation well under control, with drivers that are onboard with the need for accurate pre-trip and post-trip checks, and that helps maximize tire life and keep tire costs under control. Tires are a fleet’s highest operating cost after drivers and fuel. Since quality tires that are properly maintained affect both driver satisfaction and fuel economy, inflation maintenance is a tremendous opportunity to reduce costs and improve driver retention.” FMN Magazine

Use Calibrated Gauges: “Every shop has gauges, and many drivers do as well,” said Miller. “But the question is, are they accurate? Gauges get dropped, and even if they don’t look like it, they’re sensitive pieces of equipment. I’ve tested shop gauges against a master gauge in the past and have found psi readings can be off by 2 to 15 psi. If you’re not testing each gauge and recalibrating them monthly against a master, there is a good chance you’re inflating tires to the wrong level. You should have a psi test station set up, along with master gauge in a highly visible area of the shop. Your techs and drivers need to use it. Some fleets simply have drivers swap out their gauges for a calibrated gauge once a month. You simply can’t have a good tire program if you can’t trust your gauges.”

FuelsMarketNews.com

COMMERCIAL FUELS

Start with the Chart: Cooper Tire, like most major manufacturers, provides load-inflation tables based upon Tire and Rim Association guidelines. “With a typical 6x4 legal load, there will be 34,000 pounds being carried by 8 drive tires, or 4,250 pounds per tire. Using the table, you’ll see that the drive tires can support that load at as little as 75 psi fully loaded. Yet, many fleets run a standard inflation pressure at 100 psi because, they tell us, ‘That’s what we’ve always done. It’s easy for our drivers to remember, and it gives us more margin for error if a tire leaks.’” While over inflation may be inefficient and costly, significant underinflation can be catastrophic. A blowout could occur. So, what’s the optimal pressure? Like so many things in life, the answer is, “It depends.” “Every tire has a personality,” said Miller. “Likewise, every fleet has a personality. The most cost-effective tire programs come from matching the right tire to the right application at the right inflation pressure. It takes a little time and some discipline, but the effort will pay off.” According to Miller, “We need to think differently about air pressure. The reality is, the tire doesn’t actually support the load, the air does. The tire simply contains the air. Through inflation pressure, you’re primarily trying to manage two things: the shape of the tire footprint and the amount of sidewall deflection. Overinflation can pose several problems. The biggest is premature and irregular wear since you’re not getting the optimal footprint patch to the road,” he said. “You’re riding more on the crown of the tire so part of the tread is scrubbing its way into and then out of the contact patch causing rapid and uneven wear. Next you’re compromising traction, and that really comes into play in winter. You may also see an increase in the occurrence of impact breaks since the tire sidewalls have less flex. Finally, you’re impacting fuel economy.

“I always tell fleets that they need to break the cycle and run tires at their proper inflation level. Only then can you get the true performance engineered into the tire, and that will pay you back in the form of a lower cost of ownership.” What’s the impact if you don’t follow the chart? “It’s big,” Miller said. “While operations vary significantly, running tires that are just 10 percent underinflated may cause you to remove them from service 10 percent early. At 20 percent underinflated, tread life may be reduced by as much as 25 percent.” FMN Magazine

FuelsMarketNews.com

Audit Your Inflation Levels: According to Miller, yard checks are a pain, but they’re a necessary evil. “If you’re serious about getting your tire costs in check, you really need to benchmark where you’re at with tire inflation, and identify problem areas,” he said. “Only then can you take steps to improve your program. For example, what percent of your duals—both on your tractor and trailer—have inflation pressures within 5 psi of each other? Did you know that just a 5 psi difference in inflation between duals is the equivalent of one tire having a circumference that is 5/16-inches smaller? That means during every rotation cycle, the smaller circumference tire must scuff ahead to keep up with the tire with more inflation. These tires rotate around 500 times per mile, so simple math means 500 multiplied by 5/16inches translates to 156.3-inches per mile, or 13 feet per mile. Imagine dragging a tire 13 feet every mile, under load. How many feet is that per day or per year? That illustrates clearly why you will see increased tire wear with improper pressure.”

COMMERCIAL FUELS

Five Tips to Keep Tire Pressure at Optimum Levels

Tire-Related Concerns Beyond Air Pressure: “Another area to watch is with retreads,” continued Miller. “It’s back to circumference. In some cases, fleets will get identical retreads back from their retreader, but the casings may be different. Each brand and model may have a slightly different diameter so, while two tires will look identical when you get them back from the retreader, one may be significantly taller than the other. This is why we recommend using a circumference band, good measuring tape, or have a height gauge mounted in the shop to check circumference. Otherwise you may be putting together duals that should be identical but are really mismatched in height and that will cause one tire to wear prematurely.”

””

“Another area to watch is with retreads. It’s back to circumference. In some cases, fleets will get identical retreads back from their retreader, but the casings may be different.”

Jason Miller

Incentivize Your Drivers: With today’s advanced trucks, it’s possible to gauge how well a driver works the truck— hard braking, quick starts and fuel economy can all be tracked and trends seen. “And, many fleets provide fuel bonuses for drivers when they exceed the fleet average,” said Miller. “We’ve seen progressive fleets also offer bonuses for tire wear and proper tire inflation. And why not? If the driver keeps tire inflation at the proper level and does fingertip diagnostics on each tire during pre-trip inspections, tires will have longer lives. How drivers take care of their tires can be easily tracked when the truck returns to the terminal for maintenance.”

According to Miller, if these tips are followed, you stand a solid chance of pulling the drive tires at 2/32nds and the steers at 4/32nds. “And, your casings should be in great shape for retreading,” he said. “The way to extend your budget on tires is to get the most miles, coupled with the most retreads. Proper tire selection is one key to doing that, but it’s the maintenance practices—especially proper tire inflation—that keep your tractors and trailers operating as efficiently and safely as possible.” n

FMN Magazine

FuelsMarketNews.com

Jason Miller Jason is Cooper Tire’s National Fleet Channel Sales Manager. He has worked in all aspects of the tire industry, mastering complex tire programs for some of the largest fleets in North America. A member of the Technology and Maintenance Council (TMC) of the American Trucking Associations, Miller is also a TIA Certified Tire Instructor and former ASE certified technician.

by Keith Reid

Shell Fuel Rewards Offers Commercial

DRIVERS A PERK

“”

Fuel Rewards® Pro members get the savings applied to their personal ﬁll-ups up to 20 gallons using their consumer Fuel Rewards ID.

Launched last spring, Shell’s Fuel Rewards Pro provides an interesting enhancement to the traditional fleet card universe. It basically takes the consumer-focused Fuel Rewards program (facilitated by Excentus Corporation, a PDI company) and adds a few twists to serve as both a retail loyalty enhancer and a driver retention benefit free to the fleet operator.

“Among their many challenges, fleet managers were telling us that they were struggling with retaining their best drivers,” said Michelle Liu, Driver Loyalty and Wholesaler Programs Manager for Shell Fleet Solutions, North America. “They were finding it difficult to hire good drivers and they were looking for any tool that could help them reward their drivers and make them feel like they’re being appreciated for their hard work.”

FMN Magazine

FuelsMarketNews.com

COMMERCIAL FUELS

“”

How do customers get started?

Shell has worked to directly integrate the program into WEX Fleet DriverDash, WEX’s mobile payment platform.

Visit www.FuelRewards.com/Pro or download the Fuel Rewards PRO mobile app to obtain a PRO ID.

Set a new Fuel Rewards® account or log into an existing Fuel Rewards account.

The Fuel Rewards Pro works in combination with the standard Fuel Rewards program. For the standard program, “Gold Status” members, (which has period-and quantity-based fill up requirements to achieve and maintain) offers 5 cents per gallon savings on fueling (limited to 20 gallons per purchase) which can be combined with additional rewards with affiliates such as 10 cents per gallon from dining out, 15 cents per gallon by shopping online and another 20 cents per gallon for booking a flight. Silver status knocks it down to 3 cents per gallon in addition to any other rewards. Fuel Rewards Pro members get the savings applied to their personal fill-ups up to 20 gallons using their consumer Fuel Rewards ID. These rewards stack (both with subsequent fuelings and other earned rewards), further dropping prices. Additionally, drivers who enter their Pro ID can pump beyond the previously imposed twenty-gallon limit. The savings on their personal Fuel Rewards account can add up to a significant per-gallon savings. The program is driver-focused and driven. The driver registers a Pro ID just as they would with a personal ID. The program does not track driver behavior or reporting and controls back to the fleet operator. However, it can work with existing fleet cards to provide both the driver reward component and the payment, tracking and controls components fleet operators appreciate. Taking that a step further, Shell has worked to directly integrate the program into WEX Fleet DriverDash, WEX’s mobile payment platform. This enables drivers to authorize a fuel transaction from inside their vehicles. It uses a device’s biometric capabilities to ensure security and documents the purchase electronically, creating a seamless, secure transaction. The driver can also register his or her Pro ID with the system to eliminate the added entry process. DriverDash is now available at approximately 25,000 fueling locations across the United States, including more than 13,000 Shell-branded service stations.

Use the map to ﬁnd a participating Shell station.

Drivers can also use WEX Fleet Driver Dash mobile payment to store their fuel rewards PRO ID and automatically earn PRO Rewards with each ﬁll-up of at least 10 gallons.

While the program is not fleet-driven, Liu noted that it was not uncommon for fleets to come to them for support in working the program into their operations. Shell works closely with fleet managers to provide them with communication assets to be able to spread the word about fuel rewards. It similarly provides its retailers with promotional materials, as well as promoting Shell’s fleet solutions. “We have a full marketing, sales and customer service team dedicated to fleets to help wholesalers and dealers grow,” said Liu. “In addition to Fuel Rewards Pro, we have offers like our B-to-B program where we offer Fleet Navigator card customers a rebate, and dealers and wholesalers are offering an additional rebate on top of that, so together we are partnering up to attract fleets.” n

How will customers earn and redeem Fuel Rewards® PRO Rewards?

Customer selects “Fuel Rewards” when prompted at the pump

PRO ID 12345 1 4 6

3 6

To earn Pro Rewards, customer enters their Pro ID when prompted to enter their ALT ID

FMN Magazine

Customer pays to ﬁnish the transaction and ﬁll up their work vehicle

FuelsMarketNews.com

1221 1 4 6

3 6

To redeem rewards on a personal ﬁll-up, customer enters their Personal ID

E15 E15 AND AND FLEX FLEX FUELS FUELS MIGHT MIGHT BE BE THE THE RIGHT RIGHT CALL. CALL. BUT BUT YOU YOU DON’T DON’T HAVE HAVE TO TO MAKE MAKE IT IT ALONE. ALONE.

THE USDA HAS YOUR BACK: GET IN TOUCH WITH US TODAY AND GET THE DETAILS ON NEW FEDERAL GRANTS TO HELP RETAILERS ADD FLEX FUELS. By now you should know thousands of independent fuel retailers have raked in profits selling E15 and higher blends of ethanol. But you might not know that USDA is making millions in grant money available to help you get star ted, too. Visit flexfuelfor ward.com for the specifics.

GO YOUR OWN ROAD.

FlexFuelFor ward.com

COMMERCIAL FUELS

by Keith Reid

Commercial Fueling with a Tech Twist

FMN Magazine

FuelsMarketNews.com

FMN took a brief look at San Mateo, California-based Booster Fuels back in 2016. The company, with a unique twist on mobile fueling, has continued to expand. Booster is a combination fuel retailer/mobile fueler/ â&#x20AC;&#x153;on demandâ&#x20AC;? tech company. Half of its focus is conventional, and the other half is nontraditional, taking advantage of opportunities in denser, urban environments.

COMMERCIAL FUELS

Commercial Fueling with a Tech Twist

“

The company currently has operations in

“Booster’s business model focuses on consumer and fleet parking lots, allowing Booster to keep the efficient service free from additional fees [for the employee service].”

Austin, Dallas-Fort Worth, the Los Angeles Area, Nashville, Orange County, the San Francisco Bay Area and Seattle. Deliveries are provided by small, sophisticated fueling vehicles with 1,200-gallon tanks that are maneuverable in urban environments. The first business market is aimed at lightduty commercial fleets and uses a model like most wet-hosing operations. The fleet vehicles are fueled during the downtime in the company’s lot. For an example, one landscaping company using the service has close to 200 employees, 60 commercial vehicles and more than 150 pieces of landscaping equipment. They had issues tracking the fueling process and fraud concerns, in addition to the distractions from traditional retail fueling. With Booster, its fleet vehicles and gas cans are fueled before each shift.

Tyler Raugh Booster Fuels

FMN Magazine

FuelsMarketNews.com

COMMERCIAL FUELS

Commercial Fueling with a Tech Twist

According to Booster total fuel costs remained the same and the efficiency generated some 5,000 hours of employee time for repurposing. The second business model had major employers such as Oracle, PayPal, Toyota and IBM partnering with Booster to offer an on-site fueling service as a value-added benefit to its employees. The fueling process in this model is straightforward. The employee parks the car in the corporation’s lot, accesses the app and opens the fueling door before leaving the vehicle. The app identifies the vehicle and its location. During the fueling run the Booster driver fills the tanks of the appropriate cars in the lot. Pricing depends upon the service offering. “Booster’s business model focuses on

tanker’s lightweight design doesn’t

“ ” The truck is the core component of the process. The minitanker carries 1,200 gallons of fuel—with a split bulkhead to deliver both gasoline and diesel—but is small enough to fit into a single parking space.

tear up or damage asphalt like a larger fuel truck would, noted Raugh. It has the turning radius of a Honda Civic and a forward cab arrangement for visibility, enabling Booster drivers to safely navigate in tight parking lots. The trucks are also carbonoffset and clean-air idle-certified, meaning it emits only 30g of nitrogen oxide per hour while idle. Raugh noted that each component and piece of equipment was carefully vetted and selected for speed, safety and innovation. The truck’s pump dispenses fuel at up to 10 gallons per minute (gpm). It uses a TCS 3000 for metering. Additionally, there is a 10-micron

consumer and fleet parking lots, allowing Booster to keep the

Symtec filter to capture any deposits or water in the fuel. The

efficient service free from additional fees [for the employee

housing is explosion-proof and made to regulatory standards

service],” said Tyler Raugh, a company founder who handles

to avoid any chance of sparking or starting a fire. An “Internet

sales and operations. “The financial arrangement varies by

of Things” (IoT) antenna is connected to a computer on top

location, and it is competitively priced with nearby gas stations.

of the fuel pump, which keeps track of the dispensed fuel

For fleets, Booster arranges a monthly contractual payment in

and sends transaction and other data directly to Booster’s

addition to whatever fuel Booster delivers.”

accounting team.

Booster works with local fuel refineries for its supply, then

Booster’s mini-tankers are real-time cloud connected, with a

delivers fuel to consumers with no intermediate storage. The

fully integrated OS platform. Booster’s technology team

company notes this helps protect from environmental concerns.

designed their own, cloud-native, fully integrated technology platform called Optimus. Similar to how apps add competen-

One obvious concern for those in the industry is explaining

cies to phones through mobile platforms like Android and iOS,

such a model to local regulators. While the service is traditional

the Optimus platform allows Booster to build, deploy and scale

in some obvious ways, its uniqueness can raise concerns. The

solutions directly to its trucks. For example, a predictive main-

company noted it is eager to comply with (and even exceed)

tenance app connects to the engine light and the odometer,

local regulatory rules regarding fuel safety.

sending data to the cloud for all of the trucks in real time. An auditing app reads data from the truck’s cash register, so that

“Before moving our business into any location, we work directly

as soon as a fuel-up completes, Booster’s finance team can

with city officials to be permitted to do what we do,” said Raugh.

reconcile the transaction.

“Booster complies with additional local, state and federal safety rules such as the DOT, CARB, and Weights and Measures.

The human element is equally important. Not only do Booster

Booster strives to build ongoing partnerships with regulators at

drivers have CDL C, B or A (Commercial Driver’s License), they

each level of governance.”

are also certified to transport fuel with both a Tanker Endorse-

The truck is the core component of the process. The mini-tanker

ment and a Hazmat Endorsement. Drivers also receive

carries 1,200 gallons of fuel—with a split bulkhead to deliver

intensive training from Booster as well as a short apprentice-

both gasoline and diesel—but is small enough to fit into a

ship with an experienced Booster driver before they start

single parking space. At 19,000 lbs. versus 65,000 lbs., the mini-

making deliveries. n

FMN Magazine

FuelsMarketNews.com

Thanks to the American trucking industry, there is plenty of food, water, medicine, fuel and, yes, toilet paper, in our supply chain. The empty shelves temporarily seen are simply the result of a local surge in demand as Americans rush to stock up. Shelves have quickly been restocked as retailers adjust to the whims of their local markets and their carriers have responded to the stepped-up demand. Source: Chris Spear, President and CEO American Trucking Associations

Bottom Line: While we talk of transformative industries like technology and medicine, let us not forget the original transformative industryâ&#x20AC;&#x201D;transport. Long may it prosper.

at FuelsMarketNews.com

by Brian Reynolds

Keep Your Head in the Clouds I would never be bold enough to tell somebody how to run their businessâ&#x20AC;&#x201D;especially someone that clearly has had great success. I will, however, be glad to tell you how I would run my business if I was responsible for keeping a fueling operation as part of that success.

FMN Magazine

FuelsMarketNews.com

BUSINESS OPERATIONS

“”

Information that may have been historically difficult to aggregate can very quickly and efficiently be transmitted and made available through the cloud.

With cloud computing, not only can an operator see activity and status of an individual site, an operator can see these activities at all the sites at once and in near real-time speeds!

The petroleum business in general has always amazed me. On one hand the motor fueling business is responsible for a gigantic percentage of the U.S. economy, yet it often remains one of the most technologicallystrapped industries. Old habits are hard to break, and our industry is on the precipice for making gigantic leaps of technical advancement.

One of these major advancements is with cloud computing. Cloud computing is the on-demand availability of computing power, without direct active management by the user. Our industry is a “use it up and wear it out” one. It is a big deal to replace existing pieces of hardware in a convenience store. However, many legacy pieces of technology that are now approaching 25 to 30 years of age, such as an automatic tank gauge (ATG), can be easily and inexpensively converted to a cloud system. Older and probably thought of as technically-limited point of sale (POS) devices can also be converted inexpensively to a cloud system.

“” A cloud system can take it down to the lowest common denominator of tank levels and sales all the way up to a “just in time” system that can recommend loads and delivery times with a simple push of a button.

The value of enhancing an older system is that information that may have been historically difficult to aggregate can very quickly and efficiently be transmitted and made available through the cloud. Some of the data categories that are now being routed through the cloud are: • Environmental Compliance records • Fuel Dispatch such as inventories and deliveries • Dispenser Flow Rates • Down Dispenser

Many operators use the ATGs for compliance. Older ATG systems are reliant on a site manager to “harvest” printed reports for a pass or fail summary. With cloud computing a store operator can depend on the cloud for collecting every store’s compliance records, be it ATG-created or statistical inventory reconciliation (SIR) from a certified provider. Systems can then be printed and presented further via the internet at a moment’s notice for a regulator to review.

Fuel Dispatch Old school dispatchers can always rely on a “Big Chief” tablet and No. 2 pencil for dispatching. But they can’t do it the oldfashioned way without the numbers! A cloud system can take it down to the lowest common denominator of tank levels and sales all the way up to a “just in time” system that can recommend loads and delivery times with a simple push of a button. Even older store systems can be modified easily and economically to provide numbers quickly!

Dispenser Flow Rates

• Price Sign and Dispenser Price Changes • Fuel Delivery cross drops • Water notifications • Dispenser product mapping such as blend ratio FMN Magazine

Environmental Compliance Records

FuelsMarketNews.com

The old way is for a customer to notify a store clerk that a dispenser is pumping slow. Then the clerk calls it in for repair. In a perfect world this may be a two- or threeday turnaround time. In the meantime, how much business has the store lost? One thing I have noticed over the years in

BUSINESS OPERATIONS

Keep Your Head in the Clouds

“” With a cloud system, an operator can see hundreds, if not thousands, of dispensers at once and determine at the blink of an eye which ones are inoperative.

retail management is that customers not only hold a grudge towards an individual gas pump, but they likely will never come back to the store just because of a slowflow dispenser. Cloud systems can take data from old or new POS and ATGs and predict a decline rate for changing filters. Again, an operator can see at a glance (under 5 seconds) which stores will soon need attention!

Down Dispensers For reasons I have never understood, the easiest thing to see with your eyes is that a dispenser is down, yet it remains one of our industries’ biggest problems: having a down dispenser reported from the store. With a cloud system, an operator can see hundreds, if not thousands, of dispensers at once and determine at the blink of an eye which ones are inoperative. There is absolutely nothing wrong with waking up in the morning, reaching over to the night stand, picking up your mobile device with one eye open to see if everything is okay, and then going back to sleep for another hour. Cloud computing will allow you to do this!

Price Sign and Dispenser Price Changes Electronic price signage is a truly one of the greatest innovations in our industry. For anyone who has ever used the suction cup pole and plastic numbers to change the sign, clearly this was a game changer! You wouldn’t think that you could kill someone with a plastic number, but when the wind catches one of those babies and

sends it flying, a samurai sword couldn’t do a better job lobbing off a head! For operators who are serious about ensuring that the price is changed by a manager, they should consider doing it remotely. If the POS is robust enough to change the pump and the sign, then it can easily be done via the cloud.

Fuel Cross-Drops Here is the scenario. A delivery driver puts the hose in the wrong tank and opens up the valve. Thirty seconds later— “AGHHHH wrong tank”—and in the right tank the hose goes. Nobody will ever know, right? WRONG! With a cloud system not only can a fuel delivery be evaluated for complete success, the Bill of Lading can be compared to the actual delivery to ensure a perfect delivery from the supplier as well.

Water Notifications Water in the tank, it happens. But when and how did it get there? With a cloud system and even the oldest of old ATGs, capturing this information and making an evaluation of when the water appeared can be done quickly!

FMN Magazine

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Dispenser Product Mapping Such as blend ratio—Blend ratios do get corrupted. Why give away fuel? Cloud computing systems can determine quickly if a blender is dispensing with the correct proportions. In today’s world, information can be easily obtained. If given the opportunity, I would absolutely have a cloud-based system providing me critical information, whereby I could make correct and informed decisions quickly. Besides that, you never know—one of these days we may all have to work from home (for two months)! n READ MORE

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Brian Reynolds Brian began his career working as a teenager in his familyowned 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 highvolume supermarket fueling centers in the 1990s and one of the key architects of inventing reward-based fueling loyalty in the 2000s.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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Bottom Line: While protecting your workers from the biological virus is the main priority, make sure your work-from-home employees are just as safe from the digital variety.

at FuelsMarketNews.com

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FUELS MARKET NEWS

INDUSTRY

NEWS ADD Systems Announces New Hardware for ADD eStoreScan Advanced Digital Data, Inc., has announced new scanner hardware for its ADD eStoreScan® handheld scanner. ADD eStoreScan is now available on the Unitech PA726 Android rugged handheld device. The decision to transition to the Android rugged mobile computer speaks to ADD Systems’ commitment to offering our clients the best technology to meet their needs. ADD Systems wanted to ensure the technology adoption for the end user would be as seamless as possible. Unitech helps retailers streamline time-consuming activities so they can invest more time in creating the best customer experience possible. The Unitech PA726 handheld combines an enterprise handheld computer with the modern cell phone form factor. The handheld is designed to handle heavy workloads in tough environments without compromising durability, portability, and ease of use. n

OPW Retail Fueling Launches New Virtual Trade Show OPW, a Dover company and a global leader in fluid-handling solutions, has announced the launch of its new Virtual Trade Show (www.opwglobal.com/opwretail-fueling). This unique digital experience will provide customers with

access to a series of informative videos and product demonstrations in lieu of the spring trade shows that have been cancelled or postponed. Following strict CDC (Centers for Disease Control and Prevention) recommended social distancing protocols, the demonstrations were filmed inside a fully furnished OPW trade show booth, arranged by Cincinnatibased exhibit group Exhibit Logistics. Each demonstration video sequence features a detailed overview of key product attributes, supported by animations and downloadable collateral material. n

PDI Launches a Fully Managed ERP Solution for Small to Mid-Sized Convenience Retailers PDI, a global provider of ERP, Fuel Pricing, Logistics and Marketing Cloud solutions for the convenience retail and petroleum wholesale industries, announced its PDI Enterprise Managed service for small to mid-sized convenience retailers and petroleum wholesalers. The offering combines the software management capabilities and expertise of PDI’s Managed Services team with a complete, feature-rich, industry-specific ERP solution in a hosted environment. PDI’s Managed Services team provides end-toend operational visibility to keep stores running at peak performance. This service enables operators to quickly adapt to changing customer expectations and business needs. PDI Enterprise FMN Magazine

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Managed includes ERP software, hosting services, managed services and the handheld scanner. n

WEX Expands LongStanding Partnership with Sinclair Oil WEX, a leading financial technology service provider, and Sinclair Oil, a Wyoming-based refinery operator that markets fuel in 24 states, announced they have expanded their 15-year partnership. The expansion of this relationship reinforces the benefit and confidence in the collaboration and allows WEX to provide added value to Sinclair customers through enhanced products and technology, positioning both companies for further growth. WEX currently supports the Sinclair Fleet Track Card, which offers fleet managers automatic accounting, reports and powerful tools for saving. The fuel card is accepted at every major U.S. fuel station, as well as 45,000 service locations across the country. It provides security features to help prevent unauthorized use and allows fleet managers to put guardrails on spending based on product type, dollar amount, time of day and more. n

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INDUSTRY NEWS

Perry Paganelli Appointed Vice President, European Sales for CAF Outdoor Cleaning CAF Outdoor Cleaning announces that Perry Paganelli is returning to CAF as the Vice President, European Sales. Paganelli will play a key role as CAF continues to expand its position as the leader in forecourt and convenience store cleaning technology across Europe and beyond. Paganelli returns to CAF after six years with PCM Services as the VP of Operations and Parking Lot Services. Prior to Perry’s last stretch with CAF, he accrued 11 years of sales management experience at OPW Fueling Components, a Dover Company. Paganelli also brings multiple years of experience in national sales management roles in the petroleum industry—including sales management and engineering positions with Wayne Division and Mobil Oil Corporation. Paganelli will lead CAF’s sales team as they continue to roll-out their newest cleaning programs in Europe with a dedicated product lineup that includes EXIMO, FORO, ORUS, OTIS, REACT, and PROTERO. n

Western Global Introduces TransCube Cab Series Mobile Refueler Western Global, a leading provider of portable tanks and dispensing equipment for the storage and handling of fuels, lubricants and other fluids, introduces the TransCube Cab mobile refueler for increased uptime, safety and security on jobsites. The TransCube Cab is mounted to a U.S. DOT-approved galvanized trailer and is transportable when full of fuel. The tank is double-walled and fully contained to ensure the safest and most environmental storage and transfer of fuel. The TransCube Cab mobile refueler helps eliminate unnecessary downtime on jobsites that can be associated with waiting for fuel delivery. Customers can opt for on-site fuel with the mobile refueler to help take control of their fuel

supply. This safe and reliable solution can be used at any location that requires refueling of construction or auxiliary equipment. n

giving c-store operators the ability to generate profit and an opportunity to offset the traditional cost of business music licensing. n

GetUpside Platform to Launch at More Than 5,000 Valero Branded Locations Nationwide

Mansfield Energy Launches Mansfield On Demand

GetUpside has partnered with Valero to bring the profit-maximizing platform to Valero branded fuel stations and independently operated convenience stores (c-stores) nationwide, which includes more than 5,000 locations. This agreement makes GetUpside available to more than 27,000 stations and c-stores across the United States. GetUpside’s machine learning platform personalizes promotions to bring customers to the pump and then into the convenience store, increasing profits for merchants and proving it on every transaction. There are no upfront costs and merchants don’t have to invest in any new point of sale systems or software. Cash back offers are delivered through the GetUpside mobile app, profitably incentivizing new customers to visit and existing customers to visit more often. With GetUpside, merchants have an opportunity to drive customers into the c-store. n

Vibenomics Launches Convenience Store Audio Out-of-Home Ad Marketplace Vibenomics, provider of custom streaming radio stations for retailers, announced the launch of a Convenience Store Audio Out-of-Home Advertising Marketplace that will generate new revenue for participating stores and help shopper marketers target customers in-store with a new form of retail media. The Marketplace launches with 4,000 convenience retail locations in the U.S. across 48 states and by year’s end, will grow to more than 9,000 stores. The C-Store Audio OOH Ad Market provides a share of revenue to convenience stores for each campaign that runs in their locations while relieving the cost of selling and managing ads, which is handled entirely by Vibenomics, FMN Magazine

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Mansfield Energy announced the launch of Mansfield On Demand, the industry’s easiest new fuel purchasing program. Mansfield On Demand allows customers of all sizes to purchase fuel with or without a contract, anywhere across the United States and Canada. To reinforce the program, Mansfield is launching online ordering via Mansfield’s customer portal FuelNet, which is undergoing significant upgrades in 2020. For customers buying fuel on a contract, Mansfield On Demand delivers a scalable way to procure remaining non-contract gallons. Mansfield On Demand customers will have access to the innovative tools which have differentiated Mansfield Energy for decades, including FuelNet, Risk Management and Hedging, Inventory Management and more. n

Computrol Expands Its Suite of Bulk Liquid Management Solutions and Announces New Company Name Computrol announced it has changed its operating name to Computrol Systems (formerly Computrol Fuel Systems). Founded nearly 40 years ago to authorize, record, and control the dispensing of fuel, Computrol’s full suite of dispensing and management solutions has grown in sophistication. Computrol solutions now manage not only standard fuels but alternatives such as CNG and LNG, as well as additives such as DEF and glycol, and all grades of water. Computrol’s flagship product, Fleet, has been designed for small to medium operations. Its latest solution, Simcom, is for enterprises. Simcom is a turnkey solution that provides robust security, management reporting, and predictive analysis to

INDUSTRY NEWS control costs and manage the dispensing of mission-critical fuels, water, liquids, and gases—real-time. n

CMI, CipherLab, and Citizen Bring More to the Store Floor CMI Solutions, Inc, a founding member of CONEXXUS and leading provider of software applications and services for convenience store and wholesale fuel marketers, is pleased to announce that its partnered with CipherLab and Citizen to provide customers with tighter inventory control and greater mobility. Combining CMI Solutions selling PB3™ item-level inventory features with CipherLab RK25 Android-based handheld scanners, c-store operators can ensure optimum tracking and processing of everything they buy and sell down to the SKU. Adding Citizen CMP-25L mobile printers will help maximize productivity by saving your store associates time and legwork by giving them the ability to print shelf labels, item tags, markdown labels, and sales receipts on the spot. n

Sheetz Selects StorMagic to Modernize and Optimize In-store Computer Systems StorMagic®, simplifying storage at the edge, announced that Sheetz, one of America’s fastest growing family-owned and operated convenience retailers, is standardizing on StorMagic SvSAN software. SvSAN was chosen to simplify the underlying infrastructure and management of many business-level applications including in-store system orchestration, credit processing, the MySheetz Card® loyalty program and Sheetz’s proprietary kitchen management application suite. Each store contains a two-node cluster comprised of Dell servers, VMware vSphere hypervisors and SvSAN Standard Edition. SvSAN is ideal for retailers like Sheetz who want to process and manage data locally at hundreds or thousands of smaller sites. n

VP Racing Fuels Official Fuel of Factory Connection Racing VP Racing Fuels, Inc., a leader in performance fuels, lubricants, and additives, has just signed a multi-year deal to become the official fuel supplier to Factory Connection Racing/GEICO Honda for their 250cc Supercross/Motocross program. Factory Connection Racing has been a satellite race team for American Honda since 1998 and the official 125cc, then 250cc team for American Honda since 2001. Race wins in both classes in AMA Supercross and AMA Pro Motocross have led to nine regional 250 Supercross titles and two 250 National Motocross Championships on Honda motorcycles. n

Pilot Flying J Reveals New Corporate Name: Pilot Company Pilot Flying J announced today the company will transition to a new corporate name as Pilot Company. The introduction of Pilot Company signals a milestone for the business and sets the stage for future growth. Pilot Company will serve as an umbrella that captures the total portfolio of the business as it continues to expand its retail and energy operations. Pilot Company will create synergy across the company’s growing family of brands and services. This update also helps team members who work across the company’s expanding number of travel center brands and energy division to operate as one team working together to achieve success. The company will introduce a new logo with a nod to the company’s legacy. It will symbolize the first Pilot gas station, recognizing the significance of its strong history as the company evolves moving forward. n

Veeder-Root Announces Dave Coombe, President Veeder-Root, a leading provider of fuel management technology, announced Dave Coombe as president effective January 1, 2020. In this role, Coombe will FMN Magazine

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lead the global Veeder-Root business to accelerate development of integrated site solutions serving the needs of distributor partners and end customers around the world. As Veeder-Root works to unlock business insights for customers in the retail fueling and convenience market, Coombe’s deep background and knowledge of the industry will propel the company forward on that transformational journey. “Dave’s industry knowledge, history of process-driven continuous improvement, and track-record of results make him a proven leader within our business,” said Aaron Saak, President of Gilbarco VeederRoot. “He is an ideal choice to lead Veeder-Root in this exciting time of transformation.” Coombe joins Veeder-Root after more than 15 years with the Gilbarco VeederRoot organization.n

BP Launches New U.S. Consumer Loyalty Program BP recently unveiled a new consumer loyalty program, called BPme Rewards, and rolled it out to participating BP and Amoco retail stations nationwide. Exclusively available in the BPme app, consumers are now able to complete their fueling transaction directly through a mobile device, so they can avoid swiping a credit card or using the pin pad. The app also combines all fuel rewards into a single place so it’s easy to track, receive additional savings, and automatically apply rewards to purchases. BPme app users save 5 cents on every gallon each time they fill up at participating BP and Amoco stations during the first month of use. Those who spend $100 on fuel each calendar month will continue to automatically get 5 cents off every gallon with no gallon limitations. In addition, new bonuses and in-app promotions will give consumers the opportunity to save even more on their fuel purchases. n

FMN FRIDAY MARKET WATCH

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What Does That Mean? Test Your FMN Acumen The list below represents acronyms used in this issue of Fuels Market News. AMA

American Motorcyclist Association

API

American Petroleum Institute

ATA

American Trucking Associations

ATG

Automatic Tank Gauge

CDC

Centers for Disease Control and Prevention

CFR

Code of Federal Regulations

CNG

Compressed Natural Gas

CRM

Customer Relationship Management

DEF

Diesel Exhaust Fluid

DOT

Department of Transportation

ECA

Environmental Control Area

EIA

U.S. Energy Information Administration

EMV

EuroPay, Mastercard, Visa

EPA

U.S. Environmental Protection Agency

EPS

Electronic Payment System

ERP

Enterprise Resource Planning

FMCSA

Federal Motor Carrier Safety Administration

GPM

Gallons Per Minute

HFO

Heavy Fuel Oil

IMO

International Marine Organization

IoT

Internet of Things

LNG

Liqueﬁed Natural Gas

mmbpd

Million Barrels Per Day

MSC

Maximum Sustained Capacity

Metric Ton or Tonnes

NACS

National Association of Convenience Stores

American Coalition for Ethanol......................... 44

NFPA

National Fire Protection Association

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

OPEC

Organization of Petroleum Exporting Countries

CM Technologies.................................... Back Cover

ORVR

Onboard Vapor Recovery Systems

Cummins & White, LLP.........................................19

PCI

Payment Card Industry

POS

Point of Sale

PSI

Pounds per Square Inch

ROI

Return on Investment

RPM

Revolutions Per Minute

OPW Retail Fueling......................Inside Back Cover

SIR

Statistical Inventory Reconciliation

SkyBitz Petroleum Logistics....... Inside Front Cover

SKU

Stock Keeping Unit

SOP

Standard Operating Procedure

TCP/IP

Transmission Control Protocol/Internet Protocol

TMC

Technology and Maintenance Council

Underwriters’ Laboratories

USEPA

See “EPA”

USGS

United States Geological Survey

VLSFO

Very Low Sulfur Fuel Oil

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PAGE

ADD Systems........................................................... 9

MidContinental Chemical Company, Inc. .............................................. 32 – 33 North American Bancard.................................... 54

Source North America Corporation........................................................... 12

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