Fuels Market News Winter 2025

WHAT THE ELECTION MEANS

The new administration will bring big changes to EV policies and domestic energy production.

Biofuels Insights The economics of crop-based fuel In the Lead Lonnie McQuirter

A Shift in Focus

Here’s what might be in the works for energy policy under the Trump administration.

In The Lead: Lonnie McQuirter

With the right effort and focus, you can run a small business in some very big ways.

Insights Into Biofuels

A new report from TEI provides an overview of the economics of U.S. crop-based fuel production.

Make Your Station Shine

Some recommended practices for gas station lighting design. 20 Brand in Focus: Citgo

A look at Citgo’s current initiatives and expectations for 2025.

Ai, Ai, Ai...

If AI is the answer, what is the question?

COMMERCIAL FUELS

26 An Ounce of Preventive Maintenance

A preventive maintenance schedule keeps drivers on the road—and costs down.

FUEL MARKETERS

Don’t Fall Behind the Times

What made your grandfather’s business grow is not what will make yours grow.

Charting a Sustainable Course for Aviation

From new studies to feedstocks, here are the latest technical advances in sustainable aviation fuels.

We Need to Seriously Consider Our Energy Policy

So, another presidential election cycle has come to pass, and we explore the energy policy ramifications of the results in this issue. Both candidates had a solid focus on energy. President Trump’s first term featured an “all of the above” energy policy that deemphasized carbon reduction and focused on leveraging domestic fossil fuels. His current campaign strongly signals a return to that policy.

The Biden administration was focused on carbon reduction, with many of its goals being achieved in the Inflation Reduction Act of 2022. A central point of the push seems to be practically a full conversion to electric power, not just for transportation but also for home heat and cooking.

Some commentators have cited Trump’s solid win as a mandate election on a variety of issues. Perhaps that’s the case, perhaps not. But you can’t make that claim about energy policy specifically. It should be a mandate issue, but the U.S. public doesn’t seem to be as invested in the issue as the candidates. The policies being pushed are abstractions that are down the road—yet a lot of that road is starting to disappear in the rear-view mirror.

Contrary to the talking point, there is no single consensus on climate change, even among those on each side of the issue. It is fully politicized on both sides and has become a vehicle for a range of other social policies and special interests that convolute any serious, neutral discussion.

So far, the preferred carbon reduction prescription being promoted as mainstream involves net-zero carbon with virtually 100% renewable inputs—there is no room for fossil fuels. Frankly, there seems to be no room for combustion using any liquid fuel, regardless of its reduced carbon content. Natural gas is too dirty, yet

fusion energy is, as always, “ten years away” and the strongest proponents of net-zero carbon have historically had little support for nuclear power.

Aviation (as also covered in this issue) only accounts for 2.4% of global total carbon emissions but must be served by sustainable aviation fuels. This transport sector is integral to modern life and the world’s economy, but how fragile is it to any significant disruption?

On the maritime front, both bio and renewable fuels are similarly seen as too carbon intensive. Shipping is the core infrastructure for the world economy, with roughly 11 billion tons of goods transported each year. Currently, likely alternatives like ammonia powerplants are barely out of the laboratory phase of development. What happens to our quality of life if we end up breaking global commerce?

Electricity is seen as the solution for transportation, home heating and cooking (and a bunch of other applications). The goal is to power this completely through renewables. Is that possible? And if so, at what cost?

We do need to have a real discussion on these issues. There are other paths to carbon reduction or climate impact remediation that might be more than acceptable, but only if we are willing to explore those options.

Keith Reid is the editor-in-chief of Fuels Market News. He can be reached at kreid@fmnweb.com.

EDITORIAL

Keith Reid Editor-in-Chief (847) 630-4760; kreid@fmnweb.com

Ben Nussbaum

Editorial Director (703) 518-4248; bnussbaum@convenience.org

Leah Ash

Editor/Writer (703) 518-4281; lash@convenience.org

CONTRIBUTORS

Justin Clary, John Eichberger, John Kimmel, Keith Krebill, Ivy Lu, Dr. Vikram Mittal, Joe O’Brien, Dr. Raj Shah, Roy Strasburger

DESIGN

MX

www.themxgroup.com Cover image: JTSorrell/Getty Images

ADVERTISING

Ted Asprooth (847) 222-3006; tasprooth@convenience.org

PUBLISHING

Stephanie Sikorski Publisher (703) 518-4231; ssikorski@convenience.org

Nancy Pappas Marketing Director (703) 518-4290; npappas@convenience.org

Logan Dion Digital Ad and Media Trafficker (703) 864-3600; production@convenience.org

EDITORIAL COUNCIL

RETAILER/MARKETER MEMBERS

Mark Fitz, president, Star Oilco; Derek Gaskins, chief marketing officer, Yesway; Brian Renaud, director of retail fuel pricing and analytics, Sheetz; Scott Minton, director of business development, OnCue Marketing

VENDOR/SUPPLIER MEMBERS

Regina Balistreri, director of marketing, ADD Systems; Joe O’Brien, vice president of marketing, Source North America Corporation; Kaylie Scoles, marketing director, RDM Industrial Electronics Inc.; Ed Kammerer, director of marketing and global product strategy, OPW Retail Fueling Fuels Market News Magazine is published quarterly by the National Association of Convenience Stores (NACS), Alexandria, Virginia, USA.

Subscription Requests: circulation@fmnweb.com

POSTMASTER: Send address changes to Fuels Market News Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA.

Contents © 2024 by the National Association of Convenience Stores. Periodicals postage paid at Alexandria, VA, and additional mailing offices.

1600 Duke Street, Alexandria, VA, 22314-2792

PUBLISHED BY

Meet the 2025 FMN Editorial Council

Fuels Market News welcomes the 2024 Editorial Council, which will provide insights and ideas to the FMN editorial team to help expand the quality of our publications and consider innovative developments for the brand. The council consists of a blend of marketers/retailers and supplier/vendors. Here are the 2025 members.

RETAILER/MARKETER MEMBERS

Mark Fitz, president Star Oilco

Star Oilco is a Portland, Oregonbased petroleum company that was founded in 1936. It is one of the largest distributors of biodiesel to both retail and commercial customers in the Portland area. Every diesel engine in the company’s fleet runs on biodiesel. Star Oilco also provides cardlock fuel services through Pacific Pride, as well as on-site and bulk delivery of motor and heating fuels. With over 40 years of experience in cardlock systems, Star Oilco has been providing fuel cardlock services since before computer-aided cardlock security was even an option. It later pioneered commercial cardlock security via software options. In Oregon and Washington, heating oil is diesel fuel. In these states, the allowance for pollutants in the fuel is more flexible for heating and boiler fuels. Star Oilco is committed to only delivering the cleanest, most advanced fuel possible: ultra-low sulfur diesel.

Derek

Gaskins,

chief marketing officer, Yesway

Yesway, a chain of convenience stores with locations in Iowa, Kansas, Texas, Missouri, Oklahoma, Wyoming, Nebraska, South Dakota and New Mexico, including the Allsup’s Convenience Stores

chain, is known for its world-famous burritos. The Fort Worth, Texas-based company is committed to providing customers with a terrific shopping experience by making their lives easier and the day a bit more pleasant. With its fleet management card program, the customer can control all of the vehicle-related expenses in one convenient and flexible program. The fleet operator decides which purchases to allow and the exceptions reported. The result is a fuel card program that empowers both the fleet operator and the drivers. On the retail side, the Yesway Rewards program rewards its most loyal customers. They can use the Rewards card in stores and at the pump to earn points.

Scott Minton, director of business development, OnCue Marketing Stillwater, Oklahomabased OnCue Marketing (operator of OnCue Express) was founded in 1966.

Today OnCue has more than 75 locations and over 1,500 employees throughout Oklahoma and Kansas.

The OnCue mission is “to better the lives of those we serve through innovation, exceptional customer experiences, and invested team members.”

Store offers include foodservice, from savory snacks to full meals. Grill On the Go provides fast and convenient fresh food. OnCue’s roller grill offers cooked brats, hot dogs, sausages and Tornadoes.

The OnCue mobile app allows the customer to redeem offers, rewards and more.

OnCue promotes the quality of its Top Tier Phillips 66 gasoline. Top Tier has three times more detergent additive than the minimum required by the EPA. Top automakers recommend that their vehicles be filled with Top Tier Gasoline, and OnCue’s gasoline exceeds their requirements.

On the ethanol side, OnCue offers ethanol-free (which is popular in the region) as well as ethanol-blended gasolines up to E85. It pays equal attention to its diesel product, with an emphasis on its winter performance. OnCue starts winterizing its diesel early in the season when temperatures are approaching 32°F to offer more protection.

The company operates EV charging at six locations, all Level 3 fast chargers, and has explored a range of approaches to servicing this market. OnCue continues to evaluate new locations for additional EV chargers. All OnCue EV charging stations include CHAdeMO and SAE Combo (CCS) ports.

In addition, OnCue offers compressed natural gas (CNG) at select locations.

VENDOR/SUPPLIER MEMBERS

Regina Balistreri, director of marketing,

ADD Systems

Since 1973, ADD Systems has been a leading provider of back office and mobile software for companies in the commercial bulk fuels, heating oil, propane, HVAC, wholesale petroleum, lubricants distribution and convenience store industries. ADD’s software

solutions improve clients’ interactions with their customers and bring efficiency, ease of use and greater profits to their organizations. In addition to its software, ADD offers full-service IT support, including cloud hosting, networking, firewall setup and more, with an overall emphasis on security. ADD’s on-site and remote training is tailored to the specific needs of each individual client. Additionally, ADD clients are welcomed into a strong community of users through its ADD User Group, a self-directed, ADD-supported group of users who assist each other and influence ADD product development. ADD Systems is a family business with family values: be honest, be fair and treat others as you would like to be treated.

Michael Munz, marketing manager at Petrosoft

Petrosoft’s founder is a retail operator and engineer who initially developed a cloud-based back-office software solution in 2002. Today, Petrosoft provides a back-office management platform, popular software integration options, specialty retail software, hardware and administrative office services.

These solutions are designed to take advantage of advances in technology, address changes in consumer demand, and enable seamless connections within today’s retail ecosystem. The company’s technology is positioned to deliver a measurable return on investment (ROI) to retailers since it is focused on where sales and profits are realized within day-to-day operations.

The company continually strives to create innovative solutions, enabling retail operators to manage their on-site and back-office operations

more efficiently. Retailers can use these solutions to decrease risk, leverage legacy data and systems, and to optimize inventory, productivity, sales, profits and margins.

From its headquarters in Pittsburgh, Pennsylvania, the company supports its POS, foodservice, fuel management and back-office product lines, as well as its integration with industry-leading technology partners. The company offers a full menu of services along with flexible training options, such as on-site, classroom, online and on-demand sessions.

Joe O’Brien, vice president of marketing, Source North America Corporation

Source North America Corporation is one of the largest stocking distributors in the U.S., with 14 facilities that combine to comprise more than 300,000 square feet of warehouse space across the country, anchored by a central warehouse in suburban Chicago. Source specializes in the sale of equipment, parts and materials for the construction and maintenance of gas stations, convenience stores and petroleum and chemical handling facilities. Since its founding in 1979, Source has provided its customers with innovative product solutions that include: POS and fuel management; piping and containment systems; storage tanks and equipment; canopy lighting and submersible pumps.

Ed Kammerer, director of marketing and global product strategy,

OPW Retail Fueling

OPW Retail Fueling makes aboveground

and belowground fuel-handling products for both conventional, vapor-recovery and clean energy applications in the retail and commercial fuel markets. OPW Retail Fueling is part of OPW, a leading equipment manufacturer in the retail fueling, clean energy, fluid-handling and vehicle wash industries. OPW has manufacturing operations in North America, Europe, Latin America and Asia Pacific, with sales offices around the world. OPW is part of Dover Corporation.

Kaylie Scoles, marketing director, RDM Industrial Electronics Inc.

RDM is a premier U.S. manufacturer of the wired Classic and Performance Series intercoms. RDM also manufactures speakers, call boxes and accessories. RDM additionally manufactures Defender One® pump security products, patented to stop a transaction in progress and deactivate a breached fuel dispenser. Retrofit alarm kits are available for new and existing fuel dispensers. The company is also a leading remanufacturer of petroleum electronic equipment. RDM specializes in circuit boards, intercoms, displays, printers, card readers, motors, keypads and overlays, POS systems, consoles, tank monitors and probes with new replacement products available. RDM has five fully stocked locations in Colorado, Florida, Indiana, North Carolina and Texas. RDM employs only degreed technicians and engineers and offers free technical support and training.

Register for the NACS State of the Industry Summit

The NACS State of the Industry (SOI) Summit will take place April 8-10 in Dallas, Texas, and registration is now open. The two-day event will dive into the latest industry data on financial, operational, categorical, regional market and consumer trends in convenience, bringing insights for how to use the data to your advantage.

Attendees will not only get a first look at the data before the annual SOI Report is released in June, but will also learn how to benchmark their business against others in the industry and in their region, hear about the latest industry-defining trends and how to get ahead of them, and identify the changes in shopper behavior that

impact merchandising, dayparts and product discovery.

Industry experts will speak on topics ranging from overall economic outlooks, in-store performance insights, fuel demand and trends, consumer behavior and evolving shopper attitudes, financial and operational insights, and more during sessions held over two days.

The Summit delivers exceptional, precise and actionable insights that empower you to navigate the fuel and convenience industry with confidence and that facilitate strategic decision making.

For more information and to register, visit convenience.org/events/SOI

The Technology Solutions Center at the SOI Summit features 15 technology businesses with solutions specialized to the convenience industry. The Center will be available to SOI Summit attendees during networking meals, session breaks and evening receptions. If you are interested in exhibiting at the 2025 NACS SOI Summit Technology Solutions Center, please contact Chris Wise at cwise@convenience.org.

REPORT HIGHLIGHT: Transportation Energy Institute Report Evaluates Viability of E-Fuels

The report assesses the possibility of commercially deploying synthetic fuels.

The Transportation Energy Institute released the report “E-fuels: Evaluating the Viability of Commercially Deploying E-fuels in Road Transport,” which evaluates the viability and emissions reduction potential of e-fuels, or synthetic fuels, in the United States.

The report evaluates the viability of e-fuels based on their current technical suitability, emission reduction potential, scalability and economic competitiveness, as well as how this could change by 2040. It focuses on e-fuels’ potential contribution to the sustainable transition of the road sector and other transport energy sectors.

Some key points that the report covers include:

• Why e-fuels are an important option in the efforts to reduce emissions—they are considered drop-in fuels and can be used in the market without the modification of vehicles or equipment.

• How e-fuels can support GHG emission reductions.

• The current policy landscape surrounding e-fuels, and how that can affect price.

To contribute meaningfully to decarbonization across the transport sector, e-fuels will have to become commercially available and be deployed at large scale. This will depend on technical progress, feedstock availability in particular locations, availability of funding, strong policy support and the speed in which other transport decarbonization options ramp up.

MARCH

NACS Day on the Hill

March 10-12

Washington, D.C.

NACS Human Resources Forum

March 24-26

Nashville, TN

APRIL

NACS Food Safety Forum

April 8

Dallas, TX

NACS State of the Industry Summit

April 8-10

Dallas, TX

MAY

NACS Leadership for Success

May 12-16

Hershey, PA

NACS Convenience Summit Europe

May 27-29

Copenhagen

OCTOBER

NACS Show

October 14-17

Chicago, IL

A Centralized Approach to Your Future

Embarcadero takes care of the things that keep you up at night.

At Embarcadero, we understand that for business owners—getting comprehensive financial help can be a time-consuming, frustrating and expensive experience. Worse yet, guidance from the CPA, lawyer and financial advisor can often be at odds, and struggling to reconcile that disparate advice often results in doing nothing.

We believe that easy to understand, comprehensive financial management and a professional, personalized level of service shouldn’t be reserved for just the ultra-wealthy. To that end, we strive to address our clients’ wide-ranging financial needs spanning areas such as investment strategy and wealth management, tax and estate planning, succession planning and governance, risk management and more.

Embarcadero’s accessible multi-family office is perfectly positioned to provide clients with a centralized team of trusted professionals who have over 50 years of collective experience. Our focus is on small-to mid-size business owners with a net worth of $5m-$15m, and we pride ourselves on our longstanding relationships built on integrity, trust and discretion. As the size and complexity of our clients’ wealth

grows, we are able to comfortably cater to their expanding needs.

Five reasons Embarcadero should be your trusted partner

1. We have experience working with friends and family in the fuels retail and franchisee space, and therefore have an excellent understanding of the challenges and priorities that small, independent gas station owner operators face on a daily basis.

2. Business owners in this space have enough to worry about, so we take care of the things that keep them up at night. Our comprehensive suite of both wealth and lifestyle services covers a wide range of key priority areas, namely:

l Tailored Investment Strategies: Whether for the single owner, the family management team or the corporate 401(k) plan. We are able to craft personalized plans that align with our clients’ financial goals and aim to support the growth and stability of their wealth over time.

l Comprehensive Estate & Retirement Planning: We are able to work with clients to create effective wills and trusts to ensure our clients’ legacies are preserved and transferred smoothly to the next generation.

l Effective Tax Planning: We can help our clients reduce their tax liabilities with strategic tax planning, so they can keep more of their hard-earned money working for them.

l Governance and Succession Planning: Our governance team can help ensure family harmony and a smooth transition of wealth with our various governance structures and succession plans.

l Risk Management: Protecting your assets and your family and business’ future with our thorough risk assessment and insurance solutions will help assure that when the worst happens, you are prepared and ready to face the challenge.

l Financial Education: We can empower your family with financial literacy, preparing the next generation to manage and grow the family wealth.

l Concierge Services: From managing your properties, to handling everyday administrative tasks, we can take care of the details so you can focus on what matters most.

3. Time is a precious commodity and business owners do not have the bandwidth to find, review and manage multiple experts to take care of their business and/or personal financial needs. Embarcadero’s fully centralized in-house professionals have 50+ years of experience between them, and

are positioned to advise and assist wherever needed.

4. Located in both Northern and Southern California, Embarcadero professionals operate in almost every state. We are agile and responsive, able to work comfortably across multiple time zones and we often travel to our clients as and when needed.

5. Unlike most large financial firms, Embarcadero’s Accessible Multi-Family Office’s boutique team structure doesn’t move clients around to multiple advisors. We find this kind of business practice frustrating and counterproductive to building strong, long-term trustworthy relationships. Clients are assigned to a single advisor who is their key point of contact on all matters. We get the job done for our clients without giving them the run-around. Discretion, trust and the understanding of your unique situation that comes from longstanding relationships are of paramount importance to us.

For more information contact Parker Austin, Embarcadero’s Chief Executive Officer, at: 415-6234515 or Parker@TheEmbarc.com. Visit the website at www.embarcaderocapitaladvisors.com.

The Grand Tour Ends

Are today’s cars still interesting to drivers?

BY JOHN EICHBERGER

The title is not a metaphor—the car expedition series called “The Grand Tour” and featuring Jeremy Clarkson, James May and Richard Hammond has aired its final episode. As the series fades away, it raises a lot of questions for me. Why did this dynamic trio survive hosting car shows (their first was “Top Gear”) for more than 20 years, and why has it come to an end?

There are a lot of reasons that have been discussed in interviews, many of them fully legit (aging hosts, limited new territories to visit, other endeavors, desire to quit on their own terms, etc.). But if you watch the final episode, “One for the Road,” the hosts provide additional insights. On many occasions in the episode, the trio said that new vehicles are just not as interesting or fun as the ones they have been driving for the past two decades. Is this true?

Much has been written about the lost love of the automobile and the decline of the car culture that really exploded in the 1950s and 1960s in the United States. Some point to the fact that many kids seem to not aspire to get their driver’s license at 16—rather than dream about the car they want to own, they seem

more focused on the newest tech product they might acquire. According to a Washington Post article from February 2023, in 2021 only 25% of 16-year-olds and 42% of 17-year-olds possessed a driver’s license compared with 43% and 62% in 1997, respectively.

The article continued to point to potential causal factors for this drop in driving among teenagers, suggesting a fear of accidents, cost of insurance, concerns about the environment and access to transit and ride apps as just a few. The article also mentions that young people today can get together online and the need to go see someone in person has reduced the need to drive.

Perhaps all of this is true about younger people, but I wonder if what the television hosts said might also be true—are vehicles becoming boring? Are cars becoming simply commodities to move people from point A to point B without personality or attention to style and form? Do they not inspire a desire to drive as they once did? They apparently no longer represent the access to freedom they once did, if we accept the premise that getting together online is as valuable as physical proximity.

Our three venerable hosts debuted on “Top Gear” in 2002. Was the vehicle market of that era so different from what we have today? Well, according to sales data in the United States, not really. Among the top 15 models sold in 2004 and in 2023, there is some variation but not significant. Pickups still dominate the top five models and

crossovers have replaced the sedans that once occupied those positions, but other than some models dropping out (or being eliminated from production completely) and a couple new ones entering the ranks (most notably the Tesla Model Y and Model 3), the type of vehicles being sold today are relatively the same as those sold nearly 20 years ago. Maybe by 2004 the era of special vehicles had already faded …

That said, today’s vehicles, while they may be the same model, are not the same vehicle. They are dominated by computer-based controls and loaded with modern conveniences demanded by consumers. In essence, today’s vehicles are more like rolling computers than anything else. In my observation, drivers seem to be more concerned about staying connected while driving rather than viewing time behind the wheel as an opportunity to escape. If their phone is not integrated with the vehicle’s user interface and constantly connected to the Internet, they cannot enjoy the drive.

Earlier this year, NACS and TEI joined with Bold Decisions and conducted a national survey of 1,200 Americans. In that survey, we learned that 62% of respondents were somewhat or very likely to take a road trip over the summer. Of those, 70% said that one reason for doing so was because road trips were fun and enjoyable. This leads me to think there remains some level of enjoyment associated with getting behind the wheel and exploring.

Watching the finale, I felt a connection with the hosts. They were talking about the sound of the engine, the feel of the road, the responsiveness of the steering wheel and the enjoyment they got from their vehicles carving across the landscape, providing them with access to immeasurable beauty.

Saying goodbye to Clarkson, May and Hammond may not be unlike saying goodbye to any other beloved television program, but it feels different. This was not a sitcom or a crime drama with fictional characters, it was a celebration of vehicles and travel. We could share a passion, learn about that passion and see places we may never have the personal opportunity to visit. I believe what the hosts have said about their legitimate reasons for the show’s conclusion, but I still wonder how influential the type of vehicles entering the market today was to their decision.

I am enthusiastic about the improvements automakers have made to our vehicles, from efficiency and emissions to performance and convenience, but I do look back fondly on what once was. I drive a plug-in hybrid Jeep Wrangler when I am home, and I love it; but when I am visiting my family in California and staying by the beach, I drive an older, manual transmission two-door Wrangler with manual windows. I accept and can celebrate the future, but that doesn’t mean I am not going to hold on to something of the past. (BTW, my 10-year-old loves the manual cranks—such a novelty for her!)

Today’s vehicles are more like rolling computers than anything else. In my observation, drivers seem to be more concerned about staying connected while driving rather than viewing time behind the wheel as an opportunity to escape.

John Eichberger is the executive director of the Transportation Energy Institute.

FUELED FOR THOUGHT

Adapting or Disappearing

Station gentrification brings new expectations for small retail fuel networks.

BY JOE O’BRIEN

Anew term is circulating in the fueling industry: station gentrification. When applied to the idea of urban communities, gentrification is the process by which a poor area transforms into a wealthier, more upscale neighborhood. As new commercial and residential opportunities come in, the original residents and businesses are displaced.

In recent years, there have been signs of a similar process occurring in the convenience and fueling industry.

A changing playing field will likely widen performance gaps between larger operators and smaller networks or single-store owners. Amid this environment, smaller operations will be challenged to evolve or risk extinction. Here are some of the factors contributing to this dynamic.

NEW APPROACH TO C-STORE MODERNIZATION

The prospect of a new owner buying an existing convenience store and basically keeping it the same with a slight remodel is fading into history. Today, new c-stores use sophisticated location analytics to validate a site’s potential, and often new stores are built on property near existing ones.

Additionally, the bar for c-store

building designs continues to rise. Although single-story, traditional box-shape stores still exist in many areas across the country, the overall landscape is expanding to include more large-format—sometimes even multistory—c-stores. Rutter’s, for instance, is building locations that are reported to be four times the size of the average c-store.

Inside, the new sites offer all the latest amenities and features to become more inviting and food focused. Quick-service restaurants (QSRs), made-to-order kitchen service, open kitchen layouts, even fireplaces and indoor and outdoor seating, all boost customer appeal. Menus have expanded far beyond doughnuts, coffee and packaged snacks. Fried chicken, wings, pizza, burgers, barbecue, large breakfast menus and take-home meals such as pasta, meatloaf and casseroles draw people to stop in just for the food.

Outside, building facades are more closely resembling the exteriors of restaurants and hotels. Large windows, woodwork and stonework help create a welcoming environment that’s more distinctive than the branded major oil facilities of yore.

One thing’s for certain: These modern offerings change the neighborhood.

EXPANSION, EXPANSION, EXPANSION

Hardly a day goes by without an article appearing about a regional operator announcing an expansion.

The rise of regional companies—and their access to investment capital—is changing the competitive landscape in urban and suburban areas. These operators are not only constructing new stores on vacant property, but they are also razing and rebuilding stores outside of their traditional territory.

That being said, two stores in the same brand are often different for a couple of reasons:

• Feedback drives operators to deliver experiences that address customer expectations in each area. Obtaining insights about newly introduced formats sets continued adjustments for future stores into motion.

• Updating a large number of locations at the same time is expensive. Return on investment considerations may determine that an existing format, or just minor changes, are justified.

BREATHING NEW LIFE INTO VACANT PROPERTIES

Vacancies at longtime brick-and-mortar operations are making prime real estate readily available.

If we compare the recent evolution of retail business to the age of the dinosaurs, c-stores may be a subset of creatures that survived the extinction. And the abundance of empty brickand-mortar businesses would be the fossils.

Meeting the elevated customer experiences that some stores are rolling out can be especially difficult for smaller operations already staring down the expenses of necessary fueling system infrastructure upgrades. But doing nothing is not a viable option. C-store owners need only look at the countless examples of local grocery stores that “used to be” in the neighborhood after the larger supermarket chains arrived.

C-store operators who find themselves in a plight to evolve may want to consider seeking the expertise of a c-store design and consulting firm. While nothing is ever certain, obtaining input on how to compete amid rising customer satisfaction standards may help smaller c-stores continue to thrive in their existing environment.

The prospect of a new owner buying an existing convenience store and basically keeping it the same with a slight remodel is fading into history.

Joe O’Brien

is vice president of marketing at Source North America Corporation. He has more than 25 years of experience in the petroleum equipment fuel industry. Contact him at jobrien@sourcena.com or visit sourcena. com to learn more.

Make Your Station Shine

Here are some recommended practices for gas station lighting design.

BY KEITH KREBILL

Picture the scene: It’s late at night, a driver is seeking fuel and there, like a beacon in the night, stands a well-lit gas station. But this isn’t just about a mbiance, it’s also about safety, efficiency and the image the business projects.

Crafting the right lighting for a gas station is no small task, involving careful design, thoughtful consideration of regulations and the selection of top-notch fixtures.

UNDERSTANDING GAS STATION LIGHTING REQUIREMENTS

Safety and visibility considerations: Safety isn’t just the name of the game; it’s the heart of it. A gas

station, filled with potentially hazardous materials, demands proper lighting for the well-being of customers and employees alike. Properly illuminated spaces reduce the risk of accidents, from slips and falls to more serious mishaps involving vehicles. Ensuring that the lighting doesn’t cast shadows, particularly in areas where customers are walking or vehicles are moving, is paramount.

Energy efficiency and sustainability: Green is the new black, and sustainability is more than just a buzzword—it’s a necessity. Gas stations, which often operate for extended hours, need energy-efficient lighting to keep operational costs down. This is where

LED lighting, known for its longevity and reduced energy consumption, comes into play, offering a sustainable and cost-effective solution.

Compliance with regulations and standards: When the rubber meets the road, gas stations must adhere to a plethora of local, state and federal regulations and standards concerning lighting. From the recommended brightness levels to the types of fixtures used, understanding and abiding by these standards isn’t just a good practice—it’s a legal requirement.

KEY STEPS IN DESIGNING GAS STATION LIGHTING

Site assessment and layout planning: Chart the course and begin with a comprehensive site assessment. You should take into consideration the size of the lot, the location of the pumps, canopies, the store and any other structures. With a thorough understanding of the layout, designers can make informed decisions on fixture types, placement and illuminance.

Fixture selection and placement: Choosing the right fixture is akin to choosing the right tool for the job. But remember that where you place that tool is equally essential. You should consider how the light will disperse from each fixture, ensuring an even distribution of light—no customer wants to fuel up in a shadowy nook.

Illuminance calculations and simulation: Numbers don’t lie. Using software, designers can calculate the expected light output from each fixture, ensuring that the gas station meets the required brightness levels. Simulations can offer a preview of how the final lighting will look, allowing for adjustments before actual installation.

Light pollution mitigation and local regulation compliance: Bright lights can be a boon for drivers but a bane for neighbors. Using fixtures that direct light downward, rather than outward, can help in reducing glare and minimizing unwanted light spill. Local authorities also may have requirements about maximum brightness levels, required color temperatures or requirements for dimming or motion sensing.

Emergency and backup lighting: Expect the best, but plan for the worst. Power outages can occur, and it’s important that all occupants of the store can safely navigate to the exits. Additionally, local fire codes may have specific requirements for emergency lighting, including the placement of lights and the amount of time that they remain illuminated.

Smart lighting solutions: In the age of smart everything, lighting is no exception. From dimming capabilities to motion sensors, incorporating smart solutions allows for increased efficiency and adaptability. Motion sensors can be used in store locations which are not regularly occupied, ensuring that lights are never left on when nobody is in the room. Timeclocks and scheduling can be utilized to make sure that outdoor lighting illuminates at night but does not waste energy by running during the day or when the store is closed.

For sites that offer 24/7 unattended fueling, a combination of motion sensors and scheduling will ensure that the canopy area is safely illuminated while a customer is present but not wasting energy when customers are not present. Ultimately, it’s important to balance energy efficiency with store functionality.

Aesthetics and brand identity: Beyond mere function, lighting plays a significant role in store aesthetics and brand identity. Thoughtful lighting design can emphasize the architecture, create ambiance and enhance the overall look and feel of the station.

INSTALLATION, TESTING AND MAINTENANCE

Proper installation ensures optimal performance and longevity—cutting corners here can lead to frequent outages, higher maintenance costs and even safety hazards. The biggest challenge is making sure that the site plan is followed accurately. For a site to function properly, motion sensors and time clocks need to be configured according to plan, otherwise they will not yield the energy savings they can provide.

Like any piece of machinery, lighting systems require maintenance. Regular checks for outages, potential hazards and efficiency can extend the life of the fixtures and ensure continuous optimal performance.

LED LIGHTING: ADVANTAGES AND SELECTION CRITERIA

The world isn’t just shifting towards LED lighting, it’s charging toward it at full speed. With its energy efficiency, reduced carbon footprint and longer lifespan, LEDs are the torchbearers in the realm of lighting. For gas stations, the energy savings can be substantial.

Lumens per watt (efficacy): When evaluating LEDs, one must consider their efficacy. Simply put, efficacy measures how much light is produced for each watt of electricity consumed. A higher lumens-per-watt ratio indicates a more efficient light source.

Safety isn’t just the name of the game; it’s the heart of it. A gas station, filled with potentially hazardous materials, demands proper lighting for the well-being of customers and employees alike.

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Images by Mott-Smith Consulting Group LLC

Like any piece of machinery, lighting systems require maintenance. Regular checks for outages, potential hazards and efficiency can extend the life of the fixtures and ensure continuous optimal performance.

Lifespan and lumen depreciation: Over time, all lights dim. But how quickly they dim, or their lumen depreciation, can vary. LEDs are renowned for their long lifespan, often outlasting their traditional counterparts by years, even decades. But ensuring minimal lumen depreciation ensures they shine brightly throughout their life.

Ingress protection (IP) rating for moisture and dust: Gas stations are exposed to the elements. Whether it’s rain, dust or snow, lighting fixtures need to withstand these conditions. A higher IP rating, which measures resistance to moisture and dust, indicates better protection. Gas station canopies offer additional challenges because the electrical entrance for the light fixtures is located above the canopy, exposed to the environment. A properly constructed canopy light should both have the proper gasketing to ensure water does not enter the fixture and also have something in the design to minimize gasket fatigue, such as a hydrophobic vent or a gasket that is robust enough to withstand operational pressure cycles.

While the initial investment in LED lighting might be higher, the ROI is high thanks to energy savings and reduced maintenance costs. Having a brighter site can also increase sales, both of fuel and merchandise. Installing a quality lighting system is an investment that offers longterm value to a gas station.

Keith Krebill is a Jarvis Lighting petroleum lighting sales specialist. Jarvis Lighting designs and manufactures innovative lighting products at its Schaumburg, Illinois, facility.

Brand in Focus: Citgo

A look at Citgo’s current initiatives and expectations for 2025.

BY KEITH REID

While Citgo parent PDV Holding has been going through a difficult reorganization process for a few years now, it’s U.S. retail and marketing operations—some 4,300 sites—and the supply infrastructure that supports it remains a solid fixture on the fueling landscape. Furthermore, the company continues to invest in its downstream operations to enhance a historic retail brand’s competitiveness in the marketplace.

FMN interviewed Chris Kiesling, Citgo’s assistant VP of light oils

operations and marketing, for an update on current market dynamics and a range of initiatives that were discussed with the company during a FMN interview last year.

CITGO LAUNCHED ITS ILLUMINATE IMAGE PROGRAM IN 2020. IN OUR INTERVIEW LAST YEAR, YOU NOTED THAT THE PROGRAM HAD RECEIVED 41% PENETRATION. HOW DOES THAT STAND THIS YEAR?

We’ll have about 76% of our stores onboard or in progress by the end of the year. We anticipate that the

portfolio will be complete in 2026. It’s important to have an inviting curb appeal, and that’s why we’ve added our Elevate program, which addresses the fascia to really compliment what we’re doing with Illuminate with the c-store itself. And we’ll complete about 75 of those this year.

We’ve seen good results from those with volume increases, in an environment where same-store sales are decreasing. So, we consider those programs to be highly successful.

LOYALTY PROGRAMS ARE INCREASINGLY IMPORTANT, IF EXECUTED PROPERLY. CITGO HAS ITS CLUB CITGO PROGRAM WITH A CASH ROLLBACK COMPONENT. WHAT ROLE DOES LOYALTY PLAY FOR CITGO AND WHAT IS THE STATUS OF THAT PROGRAM TODAY?

We think that there’s a lot of potential from loyalty not only to attract new customers, which I think is what a

lot of people initially think of, but to attract, retain and improve the number of visits by existing customers. If you can turn the person that was fueling at your site twice a month into someone who visits three times a month, or four times a month, then you’re accomplishing something. And we see with the loyalty transactions they’re more likely to go inside the store. That’s something that we are really driven to perform, and we see that in the results.

We met with an outside consulting firm as we ramped up our efforts to drive this process forward—and we’re currently exceeding their forecast for what we could do this far into the game. At our loyalty stores that have greater than 500 gallons per month in loyalty transactions, we’re seeing a better than five-point swing to what OPIS is showing on same-store sales, and those stores are selling more gallons this year than they were last year on a same-store basis.

A BIG PART OF LOYALTY SUCCESS IS ASSOCIATE INVOLVEMENT. HOW DO YOU DRIVE THEIR PARTICIPATION AND ENTHUSIASM?

We’ve hired some people externally who’ve previously helped develop successful loyalty programs and are building programs to help our marketers learn how to train their associates. We’re very fortunate that we’ve got a tremendous relationship with our marketers. As they find things that are successful, they’re helping us build how-to testimonials, video shorts— whatever that might be—to help their peers continue to drive loyalty.

HOW IS CITGO APPROACHING EV CHARGER DEPLOYMENT?

With EVs, we want to figure out how to help our marketers navigate what we see as a very murky situation. The key I think for a retail location is funding.

There are grants and other things to be had that can help with the construction process.

The first thing we needed was to understand that construction process so we could help them navigate the challenges and minimize the level of investment that they must make. We have a couple of partnership EV locations that have gone live in the network. For the ones that have been done, the process itself was very complicated.

Right now, this is something that we feel is an uncertain return. It can be very location specific, even in some locations where you might inherently think that they would be great when you do the studies. I think that’s consistent with what you see as you look forward. You can look at the government’s own numbers and they’ve significantly backed off on the impact of EV demand from where they were maybe even a year ago.

That makes programs that were fiscally difficult to begin with even more of a challenge. And that may slow the process of having EVs at retail sites. But to the extent that we have marketers who are interested in pursuing EV customers, we’ve gained a lot of information over the last year so that we can be a good partner by helping them navigate that process.

CITGO IS PUTTING A LOT OF MONEY AND RESOURCES DOWNSTREAM. COULD YOU DESCRIBE THE SUPPLY INFRASTRUCTURE INVESTMENTS?

Citgo has historically made tremendous investments in our refineries, and what we’re doing at the refineries to increase our capacity is exciting. And we’re doing things on the infrastructure side, too. A good example is our East Chicago terminal, which was previously a distillate-only terminal on the rack side. In May we completed

We think that there’s a lot of potential from loyalty not only to attract new customers, which I think is what a lot of people initially think of, but to attract, retain and improve the number of visits by existing customers.

With EVs, we want to figure out how to help our marketers navigate what we see as a very murky situation. The key I think for a retail location is funding.

the addition of a gasoline rack at that facility that is seeing sales of more than 10,000 barrels a day. That’s a very, very exciting project for Citgo.

We’re also building a brand-new terminal in Lilly, Texas, essentially from the ground up. And we’re excited for what that represents for growth that you see in central Texas, south of Austin, and the New Braunfels market and the San Marcos markets as well as potentially capturing fringe San Antonio and even the Houston markets there along the I-10 corridor.

That excitement translates to the growth of the brand. We’ve made significant investments in the brand, as we have already discussed through Illuminate. Our Good to Go marketing campaign has been very well received, and it’s something that we plan to continue to build on. I’ve been traveling a lot, and I’ve had the opportunity

to see our new-to-industry site with Sun State down in Alabama. That’s going to be a fantastic site. And I was up in Massachusetts the other day with another new-to-industry site in Yatco that’s just going to be beautiful. And you see what’s coming on across the country, and you see the standard of our brand continue to rise. It’s fun.

CITGO HAS LONG RESISTED COMPANY OWNED, COMPANY OPERATED SITES. HAS THE ATTITUDE AT CITGO CHANGED NOW, WITH MANY BRANDS REEXPLORING THAT OPTION?

No, we’re sticking to our roots. We still feel like the best way for us to go to market is through our marketer class of trade, and we help support them and their retailers to do the best job that they can to bring the fuel to meet the demands of consumers. And we want to be an engaged partner.

Keith Reid is the editorial director of Fuels Market News.

April 8-10, 2025

Clarity, Not Uncertainty.

The NACS State of the Industry® Summit is the trusted source for convenience benchmarking. The Summit delivers exceptional, precise, and actionable insights that empower you to navigate the fuel and convenience industry with confidence and facilitate strategic decision making.

RETAIL OPERATIONS

If AI is the answer, what is the question?

BY ROY STRASBURGER

Have you ever had the feeling when you walk down an aisle at the grocery store that everything looks the same—but different? The familiar boxes and packages are there, but on the front of each one is a little sticker saying, “New and Improved” or “Now with more vitamin C!”

That’s the sensation I felt when I went to the NACS Show in Las Vegas this October. The tradeshow floor was covered with products and equipment

that were, frankly, the same (or similar) products that I’ve seen over the last three or four years. Here and there you might see a new foodservice item or a different piece of equipment, but overall things seemed very familiar—yet different.

If I had to pick out a common theme at the show, it would be that most of the equipment and software systems were, in some form or fashion, promoting that they included AI. It got me to think: What exactly does that mean?

Technically speaking, there are different types of artificial intelligence that range on a spectrum from basic pattern recognition to the more advanced generative AI, which uses large language models to do advanced pattern recognition and “learns” to recognize new patterns and correlations on its own.

When I started asking specific questions to get a better understanding of how AI was being used in some of the products, the representatives told me that they were now calling the software processes that they’ve been using for years AI. Just to be clear, this is not a misrepresentation of the product—it is a case of the definition of AI catching up with the technology.

There’s no doubt that using technology to gain efficiencies, reduce costs, improve margins and provide

forecasting is the holy grail of retail, and AI has been hyped and promoted endlessly in the media as “the next big thing.” But there must be some steak to go with the sizzle. If you are exploring the various uses of AI and how it might help your business, it is important that you understand how the product or technology works and whether you are actually getting a benefit.

At the Convenience Technology Vision Group meeting in September, Randy Allen, senior lecturer at the Cornell SC Johnson College of Business, presented the results of a survey she conducted with retailers about whether they were using AI in their businesses and, if they were, how it was going. The survey showed that convenience retailers are using AI less than general merchandise retailers. Also, c-store operators are mainly using AI for back-office functions while the general merchandise companies were focusing AI on e-commerce, customer service and product merchandising. (You can find the CTVG Vision Report at www.vgsharing.com.)

An important finding from the survey is that the convenience retailers felt that AI provided less benefit to their business than they had expected.

Although the survey didn’t say it, my hunch is that it is harder to implement an AI solution in a smaller retail outlet, such as a convenience store, than in a larger, big box retailer—especially taking into consideration all of the fragmented business segments that a c-store has such as fuel, lottery and foodservice. Both types of retailers said that the biggest obstacles to maximizing the use of AI were the cost of implementing an AI solution, the lack of turnkey AI solutions and the time and money needed to develop

the requisite skills to implement a program.

This doesn’t mean that AI is not a useful tool, but it does mean that anyone who is planning to invest in AI needs to take the time to understand the technology and determine what they want to accomplish.

First, determine the specific goal you want to achieve. It’s not enough to say that you want to increase your profits. You must target how you are specifically going to do so: Increase inventory turns, optimize labor, maximize margins and/or reduce operating costs.

Second, identify the software or equipment that you think will help you attain your goal and have the sales representative explain to you, in detail, how the product will help you. If possible, get it in writing so that you can hold the vendor accountable.

Third, be fully committed to the program. It is going to take time and money to make sure that everyone is trained, that the product is fully in place and that there is a long-term strategy to ensure success. You can’t just turn it on and let it go by itself.

Finally, and most importantly, measure the actual results against your goals. If you exceed your expectations, congratulations! If the product falls short, make sure that your team follows through on implementation and troubleshoot solutions with your provider. If you don’t seem to be making progress or you are not getting close to reaching your objective, don’t be afraid to pull the plug. It makes no sense to throw good money after bad if it isn’t working.

The promise of AI is great, but the application needs to be carefully thought out and the implementation monitored.

There’s no doubt that using technology to gain efficiencies, reduce costs, improve margins and provide forecasting is the holy grail of retail, and AI has been hyped and promoted endlessly in the media as “the next big thing.”

Roy

Strasburger is the CEO 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, turnkey retail management solution.

An Ounce of Preventive Maintenance …

A preventive maintenance schedule keeps drivers on the road—and costs down.

BY JUSTIN CLARY

Unexpected vehicle issues are a fleet manager’s worst nightmare, especially when multiple assets go down at the same time. Fortunately, unplanned vehicle downtime can be prevented by creating a truck preventive maintenance schedule.

And it’s more than just changing the engine oil at recommended intervals. Not sure where to begin? This preventive maintenance checklist will help you detect and fix vehicle issues before they take your truck drivers off the road.

THE WHAT AND WHY OF A PREVENTIVE MAINTENANCE SCHEDULE

Preventive maintenance (PM) involves proactively inspecting your fleet vehicles to reduce the risk of breakdowns and keep the wheels turning. This sets it apart from reactive maintenance, which involves fixing vehicles as they break.

An example of PM would be if your team performs battery load testing during each oil change, allowing you to determine when your battery is approaching the end of its service life and thus avoiding a costly breakdown.

A PM schedule is a fleet management tool that outlines what regular inspections and maintenance tasks you’ll perform on an asset. It also defines how often you’ll perform them. Most preventive maintenance schedules use mileage and engine hours to determine when a vehicle is due for PM. Tracking both is important because commercial vehicles can rack up a ton of idle hours.

Commercial trucks require a wide array of regular maintenance tasks, including:

• Fluid changes

• Brake inspections and replacement

• Engine and cabin air filter changes

• Inspection of all safety equipment

• Verification of adequate tire pressure

These are just a few examples. For a complete list of necessary maintenance, consult the manufacturers’ manuals for each of your vehicles. Also, don’t forget to top off or replace fluids and filters at recommended intervals.

Investing in preventive maintenance promises to provide many benefits, including the following:

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• Increased asset lifespan: A proactive approach to oil changes and other routine maintenance tasks keeps equipment in better condition. PM is the key to maximizing your return on investment and supporting the longterm growth of your business.

• Reduced risk of breakdowns: Waiting until a part fails will leave your drivers stranded on the side of the road—where you won’t just be faced with repair costs, you’ll also incur productivity-related losses, and if you don’t have your own mobile technicians, you’ll have to call a commercial wrecker. PM significantly reduces the risk of breakdowns, saving you thousands in hidden costs and keeping your drivers on the road.

• Improved efficiency : Keeping vehicles in tip-top shape can improve their performance and fuel efficiency. Increasing each vehicle’s fuel efficiency by even a couple of MPGs can translate into thousands in savings across an entire fleet.

• Enhanced asset utilization: When your trucks are stuck in the shop, they can’t be dispatched to serve your customers. And if you experience a wave of unexpected breakdowns, it will lower your asset utilization rate and hurt your bottom line. PM allows you to spread out downtime and maintain a high utilization rate year-round.

• Better driver morale: No one likes being stranded on the side of the road, especially not when they’re on a timetable. Even if you compensate drivers at their normal rate during downtime, they’d much rather be out there excelling at their job. With that in mind, providing drivers with safe, reliable, well-maintained vehicles can be a huge morale booster.

WHEN TO CONDUCT PREVENTIVE MAINTENANCE

Oil changes are required more frequently than any other type of recurring maintenance, making them

the ideal opportunity to run through your PM checklist.

Consumer-grade vehicles typically require an oil change every 3,000 to 5,000 miles. (However, it’s always a good idea to consult the owner’s manual to verify any recommended oil change intervals.)

Semi-trucks can go much longer without an oil change. Most semis will only need an oil change every 10,000 to 25,000 miles.

When planning your oil change and PM, consider both the vehicle’s mileage and engine hours. If a vehicle is under the mileage threshold but has accumulated many engine hours, you may want to do PM a little early.

PM is typically required during each oil change. However, not every preventive maintenance task will need to be performed at every appointment.

For instance, your maintenance personnel should inspect a vehicle’s air filters and brakes at each PM session. However, the filter should only need to be replaced every 15,000 to 30,000 miles. Like PM for consumer vehicles, semi-truck PM schedules should align with the manufacturer-recommended oil change interval.

If your manufacturer recommends changing the oil in your semi-trucks every 15,000 miles, you should perform all other preventive maintenance at the same time. This approach makes it easy to keep up with all PM tasks.

That said, a lot can happen between PM sessions, especially if your manufacturer recommends PM every 25,000 miles. As such, drivers must do their part to keep fleet managers in the loop about the state of the fleet.

Specifically, drivers need to run through a pre-trip checklist before every shift. Some common checklist tasks include:

• Inspecting the tires

• Inspecting the lights

• Verifying that all safety equipment functions properly

• Checking the status of all gauges

Taking a proactive approach to oil changes and other routine maintenance tasks will keep your equipment in better condition and help you squeeze every last mile out of your trucks.

When planning your oil change and PM, consider both the vehicle’s mileage and engine hours. If a vehicle is under the mileage threshold but has accumulated many engine hours, you may want to do PM a little early.

If drivers detect any abnormalities, they must report them immediately. Safety issues are of particular concern—if a vehicle is deemed unsafe to drive due to issues like bald tires or malfunctioning safety equipment, it needs to be serviced right away.

COSTS OF ROUTINE MAINTENANCE

Routine maintenance is very affordable, especially compared to the costs of a breakdown. For semi-trucks, PM sessions are classified as either “dry” or “wet.”

Dry PM includes:

• Inspection of major components

• Greasing and lubrication

• Tire pressure check

• Fluid refill (windshield fluid, coolant, brake fluid, etc.)

Wet PM includes all of the above, plus an oil and filter change. Dry PM typically costs around $100 per session, while wet PM costs between $300 and $450.

Comparatively, tow truck companies typically charge between $250 and $500 just to hook up a semi-truck to their rig. They then charge a variable mileage rate that ranges from $20 to $50 per mile driven.

Justin Clary is Force Fleet Tracking’s senior marketing manager. Force Fleet Tracking’s mission is to simplify vehicle maintenance by maximizing fleet visibility.

Let’s say a truck breaks down on the road. You call a commercial wrecker that charges $400 to hook up and $40 per mile. It then transports your truck 30 miles to the nearest service station for a total cost of $1,600 ($400 hookup fee + $1,200 in mileage fees). And that doesn’t include the outstanding repairs and PM services you skipped.

CREATING A PREVENTIVE MAINTENANCE SCHEDULE

First, determine what metrics to track and how to monitor them.

We recommend tracking vehicle mileage and engine hours. While you can do this manually, it can

be a tedious, error-prone process. Instead, implement fleet maintenance software.

Then, create a checklist for your maintenance technicians. This checklist should feature standard practices for every PM session, including inspection guidelines and maintenance tips. At a minimum, your checklist should include the following tasks:

• Check all fluid levels

• Change fluids in accordance with manufacturer guidelines

• Verify tire pressure

• Inspect the condition and remaining life of the tires

• Inspect the brakes

• Check the air filters

• Inspect the gearbox and clutch

• Perform a battery load test

• Inspect the electrical system

• Inspect the cooling system

• Check all hoses for leaks or damaged connections

• Inspect all exterior lighting

• Service the fifth-wheel platform

• Inspect the trailer

It’s also wise to coach your maintenance technicians to be proactive. Under the traditional reactive maintenance model, technicians are encouraged to hold off on repairs until necessary. The preventive approach focuses on avoiding more costly issues by addressing maintenance needs upfront.

For example, say the tires on one of your trucks have reached the end of their useful lifespan. While they may have a few thousand miles left in them, there’s a chance they might not make it to the next PM. Under the PM model, you should replace them now to reduce the risk of a roadside service call later.

While you might spend a little more on the front end, you can save thousands by avoiding a breakdown.

Don’t Fall Behind the Times

What made your grandfather’s business grow is not what will make yours grow.

BY JOHN KIMMEL

“The greatest danger in times of turbulence is not the turbulence—it is to act with yesterday’s logic.” Peter Drucker’s wisdom sums up not only the market we face, but also the generational changes happening in our businesses every day. Our great-grandfathers lived in a time that was difficult, but simple: If you work hard and do the right things for your

customers, you will be successful. That meant long hours and face-to-face visits, even when they no longer drove the delivery truck. Nowadays, it’s a little more complicated.

THE WAY PEOPLE SHOP HAS CHANGED

Remember phone books? A couple of decades ago, being in the phone book wasn’t optional—that was how people found you. Once customers found you,

they called you on the phone. If they turned out to be a wholesale lead, the next step was a face-to-face visit, often conducted by the business owner himself, and if needed, the customer was then referred directly to other customers of yours for a personal reference.

Today, both retail and wholesale consumers shop online. If they find you on Google, they visit your website. If they are still interested, they check you out on social media. If you have an ordering portal, they may even place their first order without having talked to a single person at your company. If they have more complex needs, they will likely send you a digital message asking for help, and they expect to be contacted not by the owner of the company, but rather by a professional salesperson.

The number of purchases (including

wholesale orders) placed online is at over 25% and rising at a pace of over 4% per year. Some experts believe that by the end of 2030 we could see 50% of all purchases in the United States made online. As for the 75% of purchases still made offline today, petroleum marketers with trained professional salespeople are outperforming their peers in the marketplace better than two to one. In other words, trained salespeople sell more than double what their untrained counterparts do.

HIRING HAS CHANGED

In your parent’s day, when they needed a new employee, they placed an ad in the newspaper and local applicants would stop by the office for an application, fill it out right there at your office and hand it to a member of your staff.

Today, the potential employee pool has expanded well beyond your local area, but it hasn’t gotten larger. Applicants from all over your state may see your ad on sites like Indeed and LinkedIn, but local job hunters may not, based on the search criteria they entered. Ads that used to attract attention no longer get seen online unless they contain the right keywords and phrases that connect with the searcher’s keywords. Also, short, to-the-point hiring ads are not effective anymore because your competitor’s ads are written by professionals who know how to write copy that attracts the correct personality type for the position. In addition, applications that used to be filled out in person are now auto-filled digitally and resumes are created using AI. Both things have made it more difficult to determine the true aptitude of the applicant.

Interviewing and onboarding has evolved as well. Ninety percent of employers hire for aptitude. They look at a resume, determine if the candidate has the right education, background and experience for the job, and then

interview them face-to-face to verify that they really are who they claim to be on their resume. But aptitude is not why we usually fire people. Think about the last few people you had to fire. Did you fire them because they couldn’t do the work you hired them to do, or did you fire them because they lied, cheated, stole or violated some other core value your company holds dear? While 90%of our hiring decisions are based on aptitude, two-thirds of our firing decisions are based on culture. That means you need to find a way to screen them regarding your culture before you consider their aptitude.

GENERATIONAL DIFFERENCES ARE COMPLICATED

When I was born—I’m Generation X, so between 1965 and 1979—over 90% of people surveyed believed that getting married and having a family was “important” or “very important” to have a meaningful life. Someone born in the tail end of Generation Y (1980-1994), who we call Millennials, entered a world where that number had dropped to just 28%. For Generation Z (1997-2012) the percentage will be even lower. That way of thinking has had a massive impact on employment: Single people without kids may have less financial pressure to work 40 hours at a minimum or to put in 60 hours a week as a normal number.

Currently, the average American worker spends less than 40 hours per week at work, and many desire to get that number down to 30 hours per week—and they want more time off to boot. Because younger workers can see not just how their hometown does work, but how the world handles work, they are emboldened to ask for fewer hours, higher pay and more time off. There is another factor that has impacted communication between the generations: Children are no longer becoming like their parents.

The number of purchases (including wholesale orders) placed online is at over 25% and rising at a pace of over 4% per year. Some experts believe that by the end of 2030 we could see 50% of all purchases in the United States made online.

John J. Kimmel is the author of Selling with Power . Kimmel provides custom solutions to increase the effectiveness and profitability of sales teams for petroleum marketers all over the United States. Visit www. johnjkimmel.com

For centuries, or at least as far back as this data has been collected, there was a predictable pattern to getting older. Most youth had something of a rebellious streak, usually somewhere in their teens. They believed themselves more enlightened than their parents and therefore listened less to them and more to their youthful peers. As predictable as this phase was, just as predictable was their shift to thinking more like their parents when they reached their mid 20s.

By the time they reached their 40s, they acted nearly identical to the way their parents had at the same age. Starting with the Millennials, this change to being like their parents in their 20s didn’t happen. They didn’t change their behavior or their way of thinking. They didn’t become their parents. Those of us who study human

behavior had never seen this before. What’s more, Generation Z does not seem to be changing either. This has created a massive communication gap between younger and older Americans, to the frustration of both.

One of my favorite quotes about work came from Jake Kimmel, my own father. He said, “When I was young, someone told me that if I worked hard, I would get ahead. Later, someone told me that if I worked smart, I would get ahead. I didn’t know who was right, so I did both.”

For the last couple of minutes, we have been focused on working smart. Odds are, as a petroleum marketer, you already work hard. I hope this inspires you to look differently at your business, so that it will be growing and thriving when you decide to pass it on to your next generation.

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Charting a Sustainable Course for Aviation

From new studies to feedstocks, here are the latest technical advances in sustainable aviation fuels.

BY DR. RAJ SHAH, IVY LU AND DR. VIKRAM MITTAL

The aviation sector, despite contributing to only about 2.8% of global CO2 emissions, faces significant pressure to reduce its environmental impact. Already, the aviation sector has a smaller carbon footprint than ground alternatives. For instance, a single round-trip flight from New York to Los Angeles produces 0.62 tonnes of CO2 per passenger compared

to about 1.26 tonnes of CO2 produced by a car over the same distance, according to the carbon offset provider Terrapass.

Sustainable aviation fuels (SAFs) are alternative jet fuels produced from nonconventional feedstocks, such as biomass and waste products. To be categorized as sustainable, aviation fuels must reduce the carbon footprint of air

travel and offer production pipelines that do not deplete natural resources, according to the International Air Transport Association. Although no universal benchmark for SAFs exist, studies emphasize life-cycle analysis to determine their holistic environmental impact.

It is also important to note the distinction between renewable and sustainable resources. Renewable resources can be naturally replenished, while sustainable resources can be used in the present without compromising future supplies. Renewable resources may not be sustainable if they are irresponsibly managed or cause environmental damage.

Sustainable aviation fuels (SAFs) are alternative jet fuels produced from nonconventional feedstocks, such as biomass and waste products.

To be categorized as sustainable, aviation fuels must reduce the carbon footprint of air travel and offer production pipelines that do not deplete natural resources, according to the International Air Transport Association. Although no universal benchmark for SAFs exist, studies emphasize life-cycle analysis to determine their holistic environmental impact.

It is also important to note the distinction between renewable and sustainable resources. Renewable resources can be naturally replenished, while sustainable resources can be used in the present without compromising future supplies. Renewable resources may not be sustainable if they are irresponsibly managed or cause environmental damage.

SUSTAINABLE PRODUCTION PATHWAYS

A common avenue for SAF production involves processing vegetable oils through the hydrotreatment of esters and fatty acids (HEFA). The HEFA process may start with feedstock pretreatment to remove free fatty acids (FFAs) and moisture. Next, hydrogenation and isomerization break down and rearrange hydrocarbon chains that are specific to the fuel type being produced. This technique is most prevalent in renewable diesel production, making it a more advanced and commercially available technology compared to newer SAF pathways. Despite this, the use of HEFA for SAF production is challenged by the larger demand for road and maritime fuel production, which promises easier profits. HEFAproduced SAFs are suitable for blending up to 50% with conventional jet fuels. One attractive feedstock for SAF is waste cooking oils. However, used cooking oils often have a high FFA content, which poses a high risk of

catalyst deactivation in some processes. Catalytic Hydrothermolysis (CH) is a relatively new pathway approved by the American Society for Testing and Materials (ASTM) to produce SAFs. CH is a process that breaks down triglycerides into renewable fuels using high temperatures and pressures in the presence of water. Unlike HEFA, this method is tolerant of different fatty acid profiles, allowing for the use of waste cooking oils. Furthermore, CH directly converts FFAs into fuel along with triglycerides in a single step, reducing the need for a FFA reduction pretreatment step that is crucial for other SAF production methods.

In terms of sustainability, there is a significant reduction of at least 50% in greenhouse gas emissions compared to conventional jet fuel production, according to a life-cycle analysis on CH-derived SAFs by Chen et al. at the Argonne National Laboratory. Plus, more than 50% of the total carbon intensity produced by SAF feedstocks like camelina oil and canola oil occurs during the farming stage rather than during the pre-processing and fuel production stages.

Carbon intensity created through farming activities is generally inevitable as carbon dioxide is released from the soil when tilling, fertilizing and planting. Although already approved by ASTM standards, CH can be further examined to develop catalysts customized for broader feedstock options.

SUSTAINABLE FEEDSTOCKS

Energy crops—plants specifically cultivated for biofuel production—have become one of the most researched feedstocks for SAFs. To ensure sustainability, these crops must be grown without compromising food production or causing deforestation. Ideally, they should require minimal land, water and nutrient resources.

To be categorized as sustainable, aviation fuels must reduce the carbon footprint of air travel and offer production pipelines that do not deplete natural resources.

Energy crops, plants specifically cultivated for biofuel production, have become one of the most researched feedstocks for SAFs. To ensure sustainability, these crops must be grown without compromising food production or causing deforestation..

Identifying suitable energy crops that minimally disrupt our current agriculture practices will greatly contribute to the viability of SAFs over conventional fuels and generate significant revenue for farmers.

Some sustainable feedstocks include the following.

Carinata —Carinata, an oilseed crop that can be harvested in the southern United States, is a prime example of a minimally disruptive energy crop. In terms of sustainability, carinata can be grown in colder environments unsuitable for growing food crops, which allows for its cultivation during the winter months in rotation with summer food crops. Carinata also acts as a cover crop, stabilizing soil and retaining moisture through the off season (fall, winter and spring), benefiting subsequent food crop cycles. Compared to other oilseed crops like camelina or canola, carinata boasts superior agronomic performance and a higher oil content.

Microalgae —The application of microalgae as a feedstock for SAFs circumvents the challenges of land competition and deforestation faced by energy crops. As covered in “Microalgal Biodiesel: A Challenging Route Toward a Sustainable Aviation Fuel,” there have been considerations for using non-arable lands, like deserts, for microalgae cultivation. Specifically, flat, coastal deserts without extreme temperatures, like the Great Rann of Kutch in India, can be used to cultivate salt-water microalgae species. Another prospective method involves the integration of microalgae cultivation into municipal wastewater treatment facilities. In Milan, Italy, Tua et al. studied a microalgae side-stream process at a local wastewater treatment plant and conducted a life-cycle assessment of its environmental impacts. They found improvements in seven out of 15 environmental indicators compared to the baseline treatment plant layout due to lower energy consumption and absorption of ecotoxic materials by microalgae. Compared to other oil crops, microalgae

outperforms even palm oil, the highest-yielding, in oil productivity by almost 16-fold.

Forestry residue —Another waste material considered as a potential feedstock is forestry residue, which are the byproducts created from harvesting and processing wood, such as branches, sawdust and shavings. This wood waste is generated in large amounts and is typically not used in any form other than as combustible materials. When examining the potential of using pine timber waste as a biofuel in an indigenous Mexican community, Morales-Máximo et al. found that it contains low moisture content, low ash content and most importantly, high levels of cellulose, which is a complex carbohydrate important for efficient biofuel production via hydrolysis.

Wet waste —Wet waste, namely food waste (amounting to 2.5 billion tons globally), has been a significantly overlooked feedstock for SAFs. In landfills, packed wet waste prevents oxygen circulation, and consequently, aerobic decomposition. Instead, it undergoes anaerobic digestion, which results in one of the major problems of landfills: the release of harmful methane into the environment. A group of scientists at the National Renewable Energy Laboratory (NREL) proposed a process involving halting anaerobic digestion prior to methanogenesis to create volatile fatty acids (VFAs), which are short- and medium-chain-length carboxylic acids. The VFAs can be converted into hydrocarbons via ketonization, which can achieve a 70% blend with traditional jet fuel. Diverting wet waste for conversion into VFA-SAF could substantially reduce methane emission and landfill pollution while also recycling waste materials into greener jet fuels.

Waste tires —Waste tires are not suitable for direct landfilling. Still,

nearly half of all waste tires are disposed of without proper care. These tires, optimized for durability, decompose extremely slowly and contribute to pollution. A potential SAF source derived from waste tires lies in tire pyrolysis oil (TPO). Waste tires broken down via pyrolysis are being studied for use in blends with conventional jet fuel, displaying similar performance and lower SO2 emissions but higher NOx emissions at higher engine speeds, according to “Utilization of Renewable and Sustainable Aviation Biofuels From Waste Tyres for Sustainable Aviation Transport Sector.”

Waste plastics —Waste plastics are one of the major contributors to municipal solid waste at 12%. Many published works in recent years have brought increasing attention to the harmful impacts of non-biodegradable waste plastics in land and marine ecosystems. Hussain et al. at the King Fahd University of Petroleum and Minerals in Saudi Arabia introduced the use of catalytic pyrolysis for converting waste plastics for SAF production. The method works by transforming plastic polymers into products with low molecular weights like liquid oil, char and gases. The product would then need to undergo further processing to refine the hydrocarbons for blending with conventional jet fuel. The recycling of waste plastics for SAFs powered by renewable energy sources will divert plastic waste from polluting the environment while reducing carbon emissions compared to fossil fuel production.

Optimizing SAF production is crucial for minimizing the environmental impact of the aviation industry. The complete replacement of petroleum for greener air travel will ideally come from a combination of different sustainable and renewable resources that are circularly beneficial for our current economy and ecosystem.

the Department of Systems Engineering at the United States Military Academy. last 25 plus years.

Ivy Lu is part of a thriving internship program at Koehler Instrument Company.

Dr. Raj Shah is a director at Koehler Instrument Company in New York, where he has worked for the last 25 plus years.

Dr. Vikam Mittal, PhD is an associate professor in

A SHIFT IN

Energy policy in the Trump administration is certain to be different than it was under President Biden. What can the fuel industry expect?

By Keith Reid

While it is difficult for a president to directly influence the price of oil or refined products in a traditional market sense (with exceptions such as manipulating the Strategic Petroleum Reserve), administrative policy can have notable indirect impacts.

The executive branch establishes the focus for a range of federal agencies (EPA, DOT, Department of the Interior, etc.) that set regulations and standards that can impact domestic energy production or demand—which ultimately impacts energy supply. Examples include policies around energy production on federal lands and CAFE vehicle mileage standards.

Similarly, energy policy and government investment can send strong market signals that impact private investment decisions toward favored solutions and away from disfavored ones.

The Biden and Trump administrations could not be further apart on their outlook for domestic energy.

From its first day in office, the Biden administration aggressively pushed carbon reduction initiatives tied to environmental policy and social

justice. There was a central push to quickly implement renewable energy, with electrification being preferred in most aspects, including transportation. Biden was able to get much of his agenda passed, with the crowning achievement being the Inflation Reduction Act.

During his first term in office, Donald Trump pursued what could best be described as an “all of the above” energy policy, with the “above” having far less concern for carbon reduction. While this article was written before the inauguration, his 2024 campaign messaging clearly indicates a return to those policies, with the catch phrase “drill baby drill” being prominent. Trump has also indicated a desire to roll back downstream regulations from the Biden administration that he considers to be onerous, limiting California’s ability to de facto set energy policy and withdrawing from the Paris Accord.

Pushing for certain policy outcomes in Washington is often easier said than done when there is an active opposition—which is the case with energy policy—even with the same party controlling Congress and the executive branch. However, we can look at what the administration

is expected to propose and the challenges faced with moving those proposals forward.

DOMESTIC ENERGY EXPLORATION AND PRODUCTION

Upstream policy impacts the downstream industry as the core cost of a gallon of refined motor fuel is largely driven by the cost of a barrel of oil. The Biden Administration significantly limited access to developing energy on public lands, increased the cost of oil and gas leases and boosted energy-related taxes. Ozone restrictions impacted production in the Permian Basin and a finalized commitment to methane reduction (as part of the Inflation Reduction Act) that similarly impacts domestic oil production.

Will the Trump administration be able to reverse the Biden administration policies and impact fuel prices in a timely manner?

“I think you’re going to see fewer restrictions on drilling for sure, permitting, etc.,” said Dennis Kissler, senior vice president of the trading division at BOK Financial. BOK Financial is a top 25 U.S.-based bank headquartered in Tulsa, Oklahoma. “So, that’s probably more negative to prices longer term if we’re going to reduce restrictions, especially for offshore.”

While an administration can influence investment decisions, current market forces and structural financial considerations provide the more immediate impacts. There are natural headwinds to investment in domestic production (specifically fracking) and production decisions for existing fields.

The early days of fracking saw several boomand-bust cycles driven by overproduction that generated uncertain returns for investors.

“Just because there is a new administration more open to oil production doesn’t mean lower petroleum prices right away,” said Kissler. “The market may react to that in the short term, and it will probably be positive to energy company stocks because it’s going to provide them the opportunity to pick up production if they want it. Now it comes down to net profit. They want to give cash back to the shareholders and it’s going to be very price corrective as to whether we

increase drilling or decrease drilling.”

Kissler noted that profitability starts at around $65 per barrel. Anything above $75 (WTI) significantly increases the drive to produce. Even with efficiency in the production process continuing to increase, so do current costs. As the Permian Basin has moved to the west, some of those areas are seeing increased depletion rates and significantly increased lease costs.

Of course, geopolitics from Russia/Ukraine to OPEC+ manipulations can have dramatic price impacts and are difficult to predict.

CAFE AND TAILPIPE REGS

In its campaign materials, the Trump administration promised to cancel the emission regulations for light, medium and heavy-duty vehicles, noting a potential loss of 117,000 auto manufacturing jobs. These stringent regulations focus on tailpipe emissions versus lifecycle emissions (a far more nuanced way to measure carbon emissions with a specific technology) and severely limit options beyond electric vehicles.

Similarly, the Trump administration expressed a commitment to end the Biden EPA’s CAFE fuel economy standards. It claims the standards will cost the auto industry an estimated $200 billion and raise the average cost of vehicles by more than $1,000. The mileage requirements are very stringent and are broadly seen as driving more gallons out of the market than EV penetration.

NACS’ position (and generally the position of its industry association peers) has been that standards should be technology neutral and not simply a mandate for one specific solution such as EVs. The tailpipe regulations have specifically crossed that line, it argues.

“We’re hopeful that there are some policies that will change,” said Doug Kantor, NACS general counsel. “In particular, we think performance standards are one thing but mandating a specific technology ends up with inefficiencies, stranded investments and, frankly, even worse environmental outcomes than letting the market figure those things out.”

A number of lawsuits have been filed against the tailpipe standards. On September 9, 2024,

some 56 entities filed an initial brief in a lawsuit against EPA. The entities included NACS, RFA, National Farmers Union, American Farm Bureau Federation, 14 state and national corn grower associations, numerous auto dealers, organizations representing trucking and shipping companies, manufacturing groups, energy trade associations, organized labor groups and other parties.

The brief noted that EPA projects at least 68% of new vehicles will need to be electric to comply with the standards by 2032. This effectively mandates a nationwide transition from internal combustion engine vehicles to electric vehicles, and the Clean Air Act does not clearly authorize EPA to force Americans to buy electric vehicles.

What do automakers think about this? A short, November 12 letter to the Trump administration outlined the following goals from The Alliance

development lead times for automakers. 4. Implement a federal regulatory framework for autonomous vehicle technology to remain competitive with China.

With control of the executive branch and agency leadership, the Trump administration can work through the EPA to change many of Biden’s standards and regulations. However, the previous Trump administration had issues finding agency, cabinet and department leadership that would actively support his agenda. There tended to be similar headwinds at lower levels of the bureaucracy. Trump has promised to aggressively clean house with the Washington bureaucracy, but the establishment challenge to such an effort from both the Democratic minority and his own party are daunting.

In its campaign materials the Trump administration has promised to “cancel” the emission regulations for light, medium, and heavy-duty vehicles noting an estimated potential loss of 117,000 auto manufacturing jobs.

for Automotive Innovation. This organization represents all the major automakers, battery producers and semiconductor makers.

1. Address unfair EV competition from China. This can include addressing mineral and raw material supply chains relative to lithium batteries and the electric grid. Similarly, an October letter urged Republicans to maintain the ranges of consumer and manufacturer EV subsidies.

2. Address aggressive federal and state emissions regulations (specifically citing California and affiliated states) that “… are out of step with current auto market realities and increase costs for consumers.”

3. There is a need for regulatory stability, an important consideration given the long

Kantor noted that even with the administrative goal to reverse these regulations, the lawsuits will continue to be supported until the issues are fully resolved one way or the other.

A recent Supreme Court decision could potentially make reversing the regulations easier.

With the Chevron doctrine, in place since 1984, courts were required to conduct a two-part test and defer to an agency interpretation of any ambiguous statute being legally considered. Now, judges have a more neutral playing field when considering their decisions.

“I think the interesting dynamic is that the existing litigation against the tailpipe rules are aided by the Supreme Court overruling the Chevron doctrine, making it easier to challenge these decisions. On the flip side, if and when the new administration reverses some of these rules,

With almost 40 million residents California is the most populous state in America. It is also on the cutting edge of pushing environmental boundaries beyond EPA mandates. The resultis that the state’s market power tends to drive environmental policy nationally more than federal agencies.

the challenge to that will also probably be easier under the new legal standard than it would’ve been.”

Additionally, legislation is far harder to repeal or tweak than regulations. On August 16, 2022, Biden signed into law the Inflation Reduction Act of 2022. Passed largely along partisan lines, the act included spending $783 billion on energy and climate change with a heavy focus on EVs— and much of the money has found its way into Republican districts.

“I think it’ll be difficult to repeal or make significant changes to the policy in that act, but the money is a big question,” Kantor said. “There are rescissions where Congress takes some of that money that hasn’t been spent or is slow to get spent and applies it to other purposes. That could easily happen based on where things stand in the process.”

PUSHBACK ON CALIFORNIA

With almost 40 million residents, California is the most populous state in America. It is also on the cutting edge in pushing environmental boundaries beyond EPA mandates. The result is that the state’s market power tends to drive environmental policy nationally.

It can do this because in 1967 Congress gave the state the ability to exceed federal standards

for cars and other vehicles due to geological factors that gave the Los Angeles basin significant smog problems. This is accomplished through an EPA waiver process.

Currently, a variety of waivers await EPA approval, including mandates for zero-emission cars and trucks and more aggressive standards for locomotives, commercial ships, off-road diesel vehicles and construction equipment. However, the waivers must be specifically focused on California’s unique pollution concerns, cannot be excessive by reasonable standards and must be basically aligned with federal law.

Other states have the option to follow the federal standard or the California standard, but can’t independently come up with their own standards. Currently 11 other states have followed California’s stricter rules.

“EPA has granted a waiver for one set of California rules and there’s a pending request by California to have a waiver for their second, Advanced Clean Cars 2 rule,” said Kantor. “If EPA were to rescind the existing waiver and deny others, then California would just follow the federal standards.”

The tool the Trump administration would use is the Congressional Review Act. This allows Congress to invalidate regulations. There is a moving target as to how far back based on the number of days Congress has been in session that Congress can review and try to invalidate a regulation.

“There will be some set of things that the Biden administration has done or will do that potentially could be repealed by Congress,” Kantor said. He noted it is not clear exactly when that deadline will fall. For example, if EPA were to grant California a waiver for its Advanced Clean Cars 2 rule now, that will fall in the time window and Congress could try to repeal it under the Congressional Review Act.

Keith Reid is editor-in-chief of Fuels Market News. He can be reached at kreid@fmnweb.com

Energy Special Interests Weigh In

Every newly elected president gets a range of congratulatory messages from national trade organizations and influential bodies. Most tend to be positive, even if the election results promise some rough going for the organization’s policy goals. Some, not so much. That was certainly the case with the Trump victory.

As might be expected, the American Petroleum Institute was very positive about the Trump victory. API President and CEO Mike Sommers issued the following statement on the results of the 2024 presidential election: “Energy was on the ballot, and voters sent a clear signal that they want choices, not mandates, and an all-of-the-above approach that harnesses our nation’s resources and builds on the successes of his first term. We look forward to working with the incoming administration and leaders in both parties to advance bipartisan solutions that unleash American energy as a driver of economic prosperity, environmental progress and stability around the world.”

Biofuels tend to have strong bipartisan support in agricultural states, though overall political support can vary by party relative to the specific policies being promoted and shifts among various environmental entities. In a lengthy statement, Renewable Fuels Association (RFA) President and CEO Geoff Cooper congratulated Trump on his victory, highlighting his approach of putting “American energy first” through domestic production: “Trump understands that ethanol lowers fuel costs for hard-working families, reduces dependence on foreign energy sources, helps farmers and boosts the rural economy, and protects the environment.”

RFA further noted Trump’s support of E15 during his first term, with anticipation of that support continuing during his second.

There was no attempt by the Sierra Club to make nice after this election cycle. As part of a lengthy statement, Sierra Club Executive Director Ben Jealous released the following statement: “Trump has put profits

over people time and again, prioritizing the bottom line of the Big Oil CEOs who bought and paid for his campaign above communities across the country who face the threat of pollution and the devastating impacts of the climate crisis, and seeking to keep us hooked on fossil fuels rather than investing in a clean energy economy.”

He promised an aggressive fight against Trump policies throughout his next term in office.

The Zero Emission Transportation Association’s initial response to the victory was a traditional positive gesture: “The electric vehicle industry stands ready to work with President-elect Donald Trump, Congressional Republicans, Democrats, Independents and all groups that want to ensure our nation’s innovation and economic competitiveness remain the best in the world. The next four years are critical to ensuring that these technologies are developed and deployed by American workers in American factories for generations—a goal that unites every state regardless of their Electoral College votes.”

Finally, the next term of the Trump administration will likely involve serious legal challenges with the state of California. As part of a short statement, California Governor Gavin Newsom noted: “California will seek to work with the incoming president—but let there be no mistake, we intend to stand with states across our nation to defend our Constitution and uphold the rule of law. Federalism is the cornerstone of our democracy. It’s the United STATES of America.”

He then convened a special session of the California Legislature to get the ball rolling to “… safeguard California values and fundamental rights in the face of an incoming Trump administration. The special session will focus on bolstering California legal resources to protect civil rights, reproductive freedom, climate action and immigrant families.”

It’s going to be an interesting four years.

LONNIE MCQUIRTER IN THE LEAD

With the right effort and focus, you can run a small business in some very big ways.

By Keith Reid

LONNIE MCQUIRTER OWNER

36 LYN REFUEL STATION

Leading businesses in the retail fueling and convenience industry come in all shapes and sizes. On the smaller end of the scale—a single site operator in fact—is 36 Lyn Refuel Station, which is owned and operated by Lonnie McQuirter. Located in metropolitan Minneapolis, the operation serves a highly diverse community with a range of store products and solutions both inside the box and out on the forecourt.

McQuirter is the very definition of a small business entrepreneur. However, he is also involved in the industry at large in the same way you might expect to see from a CEO at a larger company.

After a stint at Haagen-Dazs, McQuirter has worked at 36 Lyn Refuel Station as the owner/ operator since June 2005, when it was launched with financial support from his family. He is currently on the board of directors at both NACS and Conexxus, and in 2018 he served as chairman of the Minnesota Retailer’s Association.

McQuirter also serves on the Southwest Business (Minneapolis) Association Board and was honored as the Volunteer of the Year for the Lyndale Neighborhood Association. 36 Lyn Refuel Station is a member of the National Retail Federation and is also a three-time Inc. 5000 honoree and a onetime MSPBJ Fast50 honoree.

FMN and McQuirter discussed the challenges and opportunities that come with being a single-site operator in the industry today.

IN AMERICA, THE LAND OF OPPORTUNITY, THE EDUCATION SYSTEM SEEMS TO PUSH BECOMING AN EMPLOYEE OVER BECOMING AN ENTREPRENEUR. WHAT DROVE YOUR ENTREPRENEURIAL SPIRIT?

I’ve always had a very entrepreneurial mindset. My dad was always self-employed, and for me, that was the only way I’ve known things. Many people look at athletes or movie stars for role models, but for me it was a lot of the business

professionals that I had the pleasure of being around as a kid and into my adulthood.

Entrepreneurship is an abstract concept and foreign to most people, because the only way that they’ve known is how to sell themselves to an employer and how to stay employed, and looking at the world from that vantage point. But that’s foreign to me. I’m terrible at interviews and I’m terrible at trying to sell myself, but I’m good at selling things in my business. I’m good at getting a feeling for where my customers are going and trying to understand where the economy’s going. There have been times where I’ve flirted with the idea of leaving and going to work for someone, but I’ve found it much more fulfilling to operate a business.

In addition to the store, I co-own a co-packing facility and some retail properties. And, as the opportunity presents itself, I will consider expanding the convenience business.

WHAT WERE SOME OF THE CHALLENGES YOU FACED GETTING OFF THE GROUND?

How much time do you have? In 2005 I struggled with just about everything and I had to prioritize, because being a small business operator means you can’t throw money at everything and it’s the same with your time. You must really focus on what can move the needle. Those small increments compound. Many people focus on those silver bullets and home runs, and they ignore the base hits. That may be LED lighting or HVAC improvements, and it is particularly the case with considering investments in technology.

LABOR IS A HUGE ISSUE FOR THE INDUSTRY. HOW DO YOU MAXIMIZE THAT ASPECT?

Hiring talent has been important to me from the get-go, first with the process and then keeping them engaged in the workplace. We value our employees—we really do care about them— but there is some self-interest in that. We start with a pre-interview, since having a bad employee can burn a huge hole in your pocket. I’m in a higher labor state, and it’s expensive to hire and it’s expensive to fire—it costs me about $17,000, and that’s real money that’s now gone.

We want to make sure we have consistency throughout the whole process, and that’s easily quantified. For example, we can look at turnover and I can say that we’ve had about four people that we’ve lost mainly because we didn’t onboard them properly.

You can start to build a track record to get an understanding of the employment journey from when you hired someone through the initial training to coaching and look at things and say, “What’s making these employees bad? Or what’s giving them reason to leave?”

Do we need to change the way we are hiring, the way we’re coaching, the way we are doing the hands-on training or even some environmental aspect of it? Do we need to address our business hours? Do we need to shorten the shifts? That’s something that we’ve been playing around with.

WHAT DOES TECHNOLOGY BRING TO THE TABLE FOR THE SMALL RETAILER? CAN IT ADDRESS THE ECONOMIES OF SCALE FOUND WITH LARGER OPERATIONS?

The improvements in computing power can begin to quantify and track and measure things that would have been very difficult to do previously, especially if you’re one person, a jack-of-all-trades, wear a thousand hats type of person like me.

With technology, you can look at things more objectively as well as execute on a more consistent basis. And that’s really the opportunity that the small operator has right now, making great strides with having the same high standards or consistent offerings as with many larger retailers, whether it’s monitoring inventory levels or uptime and downtime, etc.

You can drill down into your hourly sales and analyze how you’re budgeting your labor, which can be very important—especially for foodservice. You can maximize your sales and make sure you have a consistent offering through all parts of the day to build more of a chance to earn their business.

WHAT ABOUT SOCIAL MEDIA AND ONLINE PLATFORMS?

A lot of business operators look at something like Google Business or Yelp and get upset because there may be some things that are said that are embellished or not entirely true.

But that customer is reaching out to say, look, something’s off here. I’m not sure exactly how to articulate it, but something’s off that you need to address.

I’m always grateful for those one- or two-star reviews because that’s a learning experience. When you can pinpoint it down to the employee, it gives us some things to work on. And it takes the subjectiveness out of the relationship between you as the manager or business operator where sometimes people might take it personal otherwise. That is extremely helpful.

Social media, Instagram or Facebook or X, are also great barometers. On X [formerly Twitter], I used to be able to run scripts there to pull data out in different ways, which gave me an idea of the sentiment of consumers, though that’s harder now. I also use TweetDeck quite a bit as a way of monitoring news flow or following certain accounts in a manner that lets you focus on specific topics or issues. And so you can kind of monitor what’s going on there. That was helpful in 2020 during the unrest here [after the death of George Floyd], and it’s helpful today when it comes to looking at things like what’s going on with oil.

WHAT ARE YOUR CURRENT FUEL AND ENERGY OFFERINGS?

We currently offer the three standard grades of gasoline, and our DC fast charger which we installed in 2015 and are considering upgrading. We are looking strongly at renewables, such as ethanol, through some of the state and federal programs. That will entail the replacement of our dispensers as well as doing some tank work.

In 2015, we took part in the #24EVChallenge which was a run by The Guinness Book of World Records and attempted to charge 100 plug-in EVs in 24 hours. We think we met the challenge unofficially, but technically we charged 85 vehicles.

Since 2014, we have also operated the store on wind energy.

ARE YOU BRANDED OR UNBRANDED?

We are branded 36 Lyn Refuel Station. We are no longer affiliated with a major oil company after the BP Deepwater Horizon platform oil spill in 2010. The community had a lot of questions, and

we didn’t feel like we received a lot of support from the major oil company. I realized I needed a change. We have Top Tier on the 93.

WHAT ARE YOUR THOUGHTS IN GENERAL ON BRANDED VS. UNBRANDED IN THE MARKETPLACE?

I look at those smarter and bigger than me. So, I look at companies like Sheetz, Wawa, the trips— QT or KT—Circle K … they’re all branded with their own fuel. I recognize there can be a difference in fuel quality, but I also recognize that my customers don’t value that as much as they value the lowest price or other ways that they’re looking at value when it comes to what they’re putting into their tanks and where they stop to fill up. I think a lot of that is how you go to market and how you lay out your store and your store design.

BUILDING ON THAT, ONE ADVANTAGE A SMALLER OPERATION HAS OVER THE LARGER CHAINS IS THE FLEXIBILITY TO MEET THOSE SPECIFIC CUSTOMER NEEDS. YOU OPERATE IN A HIGHLY DIVERSE COMMUNITY—AGE, RACE, INCOME AND RELIGION. HOW DO YOU MAXIMIZE YOUR OPPORTUNITIES?

There are different social norms with different groups. They may articulate certain feelings in a manner different than the way you or I do, and at times it may come across as off-putting. It’s just a failure to comprehend those cultural differences. You can hire people from those cultures to help understand those differences better.

We have a large Muslim population as well as a large Christian Hispanic population. Both can be very conservative socially (not politically). We also have customers who are very liberal socially.

I’m always grateful for those one- or two-star reviews because that’s a learning experience. When you can pinpoint it down to the employee, it gives us some things to work on. And it takes the subjectiveness out of the relationship

YOU ALSO HAVE A FOCUS ON OFFERING THE COMMUNITY HEALTHY FOOD ALTERNATIVES.

One of the things that I’ve observed since I’ve had the store is you may have a customer walk in and they’re looking desperately for something that’ll fit their healthy food desire. They’re not finding what they’re looking for and then they settle on something that’s not their first choice, like a bag of chips or a candy bar. Being able to suit that need when it comes to healthy items is an opportunity for convenience stores and if we’re not careful we may lose that space.

Customers were asking for it and—being an enterprising individual—if someone’s trying to give me their money it’s my job to figure out how I can take it from them. It’s better to have a bottom-up approach, paying attention to what consumers are requesting, and looking at the local trends. Over half of our item mix is locally sourced and organic at this point.

We’re in kind of a melting pot in Minneapolis in many ways, where depending on how things are said and who says it, it could be a compliment to someone or it could be offensive, so you must navigate that.

It does give you a lot of options when selecting products, but even there you have to be mindful. For example, with our Muslim community, there are products we won’t set next to each other. If you are a large regional or national brand, it could be more challenging to make sure that your planograms accommodate halal and kosher products or to market those products in such a way that makes it easy for that customer to identify them on your shelf.

WHAT DO YOU THINK ARE SOME OF THE BIGGEST CHALLENGES YOU FACE AS A RETAILER TODAY?

I’m spending a lot more time dealing with political or regulatory issues. It’s challenging at times

when you’re dealing with policymakers and they think we’re further along in our tech cycle or more sophisticated than we are. And sometimes they think that we’re making more money since we are in the private sector, and that we can implement all of these changes that they’re looking for.

Some of that may be employee/employer relations. Some of them could be environmental practices, whether we’re talking about food waste or bans and prohibitions on certain products. But that’s a real challenge there.

EVEN AS A SINGLE SITE OPERATOR, YOU ARE VERY INVOLVED IN INDUSTRY ORGANIZATIONS LIKE NACS, CONEXXUS AND TEI AND TAKE TIME OUT FOR DAY ON THE HILL EVENTS. WHAT DRIVES YOUR INVOLVEMENT?

You can’t be complacent. As I discussed earlier, I believe our challenges are heavily political and

regulatory in nature. One of my three favorite books is Only the Paranoid Survive, which was written by a former Intel CEO. I think there’s some good takeaways for convenience retailers in not being complacent and always looking over things and always trying to make incremental improvements that can make dividends. Being involved helps make that happen.

Keith Reid is editor-in-chief of Fuels Market News. He can be reached at kreid@fmnweb.com

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INSIGHTS INTO BIOFUELS

BIOFUELS

A new report from TEI provides an overview of the economics of U.S. crop-based fuel production.

By Keith Reid

The Transportation Energy Institute (TEI) recently released “Balancing the Benefits of Biofuels: The Economics of U.S. CropBased Fuel Production.” This report was developed for TEI by Stillwater Associates, a transportation fuels consulting firm specializing in mid to downstream markets. Biofuels possess great potential to contribute to a lower carbon transportation sector, yet questions remain regarding the overall economic and environmental impact of the industry. While biofuels are produced from a wide range of feedstocks, those produced from crop-based feedstocks raise the most questions due to potential conflicts with the use of those same crops for food and livestock feed.

With the broad push for EVs, why are biofuels important? “Even in the most optimistic scenario for electric vehicle adoption, combustion vehicles will remain in operation in the United States for decades,” said John Eichberger, TEI executive director.

“If we care about emissions reductions, like carbon, we must not ignore the emission from these vehicles,” said Eichberger. “We published a study a few years back that demonstrated nearly 75% of carbon emissions from combustion vehicles come from the burning of the fuel. To have an impact, we must reduce the carbon intensity of our fuels, and biofuels are the most viable option today to achieve this objective.”

The report offers a current analysis of the range of economic inputs that go into biofuel production. Conclusions are drawn in some areas, while many remain open as the variables that impact economics are not set in stone. Market conditions, policy shifts and other facts can, in some cases, change an outlook overnight. The report can be downloaded for free at www. transportationenergy.org.

AN OVERVIEW OF THE BIOFUELS LANDSCAPE

At present, ethanol, biodiesel (BD) and renewable diesel (RD) combined make up more than 99% of all U.S. biofuel production. The market for sustainable aviation fuel (SAF) is currently in its infancy, with some problematic ramifications. The report notes that with sufficient policy support, SAF will grow over the coming decades and compete for the same feedstocks used for ethanol, BD and RD. The magnitude of the policy incentives and associated rate of growth in SAF production is a public policy decision, so there is no attempt to forecast that in this report. The specific policy enactments will impact the extent to which this results in changing the use of the feedstocks covered by the outlook versus simply increasing the demand for those feedstocks. As these markets evolve, the analysis laid out in the report should evolve as well.

THE CURRENT LANDSCAPE OF FEEDSTOCK PRODUCTION

The primary crop-based feedstocks used to produce ethanol, BD, RD and SAF in the United States are corn, soybeans and canola. Biofuel feedstock acreage jumped sharply between 2010, the first year of the current federal Renewable Fuel Standard (RFS) program, and 2011. Since then, the acreage requirement has been relatively steady at between 40 and 47 million acres per year (average 44.3 million acres). Additionally, per acre yields of each of the primary biofuel feedstocks have been growing steadily over time; the cumulative effect of these trends is that the supply of these feedstocks has grown more rapidly than the acreage dedicated to these crops. Key factors contributing to this steady growth in yields are regular improvements in seeds as well as adoption of improved agronomic practices by the many individual farmers growing these crops. A large portion of these gross feedstock volumes are returned to feed markets as meal (soybean and canola) or distillers grains (corn and grain sorghum). This net acreage calculation shows that acreage dedicated to biofuel

production peaked at 28 million acres in 2012 and has held relatively steady between 22 and 25 million acres since then.

Not all of the corn, soybean and canola can be converted to biofuels, and the byproducts are used largely to feed livestock. Another part of the study said that absent biofuels production, we would need to increase total acreage by 15 million acres to generate enough food for livestock to replace the biofuels byproduct.

At the same time, biofuel production efficiency has increased over the past decade. The U.S. Energy Information Administration (EIA) in its 2023 Annual Energy Outlook expects 2024 to be the near-term peak for U.S. ethanol, BD and RD production—and therefore also for feedstock demand—given the federal and state incentive programs in place.

THE FOOD VERSUS FUEL DEBATE

A relatively old debate in biofuel production has been the claim that the feedstocks are better used, or in fact needed, as an international food source for the human population. Is that the case?

Overall demand for food, both in the U.S. and globally, is set primarily by growth in population and secondarily by economic growth. How overall food demand translates into demand for corn, grain sorghum, soybeans and canola will also be dependent on trends in food preferences (e.g., preference for meat versus vegetables in the diet), which are difficult to predict and outside the scope of this report.

The impact of the production of corn ethanol on food prices and indirect land use change was more significant in the early years of the RFS than it is now. These effects were exacerbated by other factors, including low crop stocks, high energy prices and growing overseas demand for food. Agricultural supply responded to higher prices by increasing productivity, inducing more double cropping, and changing the mix of crops; U.S. crop acres have decreased over time, but acres dedicated to corn and soy have become a larger share of the mix. The mix of livestock products demanded over time has also changed. In the long run, the demand and supply of agricultural commodities tends to be more elastic, and this has helped mitigate the food versus fuel effects.

The interplay between food and fuel is complex. Demand for food, both in the United States and globally, is set primarily by growth in population and secondarily by economic growth. A metaanalysis of the literature on the subject, however,

supports the finding that biofuels are not a leading source of high prices of commodities, including food crops.

MAKING BIOFUELS EVEN LOWER CARBON

While biofuels currently offer lower carbon profiles than conventional fossil fuels, there remains an ability to reduce that carbon content even further. There is significant potential to lower the carbon intensity of corn ethanol by adopting climate-smart practices for crop production, such as increasing the efficiency of nitrogen fertilizer use, reducing the use of fossil energy for crop production and increasing soil carbon sequestration. Positive environmental opportunities could be supported if policies take into consideration environmental impacts across agencies and sectors, just as those factors are considered in the transportation sector.

NET ZERO VERSUS IMPACTFUL REDUCTIONS

One issue not emphasized in the report is the resistance among large segments of the environmental community and some national and international leaders to transportation solutions that do not involve electricity or hydrogen. Any solution that involves combustion must be set aside regardless of the merits involved. This is particularly ironic given the fact that most electricity being generated today does not come from renewable sources but from coal, natural gas and oil. Can this resistance be overcome?

“It has to be, although some leaders do not want to consider any options beyond electrification,” said Eichberger. “But laws and regulations that do not embrace multiple options for reducing emissions impede our ability to achieve our environmental objectives. To improve the environmental impact of transportation while

“To have an impact, intensity of our fuels option today to achieve this objective.”

To incentivize continued carbon reductions in the agricultural side of the equation, for example, regulators might consider establishing a mechanism for biofuel producers to earn credit from improved feedstock production processes that will increase the climate change and environmental benefits of biofuels. Government policies that supplement existing policies could be helpful. These might include conservation programs as well as pricing carbon and nitrate emissions to create incentives for the agricultural industry to adopt new technologies that increase productivity while lowering environmental impacts. By creating consistent and growing demand, state low carbon fuel programs and the federal RFS and clean fuels provisions in the Inflation Reduction Act of 2022 can also help drive increased efficiencies in the cultivation of renewable feedstocks and in the production of renewable fuels from those feedstocks. To successfully drive renewable fuel production and adoption, however, these programs must reduce the costs of feedstock and fuel production to the point at which the market can afford their use.

preserving access to affordable and reliable transportation options, we have to support new vehicle technology and lower-carbon fuel products.”

When asked what needed to be done to boost support, Eichberger noted that the wall between those who advocate for electric vehicles and those who advocate for lower carbon fuels must be broken down—these should not be mutually exclusive objectives. Policymakers must open the door to conversation, engage with those who can help achieve our environmental and transportation objectives and develop comprehensive plans that accelerate emissions reductions and preserve a functional and affordable system for all consumers.

Keith Reid is the editor of Fuels Market News.

INDUSTRY NEWS

NORTHWEST PUMP ACQUIRED BY H.I.G. CAPITAL

Northwest Pump (NWP), a provider of equipment and services to fueling and industrial customers on the West Coast, announced that it has been acquired by H.I.G. Capital, a global alternative investment firm with $66 billion of capital under management. Northwest Pump plans to keep all employees and the current leadership team in place and is excited to welcome the talented team at H.I.G. who will assist in achieving the continued growth ahead.

PDI SELECTS VALIDIFI FOR PAY-BY-BANK ENROLLMENTS

ValidiFI, a provider of predictive bank account and payment intelligence, announced a strategic technology integration with PDI Technologies to offer real-time bank account validation within its consumer enrollment process for the PDI Payments solutions. The integration will also include GasBuddy, a PDI company. The collaboration is meant to increase instant consumer approvals, strengthen fraud detection and empower more informed risk decisions through validating bank accounts and assessing behavior.

LEGACY MARKETS SELECTS PRICEADVANTAGE FUEL PRICING SOFTWARE

Legacy Markets followed its recent acquisition of 10 Triangle Stop convenience stores by selecting PriceAdvantage as its fuel pricing software platform. The PriceAdvantage platform provides Legacy Markets with support and robust integrations to the various POS and backoffice systems anticipated in their upcoming acquisition plan.

CAPITOL PETROLEUM GROUP SELECTS TITAN CLOUD

Titan Cloud, a leader in fuel asset optimization software, announced that Capitol Petroleum Group (CPG), a Mid-Atlantic fuel retailer, selected Titan Cloud to modernize its fuel operations. With 226 locations and expanding, CPG is taking a proactive approach to address the growing complexities of the fuel industry. By partnering with Titan Cloud, CPG aims to streamline its delivery planning, improve inventory accuracy and drive revenue growth.

and scale the mobility ecosystem, announced that RaceTrac, a regional leader in convenience and fuel retail and the 18th largest privately held company in the United States, selected Vontier’s Invenco by GVR asset management cloud-based solution to remotely manage its forecourt assets, maximizing operational and cost efficiency at its more than 800 stores representing the RaceTrac and RaceWay brands in 13 states.

D&H UNITED FUELING SOLUTIONS ACQUIRES HCN PETROLEUM EQUIPMENT

D&H United, a portfolio company of Wind Point Partners and a provider of mission-critical installation, maintenance, testing and inspection services for fueling stations and electric vehicle charging infrastructure, announced the acquisition of HCN Petroleum Equipment. Based in Newland, North Carolina, HCN Petroleum Equipment is a turnkey petroleum service and equipment provider. This strategic acquisition continues D&H’s expansion in the Southeast, aimed at further enhancing its national service capabilities. HCN Petroleum Equipment, known for its service in North Carolina, Tennessee, Virginia and South Carolina, will integrate with D&H’s expansive offerings and commitment to quality.

LOVE’S SELECTS GRAVITATE’S SUPPLY & DISPATCH SOLUTION

Gravitate announced that Love’s Travel Stops’ private truck fleet, Gemini Motor Transport, has selected and implemented its AI-powered supply and dispatch solution. Gemini delivers millions of gallons of fuel to Love’s stores and other locations in the industry annually, and the Gravitate supply and dispatch solution is expected to help the company manage supply, optimize fuel supply decisions, dispatch 1,300 trucks and provide new freight and quoting functionality.

DFS LAUNCHES DX REWARDS

RACETRAC TAPS GVR REMOTE MANAGEMENT SOLUTION

Vontier Corporation, a global provider of critical technologies and solutions to connect, manage

Dover Fueling Solutions (DFS), a part of Dover Corporation and a global provider of advanced customer-focused technologies, services and solutions in the fuel and convenience retail industry, announced the launch of DX Rewards, a rewards and loyalty offering available through the DFS Anthem UX platform-based dispensers. Marking the next iteration of the DFS Anthem Experience, DX Rewards, available in North America, is an online loyalty marketplace that integrates seamlessly with a retailer’s existing provider to expand their current program and offer a personalized, app-like experience at the pump. As consumers fuel up, they are prompted to enter their phone or loyalty ID to sign in. Nonmembers simply enter their phone number to auto-enroll in the rewards program.

FLEETPANDA AND MANSFIELD ENERGY PARTNER

FleetPanda, a petroleum dispatch platform, announced a strategic partnership with Mansfield Energy, one of the nation’s largest energy suppliers and logistics providers. The partnership centers around integrating FleetPanda’s dispatch software with Mansfield Energy’s network of over 1,500 fuel distributors. The integration enables real-time communication and data exchange, streamlining the entire process from order placement to delivery completion.

BP INTRODUCES EARNIFY APP

BP announces the launch of Earnify, an app designed to revolutionize the fueling and convenience store experience for consumers. Earnify aims to deliver a seamless, integrated and rewarding experience for users, both at the pump and in-store. Earnify users can earn points on every dollar spent at BP and Amoco locations, both on fuel and in-store items. Users earn one point per $1 spent on fuel and two points per $1 spent on other in-store items, along with an always-on 5¢ per gallon (5cpg) savings on fuel purchases. Points can be redeemed for various rewards, including additional fuel savings, in-store purchases or special promotional offers.

KALIBRATE ACQUIRES IMST CORP.

Kalibrate, a global insights firm providing software and services relating to location analytics and fuel pricing, has announced the acquisition of IMST Corp., an independent market research firm

OUR ADVERTISERS

specializing in site selection, analysis and sales forecasting for convenience stores and fuel stations. The acquisition will bolster Kalibrate’s fuel station and convenience store forecasting capabilities and capacity. IMST serves thousands of convenience and fuel operators across the US with reports and projections for fuel volume, convenience store sales, car wash, QSR, truck stop and travel center developments.

SPATCO ACQUIRES UST SERVICES CORPORATION

SPATCO Energy Solutions, a leader in infrastructure services and innovative turnkey solutions for the petroleum, diesel exhaust fluid (DEF), environmental and electric vehicle (EV) markets, announced its acquisition of UST Services Corporation. This strategic acquisition significantly enhances SPATCO’s footprint in the Maryland, Virginia, and Delaware markets. UST Services Corporation, known for its comprehensive petroleum contracting services, excels in tank installation and removal, service and maintenance, environmental compliance and precision testing.

MAKO NETWORKS LAUNCHES SMARTATG

Mako Networks, a leader in secure cloud-managed networks for distributed enterprises, announced the launch of its Mako SmartATG automated tank gauge (ATG) Interrogator. SmartATG enables fuel retailers to streamline data retrieval from ATGs, which monitor and manage fuel storage tanks to ensure that fuel levels are accurately tracked, leaks are detected and inventory is efficiently managed.

REMEMBER THIS?

100 Octane Week

BY KEITH REID

It’s hard to underestimate the role the United States oil industry played in the Allied victory in World War II, though it can be overlooked. The role the U.S. manufacturing base played in the victory is well documented. Tanks, planes, ships, trucks, guns, artillery—you name it. If it was useful for the conduct of war, the United States not only produced enough to meet America’s needs but the requirements of every ally in the conflict.

However, all of those aircraft engines needed fuel, and the country delivered it in quantity, quality and raw performance.

The May 3, 1944, issue of National Petroleum News highlighted the official government recognition of “100 Octane Week,” which was held May 1-7 as a tribute to the oil industry. This 100/130 octane fuel (100 at lean cruise and 130 at rich performance settings) allowed higher manifold pressures in supercharged and turbocharged engines without knock, which resulted in higher performance.

The effect of this fuel first became apparent before the United States

entered the war in 1940 during the Battle of Britain, when U.S.-supplied 100/130 octane fuel began to replace British fuel in the 81/87 octane range. This fuel combined with the British Rolls Royce Merlin XII engine fitted in the Mark II Spitfire fighter allowed an increase of roughly 330 horsepower. From a speed standpoint this could represent a significant 35 to 45 mph. There were several articles in the issue covering 100/130 octane fuel. It was noted that this fuel was first produced 10 years previously by Shell. While it didn’t have a consumer market, the military aviation market made it worthwhile to produce despite its significantly increased production costs. By May 1944, 100/130 octane fuel was being produced at a rate of roughly 400,000 barrels per day, which was more than sufficient to meet the needs of the war effort.

Two military leaders at the forefront of the air war lauded the oil industry.

From the US Army Air Forces side: “On this 10th anniversary of 100-octane gasoline, the Army Air Forces sends its congratulations. You workers and producers deserve the

recognition of ‘100 Octane Week’ for you have won a battle. This has been a victory of prime importance for without it the victories that take place daily in the skies would be impossible. You have supplied the fuel to power our aircraft in the past and the AAF can plan even greater blows to the enemy with confidence that you will not fail us in the future.” —H.H. Arnold, general U.S. Army, commanding general, Army Air Forces

And from the Navy side: “On this 10th anniversary of 100-octane, the Navy salutes the thousands of men and women of the petroleum industry whose efforts have made possible the production of this fighting fuel. …. The constantly intensified war in the skies requires more 100-octane production without delay. The Navy is confident you will wholeheartedly meet this challenge to help speed the wings of victory.” —Ernest J. King, admiral U. S. Navy, commander-in-chief, U.S. Fleet.

What was not mentioned, likely because it was still considered to be a military secret, was the fact that the United States was beginning to supply the European theatre with 150 octane fuel. This fuel was aggressive on rubber components and spark plugs and it shortened engine life, but by that point in the war there was no shortage of engines, and the performance gains were worth the downside.

For more than 100 years, from its founding in 1909 to when it went out of business in 2013, National Petroleum News (NPN) documented the rise of petroleum marketing and retailing in the United States. NACS, PEI and The Fuels Institute have catalogued the rich history of NPN in its entirety. Each issue of Fuels Market News will look back at the history of our vibrant industry, through the eyes of NPN, to see how it reflect the issues, challenges and opportunities we face today.

Keith Reid is the editorial director of Fuels Market News.

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