Fuel Marketer News Magazine Spring 2017 by Fuels Market News

Spring Issue 2017

Your Source for News and Information

NACS and PMAA Legislative Updates

Benefits of

Distilled Biodiesel

Fuel Prices

into the Summer

Marketer Profile

Dennis K. Burke

OPEC

Makes a Deal Part Two

S U P P L Y, M A R K E T I N G , D I S T R I B U T I O N , T R A N S P O R T A T I O N & L O G I S T I C S

PUBLISHER’S NOTE

EDITORIAL STAFF President and Publisher Gary D. Bevers GBevers@EpicNewsData.com Editorial Director and Digital Publisher Keith Reid KReid@EpicNewsData.com CAO and Associate Publisher Kathy Bevers KBevers@EpicNewsData.com Managing Editor Kyndall P. Krist KKrist@EpicNewsData.com Industry Analysts/Editors Frank M. Hunter FHunter@EpicNewsData.com Nancy Yamaguchi, Ph.D. NYamaguchi@EpicNewsData.com Columnists and Contributors Greg Cushard Vladimir Collak Shane Dyer John Eichberger Doug Haugh Corey Henriksen Maura Keller Alan H. Levine Joseph H. Petrowski W. Brian Reynolds Fred M. Whitaker Editorial Board Paul Reuter, Editor at Large Ed Burke Lisa Calhoun George A. Overstreet, Jr. Joseph H. Petrowski Art Director Jeff Beene JBeene@EpicNewsData.com Circulation Success Manager Don M. Hester, Jr. DHester@EpicNewsData.com Digital Products Business Manager Joe A. Martinez JMartinez@EpicNewsData.com Advertising Sales Greg Mosho c 732-610-5735 GMosho@EpicNewsData.com Mailing Address 15201 Mason Road, Suite 1000-288 Cypress, TX 77433 www.FuelMarketerNews.com

A note from

Gary Bevers, Group Publisher The mission of Fuel Marketer News has

In addition to our free publishing-based price

always been to provide the marketer with

service, EPIC News+Data offers EPIC Price

a range of useful information focused on

Reports—our premium data service—which

the important fuel products, pricing,

provides comprehensive indexing and detailed

regulatory and operational issues so critical

supplier prices in all markets across the United

to your business. One component of the

States. EPIC’s wholesale pricing data subscriptions

information we focus on is fuel pricing,

are designed to be user-friendly, cost-effective

which is undergoing some exciting

and to facilitate flexibility in sharing pricing data

developments. At the beginning of 2017, we introduced our free Retail Price Index covering all U.S. metropolitan markets with the EPIC Fuel Gauge web-based application, allowing

throughout your organization through simple licensing. Need customized reports? No problem— EPIC will deliver on your requirements at a price point unheard of in the industry today. However, this is only the beginning. The goal

marketers to drill down beyond those

of Fuel Marketer News and EPIC News+Data

markets and get localized fuel price data.

is to provide fuel marketers with independent,

By using these tools, you can examine retail

accurate and verified pricing data to increase

prices and averages, and gain transparency

price transparency in the marketplace, which is

from lows, highs and averages to adjust

an ongoing process. Of course, we will keep you

your prices accordingly.

informed as these offerings come to market.

That was only the beginning. With EPIC

For important legislative updates featured in this

News+Data, FMN’s parent company, we are

issue of Fuel Marketer News, please read Keith

introducing our free Wholesale Price Index

Reid’s interviews with PMAA and NACS on page

for the same 10 metropolitan markets we

31 and 36, respectively, or Part Two of Dr. Nancy

currently cover with retail pricing, and

Yamaguchi’s excellent analysis of the OPEC deal

similarly making localized Rack-City prices

on page 18. In every issue, our energy-expert

available as well, encompassing over 400

columnists deliver objective analyses of the facts,

Rack-City metropolitan markets and 1,200

changes and trends in our industry, and what that

terminals. We provide these basic retail and

means to you as a fuel marketer.

wholesale prices for free to readers of Fuel Marketer News and our sister publications.

As we continue to offer new, value-added fuel-

For added convenience, we are introducing

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our Fuel Price Daily email newsletter, which

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Stay tuned—more to come!

TABLE OF CONTENTS

Performance Checklist:

Evaluating a Supply and Distribution 6 Division

Fuel Prices 12

into the Summer

PUBLISHER’S NOTE

FUELS & SUPPLY

Performance Checklist: Evaluating a Supply and Distribution Division by Joe Petrowski

Convenience and Commercial Fueling Just Might Go Together by Doug Haugh

Fuel Prices into the Summer by Keith Reid

OPEC Makes a Deal, Part Two by Dr. Nancy Yamaguchi

PMAA in 2017: An Inside Look with Rob Underwood by Keith Reid

NACS in 2017: An Inside Look with Paige Anderson by Keith Reid

WHOLESALE & FLEET OPERATIONS

Three Ways 47

to Benefit from Distilled Biodiesel

Building and Expanding Bulk Plants Why Are There Remove-By Dates on Fuel Nozzles?

Leading with Empathy: How Data Analytics Uncovered Claimants’ 70 Fears

Marketer Profile: Dennis K. Burke by Maura Keller

Three Ways to Benefit from Distilled Biodiesel by Jon Scharingson

Building and Expanding Bulk Plants by Maura Keller

Sharing the View by Amy Werner

RETAIL OPERATIONS

The New Retail Fuel Customer Base: Where Disruption Meets Collaboration by Joe O’Brien

Why Are There Remove-By Dates on Fuel Nozzles? by Ed Kammerer

BUSINESS OPERATIONS

How Fuel Goes to Market: Reviewing the Fuels Institute Report by Keith Reid

Leading with Empathy: How Data Analytics Uncovered Claimants’ Fears by Mark Moitoso and Becky Kies

Customer Retention After an Acquisition by Ann Pitts

78 INDUSTRY NEWS 88

ADVERTISER’S INDEX

PERFORMANCE CHECKLIST:

Evaluating a Supply and Distribution Division by Joe Petrowski

Every firm calls it something differentâ&#x20AC;&#x201D;trading,

supply and distribution, origination, procurement, hedgingâ&#x20AC;&#x201D;but the function is the same: purchase a very price-volatile commodity, in some cases blend it, break bulk (ship and pipe to tank to truck to station), move it thousands of miles and sell it to a customer for an intended positive margin.

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FUELS & SUPPLY

The function of the operation is not forecasting price direction; if you can do this, you do not need the capital in a terminal, the headache of a customer and a marketing organization. The primary function of the department is to support the marketing and sales organization, whether it’s retail, wholesale or commercial. The marketing organization can be a burden for an origination department at times, because customers want product when, where and how they want it. They never want to run out and they want it at the best price while you amuse, inform and entertain them. But overall, marketing gross margin means higher quality earnings (and a bigger multiple), more predictability and more permanence. A marketing organization, while at times burdensome, is a value to security and dependability, and any trading organization would pay for the “book.” How do you quantify this value? Assume the following metrics: Company A sells one billion gallons per year. That is roughly 24 million barrels per year, which is approximately 66,000 barrels per day. Depending on the location of your demand points from the origination points and the design makeup of your asset system (waterborne pipe and tank configuration), Company A will need to have a seven-day inventory pipeline or 500,000 barrels. To run a “hedged” book and protect against price fluctuations from purchase to sale, including transit time, will require at least 500,000 barrels of a futures short (more or less depending on term sales and purchases). Most of these hedges will be “short” futures and in the first or second month of the New York Mercantile Exchange (NYMEX), so they will need to be “rolled” (buying nearby selling forward months) during the year and dissolution of the “book.” In a positive price slope (contango), or, say, 21 cents per barrel (0.05 cents per gallon), the trading department will make

“”

The marketing organization can be a burden for an

origination department at times, because customers

want product when, where

and how they want it. They never want to run out and

they want it at the best price while you amuse, inform and entertain them. But overall,

marketing gross margin means higher quality earnings (and a bigger multiple), more

predictability and more

permanence. A marketing

organization, while at times burdensome, is a value to

should be $1.25 per barrel given average basis volatility (and basis generally has more extreme upside than downside risk). That is $625,000 for this hypothetical company. So, in total, the value of the book is over $6.2 million or 26 cents per barrel, or just under one cent per gallon for the year. Therefore, the origination department should be adding $1.5 million per quarter to the organization. Of course, how quickly they react to events, how they roll or purchase, the general market structure as well as “events” (basis spikes) throughout the year can have an impact. Regardless, this $6 million per year for a one billion gallon sales book is the proper marker for bonus compensation and performance evaluation. So, 60 points or 25 cents per barrel is considered par for this course. n

security and dependability,

and any trading organization would pay for the “book.”

$100,000 per month simply breathing. In an inverted price curve (backwardation), depending on the size of the “inverse,” it could lose as much as $200,000 per month as backwardation is often more extreme than contango. So, what are the baseline origination goals for this hypothetical Company A?

1. Purchasing should bring in 0.5 cents per gallon, or 21 cents per barrel beating index ($5 million per year). 2. On average, roll profits should be 10

cents per barrel per month, or $600,000 per year.

3. The real value of a great origination department is managing the “basis” risk that is the locational and time spread between origination and terminal disposition point. If you have a terminal network and pipeline capacity, that FMNMagazine

FuelMarketerNews.com

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

“ ”

FUELS & SUPPLY

by Doug Haugh We all know that convenience is

Suddenly, the 15 minutes it takes for the driver to fuel back at the yard or the 30 minutes it takes to drop off their route and find one of those back lot canopies has become much more expensive.

king when it comes to retail fuel. Location, location, location— right? We have also come to expect that, when it comes to commercial fuel, it has been just about the opposite. Banished to the distant back lot with a plain white canopy are old dispensers and archaic point of sale (POS) systems selling diesel to commercial operators that have long been the poor sister of fuels marketing.

Convenience and Commercial Fueling Just Might Go Together Yes, I know Pilot Flying J and Love’s are both investing in incredible new stores, cleaner bathrooms, Wi-Fi, reserved parking, better food—you name it. But over-the-road truck stops and travel center fueling are not what’s being discussed here. Rather, I am talking about the local “work trucks” that do not venture all that far from home—waste trucks, food trucks (the distributing kind, not the one you bought that high-end lobster taco from last week), construction, beverage trucks, local pickup and delivery services from huge companies like UPS on down to small, same-day hotshot delivery services.

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FUELS & SUPPLY

“

Convenience and Commercial Fueling Just Might Go Together

Typically, these kinds of commercial customers have put in their own bulk tank for fueling if they have enough trucks on their yard on any given day to justify the investment. Much of the time, customers have not had to spend their own capital on the tanks and pumps. Instead, they would simply find an enterprising fuel supplier to make the investment for them.

When I say convenience, I really mean time, and time is currently a hot topic for commercial customers. Between driver hours of service (HOS) regulations and growing driver shortages as the economy finally hits a higher growth rate, time is becoming more valuable than ever. Suddenly, the 15 minutes it takes for the driver to fuel back at the yard or the 30 minutes it takes to drop off their route and find one of those back lot canopies has become much more expensive.

This has become hard to do in some markets and nearly impossible in others due to either Just how expensive? Well, when fire codes in places like Chicago or working with a customer last month environmental constraints in who is with a company known for markets like California. Despite tracking every minute of their challenges for those willing to fight drivers’ days, we came up with the through the red tape and get a fuel following math: island installed, it has been difficult to beat the combination of cost and convenience offered by having your own in-house fuel station. I have been a longtime Backyard proponent of such Fuel Island solutions and considered the math settled, but lately Time Fueling 15 minutes I am feeling a lot less confident in the numbers.

How Much Does That Fuel Really Cost?

The whole reason a work truck exists is to make money for the owner, and if that truck has fewer available hours to work, then it is going to make less money.

Back Lot Retail Fueling 30 minutes

Driver Labor with Benefits

$35 per hour

Average Gallons Filled

15 gallons

Labor Cost per Gallon

$0.58

$1.16

”

Historically, the conventional wisdom has said that buying in bulk by the truckload is always the cheapest way to fuel a commercial work truck fleet. If one only considers the price of the fuel, that is certainly true. Typically, if you compare bulk fuel versus either mobile fuel or retail fuel, it is generally about $0.25 per gallon cheaper.

Bulk Fuel by Truckload

Mobile Fueling/Wet Hosing

Retail Fueling

Rack + $0.02 – $0.05 freight/margin

Rack + $0.20 – $0.50 freight/margin

Rack + $0.18 – $0.26 freight/margin

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FUELS & SUPPLY Should a fleet spend $0.50 – $1.00 per gallon in labor to capture $0.25 per gallon in fuel savings? The obvious answer is no, but what is their actual labor cost to do the fueling? Many fleets will argue that the driver is just going to spend that time on the clock anyway and the real net labor cost is zero. If that is true, then they should just fuel from a bulk tank, but if they can get the driver to clock out and avoid the extra labor costs, then mobile fueling would actually be the most affordable way to fuel their fleet.

“ ”

Once mobile fueling takes hold, it is hard to displace because, as we have all learned time and again in this business, convenience wins. There is one last bit of math related to these costs that is becoming increasingly relevant. If, instead of clocking out, the driver could use that time to produce more revenue by making deliveries, then we get another significant economic variable in the cost of fuel. This factor is becoming much more meaningful given the ongoing shortage of drivers in every sector of the industry. After all, the whole reason a work truck exists is to make money for the owner, and if that truck has fewer available hours to work, then it is going to make less money.

Convenience and Commercial Fueling Just Might Go Together

How Much Does That Fuel Really Cost?

Revenue and Gross Profit

Targeted Revenue per Hour

$100

Profit Margin

50%

Gross Profit per Hour

$50

Fueling Time Lost Gross Profit Average Gallons Filled Lost Gross Profit per Gallon

So, if you have seen mobile fueling take hold in locations where you never would have expected it to make sense previously, consider the overall math and pencil it out to see why a customer would make that choice. Circling back to our opening, if you could pull into a gas station like the old days and receive full service for the same price or less than self-service, why wouldn’t you? This holds true for fleet drivers just

Backyard Fuel Island

Back Lot Retail Fueling

15 minutes

30 minutes

$12.50

$25

15 gallons

$1.00

$2.00

like it would for you driving your personal car: If you could have someone else do it for you, why wouldn’t you? That is the final piece of this puzzle to consider. Once mobile fueling takes hold, it is hard to displace because, as we have all learned time and again in this business, convenience wins. n

at FuelMarketerNews.com

Douglas H. Haugh Doug is currently President and Chief Strategy Officer of Mansfield Energy. He is the driving force behind Mansfield’s corporate strategy, acquisitions and partnerships. His strategic and technologydriven focus allows the organization to develop future programs and systems, while also maintaining high-level execution for the company’s customers. Haugh is a frequent speaker on energy, supply chain technology and entrepreneurship. He also blogs on energy issues at ThinkingOnEnergy.com. The opinions expressed there (and here) are his, and not those of Mansfield.

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FUEL PRICES

into the Summer As the spring season flies by, it’s an interesting time to get projections from experts on what to anticipate with motor fuels prices going into the summer months. The new Trump administration in Washington, D.C., also adds some potential twists to market dynamics. Fuel Marketer News (FMN) spoke with Alan Levine and Brian Milne for their expert opinions relative to crude, gasoline, diesel (heating oil), propane and natural gas.

by Keith Reid

Levine is the CEO and Chairman of Powerhouse, a group of seasoned energy experts and broker professionals working in partnership to meet the business goals of its customers. He is an internationally recognized expert in pricing and business practices in the energy industry. As a petroleum specialist for over 40 years, Levine is a highly regarded authority on the relationship of energy futures to cash petroleum markets. Milne is the Editor of Schneider Electric’s MarketWire, a real-time market and news service focused on U.S. oil product markets and relevant news and analysis, and the Editor of OilSpot, a weekly newsletter on the oil markets. We also provided some input, where available, from the U.S. Energy Information Administration’s (EIA’s) latest Short-Term Energy Outlook as of February 7, 2017.

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FUELS & SUPPLY

CRUDE

non-OPEC producing countries, namely Russia, who have said they’re going to cut 300,000 barrels per day (bpd),” said Milne. “It was a total of about 1.75 million barrels per day (MMbpd) in cuts. Maybe if they just get 1 – 1.1 MMbpd out of this whole thing, it’s still considered pretty supportive. Sentiment is bullish. If you look at speculators, they’re extremely net long in the market.”

While FMN’s audience tends to be motor fuel marketers and retailers, what’s currently happening in the crude world cannot be ignored since the cost of crude oil makes up the predominant cost of refined products. At the time of writing (mid-February), crude has been running in the $50 – $55 per barrel (/b) range for West Texas Intermediate (WTI), and slightly higher for Brent.

A chronic issue with OPEC production cuts tends to be the motivation of various members to “cheat” with hidden production and to earn more profits while prices are high. So far, that does not seem to have developed to any serious degree.

“We’re seeing claims of high levels of compliance by the overseas producers,” Levine said. “The reality seems to be that the compliance is coming from where it “We have OPEC with their production cuts, always comes from—in simple terms, Saudi Arabia, and they’ve been joined by 11 non-OPEC and Russia to some producing countries, namely Russia, who degree, though I’m have said they’re going to cut 300,000 bpd. skeptical of that. They’re It was a total of about 1.75 MMbpd in cuts. doing their best to keep Maybe if they just get 1 – 1.1 MMbpd out their finger in the dike.”

of this whole thing, it’s still considered pretty supportive. Sentiment is bullish. If you look at speculators, they’re extremely net long in the market.”

Brian Milne, Schneider Electric There is abundant supply of crude internationally and in the United States. EIA anticipates a 2017 average WTI futures price of $53.46 and a Brent price of $54.54. According to our experts, there are a variety of factors at work that should stabilize crude prices, at least in the near future. OPEC’s recent production cuts are propping prices up, which is a reversal on its previous policy of keeping production high (and prices low) in an attempt to damage the U.S. fracturing industry. “We have OPEC with their production cuts, and they’ve been joined by 11

In addition, Milne noted that Saudi Arabia has committed to even deeper cuts in production should cheating start to increase.

On the other side, the production of shale oil is highly flexible, and the technology is getting even more efficient with every year that passes, though it’s still more expensive than conventional oil. Saudi oil is said to cost $10/b, for example. A Reuters article from November 2016 noted that the breakeven for Bakken shale oil is around $30/b compared to approximately $60/b in 2014. An international oil price of $45/b – $55/b is sufficient for that production to turn a profit. “How do you scare me to death if you’re OPEC and you reduce your output and the price goes up $5 – $10? What does that really mean?” asked Levine. “The United States is largely willing and able FMNMagazine

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“How do you scare me to death if you’re OPEC and you reduce your output and the price goes up $5 – $10? What does that really mean? The United States is largely willing and able to produce substantially more than we’ve ever anticipated.” Alan Levine, Powerhouse

to produce substantially more than we’ve ever anticipated. Every time you go over $55, U.S. producers use this as an opportunity to hedge, which is something they never used to do. Now they lock in that price. They can produce now even if the price falls because they have price protection.” The end result is that, not only are the fears of $200/b oil that were discussed not all that long ago virtually unimaginable today, but $100/b oil seems increasingly unlikely in all but the most extreme circumstances. In fact, Milne sees $70/b as “the new $100.” “It’s going to be difficult for the market to really move,” Milne said. “We’ll focus on WTI because there are indications that it’s going to strengthen and perhaps break out of the $50 – $60 range. You could see it get over $60 late in the year, even to $65 dollars, but it’s unlikely that it has any sustainability there based on what we know now. We’re probably looking at a $52 – $55 range for WTI. It could slip below $50, but there’s a tremendous amount of support below at the $50 level, and that is also unlikely unless events change— and, of course, they can.” In addition, higher prices encourage U.S. crude exports, which are now legal. Levine and Milne agreed that exports can impact crude prices.

FUELS & SUPPLY

Fuel Prices into the Summer

“Gasoline supply is at the second-highest mark on record, and records go back to 1980, so that’s pretty bearish. Refiners are producing a lot of gasoline—a lot of product—and it’s flooding the market.” Brian Milne, Schneider Electric

GASOLINE

just a blip in January, with the lower demand, but I do expect to see gasoline demand increase.”

Levine highlighted the range of mileage improvements that have taken place in the automotive industry— driven by the Obama administration’s stringent Corporate Average Fuel Economy (CAFE) standards—as another impediment to excessive demand, even under the new administration.

“The demand is good for distillates, but again, we’re more or less stuck in this small range that we’ve been seeing over the past several weeks. Volatilities are low. One thing you might consider is calls if you need to be a buyer because their prices have fallen. Calls are much cheaper now than they use to be. That might be valuable, particularly for end users. The products story is not as exciting.”

Another potential issue with the change in administration involves gasoline exports to Mexico.

Where gasoline is concerned, the story is a familiar one: plenty of supply. All of this against a backdrop in the United States where demand remains fairly weak. “Gasoline supply is at the secondhighest mark on record, and records go back to 1980, so that’s pretty bearish,” Milne explained. “Refiners are producing a lot of gasoline—a lot of product—and it’s flooding the market. It’s a bigger problem in the East—the PADD 1 region—because it’s flooding the market. In the Gulf Coast [PADD 3] area, they can export it out.” Milne explained that U.S. exports will likely help to prop up prices somewhat—along with the built-in increase from crude—and that retail prices are higher now than they were a year ago by roughly 50 cents. Demand is currently weak, but should there be a significant boost to the economy going into summer, that will most certainly eat into supply and increase prices. “Employment is doing better. People are pretty bullish on the economy because of Trump. They’re expecting more job gains, and if you have more people employed I would suggest you’re going to see more demand,” Milne said. “Maybe it was

“Gasoline exports have been strong, and Mexico is taking a lot of gasoline supply,” Milne shared. “Their demand is growing because of a stronger domestic economy, although that’s seen some headwinds recently. They don’t have enough refining capacity to address demand, and some of the refining capacity they have is either out of service or not able to handle some of the new crudes. We’ll have to see what happens with the politics involved, because Trump has certainly poked his thumb in Mexico’s eye.” Levine sees gasoline prices remaining fairly stable at current levels into the summer, when it should start to increase steadily. “Whether you’ll get anything spectacular—that becomes a question of if we experience problems, particularly with refineries and other facilities. Overall, I just don’t see it changing all that much,” he said. Milne finds pricing challenging with RBOB futures probably falling between $1.65 and $1.85. “It could be less if for some reason something is going on with gasoline demand, but I think you’re going to see it strong.” EIA anticipates U.S. regular gasoline retail prices to average $2.27 per gallon (/gal) in February and then rise to $2.33/gal in March. It anticipates an average price of $2.39/gal in 2017. FMNMagazine

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Alan Levine, Powerhouse

DIESEL

Gasoline is generally seen as a retail fuel while diesel is seen as a commercial fuel (though many commercial fleets operate gasoline vehicles). As with gasoline, diesel prices have been fairly stable within a limited range. “The demand is good for distillates, but again, we’re more or less stuck in this small range that we’ve been seeing over the past several weeks,” said Levine. “Volatilities are low. One thing you might consider is calls if you need to be a buyer because their prices have fallen. Calls are much cheaper now than they use to be. That might be valuable, particularly for end users. The products story is not as exciting.” That sentiment is generally supported by Milne, though he sees demand as more stagnant. “We still have a lot of supply— a lot of inventory—but a lot of it is housed in the United States. That’s going to limit the upside, plus all the new production, but the export market should be a good escape valve,” he said.

FUELS & SUPPLY

Fuel Prices into the Summer as growth potential. We’re not talking the raging bull, but we are talking consistent growth. The other global markets need the supply.” Levine offered some additional insight. “I have been advising my clients that it’s to their advantage to become buyers of propane,” he shared. “If you look throughout time, the cost of propane a year from now is about 10 – 12 cents cheaper. You can actually buy it at a pretty good discount.

One area where distillate demand is currently underperforming is No. 2 heating oil. So far, winter has been exceptionally mild, though the possibility remains for winter to finish strong. As EIA notes, “With warmer-than-normal January temperatures in much of the United States, distillate consumption declined because of lower demand for home heating. EIA estimates distillate consumption averaged 3.8 MMbpd in January, the third-lowest level for that month in the past 15 years. Both total U.S. distillate stocks and distillate stocks in the U.S. Northeast, the region that uses the most distillate for home heating, set new five-year highs in January.” Milne expects ultra-low-sulfur diesel (ULSD) contracts in the $1.50 – $1.70 range late in the second quarter. He noted that the infrastructure projects promised by Trump, if they indeed involve “shovel-ready projects,” could cause some upward movement on prices. “If you start seeing this growth, especially if you see some of the major infrastructure projects he’s been campaigning and talking about, it could really drive up demand for diesel. If we do see [more domestic oil and gas production coming online with higher prices], that would help diesel as well. Part of the falloff in diesel

that we saw a few years back was because we were drilling a lot less, as there is a lot of diesel used in that activity,” Milne concluded.

PROPANE

“It’s our belief that a failure of supply could have some bullish effect on propane,” Levine continued. “It’s also true that propane demand has picked up because of the way propane is priced per gallon. It looks much cheaper than heating oil, for example, even though it’s not really all that cheap on a per-British-thermal-unit (BTU) basis. It’s also become an alternative fuel in certain areas like road construction and landscape work. I think there is an opportunity, particularly if you are looking at 2018. You can see the curve out there.”

NATURAL GAS

Propane is used in a wide variety of applications, from agricultural drying, to auto gas, to a primary deliverable home heating fuel. It’s an area where some of the more exciting activity is occurring at this time. “Propane will probably lead exports going forward,” said Milne. “It’s really considered a strong, up-and-coming product. We exported nearly 1.25 MMbpd in late January, so that was a big number. That number has come off a little because of the warmer weather, but still, propane is going to be strong. It’s going to stay strong, and that’s probably true of all fuels when we’re looking at the U.S. as far FMNMagazine

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Natural gas serves as a primary utilitysupplied heating fuel, an up-andcoming alternative motor fuel and an increasingly dominate electrical generation fuel. It’s a product that is growing in demand domestically along with liquefied natural gas (LNG) exports while production is slacked, and not currently growing. “As the EIA said in their Short-Term Energy Outlook, they see upside pressure for natural gas prices over the next 16 – 18 months,” Milne noted. “They indicated that demand for

FUELS & SUPPLY

Fuel Prices into the Summer

natural gas outpaced supply within the U.S. for the first time in December, so that’s big. Part of that is because production has been limited overall for natural gas. Natural gas has been increasing its demand share domestically because we have been pushing out coal, so you see more natural gas using power generation.” As the Short-Term Energy Outlook states, “Increasing capacity for natural gas-fired electric generation, growing domestic natural gas consumption and new export capabilities contribute to the forecast Henry Hub natural gas spot price rising from an average of $3.43 per million British thermal units (/MMBTU) in 2017 to $3.70/MMBTU in 2018. The New York Mercantile Exchange (NYMEX) contract values for April 2017 delivery traded during the five-day period ending February 2 suggest that a price range from $2.42/MMBTU – $4.38/MMBTU encompasses the market expectation of Henry Hub natural gas prices in April 2017 at the 95% confidence level.” The mild weather has certainly had an impact. “The enemy in the case of gas can be stated in one word: weather,” Levine said. “It’s mid-February and I’m walking around in a light jacket. We’re just sucking wind compared to last year on the heating degree days (HDDs)—it’s really substantial. That’s the problem for gas, plus the fact that at $2.50 – $3.50 it’s hard to justify a drilling program. I would see natural gas in a more difficult position just because the weather is so important as a determinate of its price.” Also lining up to have a substantial impact on natural gas prices are LNG exports, which should be wide open under the Trump administration as long as the eventual trade policy is supportive.

Brian Milne

Alan Levine

“I think the LNGs are a big deal, and I think you’re going to really see that number grow more rapidly, even if you’re looking at it just from a commodity point. But it’s also going to be used as geopolitical leverage,” Milne explained. “If you think about it, it’s part of a geopolitical strategy against Russia. For years they have been able to hold Europe captive at times because they leverage their natural gas supply. You could see some U.S. LNG going in there (Europe) in a future crisis. We’ll see.” n

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by Dr. Nancy Yamaguchi

OPEC Makes a Deal Part Two

Introduction In Part One of “OPEC Makes a Deal,” we discussed the Middle Eastern OPEC members, their oil and natural gas production and how their net oil export revenues suffered in recent years. We provided details on the OPEC production cut agreement, which was scheduled to begin in January 2017. Its goal was to reduce the supply glut that created the weak price environment. Eleven OPEC members are participating in the cuts: two in Latin America, three in Africa and six in the Middle East. In Part Two, we extend the discussion to cover the African and Latin American OPEC members. Note that the oil and gas production data is per BP, and the oil export revenue data is per the U.S. Energy Information Administration (EIA). In addition, we now have OPEC oil production data available for the month of January 2017, as published in OPEC’s Monthly Oil Market Report (MOMR). So, how do the production cuts look one month into the agreement? We will revisit this question following the profiles of African and Latin American OPEC members.

FUELS & SUPPLY

OPEC Makes a Deal, Part Two

PROFILE:

African OPEC Members Algeria Oil and Gas

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Algeria has provided a great deal of leadership in the current OPEC efforts. The Algerian Energy Minister, Noureddine Bouterfa, was instrumental in arranging the Algiers meeting and has since provided hospitality and diplomacy. Algeria joined OPEC in 1969. The country made its first commercial oil discovery in 1956 with two key fields: Edjelleh and Hassi Messaoud. Production began in 1958, and Algeria has emerged as Africa’s top producer of natural gas. Figure 1 presents the BP data series on Algerian oil and natural gas production from 1970 – 2015, with oil in million tonnes (MMT) and natural gas converted into million tonnes of oil equivalent (MMTOE).

Algeria joined OPEC in 1969. The country made its ﬁrst commercial oil discovery in 1956 with two key ﬁelds: Edjelleh and Hassi Messaoud. Production began in 1958, and Algeria has emerged as Africa’s top producer of natural gas.

Over the past decade, oil output has peaked and fallen. This time period included the global economic recession and the drop in oil prices. However, the Algerian government has also been criticized for delays in approval of oil development projects. The terms offered by the government have failed to attract investors, and very few of the oil and gas blocks offered were taken. At least one auction was canceled for lack of interest.

The recent drop in oil production, coupled with lower global crude prices, has severely cut into Algeria’s revenues. Figure 2 presents the EIA calculation of Algeria’s net oil export revenues. Net revenues totaled $59.6 billion* in 2008 before the global economic recession, which caused a drop to $35.8 billion in 2009. Revenues rose to $62.4 billion in 2011, but fell sharply to $23.8 billion in 2015.

Figure 1: Algeria Oil and Gas Production, MMT

Figure 2: Algeria Net Oil Export Revenues (US$B)

Source: BP

Natural gas production has been more stable than oil production. In oil-equivalent terms, natural gas production surpassed oil production in 2011. This has allowed Algeria to keep exporting liquefied natural gas (LNG) at fairly stable rates over the past five years. In 2015, LNG exports totaled 16.2 billion cubic meters (BCM). However, in the 2004 – 2007 period, LNG exports were approximately 25 BCM, so 2015 exports were only 63% of their level 10 years prior. *All monetary references are in U.S. dollars

FMNMagazine

Source: Energy Information Administration (EIA)

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OPEC Makes a Deal, Part Two

PROFILE:

FUELS & SUPPLY

Angola Oil and Gas

In 2015, Angola was the second-largest producer of oil in Africa, after Nigeria. However, in the first 10 months of 2016, Angolan output, on average, surpassed Nigerian output because of militant attacks on Nigerian oil infrastructure. If Nigerian output continues to be shut in, it is possible for Angola to pass Nigeria to become Africa’s largest producer. Oil resources had been known to exist as early as the mid-1880s, but commercial development did not begin until 1955. As Figure 3 illustrates, Angola’s crude production began to soar after 2001. The country joined OPEC in 2007. By 2008, the oil price spike and the global economic crisis contributed to a flattening, then stagnation of output.

Gabon Oil and Gas

Oil prospecting began in 1931, and Gabon joined OPEC as a full member in 1975. Gabon terminated its membership in 1995, but rejoined OPEC on July 1, 2016. Figure 5 presents BP’s data series on Gabon’s oil production.

Figure 5: Gabon Oil Production, MMT

Figure 3: Angola Oil Production, MMT

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OPEC reports that Angola’s oil sector is responsible for 45% of the national GDP and over 95% of exports. The EIA calculates that Angola’s net oil export revenues have been cut by more than half since the 2011 – 2013 time period.

Source: BP

OPEC reports that Angola’s oil sector is responsible for 45% of the national gross domestic product (GDP) and over 95% of exports. The EIA calculates that Angola’s net oil export revenues have been cut by more than half since the 2011 – 2013 time period, as shown in Figure 4.

Figure 4: Angola Net Oil Export Revenues (US$B)

The country’s mature oil fields are in decline. Crude production peaked at around 18 MMT in the mid-1990s, and it slid to 11.6 MMT in 2015. Gabon hopes to attract investments to develop a number of offshore blocks. The World Bank estimates that the oil sector accounts for approximately 45% of GDP and 80% of exports.

Source: Energy Information Administration (EIA)

FMNMagazine

Source: BP

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PROFILE:

FUELS & SUPPLY

OPEC Makes a Deal, Part Two

Libya Oil and Gas

Libya joined OPEC in 1962, one year after it started exporting oil. Libya has the largest oil reserve base in Africa, and the fifth-largest natural gas reserve. However, turbulence and violence is smothering the industry. Oil production has plummeted, as shown in Figure 6.

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Libya has the largest oil reserve base in Africa, and the ﬁfth-largest natural gas reserve. However, turbulence and violence is smothering the industry.

Natural gas production has been somewhat more stable, and the country had been an exporter of LNG as well as an exporter of natural gas to Italy by pipeline. Output has also suffered because of civil unrest, and Libyan exports of LNG have dried up completely since 2011. The country hopes to develop additional natural gas resources to restart LNG exports.

In 1970, Libyan crude output was approximately 160 MMT. It dropped below 50 MMT by the mid-1980s. It was gradually recovering until the global economic recession and the Libyan Civil War, which caused production to drop to just 22.5 MMT in 2011. Production then went into another period of recovery, and oil output reached 71.1 MMT in 2012, but did not return to pre-war levels because of labor unrest and power supply interruptions at oil installations.

The International Monetary Fund (IMF) reports that Libya’s government budget is overwhelmingly reliant on oil and gas revenues—approximately 96% of total government revenue came from oil and gas in 2012. As shown in Figure 7, the EIA calculates that Libyan net oil export revenues fell from $56.9 billion in 2008 to $33.7 billion in 2009, then fell sharply to just $11.9 billion in 2011 during the civil war. The country was restoring output and exports after the war, and revenues reached $50.9 billion in 2012. However, persistent domestic turmoil and low oil prices have eroded earnings steadily since then. Net revenues fell to $3.7 billion in 2015.

By the middle of 2013, there were even more widespread protests and strikes, and oil production fell sharply again. Production averaged 20.2 MMT in 2015, and there have been multiple attacks on oil-related infrastructure, from the oil fields, to the pipelines, to the loading terminals and ports.

Figure 7: Libya Net Oil Export Revenues (US$B)

Figure 6: Libya Oil and Gas Production, MMT

Source: Energy Information Administration (EIA)

Source: BP

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OPEC Makes a Deal, Part Two

Figure 9: Nigeria Net Oil Export Revenues (US$B)

Nigeria Oil and Gas Natural gas reserves are more substantial than oil reserves, and gas output has grown. LNG exports began in 1999, however, a massive amount of Nigeria’s natural gas is ﬂared.

Nigeria is OPEC’s most populous country with a population of over 183 million. Oil exploration reportedly began in 1907, but significant discoveries were not made until the 1950s. Oil production began in 1958, and Nigeria joined OPEC in 1971. Figure 8 presents the trend in Nigeria’s oil and gas production. Oil production hit a peak in the 1970s, then slumped in the 1980s. Production recovered and has grown significantly since then, but production has been swinging up and down recently. The oil sector has been plagued with corruption, with the average citizen seeing none of the profits. Militant violence has risen with a number of attacks on oil installations in 2016, which were led by the group naming itself the Niger Delta Avengers (NDA).

Source: Energy Information Administration (EIA)

PROFILE:

Latin American OPEC Members

Natural gas reserves are more substantial than oil reserves, and gas output has grown. LNG exports began in 1999, however, a massive amount of Nigeria’s natural gas is flared.

Ecuador Oil and Gas

Figure 8: Nigeria Oil and Gas Production, MMT

Ecuador was the smallest oil producer in OPEC until Gabon rejoined in 2016. It has an unusual history with the organization: Ecuador joined OPEC in 1973, then voluntarily suspended its membership in 1992, owing a debt of over $5 billion. Commercial oil production began in 1921 at the Ancon 1 well. Ecuador is an example of the diversity within OPEC. It is a small producer, with a 2015 GDP per capita of $6,205 according to The World Bank. In contrast, 2015 GDP per capita in the United Arab Emirates (UAE) was listed at $40,439. In the international oil market, such huge sums of money are discussed that it is easy to overlook the fact that OPEC membership is not free, and not all OPEC members are rich. Paying approximately $2 million in OPEC annual dues was an excessive burden for Ecuador at the time.

Source: BP

OPEC reports that the oil and gas sector accounts for 35% of Nigeria’s GDP and is responsible for 90% of Nigeria’s export revenues. Figure 9 presents the trend of Nigeria’s net oil export revenues, which peaked at approximately $94 billion in 2011 and then collapsed to $39.1 billion in 2015. Nigeria has been exempted from making formal production cuts—the future of its output is too unpredictable. FMNMagazine

In 2007, Ecuador sought to rejoin OPEC with backing from Venezuela. Figure 10 illustrates the trend in Ecuador’s crude oil production, which has levelled off in the range of 26 – 29 MMT, or 500 – 550 thousand barrels per day (kbpd). 25 21

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OPEC Makes a Deal, Part Two PROFILE:

Figure 10: Ecuador Oil Production, MMT

Venezuela Oil and Gas

Venezuela was one of the founding members of OPEC in 1960. It has the largest oil reserves base in the world, estimated at over 300 billion barrels, most of which is heavy oil in the Orinoco Belt. The first commercial oil well, Zumaque 1 in the Mene Grande field, was drilled in 1914. Figure 12 illustrates the trend in Venezuelan oil and gas production. Oil production peaked at around 197 MMT in 1970 (3.75 MMbpd), and it slid until it hit a nadir of 91.5 MMT (1.74 MMbpd) in 1985. Production began to climb, but the progress made during oil market liberalization was set back by the election of Hugo Chavez in 1999. The government under Chavez began to renationalize the industry. Production dropped significantly during the oil strikes of 2002. Chavez nationalized oil exploration and production in 2006, and production has declined since then.

Source: BP

Figure 12: Venezuela Oil and Gas Production, MMT

Figure 11 shows the trend in Ecuador’s net oil export revenues. Production remained relatively stable during the global financial crisis, but revenues fell as prices collapsed. From 2009 – 2014, revenues were rising, hitting $10.4 billion in 2014. In 2015, the drop in prices cut revenues by more than half, to $5.1 billion.

Figure 11: Ecuador Net Oil Export Revenues (US$B)

Source: BP

Per OPEC, the oil and gas sector in Venezuela is responsible for 25% of GDP and 95% of export earnings. Figure 13 presents the EIA’s calculation of Venezuela’s net oil export revenues. In 2013, revenues hit a peak of $71.5 billion, but plummeted to $31.8 billion in 2015.

Figure 13: Venezuela Net Oil Export Revenues (US$B)

Source: Energy Information Administration (EIA)

What Does It Mean? MMbpd Million Barrels Per Day MMT

Million Tonnes

MMTOE Million Tonnes of Oil Equivalent OPEC

Organization of the Petroleum Exporting Countries

US$B

Billion U.S. Dollars Source: Energy Information Administration (EIA)

FMNMagazine

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FUELS & SUPPLY

OPEC Makes a Deal, Part Two

The OPEC Production Cuts: One Month Along Once the agreement was ﬁnalized, the focus shifted to the matter of compliance. A monitoring committee was established, which includes the Ministers from Algeria, Kuwait, Venezuela and two participating non-OPEC countries, Russia and Oman. The purpose of the committee is “to closely monitor the implementation of and compliance with” the agreement.

During the fourth quarter of 2016, it was difficult to believe that OPEC would be able to sign a firm agreement to cut oil production, yet the agreement was made. The 11 participating OPEC countries then gained support from 11 non-OPEC countries.

term “cheating.” However, it is not a simple matter to be precise when measuring the production, transport, storage and sale of oil over time. Moreover, compliance difficulties are not limited to OPEC members. For example, Russia has made numerous agreements with OPEC and frequently failed to honor them. At the time of writing, Russia is reportedly one-third of the way toward compliance, stating that it has cut production by 0.1 MMbpd.

The cuts were scheduled to begin in January 2017 and to last six months, renewable for another six months if necessary. The goal is to reduce the supply glut, draw down some of the massive global stockpiles and firm up prices. At the beginning of 2017’s first quarter, how is the agreement faring? The pact first established baseline production levels, then assigned the planned output to take effect January 2017. The output target was 32.5 MMbpd. Per OPEC’s internal calculations, this amounted to a cut of around 1.2 MMbpd from the baseline levels.

Measuring compliance also depends on the starting basis for the cuts. OPEC publishes two sets of crude production data: one that is based on official submissions from the member countries, and one that is compiled from secondary sources. For some countries and in some months, there are gaps in the data, and the data is subject to political pressure.

The agreement also called for 0.6 MMbpd of cuts from non-OPEC countries to be led by Russia, which pledged to cut 0.3 MMbpd. Saudi Arabia agreed to make the largest cut at 486 kbpd. Iraq was to follow with a cut of 210 kbpd. Initially, Iraq demurred from participating in the cuts, using the rationale that it needed funds for its war on terrorists. Iraq eventually relented and agreed to cut 210 kbpd.

As an example, Algeria’s production cut could be exaggerated or lost entirely based on a definition: • Algeria’s November 2016 crude production per Algeria: 1,184 kbpd • Algeria’s November 2016 crude production per secondary sources: 1,089 kbpd

Once the agreement was finalized, the focus shifted to the matter of compliance. A monitoring committee was established, which includes the Ministers from Algeria, Kuwait, Venezuela and two participating non-OPEC countries, Russia and Oman. The purpose of the committee is “to closely monitor the implementation of and compliance with” the agreement.

• Algeria’s planned production cut: 50 kbpd • Algeria’s January production target: 1,039 kbpd • Algeria’s January production target based on the higher baseline: 1,135 kbpd

Historically, however, compliance has been a matter of selfpolicing and self-discipline. OPEC used to set country-specific production quotas, but the quotas were often exceeded and in fact worked against the group’s best interest at times. Therefore, OPEC shifted to a production ceiling approach instead.

If the higher baseline production level had been used, Algeria’s target of 1,039 kbpd in January would have amounted to a cut of 145 kbpd, not merely 50 kbpd. If, conversely, the 50-kbpd production cut had been made relative to 1,184 kbpd, it would have set the January target for Algerian output at 1,134 kbpd, and Algerian compliance would have been 109% instantly. Again, measuring compliance is not simple.

The fact that OPEC has exceeded production quotas and ceilings in the past has created a solid amount of market skepticism about the current production cuts. Some market analysts like to use the FMNMagazine

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FUELS & SUPPLY

OPEC Makes a Deal, Part Two

The following table presents a summary of OPEC’s production agreement based on the officially adopted baseline production levels. OPEC has released its Monthly Oil Market Report (MOMR) for February, which includes production levels in January 2017.

OPEC Production Cut, One Month In: January 2017 Planned and January 2017 MOMR, kbpd Member

January 2017 Planned

Planned Adjustment*

Actual Output (OPEC MOMR)

January 2017 Relative to Plan

Algeria

1,039

-50

1,045

Angola

1,673

-80

1,651

-22

Ecuador

522

-26

527

Gabon

193

-9

199

Iran

3,797

3,775

-22

Iraq

4,351

-210

4,476

125

Kuwait

2,707

-131

2,718

618

-30

618

Qatar Saudi Arabia

10,508

-486

9,946

-562

UAE

2,874

-139

2,931

Venezuela

1,972

-95

2,004

Participating OPEC 11 30,254

-1,256

29,890

-364

Conclusion: OPEC Unity Rises This two-part article has discussed each OPEC member in turn, highlighting each country’s oil and gas production, reliance on oil export revenues and the role it currently plays in the production cut agreement. Looking at the Middle Eastern, African and Latin American members individually also underscores the diversity within the group. At times, it seems that the only true commonality is the reliance on oil exports. Some of the members have come and gone when they perceived the costs of membership as outweighing the benefits, or in the case of Indonesia, when the country became a net importer of oil. Yet even small producers, such as Gabon and Ecuador, add weight to the group as OPEC collectively controls over 70% of global oil reserves.

Non-Participating OPEC (Exempted because of internal unrest) Libya

675

Nigeria Total OPEC Output

1,576 (January 2017)

*Adjustment is based on OPEC’s adopted baseline of current production.

32,141 Notes: Indonesia (a net oil importer) withdrew from OPEC. Libya and Nigeria received exemptions because of internal unrest. Iran negotiated an increase because of prior sanctions.

The starting baseline for the 11 OPEC participants was 30,254 kbpd. Iran negotiated an increase of 90 kbpd, and the others agreed to the cuts listed. Saudi Arabia’s pledged cut was the largest at 486 kbpd. Iraq followed with 210 kbpd, and the UAE pledged the third-largest cut at 139 kbpd. The planned cut was 1,256 kbpd in January. Now that OPEC has published the February edition of MOMR, the January production data can be compared to the plan. According to OPEC, January production for the 11 participants was 29,890 kbpd. This was 364 kbpd below what had been pledged. At the country level, Algeria, Ecuador, Gabon, Iraq, Kuwait, the UAE and Venezuela were not yet in compliance. However, Angola, Iran and Saudi Arabia produced less than their pledged amounts, bringing the total even lower than planned. Adding Libya’s and Nigeria’s production brings the January total to 32,141 kbpd. In November 2016, when OPEC made its agreement, production was 33,306 kbpd. Using these two figures, OPEC has cut 1,165 kbpd between November 2016 and January 2017. Because the pledged adjustment was 1,256 kbpd, as noted in the table, the cuts so far can be said to amount to 92.8% compliance. OPEC, led by Saudi Arabia, acted quickly and aggressively to get January compliance to this high level. FMNMagazine

It is possible that individual members will raise production off and on during the coming five months, but it is also possible that the group will maintain discipline and keep production below 32.0 – 32.5 MMbpd. One month into the agreement, compliance rates may be the highest OPEC has ever achieved. With the global supply-demand balance proceeding as it has been, it seems even more likely that OPEC’s deal will be essential during the first half of 2017, if not the second half as well.

Getting the OPEC members to work together is a challenge, which makes the current production cut agreement remarkable. One month into the agreement, compliance with the proposed production cuts is at over 90%. Much of this is being made possible by Saudi Arabian determination. Iraq, the UAE and Venezuela, for example, were still quite far from meeting their pledged cuts in January. Regardless, Saudi Arabia, Angola and Iran have produced less than their allotment, keeping the overall production level at 32.1 MMbpd in January. If this level of OPEC unity can be maintained, the global glut will diminish and OPEC’s market relevance will rise. n

Dr. Nancy Yamaguchi Dr. Yamaguchi is an author and petroleum industry expert specializing in the advanced analysis of energy markets. Dr. Yamaguchi is the President of Trans-Energy Research Associates, Inc., where she focuses on a wide spectrum of fuel-related issues, such as economics and the environment. She possesses a strong interest in the global oil industry, including supply, demand and trading trends, as well as transport, refining, product blending alternative and reformulated fuels, product quality and price behavior. Dr. Yamaguchi can be reached at NYamaguchi@Trans-Energy.com.

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FUELS & SUPPLY LEGISLATIVE UPDATE

PMAA in 2017: An Inside Look with

by Keith Reid

Rob Underwood

We operate in a highly regulated industry that must adapt to a new slate of challenges, often major in scope, each year. However, there is a new administration in Washington, D.C., and 2017 certainly promises to be an “interesting” year. In February, Fuel Marketer News (FMN) interviewed PMAA President Rob Underwood for a look at the anticipated regulatory and legislative activities for the coming year. The Petroleum Marketers Association of America is a federation of 46 state and regional trade associations representing approximately 8,000 independent petroleum marketers nationwide. FMNMagazine

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Our top priority is lowering the corn-based ethanol mandate. The EPA increased it to 15 billion gallons during the last few months of the Obama administration. We’ve always said that the ethanol mandate needs to be capped at 9.7% of [gasoline] supply, or even lower.

Rob Underwood

FUELS & SUPPLY LEGISLATIVE UPDATE

“”

PMAA in 2017: An Inside Look with Rob Underwood

FMN: What are some of the legislative issues PMAA is poised to take on in 2017?

Underwood:

There are several that PMAA can get involved in from the start; for example, the Renewable Fuel Standard (RFS). Our top priority is lowering the cornbased ethanol mandate. The Environmental Protection Agency (EPA) increased it to 15 billion gallons during the last few months of the Obama administration. We’ve always said that the ethanol mandate needs to be capped at 9.7% of [gasoline] supply, or even lower. That, of course, will help to avoid any underground storage tank (UST) compatibility issues and all the potential market chaos that comes along with the higher ethanol mandate.

FMN: That will impact renewable identification numbers (RINs) as well.

finalized in the last 60 days of the Obama administration, President Trump and Congress can overturn them rather quickly.

Underwood:

Yes, lowering the corn ethanol mandate will reduce the RIN value. The majority of jobbers— both branded and unbranded—are unable to blend at the rack in today’s environment, and could now be at a competitive disadvantage to major chains, who are able to buy above the rack and do their own blending to take advantage of the lucrative RIN value. Reducing the ethanol mandate will lower the RIN value, which will level the playing field in the retail motor fuels marketplace.

However, it’ll be a long and arduous process to overturn regulations older than 60 days because they must go through a formal federal rulemaking process to amend and/or remove them. Currently, PMAA is working to amend the UST final rule from July 2015 to lower compliance costs for petroleum marketers.

FMN: Speaking of which, aspects of that are still in

FMN: Speaking of RINs, is there a PMAA position on

play, I believe.

the obligated party issue? Currently that is the producer, who is typically a refiner or importer, but there is a push by the refining sector to move that down to the rack.

Underwood:

We’re in the process of meeting with the EPA over the July 2015 UST final rule. We would like to have the EPA release an interpretative guidance document, which would provide flexibility for petroleum marketers to comply. But ultimately, it will be up to each individual state to comply with the final rule, and some states may be able to get additional regulatory relief.

Underwood:

PMAA has historically been opposed to moving the obligated party down to the rack, but the market dynamics have changed. We’re trying to get some new information from marketers across the country to see how things will play out with such a move. That’s where things stand today.

For instance, sump testing is a big deal. EPA references PEI/RP1200, which requires a liquid tight test to the top of the sump. The problem for marketers is not the testing requirement itself, but the preparation for the test would require replacement of penetration grommets, test boots and other sump equipment, removal of the dispensers and so on, to pass. That is a costly requirement.

FMN: The Trump administration is a considerable departure from the previous administration regarding its position on environmental and regulatory issues of interest to the industry. What do you expect from this change in focus?

In addition, a liquid test above the penetration points could cause water to flow into the interstice on systems that use the sump for secondary containment for dispensers and double wall piping. We want to test to the level of the liquid sensor alarm in the sump below the penetration points to prevent water from getting into the

Underwood: President Trump issued an executive order that basically says, for every new regulation submitted, two existing regulations need to be eliminated. Trump’s move essentially prevents any new onerous regulations from being issued during his time in office. For regulations FMNMagazine

Repealing the Durbin Amendment is the top priority for the bank lobby in Washington, D.C. This amendment has brought transparency and competition to the debit card interchange fee marketplace, thereby providing great savings to retailers.

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FUELS & SUPPLY LEGISLATIVE UPDATE

“”

PMAA in 2017: An Inside Look with Rob Underwood

We have great working relationships with EPA officials. They took several of our recommendations into account when reducing the UST compliance costs. However, there are still some major issues with the UST final rule, and we will work with EPA to find additional compliance cost savings.

interstice and to avoid the high cost of test preparation. That should be just as effective, and if there’s less waste water to deal with, it’s superior protection for the environment.

had initially required limits on speculative positions in 28 physical commodity futures contracts and some swaps. This was seen as being an issue with inflated spot prices going into the collapse of 2008, and was pushed by the New England Fuel Institute (NEFI) and PMAA.

Underwood:

The Commodity Futures Trading Commission (CFTC) finalized the position limits rule and then, of course, the banks sued and the position limits rule was blocked. It’s been in limbo since then. From PMAA’s standpoint, yes, there was a bubble in 2008 and position limits likely would have prevented some of that bubble. Unfortunately, I’m not too optimistic that a position limits rule will be finalized during the Trump administration. On the plus side, the issue helped us show Congress and the public that petroleum marketers are the victims of high prices. We don’t benefit from high fuel prices. We also made major gains with bringing more transparency to the futures and swaps markets, and we believe that’s helped bring a better marketplace for all stakeholders. It was definitely a victory for PMAA.

FMN:

FMN: One particular announcement from the administration that has been supported by Republicans in Congress is reversing the Dodd-Frank Wall Street Reform and Consumer Protection Act. Any fan of small government would question a huge legislative initiative of this type, but the industry was able to get a few reforms in there.

Underwood:

: We have a major battle on our hands as the Chairman of the House Financial Services Committee is planning to move legislation to repeal the Durbin Amendment. Repealing the Durbin Amendment is the top priority for the bank lobby in Washington, D.C. This amendment has brought transparency and competition to the debit card interchange fee marketplace, thereby providing great savings to retailers.

FMN: With the bank pressure and building momentum against the regulatory state, how do you currently see the chances in this fight?

Underwood:

It’s uncertain at this time. PMAA and the Merchants Payments Coalition (MPC) are currently educating members of Congress on the Durbin Amendment’s merits. Getting rid of the Durbin Amendment is going to hurt every single retailer who accepts Visa and MasterCard, and it’s important that retailers write their lawmakers to avoid repealing it—that’s the bottom line. FMNMagazine

FMN: That brings us to position limits. Dodd-Frank

Do you anticipate any changes in your relationship with EPA under the new Administrator, Scott Pruitt?

Underwood:

We have great working relationships with EPA officials. They took several of our recommendations into account when reducing the UST compliance costs. However, as I noted earlier, there are still some major issues with the UST final rule, and we will work with EPA to find additional compliance cost savings.

FMN: Is there anything exciting going on in-house as the year gets underway?

Underwood: We formed a non-dues revenue task force to find additional sources of revenue. So far, we’ve raised $50,000 in new partner [industry vendor] income, and we believe partners should join PMAA because we’re in the business of protecting petroleum marketers from onerous rules and regulations. We’re keeping our folks in business, which benefits both petroleum marketers and industry vendors. PMAA is a small association—our budget is only $1.7 million compared to tens of millions of dollars for other associations in town. Regardless, we do a lot of great work through our state associations that make up the core of PMAA’s government relations efforts in Washington, D.C. n FuelMarketerNews.com

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VENDOR VIEWPOINT:

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Distillation is the process of purifying a liquid using evaporation and condensation. Whether it’s fuel, alcohol or water, the goal is to get certain molecules out of the product to purify it.

by Jon Scharingson

Three Ways to Benefit from Distilled Biodiesel At first blush, distillation may not be a topic that piques your

The following are three key advantages of distilled biodiesel:

Superior cold-weather performance

Greater feedstock flexibility, which can ease supply and price issues and allow for lower carbon intensity (CI) scores

Increased purity and easier to blend

interest, or maybe you think you already know enough about it from petroleum refining.

Regardless, you would be wise to pay attention to what is shared in this article. Distilled biodiesel has the potential to make a material difference for your business. That’s primarily because of the benefits of a distilled product, but also because it’s a relatively new method of biodiesel purification, and knowing about it can give you a leg up on the competition.

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WHOLESALE & FLEET OPERATIONS

Three Ways to Benefit from Distilled Biodiesel

We’ll dive into each advantage in more detail below, but first, let’s review the distillation process.

To be clear, cold filtration is still a good way to purify biodiesel, but distillation has some additional advantages. Those advantages were listed above, and now we’ll explore them further.

What Is Distillation?

Superior Cold-Weather Performance

Distillation is the process of purifying a liquid using evaporation and condensation. Whether it’s fuel, alcohol or water, the goal is to get certain molecules out of the product to purify it. You may be familiar with this in petroleum refining, where crude oil is heated to cause sets of molecules to evaporate from the liquid oil. These are the cuts that, when recondensed, result in propane, gasoline, diesel and heavier fuel oils.

First is cold-weather performance. Cloud point is one of the most commonly heard terms in the biodiesel industry. Far too often we hear from people who believe it is the only thing that matters when using biodiesel in the cold, and that vegetable-oil-based biodiesel is better because it has a low cloud point. Distillation shows why that notion is wrong.

With biodiesel, distillation involves creating conditions that turn fatty acid methyl esters (FAME)—the molecules that make up biodiesel—from a liquid to a gas so they can be removed. Then the product is converted back to a liquid in a more purified form. Left behind in the distillation bottoms are minor components that can contribute to filter plugging.

This goes back to the great job distillation does to remove filter-plugging minor components, such as steryl glucosides. With those components taken out of the product, distilled biodiesel can outperform an undistilled product, even at a higher cloud point.

How Distillation Is Different

Feedstock Flexibility

You may be wondering how distillation differs from how biodiesel is usually purified. The most common traditional method is known as cold filtration. For example, Renewable Energy Group (REG) has a patented cold filtration process in which crude methyl esters are chilled to a certain temperature. A filter aid is added, and between that and the chilling process, minor components are removed. FMNMagazine

The ability to create high-quality biodiesel from a variety of feedstocks—feedstock flexibility, as we call it at REG—has two primary advantages. One is it can provide more nimbleness in the commodity markets. If a particular feedstock is experiencing price or supply fluctuations, we 48

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Three Ways to Benefit from Distilled Biodiesel

Carbon intensity is important because it helps companies meet their sustainability goals. And, if you are doing business on the West Coast in California or Oregon, it is critical due to those states’ low-carbon fuel standard policies.

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Purity The removal of minor components in distillation has one more benefit: it helps create the purest form of biodiesel. The enhanced purity also helps distilled biodiesel blend more easily with petroleum diesel. Cold-weather performance, feedstock flexibility and purity— simply stated, those are three significant reasons to try distilled biodiesel. n

can turn to another feedstock and know that our end product will still meet ASTM and customer specifications. This, of course, is good for our customers too.

Jon Scharingson

Another advantage of feedstock flexibility is the ability to make biodiesel from feedstocks such as animal fat, used cooking oil and inedible corn oil, which can allow for lower CI scores. Some of the feedstocks with favorable CI scores can result in biodiesel with a higher cloud point, but with cloud point being less of an issue with a distilled product, users can get a fuel with lower CI that also performs well in cold weather.

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Jon oversees the sales and marketing efforts for Renewable Energy Group, Inc. (REG), a leading biodiesel producer. Contact Jon at Jon.Scharingson@REGI.com, or for more information about REG, visit REGI.com.

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BULK PLANTS Building and Expanding When it comes to building a new bulk plant or by Maura Keller

expanding an existing one, there are a myriad of issues to overcome, regulations to meet and hurdles to jump—all while maintaining or establishing storage and supply facilities that meet your needs.

Brian Savage, President of Savage Associates, Inc., a leader in providing liquid and gas transfer equipment and systems to the petroleum, chemical and industrial markets, said that rarely do you eliminate all headaches relative to upgrading or building new petroleum storage plants. “Today’s property, economic and market environments are often a moving target for goal setting,” Savage said. “The current radical and fast-paced decision-making by the executive branch of the federal government is causing delays in expansion and/or new storage growth for petroleum products. “Today, we have provided more biodiesel at the rack blending systems than anyone else on the Eastern Seaboard,” Savage noted. “We are the major supplier of loading rack automation systems.” Savage Associates is also one of the leading suppliers to U.S. military aviation groups for fuel storage, transfer and refueling stations.

Savage’s company has numerous bulk plant project schedules that have been “back-burnered” due to higher-thannormal warming spells, revised tax breaks on developing petroleum product blends, decision-making on petroleum movement by rail or pipeline and urban populous growth, which limits space for petroleum storage growth. “Mergers are closing at a higher rate than in past years,” Savage said. “This does not provide us with activity in the upgrade and ‘modernization’ of inventory reconciliation and controls. However, the age of the facility being taken over causes renewed thinking about its use. This is often due to poor cost evaluation by the buyer’s consulting firm.”

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WHOLESALE & FLEET OPERATIONS

“” Building and Expanding Bulk Plants

There are a myriad of nooks and crannies in bulk plants. Regulations, economics and practicality all have to come together.

Every petroleum distribution and storage operation, whether new or expanded, faces various local restrictions. As far as permitting—the more urban the setting, the more difficult it is to get permits. “Who wants to see those ugly storage tanks next door?” Savage asked. “Also, combustible or flammable product storage above ground requires physical separation from various assets, such as property lines, buildings, other storage and power lines.” In addition, consideration for aboveground storage tanks (ASTs) versus underground storage tanks (USTs) is evaluated with additional measures having to do with environmental concerns, and ultimately, the cost involved in dealing with the regulations and restrictions in the area.

Avoiding Common Mistakes

When it comes to planning and implementing new or expanded bulk fuel plants, there are some key steps to take to make the process a smooth one. The first involves establishing qualified and experienced team members, including engineering consulting, contractors and equipment suppliers. “It is often thought that an engineer—any engineer—can just design a plant, or I, the customer, can do it myself,” said Michael Trask of Hall Trask Equipment Company. “Not true—the critical path is to find an engineer who is diligent in pursuing a customer’s economic and operational needs. They must understand real installation practices and not just data.”

“An engineer needs to engage in the complete project and the vendors involved to find this perfect combination,” Trask shared. “Too often I see projects designed around the engineer’s needs, wants or expectations rather than the customer’s. The project ends in what ‘should’ have worked or ‘not quite’ what the customer was asking for.”

companies. We make an effort to work with our customers’ existing equipment and what will help our customers meet the next generation in fueling.”

Trask and his team integrate the necessary equipment to complete the project, and they take pride in the end result.

“We maintain our customers’ equipment and additional equipment needs long after the project is over, offering service and maintenance for the lifetime of the site,” Trask explained. “We forever stick with our customers and maintain our equipment, even if it has gone into obsolescence. Stepping onto a site we built 25 or even 50 years ago and seeing it still operating efficiently is a great feeling. Currently, we are integrating a site we built over 20 years ago with automation for blending, injection and temperature compensation.”

“Too often I see projects designed around the engineer’s needs, wants or expectations rather than the customer’s. The project ends in what ‘should’ have worked or ‘not quite’ what the customer was asking for.” Michael Trask Hall Trask Equipment Company

Savage agrees and stresses that petroleum marketers and suppliers need to avoid engineering or consulting firms that must “sub out” certain disciplines. “This will increase costs and will leave the client unsure of who is doing what.”

The equipment supply company must also have field experience with the system and/or components they are supplying, including field start-up experience and system testing. Hall Trask Equipment Company has made the extra effort to ensure they work closely with the engineer and the customer so the end result is economical, practical and what the customer ordered. “We have a range of products designed to meet our customers’ needs, as well as the background and expertise to bring a complete project together,” Trask said. “Project integration is a specialty of our FMNMagazine

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Although it’s not unusual to see the use of 50-year-old equipment, trying to reuse old equipment in new applications requires serious reevaluation. Savage considers this one of the most common mistakes he sees among industry players.

When Savage gives presentations, he starts off with a scenario and a question. “Those folks who have a dishwasher, refrigerator or air conditioner in their house that is five years old, or older, raise your hand. Those that have one of these appliances that is 10 years old, keep your hands up. Those that have an appliance that is 20 years old, keep your hands up,” Savage instructs.

“By this time, hardly anyone still has their hands up,” Savage said. “Then I ask, ‘Why do you expect your 30-year-old bulk meter to still have parts available when it breaks, or your pump or your loading arm? Why do you buy used equipment for your new plant when that equipment is over 30 years old?’” Remember, the key is to always prepare for future changes in your storage, piping or product being stored.

WHOLESALE & FLEET OPERATIONS

Building and Expanding Bulk Plants

Being Budget Focused

Regarding funding and costs involved with bulk fuel storage, it’s vital to know the amount of funds you have available or have access to. “Know what steps must be taken to get the return you expect on those funds,” Savage said. Also be sure to establish specific line item costs for the project with “not to exceed” limitations for each line item.

Overcoming Regulatory Hurdles

Within the last 10 – 15 years, the petroleum industry has learned to avoid hurdles at the beginning of a project. “Avoid hurdles by defining what they may cost to resolve in time and money before your goal is challenged by them,” Savage shared. Twenty-eight years ago, an independent oil company wanted to remove their 30,000-gallon aboveground tanks and replace them with underground tanks. One of the line item costs to evaluate this goal was to perform boring in the property to see where the water table was located. “They did one boring. They assumed that the reservoir located one mile away would have little influence,” Savage said. “They should have made three borings.” Permits, drawings, materials and other documents were finalized and the project was released. During excavation, they hit water.

“Don’t juggle between line item costs that have been established. Know there is an expenditure to be made to determine if you can even do what you want to do.” This means that the engineering or consulting team needs to determine if such a venture is allowable within local government agencies or groups. “Tanks had been ordered and staged at the site,” Savage continued. “After arranging for six 4-inch diesel-driven sump pumps to get to the site and start pumping water, they eventually got the tanks installed. This added 12% to the total cost of the project due to pump rental, concrete anchor members, strapping and runoff control.” The moral of the story is to make sure that your engineering firm has experience in every discipline involved with the project. “You may not be using additive now, but you may in the future, so be prepared for that to be stored and injected into your piping systems. You may not be a biodiesel blender now, but in the future you may want to be, so be prepared for additional storage, piping and how B100 is stored and blended,” Savage advised. “If power needs to be brought in, make sure you have sized for at least a 20% increase in amperage requirements.” Additionally, watch where buildings are being installed relative to storage and the expansion of buildings. Make sure all tanks have extra fittings for changes in inventory control, environmental mandates and fire safety controls. FMNMagazine

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“If it is required to go before the Board of Adjustment, for example, it will cost more than just applying to the planning board,” Savage noted. As the approval process ventures forward, get determination about when costing should be started and completed. This helps reduce the delay in achieving the goals that have been set for the building or expansion project. In the end, it comes down to the Boy Scout adage of “Be Prepared.” Savage and Trask recommend staying on top of changes in the industry and becoming educated on the nuances of your particular region and/or situation. “Read about future sources of energy and how they will influence your existing plans for product being stored, such as hydrogen, natural gas or propane,” Savage advised. “Also become aware of what the municipality plans are for expansion. Does your Department of Transportation have any major roadwork planned in months or years from now? And, of course, pay attention to what your competition is doing.” n

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VENDOR VIEWPOINT:

Sharing the View

What does it mean to

“share the view?” With competition increasing and margins growing even tighter, fuel marketers need to improve communication through automation and expand the sharing of information across not only their own organization, but to customers and carriers as well.

by Amy Werner When marketers have the technology to share their information quickly and simply, it opens new pathways for them—as well as their partners—to work more efficiently and profitably. Whether you are sharing data and decisionmaking tools internally or with thirdparty vendors, increasing your data visibility can give you a leg up in this fast-paced and unforgiving market. By utilizing today’s data automation technology, fuel marketers can reap the benefits of more efficient and accurate customer mandates and reduced overhead costs, while ultimately bringing in more business. Unfortunately, increased visibility does not mean simply FMNMagazine

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inviting coworkers to your computer monitor. It means being able to seamlessly weave information between departments to ensure your organization and its partners are on the same page with the best information possible. So, what can fuel marketers improve by sharing the view? The three major business functions that can benefit from better and more interconnected data are the purchasing process, allocation management and billing. Ultimately, when these functions are synchronized, you can successfully share all inbound and outbound documents in one easyto-access place.

WHOLESALE & FLEET OPERATIONS

Improve Your Purchasing Process

Share Real-Time Allocations

To make the best purchasing decisions, you need to be able to procure every price and share it with your entire network.

Managing your different supplier allocations can seem like a juggling act at times. The logistics team needs to know where and when to dispatch trucks and where they stand with allocations at any given time.

Beneficiaries of a shared, real-time purchasing process include fuel managers, pricing analysts, accounting departments and sales groups. To avoid unnecessary inconsistencies, it’s critical that they all have access to the most current pricing to ensure that, if multiple people are making buying decisions, they are all working off the same price. Another helpful tool for managers and analysts is a comprehensive view of supplier prices by terminal and product group. When equipped with a purchasing system that allows for procurement and sharing, you can then choose from a number of options to auto-generate, share and export prices. Accounting also needs accurate, realtime prices flowing into their back office. When purchasing data is shared with them through one of today’s comprehensive systems, your products, terminals, suppliers and carriers can be cross-referenced and then reflected in your back office. Price adjustments can also be captured, with those prices automatically delivered to the accounting group, thus eliminating needless error and delay. Current prices are vital for the profitability of your sales group as well, even when out of the office. When your sales group has real-time pricing visibility, they can avoid playing phone tag and be confident in making tough decisions, even on the go. Whether you are a manager, analyst, accountant or sales rep, access to the latest data that can be customized, consolidated and shared on one screen puts your organization on the path to success. This unified vision of an organization’s data can also work to improve allocation management for marketers.

To best manage the allocation juggling act, marketers can capitalize on automation technology that delivers interconnected data. By doing so, marketers can work in unison with logistics, supply and common carriers. Innovations in tracking technology can remove the time-consuming tasks of logging and consolidating allocations from various supplier websites. With the most current supplier information at their fingertips, logistics can utilize a configurable, aggregated view of their allocations across suppliers. This offers peace of mind through constant tracking and reporting of valuable supply assets, and ensures that drivers are not stuck at the rack with no supply. Even common carriers rely on real-time allocations for routing trucks. By tapping into allocation sharing technology, they can view applicable allocations and empower themselves, saving you from answering questions at all hours of the day.

Streamlined Billing If your bills of lading (BOLs) are coming in from different sources, there is a high level of unpredictability involved. This challenge is one often faced by marketers—maybe they’re emailed or faxed in, or delivered in a crumpled mess by the driver. Time is money, and nobody has the time to decipher and enter information manually.

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To avoid wasting time and money, industry technology has made billing more consistent. Accessible electronic bills of lading (eBOLs) can be delivered in a single online feed where you directly receive a PDF in your inbox and an automation file in your back office. For the logistics team, automation ensures accuracy by providing real-time BOLs so they know what was lifted and when. Utilizing automated billing systems allows fuel managers and dispatchers to get the fastest possible BOLs, sometimes within minutes of loading, in a consistent, easy-to-read format while also eliminating duplicates. To speed up invoicing, the accounting group must have timely, accurate and aggregated data in their billing system. Through automation, they can avoid manually gathering BOLs—saving time and money for your organization.

It’s Time to Share the View The refined fuels industry is always trying to make communication and information sharing easier. When sharing on your own terms—whether sharing information with colleagues or outside partners—you can achieve greater accuracy and efficiency through automation. Having accurate, real-time and shareable data is critical to your success. When you can tap into a vast customer base and put your key audiences on the same page, the productivity of your organization will transform. n

Amy Werner Amy is a product manager at Schneider Electric. In her role, she is responsible for the product direction of the company’s downstream oil and gas e-suite solutions. Prior to joining Schneider Electric, Amy was in a global product management role at Motorola.

The U.S. rig count for March 2017 was 901, up 67 (8%) from February 2017, and up 391 (77%) from March 2016. This rig count includes U.S. onshore, U.S. inland waters and U.S. offshore Gulf of Mexico drilling rigs.

Bottom Line:

Robust U.S. production continues to put a lid on how high oil prices can go, however, as OPEC readies a decision on whether to extend its deal to cut production beyond June. Sources: Platts RigData and Business Insider

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VENDOR VIEWPOINT:

The New Retail Fuel Customer Base:

Where Disruption Meets Collaboration by Joe O’Brien

Twenty years ago, the business buzz phrase was “paradigm shift.” Today, the buzzword is “disruption.” Whatever the term, the notion is worth considering. There are ideas afoot in today’s retail fuel market that indicate a change to the conventional business model is under way.

For those operating in the retail fuel industry, not that much has changed over the past 35 years or so, relatively speaking. Sure, the fuels change, payment technologies evolve and the dispensing equipment advances, but the basic principle—and execution—of buying and reselling fuel to the motorists who decide to pull into your station has remained a fairly consistent part of the equation. Customers pull in, pay, pump and pull off. However, there are several new business models emerging that have the capacity to truly disrupt the fundamental business concepts within our industry. With consumer loyalty and convenience at the heart of their value propositions, and large-scale business-to-business (B2B) partnerships driving the new strategies, these models create business ecosystems that promise to influence buying norms in the retail fueling space. Fuel marketers need to recognize the shift, acknowledge its potential and identify ways to embrace the change to obtain an edge over their competition. For your consideration, here are a few examples of partnerships developing between fuel retailers and other industry partners that could define the future of the c-store customer pool.

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RETAIL OPERATIONS

They Sleep,

You Sell International car manufacturer Volvo recently launched a pilot program that enables its customers to order services such as fueling and car washes, which can be completed while car owners are not using their vehicles (working or sleeping, for example). Made possible through a digital key, an authorized service provider accesses the car and completes the requested tasks. When the owner returns to his or her car, it is clean and/or refueled. The concept of concierge services such as these suggests the possibility that fuel retailers who partner with automakers to provide these services will be able to leverage the car manufacturer’s customer base. A fuel retailer’s customer base could change from being a somewhat unpredictable collection of consumers to one that includes a consistent set of drivers for a particular make of car. While it will be some time before the impact of these services can be determined, they represent an opportunity for enterprising fuel marketers to begin outlining how partnerships with vehicle original equipment manufacturers (OEMs) might impact their businesses in the future.

“In Touch”with Loyalty and

Payment Programs

Other car manufacturers are shaking things up through their in-vehicle loyalty/payment programs. Ford recently partnered with ExxonMobil to integrate Speedpass+™ into its Ford SYNC® 3 touchscreen menu, which enables drivers to authorize payment for fuel without leaving their cars. As added motivation for using the app, Speedpass+ enables customers to earn loyalty points at Exxon and Mobil stations. In addition, Honda, in collaboration with Visa, Gilbarco Veeder-Root and IPS Group, revealed a proof of concept for its in-vehicle payment platform at CES 2017 in Las Vegas. The Honda platform allows drivers to pay for fuel and parking via an in-vehicle touchscreen interface. Loyalty and payment perks are already proven to draw repeat business. Retailers who integrate their loyalty programs with the devices and digital interfaces customers use the most stand to benefit greatly from this evolution in the fuel purchasing process.

Need

Customers? There’s an App for That

An estimated 650 gas stations in the District of Columbia, Maryland and Virginia have signed up to partner with Upside, a company that developed an app that connects customers to the most competitive fuel pricing in their area. Here’s how it works from the consumer’s vantage point: Upside negotiates price discounts for fuel sold at individual gas stations, and the prices are then published on a map that customers access via a smartphone app. To claim their discounts, customers use the app to photograph their receipts, after which they receive cash back credits from Upside. What sets this app apart from other fuel apps that have come before it is its potential for disrupting a longtime pricing practice. It’s no secret that stations cluster near one another in high-traffic areas and, to ensure no particular station on a given corner gains an advantage, each station in the cluster offers fuel for the same price. Upside takes advantage of this competitive environment by offering their fuel discount to the first station in the area that reaches out to Upside. Stations that engage with Upside after the discount has already been claimed by another retailer are shut out of the opportunity. To help prevent stations from discovering the true price discount being offered to customers in their area, Upside offers different discounts to different users. The exclusive nature of this alternative loyalty program is especially challenging to the current marketplace. However, apps such as Upside represent an opportunity to draw a wealth of new customers. While the margins of the fuel sold to these customers may take a hit, the potential to sell higher-margin soda, snacks and nonfuel services can quickly increase total revenue and profits.

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The

The New Retail Fuel Customer Base: Where Disruption Meets Collaboration

EMV Connection

Each of these emerging business ecosystems share three common elements: they drive customer loyalty, they are facilitated by advancements in digital technologies and are made possible through industry alliances. So, what does all of this have to do with EuroPay MasterCard Visa (EMV)? Timing. The delay in phase two of the EMV conversion has diminished the collective sense of urgency. But in this time of unmitigated transformation, retailers who are only looking at the EMV deadline as just that—an EMV deadline—are not seeing the whole picture. The EMV conversion is a major opportunity for fuel marketers to establish a defined and conscious strategy that drives customer loyalty, and to implement hardware- and software-supported equipment solutions that help grow it. When 2020 arrives, every retailer’s automated dispenser payment terminal will need to be EMV compatible for store operators to avoid financial liabilities.

However, since so many marketers will need to complete upgrades to make the EMV conversion possible, now is a fortuitous time to identify other opportunities—and plan for capital investments—that would benefit your operation. For example, now may be the time to deploy a media-rich indispenser marketing platform or a platform that supports in-vehicle payments, while ensuring your EMV equipment choices are in alignment with those secondary initiatives. In this time of transformation, there are three things retailers can do to position themselves to benefit from the new business models that are surfacing amid the EMV conversion:

1 2 3

Leverage brand support to the fullest extent. As the ExxonMobilFord partnership demonstrates, a brand partner who exhibits an aptitude for growing customer loyalty and establishes alliances with large players in related industries is likely to be an asset moving forward. Cultivate a relationship with a knowledgeable and trusted fueling equipment supplier. With direct inroads to fueling equipment manufacturers, fueling equipment suppliers often have insights about planned product innovations in advance of the general public. Stay informed and stay engaged in the industry to stay ahead of the competition. As the Upside discount illustrates, the early bird gains the market share. n

Joe O’Brien Joe is Vice President of Marketing at Source™ North America Corporation. He has more than 20 years of experience in the petroleum equipment fueling industry. Contact him at JObrien@SourceNA.com.

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VENDOR VIEWPOINT:

Why Are There Remove-By Dates on Fuel Nozzles? by Ed Kammerer

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While it’s a fact of life that all fuel nozzles will eventually fail, there is no way to put an indicator light on them that will turn red to signal an approaching failure date. Simply put, fuel nozzles work until they don’t work, and it’s nearly impossible to pinpoint when they will fail.

At one time or another, every parent has told an obstinate child who may be questioning the need to do something, “Just do it, it’s good for you!” This brings us to the reason why remove-by dates are placed on the hanging hardware—fuel nozzles, swivels and breakaways—that are critical components in the fueling process at all retail and commercial fueling sites: it’s good for site operators, their customers and the environment.

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Much like that stubborn child, many site operators will respond with a simple, but difficult, question: “Why?” The easy answer to that query is, “It will allow you to better manage the functionality of the equipment at your fueling site,” but, in reality, it’s a bit more complicated than that.

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RETAIL OPERATIONS

Why Are There Remove-By Dates on Fuel Nozzles?

Remove-by dates are a preemptive way to let site operators know when the component may not work as designed anymore, alerting them that it needs to be replaced before a negative event can occur.

The Testing Begins

Back in 2004, manufacturers of fueling nozzles noticed that more and more of their customers were beginning to wonder about the optimal service life of a nozzle. Or, they asked the simple question, “How long should my nozzles last?”

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The nozzle manufacturers relied on two specific sets of data when testing the life cycles of nozzles and their inherent components, such as O-rings, gaskets, springs and diaphragms:

Internal

Other items—like milk and eggs—may be labeled with “best if used by” dates, but no law or regulation exists to ban using the product after that date. Regardless, we all know you would be wise to take the farmer’s advice and not pour curdled milk onto your breakfast cereal. In other words, he put that date on there for a reason!

• Determined a statistical sample size of products • Cycle tested the products in a lab setting until failure • Compared this cycle life with real-world cycle rates

External

• Determined a statistical sample size of products • Collected nozzles of different ages from service stations • Tested products to determine their current functionality and length of variable service life

So, driven by the demands and requests of these customers, the nozzle manufacturers, working in conjunction with various third-party testing organizations, put their heads together and created a testing regimen to try to determine the optimal life cycle of a nozzle in the field.

The manufacturers then compared the results of the two testing methods and their specific blocks of data, determining that the optimal life cycle for a fueling nozzle was approximately five years. That’s when it got tricky. You see, while you can say that a nozzle will work effectively for five years before failing, there’s no true FMNMagazine

way to know that it will—or won’t. A nozzle’s operation is susceptible to numerous outside conditions, such as fuel formulations, customer use and abuse, weather conditions and the service station’s fuel throughput levels, among others. You can say nothing lasts forever—think of vehicle brakes, light bulbs, faucets, door handles, etc.—but you can never say exactly when those products will fail with any type of certainty.

Further clouding the issue is, unlike a light bulb that burns out and must be replaced, when a fuel nozzle stops working, there is a good chance that a negative event will occur, such as a nonshutoff or leak. Keep in mind that nozzles are transferring a highly flammable liquid into a vehicle, and that liquid must be reliably contained and monitored at all times. Also, while nozzles were FuelMarketerNews.com

initially targeted as the only pieces of equipment to include remove-by dates, the practice has spread over the years to include swivels and breakaways because of their important roles in the fueling process. The ultimate concern is that nozzles, swivels and breakaways may not always “fail safe,” which means a dangerous situation can unfold for the fueling site’s employees and customers, as well as the environment, if a failure results in a hazardous fuel leak, fire or explosion. Therefore, the driving force behind the creation of remove-by dates for hanging hardware was to establish a safeguard that would help enhance the safety of the fueling site. In sum, remove-by dates are a preemptive way to let site operators know when the component may not work as designed anymore, alerting them that it needs to be replaced before a negative event can occur. Smart fuel-site operators will also conclude that the risk factor of using fueling components that may be approaching the end of their useful life does not warrant keeping them in operation. Additionally, the presence of a remove-by date is not intended to, and does not, increase or decrease the station owner’s liability. It is simply a mechanism to make the station owner aware that the product has a useful service life and should be replaced when the service life is set to expire.

RETAIL OPERATIONS

Addressing the Naysayers

Why Are There Remove-By Dates on Fuel Nozzles?

Still, some fuel-site operators—think again of that obstinate child—perceived the creation of remove-by dates as a built-in way for component manufacturers to sell more of their products. This could not be further from the truth. Since the inclusion of remove-by dates was not driven by regulations, some hanging-hardware manufacturers have chosen not to include them on their products and try to use the lack of remove-by dates as a competitive advantage over manufacturers that include the date. In this case, the only result is putting the site operator who chooses to use a product with no remove-by date at greater risk of a negative event, which certainly does not sound like a competitive advantage. Fuel-site inspectors and regulators need to remember that there is no requirement, law or regulation forcing operators to take the equipment out of service after the remove-by date. It is simply a recommendation from the manufacturer, and the site operator should not be punished if he chooses to continue using the product after the remove-by date has passed. So, how would remove-by-date devotees respond to these admittedly significant questions and concerns? Easy—if you’re using a nozzle, swivel or breakaway without a remove-by date, how do you know you’re using a safe product? In the end, those manufacturers who include remove-by dates have a simple, convincing and even altruistic response: it just makes sense. For the wise site operator who chooses to use equipment with remove-by dates, it is a highly visible practice to emphasize that this operator is concerned with protecting the safety of his site personnel, the environment and, most importantly, his customers. n

Ed Kammerer Ed is the Director of Global Product Management for OPW, and can be reached at Ed.Kammerer@OPWGlobal.com. OPW is leading the way in fueling solutions and innovations worldwide. OPW delivers product excellence and the most comprehensive line of fueling equipment and services to retail and commercial fueling operations around the globe. For more information about OPW, please visit www.OPWGlobal.com. FMNMagazine

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The first purpose-built, drive-up gas station opened in 1913. At the time, there were approximately 500,000 vehicles navigating almost exclusively dirt or gravel roads. Today, there are more than 250 million vehicles traveling on the nation’s 3.98 million miles of paved roadways, with approximately 40 million vehicles fueling up every day.

Bottom Line:

Over 80% of convenience stores sell motor fuels, and the convenience retailing industry has roughly doubled in size over the last three decades, which emphasizes this industry’s importance in consumers’ everyday lives. Source: National Association of Convenience Stores (NACS)

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How Fuel Goes to Market:

Reviewing the Fuels Institute Report by Keith Reid

ince its inception in 2013, the Fuels Institute has followed an aggressive research agenda. The topics have been varied and explored new ground, ranging from “Shared Travel: Revolution or Evolution?” to “GHG Emissions from Light Duty Vehicles Powered by Natural Gas.” This is in line with its charter as a think tank of fuelsrelated stakeholders, such as fuel retailers, fuel producers and refiners, alternative and renewable fuel producers, automobile manufacturers, environmental advocates, consumer organizations, academics, government entities and other stakeholders with expertise in the fuels and automotive industries. However, the institute’s latest project, “Assessment of the U.S. Fuel Distribution Network,” prepared by Stratas Advisors, takes a different course by providing an easily accessible and manageable overview of the fuel distribution infrastructure throughout the United States, from the refinery to the retailer. As stated in the executive brief, “This report evaluates the U.S. supply chain, how it works and what limitations/weaknesses exist at each point to accommodate diverse fuel specifications and achieving higher rates of biofuels penetration.” The report provides a breakdown of supply issues by Petroleum Administration for Defense District (PADD), as well as a breakdown of the distribution infrastructure—from the refinery to the terminal to the retail nozzle—and how conventional fuels and biofuels fit into that infrastructure. FMNMagazine

“Assessment of the U.S. Fuel Distribution Network” is a document that should be on hand for professionals in all levels of the motor fuels industry. For the novice, it will help them rapidly get up to speed with a general understanding as to how fuel goes to market. Experienced industry professionals might very well get some new insight from the specifics noted, and further appreciate having the information in an accessible format at hand for reference. Additionally, it’s free and available for download after providing a few simple registration details. This report should also be useful for audiences outside the industry—which was a core consideration in its development—such as regulators, legislators and automobile engine manufacturers, who have significant influence over the industry. “There is a lack of awareness from non-fuel-specific stakeholders as to how the market works,” said John Eichberger, Fuels Institute’s Executive Director. “If you start talking about the different fuel options being discussed for the future, we really think it’s important that everybody has a basic understanding of the complexity of the market. If you have that basic understanding, the hope is, as you evaluate options, you will have a better understanding of the consequences and additional challenges that might develop.” 68

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BUSINESS OPERATIONS The complexity is well illustrated in the full report. As highlighted in the executive brief: “With more than 12 million barrels of transportation fuel consumed every day, the United States lays claim to one of the largest and most complex fuel supply chains in the world. “During the past decade, the U.S. transportation fuel market has shifted dramatically. The U.S. has gone from being one of the world’s largest importers of petroleum products to a net exporter of transportation fuels. “With the exception of the West Coast (PADD 5), each PADD has an imbalance of supply and demand that is resolved through logistical connections that are used to make up those imbalances. In many cases, the imbalance is resolved not just by inter-PADD movements, but also through foreign imports and exports. “One of the key limiters of the U.S. transportation fuel value chain flexibility is the varying specifications and mandates that exist across the country, known as boutique fuels. Within each specified market, it is impermissible to sell a fuel that does not meet the region’s specification.”

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The report notes that California faces a variety of challenges based upon its environmental policies. Regardless of what happens in coming years at the federal level, California will most certainly be as aggressive in its carbon remediation policies as ever, and that’s in partnership with a handful of western and northeastern states. From a market standpoint, it can be easier for industries to voluntarily go along with California even if those policies are not required federally. One issue, for example, is the future of diesel in California. “A lot of fuel providers are talking, saying that, really, the only viable diesel in California is going to be renewable diesel,” said Eichberger. “If that’s the case, then you start looking at what the federal government’s role is going to be in either encouraging, discouraging or getting out of the way of renewable diesel development. That could affect the California market directly. I really think when it comes down to it, if this is read by the right people, hopefully it will inspire more of a pragmatic approach to market policy development than you might have seen in the past.” n Download the full report at www.FuelsInstitute.org/Infrastructure.

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by Mark Moitoso and Becky Kies

Leading with Empathy:

How Data Analytics Uncovered Claimantsâ&#x20AC;&#x2122; Fears

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How long is this pain going to last? What if I canâ&#x20AC;&#x2122;t do my job when I return to work? How will I pay my bills?

BUSINESS OPERATIONS

hese types of questions can be overwhelming for an employee who has suffered an injury on the job, but the right conversation between the employee and employer can help alleviate many of those concerns. Lockton supports clients with their post-injury strategies and claims management with best practices and integrated analytics.

One of the most common cost drivers of workers’ compensation claims is a lack of communication. Analysis of unstructured data from Lockton’s proprietary Infolock® P&C database, with over $16 billion in workers’ compensation claims and 65 million transactions, uncovered that claimants’ fears are highly correlated with increasing costs. The average lost-time claim costs 3.5 times more when words such as “fear” and “afraid” are recorded in adjuster conversations.

Nearly 60% of all workers’ compensation costs are driven by claimants who experience fear. There is also a strong relationship between this uncertainty and the prevalence of attorney representation. By changing the process, the experience for the claimant can be improved and the resulting claim costs can be lowered. Through this research and their work with clients, Lockton believes that litigation is an outcome, and through improved processes and strategies, it can be controlled.

Sampling of Adjuster Notes “She told me she was scared about her future and felt she needed to speak to someone.” “He is somewhat reluctant to commit because he is afraid of surgery.” “The employee is worried that the employer will fire him after he returns to work.” “The employee reports extremely distressing thoughts, such as feeling tearful, anxious, angry and, at times, overwhelmed by the current situation, which he perceives to be never ending.” “The injured worker is afraid to lose money by taking time off work for doctor’s appointments.”

Lockton’s Insights This research, conducted by Lockton’s Analytics Team, indicates that fear is a definite factor in litigated claims and has a direct impact on the overall cost of workers’ compensation claims. Lockton leveraged its proprietary database by text mining adjuster notes to uncover a strong relationship between cost and words related to fear.

Lost-Time Claims

Lost-Time Litigated Claims

Lost-Time Litigation Rate

Claims with fear words account for 75% of claims greater than or equal to $50,000 and 84% of claims greater than or equal to $100,000.

“

BUSINESS OPERATIONS

”

Leading with Empathy: How Data Analytics Uncovered Claimants’ Fears

Injured workers need to know that their employers care about them, that they are wanted back at work and that they will be able to provide for their families. Companies should regularly and frequently communicate with injured employees on the next steps in the return-to-work process. It is important that managers are trained in active listening and showing empathy.

Claims with

fear words account for

How to Reduce the Fears of Injured Workers

4. 5.

If a manager has been involved in a previous case in which an injured employee took advantage of workers’ compensation, or has dealt with a large number of cases, he or she may become hardened to the process. It is important for managers to show compassion for each injured employee and to let employees know that they care deeply about their return and want them back on the job. Lockton has proven tools, processes, resources and analytics to improve post-injury strategies and cost containment.

FMNMagazine

Eliminating attorney representation is not realistic. However, taking simple steps to remove fear from the minds of injured workers can help lower the total cost of risk. By changing the trajectory on just 5% of claims in which claimants experience fear, employers can improve their bottom lines. n

Top Five Reasons People Hire Lawyers “I haven’t received my pay” or “I’m not being paid on time.” “I don’t like my doctor.” “I was afraid that I was going to lose my job.” “The process is taking too long.” “No one called me to see how I was doing.”

More than 6,000 professionals at Lockton provide 50,000 clients around the world with risk management, insurance and employee benefits consulting services that improve their businesses. Since its founding in 1966 in Kansas City, Missouri, Lockton has attracted entrepreneurial professionals who have driven its growth. Lockton is now the largest privately held, independent insurance broker in the world, and ninth largest overall. For more information, contact Greg Cushard at 916-730-4849 (cell), 415-568-4115 (office) or GCushard@Lockton.com.

FuelMarketerNews.com

by Ann Pitts Acquisition activity in the petroleum space has been

in high gear. As exciting as it can be for a company to grow through a strategic acquisition, there is always a learning curve ahead. One of the most precarious parts of integrating the purchased business is how to handle the customer transition. Customers are what create the cash flow to pay for the acquisition, and every touchpoint—from delivery to invoicing to getting paid—needs to be thought through to avoid a catastrophic loss of customers.

Making a detailed game plan for customer transition, whether they are commercial, non-contractual dealers or propane customers, should be a project completed well ahead of the close date. Once the deal is done, the plan should go into effect quickly; however, that does not mean it’s a good idea to immediately put the hammer down on the new customer base. These folks are not used to operating under your own disciplines and protocols yet, and keeping the goal in mind to retain them is top priority. To help set clear priorities for integration, buyers should start the evaluation to fully understand the processes of the acquisition early. Everything from customer orders, delivery, invoicing, payment applications and collecting should be mapped out.

Customer Retention After an Acquisition

BUSINESS OPERATIONS

“”

If the buyer has a disciplined customer base and attempts to correct undisciplined new customer behavior too quickly, it can be disastrous for retention.

What are the strengths and weaknesses in the mapped processes? What strengths could be implemented in the purchaser’s business? An example would be statements versus invoicing. Is it smart to retrain customers that are accustomed to paying quickly off an invoice to delay their payments by waiting on a statement? Take a look at specific technologies deployed in the seller’s order to invoice cycle, and again map out strengths and weaknesses.

Even during due diligence, without requesting specific customer names be revealed, it’s important to understand trends of the accounts receivable aging. How many customers are sitting in the 10-, 30-, 60- and 120-day buckets? What’s the trailing 12-month trend of receivables? How have these customers, who you are about to roll into your own mother ship, been trained to pay their fuel supplier?

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To discover which parameters customers are currently operating under, start at the beginning of the sales cycle. How are sales people operating in the field? What processes and policies are in place, from credit application, ancillary documents required and discipline in getting the required paperwork? How do their terms and conditions match up? Do they charge and collect finance charges? Do they send statements or invoices? What is the process for collecting past due balances? A buyer should fully understand the sales and collection cycle and determine how those match up with their own processes. If the buyer has a disciplined customer base and attempts to correct undisciplined new customer behavior too quickly, it can be disastrous for retention. To avoid losing customers, these strategies are of paramount importance to a successful transition:

one

Well ahead of the close date, select a talented project manager for the customer integration initiative and develop a step-by-step process that outlines the goals for the acquired accounts on Day 1, Day 10, Day 30, Day 45 and Day 60 after the sale. It is important to remember that acquired customers must be courted and sold on what the acquiring company brings to the table.

FuelMarketerNews.com

BUSINESS OPERATIONS

two

Customer Retention After an Acquisition

A strengths, weaknesses, opportunities and

threats (SWOT) analysis on the overall accounts receivable processes of the purchased company must be performed. Some key questions that should be carefully considered are: What best practices does the acquired company have in place that would benefit the buyer to adopt? What needs to be changed or addressed and what’s the timing? Who are the high customer-touch employees, and which are critical to retain?

three

A transition team must be created that includes employees from both sides of the deal. Draft an introductory letter telling the newly acquired customers a little bit about the new owner history, how they take care of customers and mention technologies and competencies now being brought to the table to service their needs.

four

It should not be expected that the employees of the purchased company will be immediately on board with the new regime. Putting this group in charge of customer transition communication can be dangerous. They should certainly be part of the team, but because they are still getting used to the new rules, they do not make for the best facilitators of a smooth transition. Working on this project as a blended team, asking a lot of questions and listening to advice from the acquired employees can go a long way in minimizing the “us versus them” thought process.

Knowing which systems and policies these customers are used to, and staging out the changes while simultaneously impressing them with great service and customer-friendliness, are surefire ways to keep these loyal relationships in place. n

A credit application or instructions to access the credit application and other online documents should be included, as well as a request that the paperwork be completed and returned with a deadline. There will be a select group of customers that will merit an in-person visit by both the exiting and new owners. At this point of the process, clear communication is key to customer retention.

FMNMagazine

Ann Pitts

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Ann is the President of The Pitts Group, a company dedicated to assisting petroleum marketers with increasing their cash flow by improving accounts receivable results. Staff training, sharing of best practices and strengthening company policy are all part of The Pitts Group program. Ann is an experienced business speaker and trainer who has enjoyed focusing on the petroleum industry for over 12 years. Contact her via cell, 817-304-1533, or email, Ann.Pitts@PittsGroup.net.

Rail safety is at an all-time high. The freight train derailment rate on the countryâ&#x20AC;&#x2122;s nearly 140,000-mile mainline network reached an all-time low in 2016, when less than 1% of all derailments involved crude.

Bottom Line:

Safety improvements are continuous and include rigorous employee training, self-imposed operating practices and community-safety efforts, increased emergency response planning and training, special routing technology that analyzes safe and secure rail routes, stronger tank cars and high-tech, increased track inspections and track-side safety techniques. Source: Association of American Railroads (AAR)

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FUEL MARKETER NEWS

INDUSTRY NEWS

Wayne Fueling Systems Concludes Successful Technology Summit in Austin Wayne Fueling Systems, part of Dover Fueling Solutions (DFS) and a global provider of fuel dispensing, payment, automation and control technologies for retail and commercial fuel stations, has concluded its 2017 Technology Summit in Austin, Texas, with strong attendance and positive attendee feedback. This year’s technology summit brought nearly 300 Wayne customers, distributors, suppliers and more participants to Wayne’s North American headquarter city. Session topics at the summit included payment, the future of fueling, retail and the Internet of things (IoT), with speakers from Google, Intel, Dell/EMC, PayPal and other industryleading companies sharing their expertise. Additionally, a “Partner Showcase” area provided the opportunity for sponsors of the summit to exhibit and promote their technologies, alongside of Wayne’s latest products and solutions. This year’s summit also featured the “Wayne Innovation Room,” which offered attendees an exclusive look at some of Wayne’s neverbefore-seen future technologies.

“We’re pleased that we could provide such informative speakers from some of the world’s top technology leading companies for our 2017 Technology Summit,” said Wayne’s VP of North America, Bill Reichhold. “Wayne has been leading the way for customers worldwide with innovative fuel dispensing systems, products and technology for more than 125 years. This summit was a fantastic opportunity to hear from other industry leaders about what the future may hold for our business and our world.” Chris Hickman of Cary Oil Co., Inc. noted that, “Having attended many industry events around the country, I would rank this one as one of the best for a variety of reasons. If [Wayne] continue[s] to host this event, we will be participating to ensure our customers are prepared to best position their sites for today, tomorrow and well beyond the 2020 EuroPay MasterCard Visa (EMV®) deadlines.” n

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Gas Station TV and Verifone Announce Joint Venture Video Network Reaching One in Three Adults Monthly Gas Station TV (GSTV), a leading video network at the pump, and Verifone, a leader in payments and commerce solutions, announced a 50-50 joint venture that combines the assets and operations of Verifone’s Pump Media division with GSTV, which is owned by Detroit-based Rockbridge Growth Equity and Falcon Investment Advisors. The combined business will operate under the GSTV brand and deliver 3.3 billion annual impressions through more than 18,000 locations in all 50 states by year’s end. On par with other major media brands, the new GSTV will provide marketers with significant reach to a mass audience of 75 million unique viewers every month, including one in three adults 18 years and older and nearly 31 million Millennials in the United States. National and regional marketers across all industry sectors now have a simple and effective way to reach valuable, highly attentive consumers in an increasingly fragmented media environment.

INDUSTRY NEWS Leading third-party analytics partners have repeatedly shown that campaigns on the GSTV platform deliver compelling return on investment (ROI) for top global brands. From double-digit increases in quick service restaurant visitation to millions of dollars in incremental consumer packaged goods sales, and significant increases in awareness and purchase intent, GSTV’s sophisticated data solutions align with advertiser demand for transparency and accountability in their media budgets. n

Ascentium Capital Reports 25.5% Year Over Year Increase in Funded Volume Ascentium Capital LLC, a national commercial lender, announced that first quarter funded volume reached $225.1 million, representing 25.5% growth, and managed $1.6 billion in assets, representing a 37.7% increase year over year (YOY) in the first quarter of 2017.

Ascentium Capital also experienced a record month in March with $259.6 million in credit application volume. Tom Depping, Chief Executive Officer of Ascentium Capital, commented, “Our financial relationship platform powers our performance. We continue to scale our operations and integrated infrastructure to deliver positive business outcomes that benefit our equipment vendors and small business clients nationwide.” As a direct lender, Ascentium Capital LLC specializes in providing a broad range of financing, leasing and small business loans. The company’s offering benefits equipment manufacturers and distributors as well as direct to businesses nationwide. Ascentium Capital is backed by the strength of leading investment firm Warburg Pincus LLC. For more information, please visit AscentiumCapital.com. n

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PDI Acquires Three Leading Software Companies, Establishing It as a Global Player on Six Continents PDI, a global provider of enterprise-class software solutions to the convenience retail and wholesale petroleum industries, announced the acquisition of three privately owned companies—DataMax Group, Inc., LOMOSOFT and FireStream WorldWide Inc.—which will accelerate the company’s growth and expand its footprint around the globe into six continents, as well as serving operators regardless of size and operating model. The acquisition of DataMax and LOMOSOFT are consistent with the company’s strategy to grow internationally and provide customers with a single, integrated solution in the countries they serve. The broadening of

INDUSTRY NEWS PDI’s solution portfolio will enable operators, regardless of operating model or size, to take advantage of PDI’s software portfolio and world-class delivery and service. In addition to this substantial expansion around the world, PDI will also strengthen and broaden its software solutions portfolio with the addition of a comprehensive and full fuel wholesale offering, including supply chain and logistics management. n

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Schneider Electric Reaches an Agreement on the Sale of Telvent DTN Schneider Electric announces it has signed an agreement for the sale of Telvent DTN to TBG AG, a private holding headquartered in Zurich, Switzerland, focusing on critical business information services and high added value industrial niches. The transaction is based on an enterprise value of $900 million (€840 million). Telvent DTN is a leader in providing information services, supply chain connectivity

tools and decision support solutions in agricultural, energy and environmental industries. It was consolidated under the Infrastructure division of the group and recorded revenues of $213 million. The transaction values the business at 17 times its adjusted earnings before interest, taxes and amortization (EBITA) in Schneider Electric 2016 accounts. Telvent DTN was acquired by Schneider Electric through the €1.4 billion acquisition of Telvent in 2011, and the strategic review launched last year concluded that the unit was not a core offering for the group. The agreement is conditional upon the satisfaction of certain regulatory conditions and customary closing conditions. The transaction is expected to complete in Q2 2017, at which point the group will clarify how it intends to use the proceeds of the transaction. n

Penske Truck Leasing Forms Onboard Technology Consulting Group Penske Truck Leasing announced it has established an onboard technology consulting group within its existing operations. The group was created as a value-added service to help Penske’s customers address the proliferation of technology choices and questions fleet operators have about selecting, evaluating, implementing and using onboard systems. Penske takes a device-neutral approach when helping its customers evaluate onboard systems. “Onboard fleet technology systems and options are changing rapidly,” said Art Vallely, Executive Vice President and COO at Penske Truck Leasing. “Many fleet operators simply cannot keep up with the rate of change. Our goal in creating this expert team is to provide customers with an objective, fact-based view of the various onboard technologies such as telematics, electronic logging devices (ELDs), in-cab cameras and other emerging technologies going forward.” Penske Truck Leasing’s fleet includes more than 240,000 vehicles across North America, and its customers use a variety of onboard systems on these vehicles. n FMNMagazine

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INDUSTRY NEWS

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Ryder Introduces Safety Technologies for New Vehicles Coming into Its Rental Fleet Ryder System, Inc., a leader in commercial fleet management, dedicated transportation and supply chain solutions, announced that all new vehicles that come into its North American commercial rental fleet will now include innovative safety technologies, such as forward-looking radar and collision mitigation systems.

QuikTrip Joins Prime the Pump, Will Expand E15 Availability in Dallas-Fort Worth to 44 Stores

expanding access to clean-burning, homegrown E15 with them,” said Growth Energy CEO Emily Skor. “QuikTrip is clearly committed to providing exceptional value for its customers at the pump. Thanks to QuikTrip, drivers in the Dallas-Fort Worth area will now be able to make the smart choice for E15.” n

QuikTrip, the Oklahoma-based chain of convenience stores, has joined major retailers selling E15—a biofuel that contains 15% ethanol—by announcing it will sell the fuel at 44 of its locations in the Dallas-Fort Worth metro area in Texas.

IPA Develops a New Innovation for Priming and Cleaning Diesel Fuel Injection Systems

QuikTrip joins Family Express, Kum & Go, MAPCO, Minnoco, Murphy USA, Protec Fuels, RaceTrac, Sheetz and Thorntons in offering their customers expanded fuel choices at the pump. Approved for use in all vehicles 2001 and newer, E15 is a highoctane fuel that burns cleaner and cooler than traditional gasoline, giving consumers improved vehicle performance and savings of up to 10 cents per gallon, while contributing to a greener environment. “We are pleased to have QuikTrip join our retailer family and look forward to

The new vehicles will become the standard specification for Ryder’s commercial rental fleet as the company responds to increasing demand from customers looking to improve fleet performance, safety and driver job satisfaction. Ryder has offered these innovative safety technologies as an available option to its ChoiceLease customers for several years, and the company is now making those technologies standard for the first time within its Commercial Rental product line for new vehicles being delivered into service this spring. Ryder’s fleet of vehicles incorporates many other advanced technologies, including automated manual transmissions, roll stability controls and telematics. The company also utilizes video monitoring and management systems in its Dedicated Transportation Solutions (DTS) fleet. Ryder continually monitors emerging fleet technologies and works closely with leading technology providers and equipment manufacturers to provide feedback around functionality, usability and adaptability. n FMNMagazine

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IPA® expands its fuel transfer and filtration line with a new solution for priming and cleaning diesel fuel injection systems. The Diesel-Fuel Injection Cleaner and Primer (#9080) allows technicians to fill the fuel tank reservoir with a fuel system cleaning fluid and clean fuel injectors. They can also quickly and easily purge air from fuel lines while filling them with clean diesel at the flip of a switch. The unique and ultra-portable design features an internal five-gallon tank, battery compartment and coiled fuel hose with extra space for storing including accessories.

INDUSTRY NEWS Made in the USA, built on a rugged, steel platform and featuring a missile-style power switch, fuel pressure gauge and volt meter, the Diesel-Fuel Injection Cleaner and Primer saves time and prevents premature wear and tear to injection system components. “The Diesel-Fuel Injection Cleaner and Primer is a great asset for techs who want an easy-to-use and portable method for priming fuel systems after component replacement or repair work,” said Dan Engelsen of IPA®. “It truly is a professional solution. This unit is much more convenient than other methods and avoids the unnecessary wear and tear on the injection pump during cranking.” n

NACS Publishes Community Toolkit The National Association of Convenience Stores (NACS) has published a new Community Toolkit, which provides ideas and examples of numerous communityfocused areas that retailers of all sizes can implement. It is the fourth toolkit that has been developed as part of the NACS

reFresh initiative to help retailers tell their positive stories in their communities. The online, interactive toolkit provides examples of how retailers are making a difference in their communities by giving back to local community-focused groups, supporting local or national groups making a difference in communities or by offering more local products to customers. It includes dozens of links to groups already partnering with convenience stores, as well as examples of how stores are succeeding with these partnerships. NACS has previously published the Site Approval Toolkit to provide strategies for retailers seeking zoning approvals, a Public Relations Toolkit to provide resources for enhancing a company’s business and How Stores Work, a toolkit that provides data around more than a dozen convenience store issues related to how they serve their communities. All of these resources are available at www.NACSOnline.com/reFresh. n

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Pegasus TransTech Begins Retail Distribution of Transflo Telematics Pegasus TransTech, a leader in enterprise mobility, telematics and business process automation for the transportation industry, announced at the Truckload Carriers Association Annual Convention that it has begun distributing its next-generation Transflo Telematics solution through all Love’s Travel Stop locations. The new offering includes the Transflo ELD T7, an installation harness and multilingual reference guides in consumer electronics packaging. The retail product also includes reporting insights and a new Transflo HOS mobile application through which independent drivers and small fleet owners register the device and manage logs. With underlying technology that has already been deployed by thousands of fleet drivers, the solution installs in minutes and is easy to use. Love’s Travel Stops has signed an agreement to promote and sell the Transflo ELD T7 device throughout its nationwide locations, adding telematics to its list of electronics offerings. Love’s is also incorporating a special electronic logging device (ELD) offer to Gold, Platinum and Diamond My Love Rewards members, providing a free device and free monthly service through June 2018. n

New Tech for Oil and Fuel Spill Response The team at HalenHardy has discovered a fiber compound that enables the user to store between 400% and 1,000% more response materials in the same space as traditional spill products. This process, called “Smoosh™ Packaging,” has tested way above traditional products in speed, compactness and containment ability. The material is called Spilltration®, which absorbs oil/fuel while filtering clean water. The patent-pending SpillBoa™ sorbent barrier is a 5-inch by 25-foot “flat boom” that coils up into a compact 16-inch diameter, and the roll weighs just four pounds. Its flat profile allows more surface FMNMagazine

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INDUSTRY NEWS contact, which helps each SpillBoa barrier absorb oils/fuels 300% – 500% faster than traditional “overstuffed” booms and socks. Plus, the innovative design holds back many more gallons of spilled material until cleanup crews arrive. The SpillBoa barrier also floats on water and holds back oil spills. n

CHS Acquires Western Co-Op Transport Association CHS Inc., North America’s leading farmerowned cooperative and a global energy, grains and foods company, announced it has purchased Western Co-op Transport Association, headquartered in Montevideo, Minnesota. Western Co-op Transport Association specializes in bulk liquid transport of products such as petroleum, propane, ethanol and liquid crop nutrients. Western serves markets in Minnesota, Iowa, Wisconsin and the Dakotas.

Dispatch and routing operations will move to the CHS dispatch office in Rosemount, Minnesota. The Montevideo facility will remain in operation as a CHS-owned fleet service center. CHS will begin serving customer accounts immediately. n

Choice Analytical, Inc. Announces New Clarity, Haze and Color Instruments Choice Analytical, Inc. is pleased to release its new lineup of instruments for haze and clarity along with ASTM, Saybolt and Platinum Cobalt/APHA Color. The Color Choice hz is the only instrument in the industry that automates D4176 Procedure 2, provides Haze Clarity Index (HCI) along with ASTM D6045 for Saybolt and ASTM color as well as ASTM D5386 for Platinum Cobalt/APHA color. Working closely with fuel pipeline and terminal companies over the last three years has resulted in a proprietary

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technique for testing the Haze Clarity Index (HCI) and Instrument Haze Rating (IHR) of fuels and lubes. Questions related to grading a product’s haze rating is one of the biggest causes for pipeline transfer issues resulting in significant loss of productivity and revenue. The Color Choice hz, Color Choice and Clarity Choice hz enable the operator to carefully monitor the fuel clarity, haze and color by using specialized optics, and provide the user with an IHR, which correlates to the current ASTM D4176 Procedure 2 but with much greater precision. The Color Choice hz and Color Choice uses a state-of-the-art spectrometer and optics to provide a measuring system with no moving parts or color wheel filters to degrade over time. Each of the instruments conforms to all aspects of the applicable ASTM methods. n

INDUSTRY NEWS

Franklin Fueling Systems Launches Project Hi-Viz Franklin Fueling Systems (FFS) announced the launch of Project Hi-Viz—an initiative designed to increase safety awareness at petroleum equipment job sites across the world by providing safety resources to contractors, installers and technicians. As the centerpiece for the campaign, Franklin has launched a new website at Go.FranklinFueling.com/Hi-Viz, where installation personnel can access industryspecific safety resources, including downloadable jobsite safety posters, a comprehensive safety video and take a free online Forecourt Safety certification course through Franklin’s FFS PRO: University. Additionally, Franklin has made the commitment to provide a free high-visibility safety vest to anyone who needs one. Franklin believes that being seen on the jobsite is crucial to ensuring personal safety. Vests can be ordered through the new website, along with Franklin’s Forecourt Guide.

The Forecourt Guide is a handy, pocketsized book packed with crucial installation and safety information. This guide is intended to serve as a quick, on-site reference tool to help ensure safe and accurate installations. Industry personnel can also sign up for regular installer-focused emails through The Campus, which is Franklin’s online technical news resource for installation and safety-related information. n

Atlas Oil Hot Pumping Solution Receives First U.S. Patent Fuel Automation Station (FAS), a hot fueling solution co-created by Atlas Oil Company, was awarded its first of many expected patents. This technology enables equipment to be refueled when engines are operational, or “hot.” Fuel Automation Station, LLC is a separate entity founded by Simon Group Holdings (SGH) Founder and Chairman Sam Simon in partnership with Atlas and Vixta Solutions, another SGH platform company.

To address efficiency and safety concerns of its customers, strategic partner Atlas developed the FAS delivery process solution. Each unit provides a continuous supply of fuel to run equipment while reducing safety issues. Workers are no longer required to enter a well pad in proximity to high pressure pumping equipment, called the “hot zone,” to manually fuel equipment. Each FAS unit is equipped with 20 hoses for simultaneous fueling, and is operated by a single technician, working from a remote command center. Stations have an integrated fuel filtration system; overflow protection; diesel exhaust fluid enhancements that remove harmful nitrogen oxides (NOx) pollutants; as well as duel fueling capability for clear and dyed diesel. n

IHG® Rewards Club Makes Travel More Affordable with New Fuel Rewards® Savings for Members IHG® Rewards Club, the loyalty program for InterContinental Hotels Group (IHG), one of the world’s leading hotel companies, is making travel even more rewarding for its millions of U.S. members by offering savings on fuel through the Fuel Rewards® program at participating Shell stations across the nation. In addition to earning points that can be redeemed for travel, merchandise and more, IHG Rewards Club members receive a variety of meaningful benefits, such as exclusive rates, free Internet access at properties worldwide, invitations to member-only events and complimentary access to Kindle books. And now with the program’s newest benefit, members can save even more during their travels by enjoying cents-per-gallon Fuel Rewards savings. Based on their loyalty status, IHG Rewards Club members can save up to 7 cents per gallon on fuel every time they fill up at a participating Shell station. As members of the Fuel Rewards program, IHG Rewards Club members can stack additional fuel savings from purchases made at a variety of participating retailers, restaurants and merchants.

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INDUSTRY NEWS Discounts per gallon will be offered to IHG Rewards Club members based upon their membership level. Within the membership tiers, discounts will be: • 5 cents per gallon everyday savings for Club and Gold Elite members (minimum 10 nights or 10,000 qualifying points in a calendar year) • 6 cents per gallon everyday savings for Platinum Elite members (40 nights or 40,000 qualifying points) • 7 cents per gallon everyday savings for Spire Elite (75 nights or 75,000 qualifying points) members n

First Data and FLEETCOR Join Forces in New Prepaid Gift Joint Venture First Data, a global leader in commerceenabling technology, and FLEETCOR Technologies, Inc., a leading global provider of fuel cards and workforce payment products to businesses, announced the formation of a joint venture that will consolidate their various gift solutions to drive new value for their clients.

The collective solution capabilities of First Data and FLEETCOR will include traditional services and provide expanded choice for clients and partners seeking digital gift card distribution. The joint venture will focus on supporting clients with digital gifting needs, from selling gift cards on their own websites, to using gift cards to drive promotions, to selling and reloading gift cards online at www.Gyft.com. n

The Pinnacle Corporation and Bluefin Payment Systems Announce Partnership for PCI-Validated P2PE Bluefin Payment Systems and The Pinnacle Corporation, a leading supplier of technology automation solutions for retail convenience stores and fuel inventory management, have announced a partnership to provide Bluefin’s payment card industry (PCI) validated point-to-point

The new joint venture combines the gift card businesses of both companies. This includes First Data’s core gift card business, Transactions Wireless, Inc.™ and Gyft®, along with FLEETCOR’s Stored Value Solutions (SVS) prepaid card services and gift card program management assets. The new entity will provide clients with broader international reach and a more robust end-to-end offering. The combined revenue of the businesses that are to be contributed to the joint venture by both companies was $362 million in 2016. First Data will own 57.5% of the joint venture and FLEETCOR will own 42.5%. In 2015, $293 billion was loaded onto prepaid gift cards in the U.S., according to a December 2016 report from Mercator Advisory Group. The First Data-FLEETCOR joint venture capitalizes on that growing marketplace, creating new ways to help merchants expand their gift programs to leverage the evolution of consumer gifting habits. For example, in First Data’s 2016 Consumer Insights Study, respondents indicated they self-purchased gift cards more frequently, suggesting an expansion of traditional gift card applications. FMNMagazine

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encryption (P2PE) solution through Pinnacle’s Palm POS™ platform. Pinnacle provides leading-edge point of sale (POS), loyalty and both corporate- and consumer-facing mobile technology to the retail convenience store and fuel inventory management industries. Pinnacle’s products and services are used daily in thousands of convenience outlets to improve their store operations and to extend the brand of retailers through the growing mobile landscape. Bluefin is the leading provider of PCI-validated P2PE integrated and stand-alone solutions for POS, mobile, call center and kiosk/unattended environments in the education, fuel, healthcare and retail industries. Bluefin’s PCI-validated P2PE solution secures card transactions by encrypting all data within a PCI-approved point of entry swipe or keypad device, preventing clear-text cardholder data from being available while it’s in the merchant’s system or in transit to the processing host where it could be exposed to malware. Bluefin’s PCI P2PE solution is available through Pinnacle’s Palm POS touch screen POS system. Designed and developed specifically for the convenience petroleum industry, Palm POS is

INDUSTRY NEWS

highly configurable and provides the flexibility to work within any infrastructure and with a variety of peripherals. Clients currently utilizing Palm POS 12.5.x can get the validated P2PE solution with no changes to their processing or transaction environment required. n

“Great Rates” Program Provides 1.9% Financing for Gilbarco Veeder-Root Encore® 700 S Dispensers Gilbarco Veeder-Root and Patriot Capital have announced a financing program for Gilbarco Encore® 700 S fuel dispensers. The program provides rates starting at 1.9% for convenience store operators who wish to upgrade their dispenser and payment technologies using Gilbarco products. C-stores will benefit from Encore 700 S financing rates of 1.9% on a 24-month, equipment financing term. Low financing rates are also available on 36-month (3.9%)

and 60-month (4.9%) terms for the Encore 700 S series dispensers. Gaining financing approval for the Encore 700 S is easy using Patriot Capital’s hasslefree, online application. This program is available for orders received by November 15, 2017. Retailers using this program to upgrade their gas pumps may obtain additional financing for related costs such as installation from Patriot Capital at current market rates. n

ADD Systems Announces the New Raven® Tablet Advanced Digital Data, Inc. (ADD Systems), the leading supplier of software solutions to the energy distribution industry, announced the launch of the popular Raven software mobile delivery solution on a Panasonic® Toughpad® tablet. Raven, originally launched in 1995, is currently deployed in 6,500 trucks across North America. The new Raven tablet has been redesigned to take advantage of the larger rugged touchscreen FMNMagazine

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display and boasts a new intuitive user experience, which makes deploying Raven even simpler. ADD Systems has installed the new Raven tablet at a number of client sites over the past few months with positive results. Bruce Bott, President of ADD Systems, is excited about the release and happy with the feedback he is getting. “The new Raven tablet is the result of the close connection we have with our customers. They told us they wanted a rugged tablet option, so we delivered.” Clients who have already deployed Raven on the Honeywell non-tablet devices can optionally and simultaneously implement the Panasonic Toughpad unit within their fleet. As is the case with every new release of Raven, all of the previous functionality exists, including the highly praised ability for Raven to connect with the ADD Energy E3® Dispatch Monitor to get updated and optimized routes (dynamic routing) throughout the day, and to provide a realtime view of trucks, delivery progression and inventory levels for dispatchers, customer service representatives and, most importantly, clients. n

What Does That Mean

Test Your FMN Acumen The list below represents acronyms used in this issue of Fuel Marketer News.

Per Barrel

EMV

EuroPay MasterCard Visa

OEM

/gal

Per Gallon

EPA

U.S. Environmental Protection Agency

Original Equipment Manufacturer

OPEC

FAME

Fatty Acid Methyl Esters

Organization of the Petroleum Exporting Countries

FDA

U.S. Food and Drug Administration

P2PE

Point-to-Point Encryption

PADD

GDP

Gross Domestic Product

Petroleum Administration for Defense District

GHG

Greenhouse Gas

PCI

Payment Card Industry

HDD

Heating Degree Day

PMAA

HOS

Hours of Service

The Petroleum Marketers Association of America

IMF

International Monetary Fund

POS

Point of Sale

Information Technology

RBOB

kbpd

Thousand Barrels Per Day

Reformulated Blendstock for Oxygenate Blending

KPI

Key Performance Indicator

RFA

Renewable Fuels Association

LNG

Liquefied Natural Gas

RFS

Renewable Fuel Standard

MMbpd

Million Barrels Per Day

RIN

Renewable Identification Number

MMT

Million Tonnes

RNG

Renewable Natural Gas

MMTOE

Million Tonnes of Oil Equivalent

ROI

Return on Investment

MOMR

Monthly Oil Market Report

RVO

Renewable Volume Obligation

MPC

Merchants Payments Coalition

SSV

Sailing School Vessel

NACS

National Association of Convenience Stores

STI

Steel Tank Institute

NBB

National Biodiesel Board

SWOT

Strengths, Weaknesses, Opportunities and Threats

NCWM

National Conference on Weights and Measures

UAE

United Arab Emirates

NDA

Niger Delta Avengers

ULSD

Ultra-Low-Sulfur Diesel

NEFI

New England Fuel Institute

US$B

Billion U.S. Dollars

NOx

Nitrogen Oxides

UST

Underground Storage Tank

NYMEX

New York Mercantile Exchange

WTI

West Texas Intermediate

YOY

Year Over Year

/MMBTU Per Million British Thermal Units AAR

Association of American Railroads

ACA

Affordable Care Act

API

American Petroleum Institute

AST

Aboveground Storage Tank

ATG

Automatic Tank Gauge

B2B

Business-to-Business

BCM

Billion Cubic Meters

BOL

Bill of Lading

bpd

Barrels Per Day

BTU

British Thermal Unit

CAFE

Corporate Average Fuel Economy

CARB

California Air Resources Board

CFN

Commercial Fuel Network

CFTC

U.S. Commodity Futures Trading Commission

Carbon Intensity

DEF

Diesel Exhaust Fluid

DOT

U.S. Department of Transportation

EBITA

Earnings Before Interest, Taxes and Amortization

eBOL

Electronic Bill of Lading

EIA

U.S. Energy Information Administration

ELD

Electronic Logging Device

EMA

The Truck and Engine Manufacturers Association

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ADVERTISER’S INDEX

Our Advertisers Company

Page

Company

Page

Advanced Fuel Solutions 81

Lomosoft

Inside Back Cover

AIMS

American Coalition for Ethanol

MidContinental Chemical Co., Inc.

34 – 35

Ascentium Capital

NEFI EXPO

Biobor

Inside Front Cover

North American Bancard

Bioheat

OPW

Cummins & White

POC Petroshow

Dennis K. Burke

RDM

8 and Back Cover

Diesel Direct

National Energy Conference

Renewable Energy Group

EPIC News+Data

Scully

FPMA Sunshine EXPO

SkyBitz Petroleum Logistics

FPPF

Source

Gorman-Rupp

Steel Tank

Integer DEF Forum

Tanknology

Integer Emissions Summit

Texas Food & Fuel Association

Keystone

Trinium

Lock America

ValvTect

54 – 55

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