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June 2009 Publication of the New England Fuel InstituteVolume 11/Issue 6 Also Inside: State Incentives for Equipment UpgradesBringing Your Bioheat® Message OnlineGetting to Know Outdoor Reset Before It’s RequiredPlus, Joe Rose’s Propane Column(PGANE President) Inside the EXPO 2009 NEFI EXPO Exhibitor Showcase
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'LOBAL %*- * IN TIMES LIKE THESE,THE OLD MATH STILL WORKS BESTe energy to serve you. Add up all the factors that make your supplier relationship workbest for you and you’ll find that Global is, and will remain to be,the answer. We have all the resources to serve you — the products,the people, and the proven capacity to serve you under all marketconditions. It’s the one thing your business can always count on. Visit Globalat NEFI’s2009 EXPOin boston! We’ll be at booths127, 129 and 131
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JUNE 2009 • 3 THE BAROMETER Comparing Heating Oil to Other Financial ProductsMay 13, 2009One Year AgoNo. 2 Fuel Oil/New York (cents/gallon)147.50369.07Crude Oil (dollars/barrel)$58.04 $124.1210-year Treasury Bill3.11% 3.92%30-year Mortgage5.03%6.01%Dow Jones Average8,304.8812,993 THE DIFF. Spot Prices (Cents/Gallon) as of May 13, 2009*New York HarborNew York HarborU.S. MidcontinentNo. 2 Fuel Oil / Heating Oil No. 2 Diesel Low SulfurNo. 2 Diesel 147.50149.00142.80 *Figures taken from Energy Information Administration’s “This Week In Petroleum.” The Front Burner om 9F;= * EST There’s NoGetting AwayFrom The Law. The Federal Motor Carrier SafetyAdministration (FMCSA) requires strictcompliance with Federal drug and alcoholtesting regulations for motor carriers anddrivers. Employers in violation are subjectto civil and criminal penalties.The NEFI Alliance Consortium is a simple,quick, and inexpensive solution to this federalrequirement. As a non-profit group, the NEFIAlliance is able to offer this comprehensiveprogram at a most reasonable cost. Avoid severe fines…Join today! Mandatory Drug & Alcohol TestingRegulations for Motor Carriers… It’s The Law! NEFI Alliance Consortium PO Box 9137, Watertown, MA 02471-9137For program information and applicationinformation, call 617-923-5020, fax617-923-1927, or email COMMOdItIES REFORM AddEd tO ClIMAtE BIll Energy and Commerce Committee Chairman Henry Waxman, D-Calif., recently beganmarking up the new draft of his climate change legislation, the “American Clean Energy andSecurity Act of 2009” or ACES Act, and commodity reform language is included in the bill.Proposals will eliminate over-the-counter (OTC) exemptions, nullify no-action letterexemptions, require the Commodity Futures Trading Commission (CFTC) to establish uniformspeculative position limits, re-insert the Position Limit Energy Advisory Group language,eliminate the SWAPS loophole, give CFTC authority to limit index fund trading, and requiretrades to settle and clear through registered clearing organizations. GENSlER CONFIRMEd AS CFtC ChAIRMAN In late May, the U.S. Senate confirmed nominee Gary Gensler as the next chairman ofthe Commodity Futures Trading Commission (CFTC).The New England Fuel Institute (NEFI) and other trade organizations previously metwith Gensler and recommended his confirmation. Gensler was asked about his deregulatorypast, including his stance on deregulating swaps and other derivatives that have wreakedhavoc on U.S. commodity markets over the last several years. Gensler understood the problemsassociated with the deregulation of swaps and other financial instruments that are linked toenergy commodities and he stressed his belief that over-the-counter financial instrumentslinked to commodities should be traded and cleared through a regulated exchange andposition limits for non-commercial contracts must be required.Gensler also agreed that excessive speculation and manipulation in commodity marketswas one of the causes of the 2008 energy price spike. He said that commodity futures marketsare broken and that although some instruments that are highly customized would actuallywork better off the exchange, he would work with CFTC commissioners to bring greatertransparency and accountability to commodity futures markets. GUlF MOVES hEAdqUARtERS In early May, Gulf Oil LP moved its headquarters to 100 Crossing Boulevard in Framingham,Mass. Gulf will be relocating to a new, state-of-the-art facility, as well as uniting with parentcompany Cumberland Farms under one roof.Gulf can be reached at (800) 256-4853, and more information can be found at VERMONt FUEl ASSIStANCE REFORM BIll FAIlS Efforts to expand fuel assistance in Vermont recently fell short. A measure that would haveexpanded eligibility guidelines did not pass the state Senate and will not be enacted beforethe 2009-10 heating season. The bill would have expanded eligibility for several thousandVermonters who are just over the existing income requirements. Given the finite amount ofdollars available for heating assistance, lawmakers wrestled with the fact that expanding theeligibility pool would also reduce the benefit amount paid to some recipients.
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4 • OIL&ENERGY Credits Volume 11/Issue 6 © June 2009Postage paid at Manchester, NH Permit No.1926Library of Congress, National Serials Data Program, ISSN-0044-0205.n Oil & Energy is published monthly byNew England Fuel Institute, a non-profitorganization incorporated in Massachusetts. The Institute’s energies and resources are devotedto Oilheat, Propane, Diesel Fuel, Bioheat® industriesand associated service companies.Editorial and news matter are not necessarilyreflective of the opinion of the New England FuelInstitute, its officers and members.Advertising appearing in Oil & Energy doesnot constitute an endorsement of the advertisedproducts or services by this magazine or theNew England Fuel Institute.© June 2009. All rights reserved.AdvertisingComplete advertising rates and media data are available from Oil & Energy, 67 Foster St., Peabody, MA 01960(978) 535-7606, 9 a.m.-4 p.m. classified section.Subscription Rates1 year $25, NEFI member; $30, non-member2 years $40, NEFI member; $50, non-memberMail payment with complete name, address, city, state and zip code to:OIL & ENErGy SUBSCrIPTIONc/o New England Fuel Institute20 Summer St., Box 9137Watertown, MA 02471-9137Or subscribe online MembershipTo inquire about membership and services of the New England Fuel Institute:New England Fuel InstituteP.O. Box 9137Watertown, MA 02471-9137Phone: 617-924-1000Fax: Oil & Energy MagazinePhone: (978) 535-7606Fax: (978) 535-7826E-Mail: Address Oil & Energy 67 Foster St.Peabody, MA 01960 Managing Editor Steven Andrews Editorial Assistant Kris Peterson Advertising Production Catherine Armao Graphic Designer Nathan Burke Calendar .......................................... p. 50Classifieds ........................................p. 53Degree Days .....................................p. 46Industry News ...........................p. 47, 52Firebox ......................................p. 44, 45Marketplace ............................... p. 48, 49NEFI FyI ....................................... p. 7, 8State News ................................. p. 31, 37The Stats Page ................................. p. 54Think About It ................................ p. 54 Legislati SM NEFI Action Center: From Washington ..................................................... 10 Mark S. Morgan, Esq., New England Fuel Institute (NEFI) Regulatory Counsel, and Jim Collura,NEFI Vice President for Government Affairs, look back at what progress the industry has made ona variety of fronts this year—and preview what remains on the legislative plate for the rest of the year. q&A: EIA Acting Administrator howard Gruenspecht ............................12 The U.S. Department of Energy’s Energy Information Administration (EIA) provides a wealth ofstatistics and analysis each week that is useful for heating oil retailers. We talk to the governmentgroup’s acting administrator to learn how they collect the data, how they are adapting to the spreadof biofuels and how heating oil companies can best use their numbers. State Support ................................................................................................ 16 In addition to the federal tax credits for energy efficient heating and cooling equipment,many states also offer incentives for both residents and small businesses. We take a look atsome unique state programs that encourage upgrading and home energy audits. Remembering Charles thomas ....................................................................17 Longtime NEFI training instructor Charles Thomas recently passed away at the age of 90.Several students of his, who have gone on to become leaders in the industry themselves,reflect on his influence in their careers. 2009 EXPO Exhibitor Showcase ................................................................21 NEFI’s 33rd North American Heating and Energy Exposition takes place in Boston on June 9 and 10.As the official show guide, Oil & Energy offers a look at the exhibitors and what they plan to display. Oil Market Stance: Opportunity Knocks ...................................................30 Mark Skaparas of Hedge Solutions defines contango, and then offers a step-by-step process forfuel retailers to profit from this situation. Skaparas can be reached at mark@hedgesolutions.comor (508) 721-7604. tech talk: Getting to Know Outdoor Reset ..............................................34 Bruce Marshall of Emerson-Swan gives insight into outdoor reset controls,which could become mandatory in the U.S. in 2015. Success Stories in Proactive Spill Control ............................................ 36 Glenn Goral of Response Environmental Inc. highlights some of the ways that homeheating oil companies have been able to prevent spills through technology and training.Goral can be reached at Bioheat®: Bringing Your Message Online ..................................................38 Lou Nazzaro of Advanced Fuel Solutions writes that heating oil retailers need to educatetheir customers about biofuels by being an online resource and offers advice on how to begin.For more information, contact (978) 664-5923 or Prioritizing Payment Safety .......................................................................39 Tracy Richmond, vice president of Cocard of Beverly, Mass., looks at the first steps companies ofall sizes should take in order to ensure they are complying with credit card payment regulations.Richmond can be reached at or (866) 849-8800. Propane: Solving the Supply Problem .......................................................40 Joe Rose, Propane Gas Association of New England president, writes his first column asa new contributor about the supply problems that persisted last winter— and how to avoidthem during the next heating season. dispelling Additive Myths ...........................................................................42 Rick Trout of Fuel Advantage/Avalux deconstructs many of the myths surrounding fuel additivesthat prevent heating oil retailers from using them. Weather trends: Warm thoughts ..............................................................46 John Bagioni of Fax-Alert Weather Service says that the summer heat will certainly be arriving—but it might not stick around for long. Bagioni can be reached at Biz tip: determining the Value of Your Business ...................................49 Kelly Monestime, director of marketing for Gray, Gray & Gray CPA, looks at what factorsbusinesses should consider when sizing up the value of their business in the current market.Monestime can be reached at (781) 407-0300 or via e-mail at
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TODAY’S SMART CHOICE FOR A WORLD CLASS SUPPLIER For further information regarding business with Gulf Oil please contact:Denise Hash, Senior Marketing Managerphone: 617-997-8602dhash@gulfoil.comorMatthew Harrison, Marketing Managerphone: Ask about our exceptional GForce™ Premium Oilheat. CONNECTICUTNew HavenDELAWAREDelaware CityMAINEBangorSearsportS. PortlandMARYLANDBaltimoreMASSACHUSETTSChelseaBraintreeSpringfieldNEW JERSEYLindenWoodburyNEW YORKAlbanyBinghamtonBrooklynHoltsville, LIInwood, LIMarcyNewburghRensselaerRochesterSyracuseTonawandaOHIOAuroraColumbusHeathToledoRHODE ISLANDProvidenceVIRGINIAFairfaxPENNSYLVANIAAltoonaDelmontDupontFullertonMalvernMechanicsburgNeville IslandPhiladelphiaWarrenWilliamsport
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Thank You! In recognition of ourappreciated sponsors andsupporting organizationsfor the New England FuelInstitute’s 2009 EXPOand Energy Summit. OILHEAT BIOHEAT® DIESEL PROPANE SOLAR PLATINUMSPONSORS MORE EXPO SPONSORS ON PAGE 33!
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FYI Visit for late breaking news. JUNE 2009 / pagE 7 / MOrE FYI pagE 8. CONTACTS:Jim Collura, NEFI Vice President for Government Affairs: jimcollura@nefi.comMark S. Morgan, Esq., New England Fuel Institute Regulatory Counsel: Senate Supporters of LIHEAP Clear Pathfor Full Funding The Senate Northeast Midwest Coalition, co-chaired by SenatorsJack Reed, D-RI, and Olympia Snowe, D-ME, were successful in passing byvoice vote an amendment to raise the budget allowance for the LowIncome Home Energy Assistance Program (LIHEAP) from $3.2 billion to thefull $5.1 billion afforded the program last year.The coalition, with support from advocates including the New EnglandFuel Institute (NEFI) and other industry groups, must now begin work to seeto it that the full amount is appropriated for fiscal year 2010. The fundingmeasure is now being drafted and it is essential for the full amount of$5.1 billion to be included. NEFI and other industry groups are alsowatching to make sure that if LIHEAP is reauthorized in the currentsession of Congress, there are no changes to the statute that would putfuel dealers or their customers at a disadvantage or discourage theirparticipation in the program. DOE Devotes $786.5 Million inRecovery Act Funds in Biofuels President Barack Obama announced in May that the Department of Energy(DOE) plans to invest $786.5 million from the American Reinvestment andRecovery Act to accelerate advanced biofuels research and development and toprovide additional funding for biorefinery demonstration projects.The funding for biorefineries will include a $480 million solicitation forpilot- and demonstration-scale “integrated” biorefineries, which produceadvanced biofuels, biobased products, and heat and power in a single integratedsystem. DOE anticipates making 10 to 20 awards for refineries at various scalesand designs, all to be operational in the next three years. The DOE funding ceilingis $25 million for pilot-scale projects and $50 million for demonstration-scaleprojects. In addition, $176.5 million will be used to increase the DOE fundingceiling on two or more demonstration- or commercial-scale biorefinery projectsthat were selected and awarded within the last two years. The funds areexpected to expedite the construction phase of these projects and ultimatelyaccelerate the timeline for start up and commissioning.An additional $130 million in funds willsupport biofuels research and develop-ment, including $25 million to further sup-port the Bioenergy Research Centers thatwere established last year and to establisha small-scale integrated biorefinery pilotplant that will be available as a DOEuser facility. The remaining funds will bedistributed through three competitionsolicitations, including $20 million toevaluate the impact on conventionalvehicles of gasoline blends containingmore than 10 percent ethanol, to optimizethe performance of flex-fuel blendsrunning on E85 and to upgrade existingrefueling infrastructure to be compatiblewith fuels containing up to 85 percent ethanol. An additional $50 millionsolicitation will support a consortium to develop algae-based biofuels, whilea $35 million solicitation will support a consortium to develop other third-generation biofuels, such as green gasoline and green diesel, both of which arebio-based hydrocarbon fuels. EPA Issues ProposedRule Revising RenewableFuels Program The U.S. EPA recently releaseda proposed rule that revises thefederal Renewable Fuel Standardprogram (RFS program). The revisedstatutory requirements establishnew specific volume standards forcellulosic biofuel, biomass-baseddiesel, advanced biofuel, and totalrenewable fuel that must be usedin transportation fuel each year. Theproposed rule also includes newdefinitions and criteria for bothrenewable fuels and the feedstocksused to produce them, including newgreenhouse gas emission (GHG)thresholds for renewable fuels.The proposed rule sets out thecriteria that all biofuels must meet inorder to qualify for inclusion underthe federal RFS program. The mostcontroversial of these criteria requiresrenewable fuels to achieve a 20 per-cent reduction in greenhouse gas(GHG) emissions over gasoline ona per gallon basis. Congress mandatedthat the emissions reduction mustbe calculated over the life cycle ofbiofuel; in other words, from the plant-ing of crops to combustion in a motorvehicle engine. Critics of the lifecycle measurement requirement areconcerned that corn and soy basedbiofuels cannot meet the stringent20 percent emissions reductioncriteria and argue that there is noviable alternative for renewable fuelproduction other than cellulosicbiomass, which is still an unprovensource both from an economic andtechnological standpoint.To address these concerns, theproposed rule would exempt from the20 percent greenhouse gas emissionsreduction target approximately15 billion gallons of biofuel produc-tion capacity that was in place orunder construction when Congressrevised the renewable fuels standardin 2007. This would ensure the viabilityof corn-based biofuels until cellulosicalternatives can be developed. FTC Announces RedFlag Rule ComplianceDeadline Extension The Federal Trade Commission(FTC) recently announced a last-min-ute extension of the compliancedeadline for companies to implementnew identity theft requirements forcustomer accounts. The “Red Flag”rule as it is commonly known was togo into effect on May 1. The newcompliance deadline is now set forAug. 1. Congress mandated the RedFlag requirements in the Fair andAccurate Credit Transactions Act of2003. Under the FTC rule, any compa-ny that meets the broad definition of“creditor” established by Congressmust put into place a prevention planthat identifies patterns, practicesand activities that are “red flags” forpossible identity theft.The FTC essentially defines a “credi-tor” as any company that bills custom-ers for products or services. As a result,most fuel dealers qualify as creditorsunder the Red Flag rule and must im-plement an identity theft preventionplan. The Red Flag rule goes beyondthe routine securing of customer ac-count information that most compa-nies already follow. The rule requirescompanies to seek out and respond tosuspicious data in customer accountsthat indicate an identity theft hastaken place. In other words,companies must now police customeraccounts for identity theft. This is thesecond time the FTC has extendedthe compliance deadline for the RedFlag rule, which was initially set togo into effect on Nov. 1, 2008. TheFTC said the second extension isnecessary given the ongoing debateover whether Congress wrote the lawtoo broadly capturing businesses faroutside the traditional definition of“creditor.” For compliance informa-tion on the “Red Flag” rule, contact theNEFI Action Center at (617) 923-5022. ou!
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FYI Visit for late breaking news. JUNE 2009 / pagE 8 NEFI Welcomes New Members New England Fuel Institute welcomes five new members. NEFI Elects NewBoard of Directors At its latest board meeting on April30, the New England Fuel Institute(NEFI) elected a new board ofdirectors. The new board includes:Steve Abbate, Cetane Associates;Craig Snyder, Wesson Energy; WalterBrickowski, Gulf Oil LP; Judy Delaney,Global Companies LLC; Dennis Koch,Lipton Energy; John Lamparelli,Supreme Fuel Company; RonaldSabia, Gulf Oil LP; Bill Anderson,Suburban Energy Services; DavidDaust, Sprague Energy; David Glen-don, Sprague Energy; Richard Larkin,Hedge Solutions; John Maniscalco,New York Oil Heating Association;Steve Goodrich, Kelly Fuels; andSharon Bloomer, Apple Oil. Ethanol ProducersPush for E-15 Fuel The EPA is considering a waiverapplication filed by ethanol producersthat would allow the sale of E-15blends for use in conventionalgasoline fueled vehicles and equip-ment. The EPA called for publiccomments on an application filed inMarch by ethanol producers to waivethe current federal prohibition againstthe sale of ethanol blends for usein conventional fueled vehicles withalcohol content greater than 10 percent.Specifically, the waiver applicationrequests that EPA authorize an E-15blend. Ethanol producers say thewaiver is necessary because the use ofE-10 alone will not be sufficientto meet the incremental mandatedannual increases in the renewablefuel standard.The possible move to an E-15 blendraises numerous issues for petroleumretailers. First and foremost is thequestion of E-15 compatibility with“legacy” equipment such as tanks,piping and dispensers that are onlycertified for use with alcohol blendsup to E-10. Midlevel ethanol blendsare suspected of increased corrosionrates in metal tanks as well as thebreakdown of certain plastic andrubber polymers used in flexiblepiping and gaskets. Currently, thereare no independent studies on theeffect E-15 would have on legacyequipment, though the Departmentof Energy is preparing a limited study.While Underwriters Laboratories(UL) recently determined there is ”nosignificant risk of damage” for use ofE-15 in legacy equipment, the testinglaboratory said it will not certifysuch equipment for blends over E-10.Without the coveted UL certification,use of E-15 in legacy equipment wouldlikely void equipment warranties andcause reluctance among insurersand tank fund managers. The EPAindicated it will make certain thatauto engine and exhaust systems arecompatible with an E-15 blend beforeapproving a waiver, but said thatcompatibility issues involving legacytanks, piping and dispensers wouldnot be considered in their decision. EIA: Expectations Dimfor a Near-Term Growthin Oil Demand The global oil market for 2009 looksweaker today than it did a monthago, according to the Department ofEnergy’s Energy Information Adminis-tration (EIA). The EIA’s “Short-TermEnergy Outlook” now projects a fall inASSOCIATE MEMbERS:F. W. WebbJohn Provencal160 Middlesex TurnpikeBedford, MA 01730-1408Phone: (781) 272-6600Fax: (781) 270-0208E-mail: jrp@fwwebb.comWeb site: www.fwwebb.comF. W. Webb is a distributor ofplumbing, heating, cooling andpiping products.HESJames Hodgens9 Oak Hill Drive, Suite 3Rock Tavern, NY 12575Phone: (845) 496-0494Fax: (208) 975-0943E-mail: j@hodgens.netWeb site: www.hodgens.netHES provides complete SPCCservices including inspection,specification, education, planningand enforcement support.Tobin, Sullivan, Fay &GrunebaumTom Sullivan60 William St., Suite 330Wellesley, MA 02481Phone: (781) 237-0877Fax: (781) 237-1101E-mail: tsullivan@tobinsullivan.comTobin, Sullivan, Fay & Grunebaumoffers legal defense for retail oilcompanies under reservation ofrights or self-insured and insurancecoverage litigation.RETAIl FuEl DEAlERS:blairs Discount FuelJim or Trudy BlairP.O. Box 444Alburg, VT 05440Phone: (802) 796-3282Fax: (802) 796-3615E-mail: therne@fairpoint.netBlairs is a retail dealer that providesdiesel both over the road and off,kerosene and heating oil.linwood Fuel Inc.John Techiera25 Braewood St.Hyde Park, MA 02136Phone: (617) 361-2914Fax: (617) 361-1523E-mail: Johntex24@yahoo.comLinwood Fuel offers off- andon-road diesel, heating oil andkerosene, as well as burner serviceand complete oil consumption of 1.8 million barrels per day in 2009, a decline that is.4 million barrels per day larger than the EIA projected in April.The EIA notes that the initial data for the first quarter of 2009 shows high oilinventories, weak oil consumption and higher-than-expected oil production, allof which are maintaining downward pressure on oil prices. Crude oil prices arenow projected to average $52 per barrel in 2009 and only $58 per barrel in 2010,with the latter projection falling $5 below the EIA’s projection released in April.That’s good news at the pump for consumers, who are projected to pay anaverage of $2.12 per gallon of regular-grade gasoline this year and only $2.30 pergallon next year, while diesel fuel users are projected to pay $2.26 per gallon, onaverage, in 2009 and $2.48 per gallon in 2010. NEFI EXPO Booth Sales Exceed 2007 Totals The New England Fuel Institute (NEFI) expects a record crowd at its 2009 NorthAmerican Heating and Energy EXPO in Boston on June 9 and 10. Exhibitor boothsales for the event have exceeded those from 2007 and thousands of attendeesare expected at the business and technical seminars. The EXPO also promisesmore than 300 exhibits devoted to Oilheat, propane, heating systems andaccessories, and business services.
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The type of energy that Sprague delivers ismore than a commodity. It is the energy thatderives from people committed to giving ourcustomers the products, support and toolsthey need to stay ahead in a competitivemarket.Learn more about how Sprague can help you:Get live customer support at 888-440-4944.Or take a tour of our interactive resources at
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Monthly Washington Report A service of Legislative & Regulatory Action Center SM CONTACTS: (left to right):Jim Collura, NEFI Vice President forGovernment Affairs: jimcollura@nefi.comMark S. Morgan, Esq., New England Fuel InstituteRegulatory Counsel: mark@nefi.comDave Rocco, Member Services Specialist: 2009 Legislative Update As we approach the mid-year mark in the first session of the 111th Congress,it is dizzying to look back on the past six months and try to make sense of whathas happened and where we are. The Democratic Congress—emboldened bythe election of a new President and with stronger majorities on Capitol Hill—has simultaneously taken on an array of issues of consequence to NEFI mem-bers. We’ve tried to stay on top of the latest developments and communicatethem to our members, and to advocate on their behalf at every opportunity.Here is an update on a few issues we are working on:National Oilheat Research Alliance (NORA) ReauthorizationWhen NORA was passed into law in 2000, it included a so-called “sunsetprovision” that would require its reauthorization every five years. This second“sunset” date is fast approaching and industry groups, including NEFI, areadvocating heavily for NORA’s renewal. The 2009 reauthorization bill wouldstrengthen NORA by allowing for gradual board-approved increases in theamount of the check off, expand the definition of heating oil to include bio-blends,set the “sunset” at every ten years instead of five, and other important technicalchanges. As this issue of Oil & Energy went to press, bills were being preparedfor introduction by Senators Jack Reed (D-RI) and Olympia Snowe (R-ME) inthe Senate and Congressman Peter Welch (D-VT) in the House.Climate Change & Comprehensive Energy LegislationAlso as this issue went to press, the U.S. House of Representatives’Energy Committee had taken up a bill that would, among other things,create a national cap-and-trade program that aims to reduce 2005 levels ofgreenhouse gas emissions by 17 percent by 2020. The bill would give awayfree 85 percent of allowances (essentially, government handouts) to certainindustries, including utilities. Utilities would be required to use these allow-ances to mitigate the impact of higher utility bills on hardest hit ratepayerseither through conservation programs, efficiency upgrades or discountedrates. NEFI opposes free allowances for utilities without a fair and equitableprogram for oilheat and propane consumers. Additionally, NEFI hasquestioned the wisdom of creating a $2 trillion carbon trading market thatwould be made subject to the same speculation that has driven other energycommodities. Consumers and small businesses would pay the price.Reform of Commodity Futures MarketsFor well over three years now, NEFI has been a champion for greatertransparency and accountability (and hopefully as a result, stability) in thecommodity trading markets. We have had some great success. We haveestablished a broad national coalition that actively promotes tough newlegislation and reform-minded nominees to federal posts, helped establishand retain a seat on an advisory panel that provides input to federal tradingregulators, and passed the Close the Enron Loophole Act early last year.Perhaps most importantly, consumers now rightly identify speculation as theleading cause of increased energy prices rather than so-called “gouging” bytheir local retailer. But, there is much left to do. Investment speculation stillruns rampant thanks to other loopholes and inadequate oversight. Off-exchange“dark market” trading is still the norm. In the U.S. House of Representatives,NEFI has endorsed a bill (H.R.977) by AgricultureCommittee Chairman Collin Peterson (D-MN) thatwould close many remaining loopholes and expandtransparency requirements, speculative limits andanti-manipulation measures to all trading environ-ments and platforms.Our Future: A Cleaner, Greener FuelNEFI has also been working hard to inform members of Congress andregional policymakers on the great strides being made by the industry in heatingfuel quality and efficiency. The industry is moving towards a lower sulfur stan-dard that will result in a cleaner burning fuel, and when blended with biofuel,the result is a new-age product that meets government’s goal of both protectingthe environment and reducing dependence on foreign oil. We are also advocatingfor a “correction” of the 90 percent AFUE standard for oil-fired boilers that wasapproved as part of the 2009 stimulus bill, so that more heating oil consumerscan take advantage of the expanded home efficiency tax credit.The above are just a few of the top items on our national agenda. Our workand the work of the NEFI Legislative & Regulatory Action Center is made pos-sible only through generous contributions by individuals like you and companieslike yours. NEFI dues alone do not support this important work. Pleaseconsider making a contribution by visiting, calling(617) 923-5022 or visiting us at the NEFI booths 716 and 718 at the 2009 EXPO.Jim ColluraNEFI Vice President for Government Affairs Acronyms Abound What You Need to Know About SPCC, TWIC and HME Thus far, 2009 has been a watershed year for federal regulatory activity.The push to complete ongoing rulemakings during the closing months of theBush administration and the new regulatory priorities of President BarackObama have resulted in an unprecedented wave of new and proposed rulesduring the first six months of this year that directly affect the Oilheat, propaneand petroleum marketing industry. This six-month mark is a good time tostop and review the status of a few of the many ongoing rulemakings thatpromise to shape industry compliance efforts and the way you conduct theday-to-day operations of your business.SPCC for Aboveground Storage TanksThe Spill Prevention, Control, and Countermeasure Plans (SPCC)rulemaking was first finalized in 2002. Since then, a series of amendmentsmeant to fine-tune the final SPCC rule have been adopted. Each time theSPCC rule is amended, the compliance date for final SPCC plan revision andimplementation has been extended.The final set of SPCC amendments were issued on Dec. 5, 2008. Thoseamendments offer streamlined compliance for bulk facilities with 10,000 gallonsor less of aboveground storage, provide compliance flexibility with fencing andlighting requirements, and clarify the definition of “facility” and “loading rack”in a way that benefits small bulk plant operators. More importantly, the amend-ments eliminate the SPCC provision requiring cargo tank vehicles be parkedwithin secondary containment structures at bulk plant facilities—significantregulatory relief for heating oil dealers that the New England Fuel Institute(NEFI) worked very hard to attain. The SPCC amendments were set to go intoeffect by Feb. 3, 2009, but got caught up in the regulatory freeze imposed by the
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If you would like more information on how NEFI’s Legislative & RegulatoryAction Center serves your interests, and how you can contribute to our annualefforts, please email, or telephone 617-924-1000. COMMITMENT COMES WITH NAMES ATTACHED WE ARE PLEASED TO RECOGNIZE OUR VALUED SUPPORTERS Legislati SM Visit $5,000 or more Arlex Oil Corp.Lexington, MA $3,500 or more Buckley Heating & CoolingWakefield, RIChampion EnergyNew Rochelle, NYMacFarlane OilDedham, MAScott-Williams, Inc.Quincy, MA $2,500 or more W.H. Riley & Son Inc.North Attleboro, MAL.E. Belcher, Inc.Springfield, MANoonan Energy Corp.Springfield, MA $1,750 or more CK SmithWorcester, MAMedway Oil Co.Medway, MA $1,000 or more Anderson FuelNorth Scituate, MADensmore Oil Co.Mystic, CTD.F. RichardDover, NHEnergy KineticsLebanon, NJFraticelli Oil Co.Leominster, MAM&T OilSouth Boston, MANorbert E. MitchellDanbury, CTNorthboro Oil Co.Northboro, MAPalmer Gas Co./Ermer Oil Co.Atkinson, NHKerivan-Lane Inc.Needham, MA $600 or more B&B OilCharlestown, MABlue Cow SoftwareLynnfield, MABoston Steel & Mfg. Co.Malden, MABourne’s of MorrisvilleMorrisville, VTBrideau Oil Corp.Fitchburg, MAD. Ferruccio & Son Inc.Hudson, MADutchess Oil Co.Millerton, NYFuel Services Inc.Westfield, MAGault Inc.Westport, CTGillespie Fuels, Inc.Northfield, VTGoodrich Oil Co. Inc.Newport, NHGottier Fuel Co. Inc.Rockville, CTGuy Nido, Inc.Wilmington, VTHaffner’s Service Stations, Inc. Lawrence, MAHall Oil Co.South Dennis, MAHolden Oil Inc.Peabody, MAHomestead Fuel Inc.Ellington, CTLakeside Oil Co. Inc.Marlboro, MALees Oil Service Inc.Westport Pt., MAJ.J. SullivanGuilford, CTJohn A. Healy & SonsWestford, MAJulian’s LLCMedway, MAJuniper Farms Bolton Oil, Inc.Hudson, MAMurphy Fuel Corp.Waltham, MANeedham Oil & Air LLCNeedham, MA …$600 or more Pioneer Propane Co.Harrison, ARRand-Handy OilMarshfield, MARowayton Fuel & Oil Co. Inc.Norwalk, CTReggie’s OilQuincy, MAReliable Oil & HeatGlenbrook, CTSherman Oil Co.West Brookfield, MASippin Energy ProductsMonroe, CTSochia’s Oil & GasEast Douglas, MAStar PetroleumFoxboro, MASwanzey OilSwanzey, NHTown Oil Co.Wethersfield, CTWestmore Fuel Co. Inc.Greenwich, CTWinthrop Fuel Co.Winthrop, ME $300 or more Ashley Fuel Inc.Beverly, MABenway Oil Co.Milton, MABraley & WellingtonWorcester, MACetane AssociatesEllicott City, MDChapman Fuel, Inc.Gardiner, MECocard/Richmond Financial Svs. Beverly, MAColumbus Oil Co.Swansea, MAContinental Fuel Co.Bridgeport, CTEP CotterNorwood, MAGlendale Oil Service Inc.Glendale, RIHiller Fuels, Inc.Marion, MAHowell Fuel Inc.Fairfield, CTJohn’s Fuel ServiceLynn, MALandry & Martin Co.Pawtucket, RILemay Oil Co.Hartford, CTMadison Oil Co. Inc.Madison, CTMcKusick Petroleum Co. Dover-Foxcroft, MEMicheletti Oil Service, Inc.Johnston, RIPallett Oil Co. Inc.Chesapeake, VATodd Oil / Div. of Rose’s Oil Svc. Gloucester, MASpring Brook Service, Inc.New Britain, CTStocker Oil Co.Peabody, MAWehof FormsSomerville, NJ $100 or more Arrow FuelSeekonk, MABlanchard OilOrleans, VTCommunity Oil CompanyCambridge, MAEast Providence Fuel Oil East Providence, RIGuardian FuelWesterly, RIGray, Gray & GrayWestwood, MAHarvard OilHarvard, MAHilton Oil Co.Lawrence, MAInterstate BiofuelsSudbury, MAMedway Oil Co.Medway, MANiccoli Bros. Oil Inc.Brockton, MAPeople’s Fuel, Inc.Gardner, MAPerillo Brothers Fuel Corp.Framingdale, NYObama administration on Inauguration Day. Theamendments will now be effective Jan. 14, 2010.Extension of the SPCC Deadline for Plan Revisionand ImplementationIt was widely expected that the EnvironmentalProtection Agency (EPA) would extend the currentJuly 1, 2009, compliance deadline for SPCC planrevision and implementation in the wake of the De-cember 2008 amendments. In fact, the EPA was setto issue a proposed rule that would extend the SPCCdeadline to Nov. 20, 2009. That rule fell victim to theregulatory freeze and was withdrawn before it waseven proposed. Since that time, NEFI has been lob-bying the EPA intensively, both in public commentsubmissions and meetings with regulators, in an effortto extend the July 1, 2009, SPCC compliance dead-line. NEFI requested a one-year delay for SPCCcompliance, in order to give bulk plant operators timeto employ the regulatory relief provisions made avail-able in the December 2008 amendments. NEFI’sefforts on this front are already bearing fruit.The EPA recently announced that a new proposedrule extending the SPCC compliance date has beensent to the White House for approval. Details of theproposed extension have not been revealed, thoughinside sources hint that it will likely be at least a yearin duration, if not longer. The new rule is likely to befinalized before July 1, 2009—a key victory for NEFImembers.Coordination of TWIC and HME Driver Security Back-ground Checks and Fingerprinting RequirementsBoth the U.S. Department of Transportation(DOT) and the Transportation Security Administra-tion (TSA) require security background checks andfingerprinting for hazardous material drivers. TheDOT requirements are part of the hazardous materi-als endorsement (HME) program for CDL licenseholders. The TSA requires the security backgroundcheck and fingerprinting as part of the TransportationWorker Identity Card (TWIC) regulations for secu-rity sensitive port facilities. Both these driver back-ground check and fingerprinting requirements areidentical and performed by the same agencies, yet adriver who requires both TWIC and an HME mustundergo the process twice.Not only does this add an unneeded compliancecost, but also requires additional off-duty time toundergo duplicate security checks involving travel toprocessing centers far from a driver’s base of opera-tion. NEFI has been working with other national tradegroups, the U.S. Small Business Administration(SBA), the TSA and the U.S. DOT since last Augustin an effort to end this needless duplicity in securitybackground check requirements. A single driverbackground check and fingerprinting standard wouldsave NEFI members money, as well as avoiding need-less driver absence from delivering product. This isan ongoing effort that will hopefully bear fruit in thenear future. In the meantime, Congress is slated toaddress this problem in upcoming legislation.Mark S. Morgan, Esq.New England Fuel Institute Regulatory Counsel 2009 CONTRIBUTORSAs of May 18, 2009
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12 • OIL&ENERGY EIa’s Howard gruenspecht the EIA has been around for more than30 years. Why was it created by Congress? Those familiar with discussions at thetime suggest that there was a desire for thegovernment to have an independent source ofenergy information, instead of having to relyentirely on data provided by the industry. how does the EIA, as a federal agency, stayinsulated from outside political pressures? The Energy Information Administration isconsidered to be one of the federal government’sstatistical agencies, all of which operate withconsiderable independence with respect totheir data products. In addition, Section 205 ofthe Department of Energy Organization Actexplicitly states that the EIA administrator shallnot be required to obtain the approval of anyother officer or employee of the department inconjunction with the collection or analysis ofany information; nor shall the administratorbe required, prior to publication, to obtain theapproval of any other officer or employee of theUnited States with respect to the substance ofany statistical or forecasting technical reportswhich he has prepared in accordance with law.This language, and the professionalism of EIAstaff, has been quite effective in keepingEIA insulated from political pressures. how has the agency’s mission or productoutput changed? Are there any areas ofresearch it has added or dropped since itscreation? If so, why? Who determines whatprojects to undertake? The EIA’s program has evolved overthe years. For example, since 2001 EIA hastaken on responsibility of reporting onweekly natural gas storage inventories, afteran industry association decided to stopcollecting this data due to concerns over legalliability. Faced with unacceptable time lagsin the availability of monthly natural gasproduction data collected through voluntarycooperation with the states, EIA begancollecting its own monthly data on natural gasproduction in 2006.Pursuant to direction from Congressduring the 1990s, EIA has also increased itsdata collections related to greenhouse gasemissions and alternative fuels. Ultimately,decisions regarding the content of EIA’senergy information program rest with theadministrator of EIA and with the Congress,which provides the funds for the operationof the agency.We constantly solicit input from our respon-dents and from other stakeholders regarding thecontent of our energy information program. Biofuel mandates, along with the RenewableFuel Standard, guarantee that renewablefuels will be part of the nation’s future.does the EIA track production and pricingfor renewable fuels or plan to do that inthe future? Biofuels and other renewable fuels aredefinitely a growth area for EIA data collectionand analysis efforts. The Energy Policy Actof 2005 asked for more data in the area ofethanol and other biofuels, and Congress hasrecently provided funds for this purpose. EIAis planning to launch a monthly survey onbiodiesel production this summer.Beginning in January, we significantlyupgraded our collection of ethanol data ona monthly basis, and plan to extend theseimprovements to the weekly ethanol databeginning in 2010. how could home heating oil and propanedealers and wholesalers benefit from EIAdata? Which reports should they monitor toknow what trends and projections wouldimpact their products? During the heating season, EIA works incooperation with the states to collect heatingMANY ENERGY MARKEtERS ANd FINANCIAl ANAlYStS tAKE FOR GRANtEd thE PlEthORAof statistics made available from the government that provide up-to-date price andsupply information for fuels including heating oil, gasoline and natural gas.Most of those numbers come from the Energy Information Administration(EIA), an independent group within the U.S. Department of Energy (DOE),with the sole purpose of publishing unbiased information and analysis forpublic and government use. In addition to weekly supply and price updates,the EIA also produces outlooks that forecast energy use for periods of timeranging from the rest of the year to decades into the future.Leading this agency with a nearly $100 million budget is ActingAdministrator Howard Gruenspecht, who has been working with energypolicy for more than 25 years. Gruenspecht originally joined the DOEin 1991 as deputy assistant secretary for economic and environmentalpolicy and was named EIA deputy administrator in 2003. His careeraccomplishments at the DOE have been recognized with three Presidential rank Awards.Gruenspecht recently answered Oil & Energy’s questions about how the groupplans to incorporate biofuel statistics, how a government agency can remain politicallyindependent and more. Howard Gruenspecht Biofuels and other renewable fuels are definitelya growth area for EIA data collection and analysisefforts. The Energy Policy Act of 2005 askedfor more data in the area of ethanol and otherbiofuels, and Congress has recently provided fundsfor this purpose. EIA is planning to launch a monthlysurvey on biodiesel production this summer.–EIA Acting Administrator Howard Gruenspecht Continued on page 14…
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14 • OIL&ENERGY EIa’s Howard gruenspecht oil and propane prices on a weekly basis. EIAalso issues heating oil and propane inventorydata on a weekly basis.Finally, the residential and commercialbuildings energy consumption surveys provideinformation on heating and other fuel-consuming equipment at the end-use level. Where does the EIA get its numbers to produceits weekly production and price reports? EIA develops its weekly data from weeklysurveys of importers, refiners, terminals anddistributors of petroleum products. how have better technology and computingpower impacted the agency’s ability tocreate projections and models, as well ascollect data? EIA makes extensive use of informationtechnology for data collection, data process-ing, and data dissemination. The applicationof technology has enabled EIA to reduceburdens on its respondents, reduce costs andimprove both the quality and accuracy of itsdata collection programs.For example, the collection of datathrough the Internet rather than on paperforms reduces the need for steps such askeypunching data from paper forms, whichreduces opportunities for error. We are alsointroducing systems that flag warnings orerrors for respondents as they enter dataonline, saving them and EIA the annoyanceand cost of a subsequent follow-up call toaddress possible discrepancies.Advancements in technology have alsoenabled comparable improvements inprocessing systems and disseminationpractices. Dissemination improvementsshould be readily apparent to regular usersof the EIA Web site, with the addition offeatures such as the state energy profiles thatprovide a portal to all of EIA’s most currentstate energy data.More improvements are pending—staytuned to our Web site,, forfurther developments. Are there any factors that have made forecast-ing prices or collecting data more difficult? With respect to data collection, EIAmust turn to knowledgeable contacts inorganizations that respond to our surveysto resolve questions when apparent discrepan-cies arise. In some cases, mergers andacquisitions among the respondents to EIAsurveys, and the turnover of skilled staffat respondent companies, has made it moredifficult to get substantive resolution of suchdiscrepancies in a timely manner. Forecastingprices has never been easy, even in theshort term. We are planning ways to makethe uncertainty surrounding our short-termforecasts clearer, based on informationalready available in energy futures andoptions markets.In the long term, oil markets can beheavily influenced by above-the-groundfactors, including geopolitics and policydecisions in key producing countries, as wellas by below-the-ground factors, such as theamount of oil in place. In the long term,we explicitly recognize that a wide rangeof price outcomes is possible, and developa variety of cases that reflect a wide range ofoil price scenarios. the EIA offers a long-term energy outlookfor 2030. With the potential for pricevolatility in the last year, how can analystslook that far ahead? Our long run projections do not reflectvolatility, even though we know that energymarkets are inherently volatile. As notedabove, we do provide projections for a widerange of oil price cases, which can help toilluminate the implications of differentprice scenarios. Is there any pending or possible legislationthe EIA thinks could impact long-term energyprices, as the report was created based onlaws before President Barack Obama waselected? If so, what could they change? EIA is the independent statistical andanalytical agency within the Department ofEnergy. Our mission is to produce objective,timely and relevant data, projections andanalyses to assist policymakers, help marketsfunction efficiently and inform the public.We do not promote, formulate or takepositions on policy issues, and our viewsshould not be construed as representingthose of the Department of Energy or theadministration. At the request of the admin-istration and Congress we do produce specialreports that analyze policy proposals andreport their projected impacts.In April 2009, for example, EIA issuedone report that updated the Annual EnergyOutlook 2009 reference case to reflect theprovisions of the American recovery andreinvestment Act, the law more commonlyreferred to as the stimulus package that wasenacted in February 2009. We also issuedan analysis of a proposal for a renewableelectricity standard based on language in theHouse discussion draft of energy and climatechange legislation. Like all EIA reports,these documents are publicly available onour Web site. do you expect the current economic uncer-tainty to keep crude oil prices suppressedthis summer? As noted above, it is very hard to forecastprices, even in the short term. The currenteconomic downturn is having a majoreffect on global oil demand, and demand willlikely be sensitive to the future trajectory ofeconomic activity. Oil is a global market,so what matters for oil prices is worldwideeconomic activity, not just what happensdomestically. Supply developments are alsoimportant for prices. Key factors to watchare trends in inventories and the extent towhich OPEC members are able to maintaintheir agreed production targets. RenRe Energy Advisors Ltd.Experienced Energy Industry andFinance ProfessionalsDelivering Innovative Solutionsto Fuel Oil Distributors: New Challenges RequireNew Capabilities. • Advisory Services•Risk Management•Working Capital•Asset Maximization Matthew J. IdeManaging DirectorEnergy Advisory & Finance(832) 592-0076mji@renre.comJeffrey T. SimpsonDirectorEnergy Advisory & Finance(832) 61 South Main Street • Suite 100West Hartford, CT 06107 …Continued from page 12 The current economic downturn is having a major effect on global oil demand, and demand willlikely be sensitive the future trajectory of economic activity. Oil is a global market, so whatmatters for oil prices is worldwide economic activity, not just what happens domestically.– EIA Acting Administrator Howard Gruenspecht
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16 • OIL&ENERGY Efficiency thROUGh thE AMERICAN RECOVERY ANdreinvestment Act of 2009, the federalgovernment will furnish billions of dollarsin the form of tax credits and rebates forcompanies and individuals willing to upgradeto more energy efficient equipment. That’s notthe only support available to equipmentmanufacturers and companies offeringefficiency services, however, as many statesalso have programs that offer aid, oftenwith support from the stimulus bill. WhileOil & Energy highlighted details of thefederal program in the April issue, we now lookat some of the unique state-level incentives.As with any tax program, be sure to consultan accountant before marketing or takingadvantage of these offerings.CONNECtICUtSince July 1, 2007, the state’s Office ofPolicy and Management (OPM) has offereda $500 furnace and boiler replacement rebateprogram for existing residential buildings.The rebate program for Connecticuthouseholds is designed to encourage home-owners to replace their existing furnacesor boilers with more energy efficient models,and to upgrade or repair their existingresidential furnaces or boilers to achievegreater heating efficiency.The rebate is available for oil, propane ornatural gas furnaces and boilers boughtbetween July 1, 2007, and June 30, 2017.rebates are available for replacement naturalgas furnaces or boilers that meet or exceedfederal Energy Star standards, and for propaneand oil furnaces and boilers that are at least84 percent efficient. The amount of the rebate,which depends on household income,decreases as income rises.The OPM recently released new applicationforms to apply for the rebate. For information,call the OPM at (866) 940-4676.MASSAChUSEttSMassachusetts allows a 15 percent credit ofup to $1,000 against the state income tax forthe purchase of a renewable-energy system,including installation costs, for residents. Thecredit can be carried through for three years ifthe amount is greater than the resident’s incometax liability. Eligible technologies include solarwater and space heating, photovoltaics (PV)and wind-energy systems.NEW JERSEYThe New Jersey Board of Public Utilities(NJ BPU) offers a Home Performance withEnergy Star Program for homeowners thatwant to improve the energy efficiency of theirhomes. Qualifying measures include HVACimprovements, air sealing, appliance upgradesand the installation of better insulation, aswell as safety measures like radon and smokedetectors. In order to receive incentives fromthis program, work must be performed bya BPI-certified contractor.The Home Energy Assessment Programprovides a home energy assessment for $125(a $300 value) and will also provide couponsfor 10 free compact fluorescent light bulbs.The homeowner can also receive a cashrebate or low-interest loan for the installationof improvements identified in the homeassessment. There are different levels ofrebates and loans depending on the amountof energy conserved. The more efficient theimprovements are, the better terms are forresidents. In addition, the completion of atleast $2,000 worth of improvements withinthree months of the home assessment entitlesthe homeowner to a refund of the $125 homeassessment fee.Contractors also can claim incentivesthrough the program. BPI-certified contractorscan qualify for low-cost training and discountson diagnostic equipment. Contractors can call(866) NJSMArT for more information.Legislation has also been proposed thatwould require NJ BPU to offer similar financialincentives for new high-efficiency heating oilequipment (85 percent efficient or higher) thatis currently offered for gas equipment. Thefunding source would be the societal benefitscharge (SBC) assessed on utility bills of gasand electric customers.PENNSYlVANIAGov. Ed rendell recently announced$25 million for the state’s High PerformanceBuilding program, which will provide grantsand loans to families and small businessesconstructing or renovating buildings thatmeet new standards that measure a building’soverall sustainability.Funds are available to anyone buildingor renovating a primary residence and tobusinesses with 100 or fewer full-time employees.These loans could spur homeowners to takeon larger projects, while also helpingequipment sales.Loans of up to $2 million are available forsmall businesses; the maximum loan for anindividual residential project is $100,000.Matching funds of at least $1 for every $1 ofprogram funds are required, and applicantsmust provide evidence of matching funds.For information, visit ISlANdrhode Island offers a personal tax creditfor PV systems, solar hot water systems, activesolar-heating systems, wind-energy systemsand geothermal-energy systems for residents.The tax credit is equal to 25 percent of thesystem cost. The credit is available to theresident or business that pays for the system.Solar hot-water systems must havea minimum collector area of 60 square feetand must include a storage tank that holds atleast 80 gallons. Solar hot-water systems up to$7,000 are eligible for the full credit. For moreabout the systems available for the credit andwhere to apply, see Vermont provides some financialincentives for residential customers to installenergy efficient equipment in their homes.While there are rebates for a variety of products,from lighting fixtures to refrigerators, there arealso rebates for HVAC equipment.Energy Star-rated furnaces with ECM fanmotors and central air conditioning units areeach eligible for a $100 rebate. Additionally,contractors can receive a $50 rebate for install-ing energy efficient HVAC equipment.Additional seasonal rebates may beavailable as well. See www.efficiencyvermont.orgto learn more. State Support Looking at Government Incentives Beyond the Federal Level For information about energy efficiency rebates for every state, along with more about federal incentives, see
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JUNE 2009 • 17 remembrance ChARlES thOMAS MAY hAVE PASSEd AWAY ONMay 7, 2009, at 90 years old, but his legacy inthe Oilheat industry will surely live on, fromthe technicians he personally trained andinspired to the curriculum he developed forthe New England Fuel Institute (NEFI).Thomas’ work was so respected thatin 2004, the Charles E. Thomas Lectureroom was dedicated to him at NEFI’s trainingfacility in Watertown, Mass. For his manycontributions to the industry, Thomas wasalso awarded a Legend of Oilheat Award inMarch 2000.“Charlie Thomas was one of the most influ-ential people in my life,” said Bruce Marshall,training coordinator at Emerson Swan. “He wasmy instructor at NEFI back in 1974 and I learnedmore from him than any other teacher in my life.He taught me not only how to fix oil burners,but how to deal with people. He was my mentor,saw potential in me and told me I could go as faras I wanted in this industry. I feel privileged tohave had Charlie Thomas in my life and willmiss him very much.”Thomas, a Boston native, graduated fromMechanic Arts High School. His career in theOilheat industry began following a chanceencounter with a repair technician. While ata friend’s house one day, Thomas watched theuniformed technician professionally go abouthis business of fixing the home’s heating unit.That incident directly led him to pursuea career in the Oilheat business, and thelonger he was in it, the more he enjoyedaccepting the challenge of servicing burnersand receiving compliments from satisfiedcustomers.He first worked at Timken Silent AutomaticOil Burners, later going to Glendale Coal & Oil,Esso Oil, Bonded Oil, Atlas Oil and Grimes Oil.In 1965 he was asked to teach oil burnerservice and installation courses at Mass TradeShops, where he met Charles Burkhardt, whowas then the executive vice president andtreasurer of NEFI. When Mass Trade Shopsclosed its oil division in 1971, Thomas cameto NEFI, where he was appointed director oftraining in 1972. In that position he developeda curriculum for the traveling school andimplemented those programs in many citiesin New England. He also initiated an Oilheattraining program for the inmates at the Con-cord Correctional Institute.Thomas once said that one of the keys tohis longevity in the business was staying ontop of new developments in the Oilheat indus-try.He was also noted for his compassion andpatience. Dave Bessette, currently the vicepresident of service at Arlex Oil Corporationand a former National Association of Oil HeatService Managers (NAOHSM) president, citesThomas as a key figure in his career and thefirst to suggest he become an instructor.Bessette was introduced to Thomas in 1974after admitting to his instructor that he wasunable to follow the lessons he was taking atNEFI.“On my lunch hour, Charlie tutored me,”Bessette said. “He was patient, soft spoken; heencouraged me and made me think on myown. I was able to keep up with the rest of theclass and completed the course within theallotted time.” Charles Thomas, center, with his wife of70 years, Pauline, at the dedication ofthe Charles E. Thomas Lecture Room atthe NEFI training facility in Watertown,Mass., in 2004. longtime Instructor leaves lasting Impression
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18 • OIL&ENERGY AREE At A CONFERENCE FUll OF SESSIONS CREAtEdto help home heating retailers and equipmentmanufacturers adapt and diversify whilethe worldwide economy struggles througha recession, the opening speaker was a bit ofa surprise—an optimist.Joel Naroff, the chief economist withTD Bank, stressed that his nickname “theOptimistic Economist” was not an oxymoronas he spoke at the opening of the 2009Atlantic region Energy Expo (ArEE) inAtlantic City in early May. yet while hepreached optimism during a slow economy,he also said that caution must now be appliedin all aspects of business as we move forwardinto an uncertain future.“About the only thing we know is thatfuture growth will be much slower thanthe last 20 years,” said Naroff, who is alsopresident of Naroff Economic Advisors. “youcan’t get rid of deficits without tax increasesand it will take at least five to 10 years for usto clean up this mess we’re in now.”While the worldwide economy takes timeto recover, Naroff said the price of oil willprobably continue to fluctuate.“If we’re at $50 in the teeth of a worldwiderecession, what happens 12 to 18 months fromnow when the economy starts to come back?”he asked. “I think we learned that $140 isa backbreaker, but is $100 out of the question?I don’t think so.”Naroff optimistically predicted thegovernment would introduce new regulationsto keep the commodities market in order, butagain tinged that with caution.“The government can come up with clearregulations, but you cannot prevent peoplefrom using commodities as a hedge,” he said.“We went too low with the price of oil [inFebruary]; we probably will go too high again.There will be volatility.”dIStIllAtE: thE NEW GASOlINEOne reason prices will likely continueto fluctuate, regardless of what the U.S.government does, is international demandfor distillate fuels, according to Alan Levine,a senior vice president with Morgan StanleyGlobal Wealth Management, who spokeafter Naroff.“Internationally, demand for oil hasbeen growing more rapidly than refiningcapability,” said Levine, who has morethan 35 years of experience as petroleumspecialist. “The demand has outpaced non-OPEC supply.”A lot of this demand has come from Europe,where diesel demand has consistently grownsince the 1990s. China’s pre-Olympic buildingsurge also helped stoke demand. Levinesaid that because of the rapid rise of distillatedemand, it was inevitable prices would riseas well.“The United States is now a net exporterof distillates and the marginal cost ofproduction has risen very dramaticallybecause of the difficulty getting oil fromthe ground,” he said. “Supply and demandcaused much of the price rise.”When Fuel Merchants Association ofNew Jersey Executive Vice President EricDeGesero asked about what appeared to besolid evidence speculation played a large rolein the price surge, Levine held his ground.“I believe the role of speculation to be farexaggerated when you look at the demand incountries such as China,” he said. “I wouldexpect that commodities will continue to rise,it’s really nothing unusual, except for thedepth of the fall and the height of the rise inthe last year.”NORA UPdAtEWith those well-respected economicexperts kicking off ArEE predicting higherprices—though probably not matching lastyear—many of the following sessions focusedon how companies will have to adapt.John Huber, president of the NationalOilheat research Alliance (NOrA), whichheld its board meeting during the expo, alsohad a presentation about the group’s areas offocus as efficiency and competition withother fuels becomes more prevalent. AREE Focuses on Adaptation, diversification Photo Credit: Tony Rosa Continued on page 20…
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JUNE 2009 • 19 AMTHOR WELDING ask for Joseph DiCioccio 845/778-5576 Trade up to • 7 Year Warranty ( that’s an extra 2 years!) • FREE Deliveryright to your door.• On the Road Service• Variety of Styles & Makes.• One Stop Shopping• Factory Incentive Pricing• Large Inventory ofPre-Owned Units. Monarch TankCardinal Tank For convenience,reliability and savings,trade up to Amthor! New England Program Amthor’s Industry News OBAMA tAKES ACtION tO AdVANCE BIOFUElS PROdUCtION President Barack Obama announced in May that his administration is taking several stepsto advance biofuels research and commercialization. The president signed a directive to helppreserve biofuel industry jobs and to establish the Biofuels Interagency Working Group, whichwill develop the nation’s first comprehensive program for advancing the biofuels market.The new Biofuels Interagency Working Group will be co-chaired by the secretaries ofEnergy and Agriculture and the EPA administrator, and it will work with the National Scienceand Technology Council’s Biomass research and Development Board. It will use existingauthorities and identify new policies to support the development of next-generation biofuels,increase the use of flexible-fuel vehicles and assist in retail marketing efforts.The group will also coordinate policies for the infrastructure needed to produce anddeliver biofuels and will work toward the sustainable production of biofuel feedstocks, takinginto consideration land use, habitat conservation, crop management practices, waterefficiency, water quality impacts and lifecycle assessments of greenhouse gas emissions.
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20 • OIL&ENERGY “We have to respond to what Washington,D.C., is doing,” he said, referencing potentialenergy policy to combat global warming,including a cap and trade program. “We arenot big enough to change it.”Citing that Oilheat use by householdhas decreased by 30 percent over the last40 years, and may need to do so again, Hubersaid that NOrA must balance both near- andlong-term factors.While there will be an effort to look athigher blends of biofuels above 5 percent incurrent equipment, as well as the integrationof solar, one of NOrA’s immediate goals islooking closer at sulfur content in fuel andthe calls for lowering it by government andenvironmental groups.NOrA will also continue to look beyondfuel, as it rolls out its new Energy ConservationAnalysis program and certification. Instead ofmaking an all-encompassing home energyprogram, NOrA designed the program on heatcreation and distribution, knowing that asequipment becomes more efficient, companieswill need new services to provide additionalrevenue streams. The program also doesnot require a huge investment in additionalequipment for most home heating companies.“If we can provide high efficiency biofuels,we become the green fuel,” Huber said. “Ifwe can do this, there’s no reason Oilheatcan’t be the solution for global warming andenergy security.”dECIdING tO dIVERSIFYEven though many companies may decideit is inevitable they need to diversify theircore home heating oil business to includea product such as home energy audits, it’s nota decision to make lightly, according to DavidSinger, president of robison Oil of New york,and founder of Comfort Save Solutions,a subsidiary of robison that specializes inenergy conservation.“Diversification is a painful process,” hesaid. “It might sound good on paper becauseyou have a captive customer base, but youcould really be taking your eye off the ball.”Singer said that many companies chooseto diversify but do not give the new companya chance to succeed, because they do not treatit like a standalone company. Instead, theymay share staff, equipment and marketingdollars. Singer said that just because someonemight make a great heating oil equipment salesmanager does not necessarily mean theycan also market a whole line of efficiencyequipment as well.Once the company’s identity and staff isestablished, developing the proper programis necessary. With so many home energyaudit protocols to choose from—such asthose offered by the Building PerformanceInstitute (BPI), the New york State Energyresearch and Development Authority(NySErDA) and NOrA—it took ComfortSave Solutions about two years to developthe right process.“If you want to be successful, you have togo with the times and what the customerswant,” said David Fein, robison’s salesmanager, who helped develop the program.Fein worked to increase the odds thateach energy audit would result in at least somesales for the company. Instead of givinga lengthy report to the resident like theBPI program provides, Fein’s team talks tothem immediately after the audit to talk aboutsome steps they can take.“you have to be committed if you’re goingto diversify like this,” Singer said. “you needto come up with a budget and stick with it andbelieve in the product. If your staff feels they’reselling something that is not real, you willlose employees.”tRUE VAlUEWith the many risks of diversification,many business owners may simply be lookingat how to increase the value of the one theyown. Steve Abbate of Cetane Associates gavea presentation at ArEE about the changingway heating oil companies need to look atbusiness valuations as margins continue toshrink and other costs increase.“This business used to be so simple,”Abbate said. “Everyone went to the rack,bought fuel, marked it up, made money on thefuel and gave the service away to attractthe fuel business. There was competition toacquire fuel companies and the value ofa business was based on how many gallonsdelivered, how many customers were on auto-matic delivery and what the margins were.”It’s not so simply anymore, and Abbatesaid that measures such as increasing thecustomer base and selling more gallons alsodon’t guarantee better profits.“If you have price-protected sales, theremay be times when you don’t want to sell anymore gallons if the costs are greater thanyour sales price,” he said. “We saw companiesshed commercial business last year becausethere was no cash flow to support the gallons.If you have to drive 20 miles off your routeto get to a delivery are those gallons makingyou money?”While there are some broad methods thatcan serve to help your business long-term,such as creating a business plan that looksat new revenue streams, Abbate also offeredsome quick ways companies can increasetheir cash flow.“Why do you give your customers 30-dayterms when our suppliers are asking us for10 days or less?” he asked. “Make paymentdue upon receipt and no later than 10 days.Electronic delivery systems where you leavea priced out ticket and envelope will help.”Abbate also suggested moving servicecontract renewal dates to the winter, fora variety of reasons. It not only allows theentire summer for technicians to performtune-ups, it improves cash flow during thesummer and utilizes the service labor duringnormally slow months.Another service technique Abbate hasseen positive results with is moving to a flatrate billing system. This leads to increasedcustomer satisfaction, as they are able to priceout work before it is performed. It can alsocreate less billing complaints down the lineas people respond to service they did notthink was adequate. To further reduce billingcomplaints, Abbate recommends thattechnicians receive payment on the day theyperform service—just like most repairs forwashers and driers.“Would you rather collect on a service callwhen the work is done and the customer issatisfied or send them a bill two weeks laterwhen the customer has time to consider howmuch they had to pay?” he asked. “The billin the mail is a triggering event that leads toa phone call about the invoice and otherquestions about their account.For more tips, including this and otherpresentations from Abbate, see Cetane’s Website “If we can provide high efficiency biofuels, webecome the green fuel. If we can do this, there’sno reason Oilheat can’t be the solution for globalwarming and energy security.”-John Huber, NORA president …AREE Photo Credit: Tony Rosa
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JUNE 2009 • 21 Adams Mfg. Co. Booth 347Jeff Dubasak9790 Midwest Ave.Cleveland, OH 44125Ph: 216-587-6801Fax: According to Adams Mfg. all of their oil-firedcondensing models (A(C,L,S)HEO) seriesqualify for the higher than90 percent AFUE tax credit,and are the only seriesof Energy Star-rated oilfurnaces that qualify. Thesemodels are available in fourdedicated configurations(upflow, counterfow,horizontal and lowboy).The input range is 50,000btu/hr through 115,000 btu/hr with a choice of theAdams Interburner or Beckett NX burnerplatform. The air handler option is eithera 1,000 cfm or 2,000 cfm capacity. Advanced Fuel Solutions, Inc. Booth 406Paul Nazzaro, Sr.162 Park Street, Suite 301North Reading, MA 01864Ph: 978-664-5923Toll Free: Optimum Discovery™, HeatDoc™ Green-burn®, Diesel Up™, Bioheat® Consulting Arzel Zoning technology Booths 473, 475Jenn Laughlin4801 Commerce ParkwayCleveland, OH 44128Ph: Arzel’s Evergreen Zoning system is the firstaftermarket zoning product that providesblower speed control based on zone capacityrequirements. Controlling indoor air quantity(volume of airdelivered) isvital for com-plete comfortand indoorair quality(IAQ). SinceEvergreencontrols thevolume of delivered air, it virtually eliminatesthe need for an expensive bypass damperwhile it maximizes comfort and IAQ.Evergreen Zoning is an energy efficient zoningsystem marrying the most efficient ECMtechnology with the ability to deliver the rightvolume of air to only the areas that need it.Evergreen is a solution for improved, moreeconomical IAQ solutions and enhanceddehumidification performance. Beckett Corp. Booths 309, 311, 408, 41038251 Center Ridge RoadNorth Ridgeville, OH 44039Ph: 440-327-1060Fax: Beckett is a burner manufacturer and has beenin business since 1937. Blue Cow Software Booths 217, 219Todd Kipperman7 Kimball Lane, Suite C4Lynnfield, MA 01940Ph: 888-499-2583Fax: Come see what is new! See how SmartKrevolutionizes the way you forecast yourautomatic customers. See how IgniteWebcan decrease the phone calls to your office byallowing your customers to get the answersthey need on the Web. Hear how Blue Cow’sIgnite software continues to remain ahead ofthe competition.thE NEW ENGlANd FUEl INStItUtE’S (NEFI) 33Rd NORth AMERICAN hEAtING ANd ENERGYEXPO, along with this year’s “Energy Summit” business sessions, is an expanded eventthat offers insight into the future of Oilheat and liquid fuels. Visitors can see the latestequipment at the tradeshow and also experience a full lineup of business and technicalseminars from the industry’s top educators. The EXPO takes place June 9 and 10, at theHynes Convention Center in Boston.The following companies have provided a preview to Oil & Energy of what they will beexhibiting in the tradeshow. Each entry includes the exhibitor’s booth number at the show,products and services to be highlighted at the EXPO, and company contact information. 2009 EXPO Exhibitor Showcase OILHEAT BIOHEAT® DIESEL PROPANE SOLAR
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22 • OIL&ENERGY Bond tite tank Service Booths 205, 207Don AdamsBond-Tite Tank ServiceP.O. Box 381Leicester, MA 01524Ph: 508-892-4378Fax: Bond-Tite specializes in the quick replacementof leaking residential oil tanks. They removethe old tank and hazardous waste, and providecomplete disposal documentation for both thetank and hazardous waste. Bond-Tite’s spe-cially equipped vehicles allow them to com-plete the work quickly, with no mess and at areasonable cost. Free estimates. Boston EnvironmentaltankSure® Program Booths 463, 465Gerry BrienOne Harbour PlacePortsmouth, NH 03801Ph: 800-401-TANK (8265) Boston Environmental’s TankSure Tank re-placement Insurance Program is a proven wayto keep customers and acquire new customers. Boston Steel & Mfg. Co./hall-trask Equipment Booths 425, 427, 429, 431, 524, 526,528, 530David Burke490 Eastern Ave.Malden, MA 02148Ph: 781-324-3000Fax: Boston Steel will be displaying two 2700-gallon, two compartment truck tanks mount-ed on a Peterbilt 335 and a Kenworth T-300featuring the BOSTON stainless steel Single-Wrap hose reel, as well as electronic L.C.meters with the ticket printer located in therear, in a specially designed heated box fromBoston Steel. Braley & WellingtonInsurance Agency Corp. Booth 71444 Park AvenueWorcester, MAPh: 508-754-7255Toll Free: Braley & Wellington is a professionalinsurance groupwith more than200 years of cumu-lative experienceand a well-definedmission to provideexpert service, quality products andsound advice. COCARd Booth 725Tracy Richmond, Larry Richmond100 Cummings Center, Suite 227GBeverly, MA 01915Ph: 866-849-8800Fax: COCArD is the preferred payment processingpartner of many state and regional energyassociations. COCArD is the country’srecognized expert in the MasterCardUtility Industry Program, which offers aninterchange rate for qualifying one-timeand recurring U.S. consumer credit Master-Card card, World MasterCard® and DebitMasterCard® card transactions. Creative Printed Solutions Booth 749Tom Rich, John BouchardP.O. Box 6660Scarborough, ME 04070Ph: Creative Printed Solutions specializes in in-voice/statement print and mail services, alongwith electronic bill presentment and paymentservices. Crown Boiler Co. Booths 361, 363Lee EnsmingerCrown Boiler Company3633 I StreetPhiladelphia, PA 19134Ph: 215-535-8900Fax: MAUI (MWC) Wall MountedCombi Boiler: The Maui isa wall-mounted boileravailable in a “heat only” ora “combi” model. Its sleekcompact design and abilityto deliver both heat and hotwater from the same unit(when the combi model isinstalled) make it ideal for those applicationswhere space is at a premium. All major systemcomponents are incorporated within theboiler jacket. The Maui is Energy Star ratedand utilizes a concentric PPs vent systemoffering the latest in energy efficiency andventing technology. dennis K. Burke Inc. Booths 315, 317, 319Mark PszenicznyP.O. Box 6069284 Eastern Ave.Chelsea, MA 02150Ph: 800-289-2875Fax: Dennis K. Burke one of the area’sleaders in the biofuelsfield. The companyspecializes in cleanerfuels and deliversbiodiesel blends, E-85ethanol and Bioheat®throughout New Eng-land. Burke also offersbiofuels at the pump at its retail BiofuelsCenter in Chelsea, Mass. The family-ownedfuel distributor has been reliably deliveringpremium diesel fuel, motor oil and gasolinefor more than 45 years. E Instruments Group, llC Booth 516Jason Esteves172 Middletown Blvd., Suite B201Langhorne, PA 19047Ph: 215-750-1212Fax: E Instruments is a manufacturer of innovativetesting instruments. The full line of productsinclude Combustion Analyzers, IAQ meters,Leak Detectors, Infrared Thermometers, AirFlow Testing, Humid-ity Testing, PressureMeters, Transmitters,and much more. OILHEAT BIOHEAT® DIESEL PROPANE SOLAR
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JUNE 2009 • 23 Energy Kinetics Booths 137, 13951 Molasses Hill RoadLebanon, NJ 08833Ph: Energy Kinetics is the manufacturer of theSystem 2000 high efficiency appliance thatcombines the existing water heater and boiler,furnace or heat pump. It is designed for usewith conventional heat and hot water systemsfor homes, buildings, etc., and runs on Oilheat,natural gas and propane. ERC Wiping Products Inc. Booth 449Valerie Sweeney19 Bennett St.Lynn, MA 01905Ph: 800-225-9473Fax: ErC is a leading manufacturer and distributorof absorbent cotton wiping and polishingcloths. ErC stocks more than 150 differenttypes of rags and wiping cloths, along witha complete line of durable paper wipers. ErCwill display its full line of absorbent cloths aswell as oil sorbent products including pads,socks, booms and kits. EWC Controls Booth 316Jason Zeckman385 Highway 33Englishtown, NJ 07726Ph: 800-446-3110Fax: EWT 3900 Wireless Thermostat: The Wirelessthermostat with seven day or five + twoday programming allows for easy retrofitapplications for zoning or non-zoninginstallations. The thermostat includes thewireless receiver and a wall mount bracketthat allows for easy “pop-on” and “pop-off”for hand-held programming. The EWT-3900thermostat is compatible with Single Stageand Two Stage heating and cooling systems,as well as Heat Pumps and Three Stage heatingand Two Stage cooling systems. The receiveris 24V powered. Federated Insurance Booth 564121 E Park SquarePO Box 328Owatonna, MN 55060-0328Ph: For over a century, Federated Insurance hasprovided peace of mind to business ownersthrough valued insurance protection. Theirmotto is “It’s Our Business to Protect yours®”. Ferguson/Jd daddario Booth 551Evan Yudell5 Forge ParkwayFranklin, MA 02038Ph: 508-528-0006Fax: Heat Transfer Product Solar: As green buildingcontinues to gain momentum throughout thecountry, the demand for solar domestic hotwater systems is increasing rapidly. Fromcommercial to residential installations, theshort- and long-term financial incentives ofheating water with alternate means of energyhas made it more popular than ever. HeatTransfer Products provides you with every-thing you need to install a solar domestic hotwater system—from collectors, to the compo-nents, to the storage tank—making it easier forthe contractor to both install and service. FISC Solutions Booth 460Jaime BergPO Box 221Lewiston, ME 04243-0221Ph: 888-433-4924Fax: FISC Solutions provides outsourcing servicesthat include invoice printing and mailing,lockbox/payment processing and electronicbill payment and presentment. FISC clientsbenefit from our funds acceleration productsand customized services. Flexcon Industries Booth 632Sam Williams300 Pond St.Randolph, MA 02368Ph: 781-986-2424Fax: Flexcon is a leadingproducer of high-quality expansiontanks and well tanks.With sizes rangingfrom 2 gallons to119 gallons, all tanks come with a five-yearwarranty. Well tanks are available as steelor fiberglass. FMC technologies Booth 255Chuck MyersPetroleum Meter Manufacturer1602 Wagner Ave.Erie, PA 16510Ph: 814-898-5000Fax: Smith Meter Truck Meter packages are versatilebecause of their modular design andarrangement flexibility. These consist ofa meter, counter, air eliminator/strainer,faucet, preset counter and ticket printer. TheSmith Meter AccuLoad III and microLoad.netcontrollers can be configured to fit the rightapplication and offer all-tank truck loading,control and back-office interfacing. All of theseproducts meet or exceed weights and measuresand electrical requirements worldwide. OILHEAT BIOHEAT® DIESEL PROPANE SOLAR
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24 • OIL&ENERGY FPPF Chemical Co. Inc. Booth 562Melba Saddler117 W. Tupper St.Buffalo, NY 14201Ph: New and Improved GasTreatment: FPPF has a newconcentrated gas treatmentfor use in all gasoline, ethanol,ethanol/gasoline blendsincluding E-85. It is formu-lated to reduce fuel/waterphasing, prevent corrosion,clean injectors as well asstabilize and reduce fueloxidation. According to FPPF,their new gas treatment is notharmful to electronic fuel injection systemsor engine sensors. Available in 12 oz. bottles,5-gallon pails and 55-gallon drums. General Filters, Inc. Booth 14643800 Grand River Ave.Novi, MI 48375Ph: Manufacturer of General, Unifilter, and Gar-Berbrand fuel oil filters. Look to General for theBioGasket Bio-Fuel Oil Filter Gaskets as well.Exciting news coming in October with newfeatures and offerings from General Filters. Global Companies llC Booths 127, 129, 131Duane McLevedge800 South St., Suite 200Watermill CenterWaltham, MA 02454Ph: Global Companies LLC serves the fuelneeds of a broad range of commercial andindustrial interests throughout the Northeast.Customers include commercial users, gasolinedistributors and major power and publicutility companies. Serving independentheating oil retailers remains a primaryfocus, however. Global dependably deliversreliable products and innovative programs. Gray Equity Management llC Booth 721Dan Romano, CPA34 Southwest ParkWestwood, MA 02090Ph: 781-407-0300Fax: Gray Equity Management offers a wide rangeof personal financial services that helpbusiness owners to gain control of their ownfinancial future. Gray Equity has trustedadvisers in areas such as retirement planning,asset protection, wealth management andcollege saving plans. Gray’s goal is to makeyour financial life easier, delivering innovativesolutions to financial challenges. Gray, Gray & Gray llP Booth 723Paul Gerry, CPA34 Southwest ParkWestwood, MA 02090Ph: 781-407-0300Fax: Gray, Gray & Gray is the petroleum industry’sleading accounting and managementconsulting firm. For more than 64 years, thefirm has provided accounting, tax strategy,and business ad-visory servicesfor retail Oilheatdealers and petro-leum distributorsin New England and throughout the EasternU.S. Their innovative FuelTrack™ analysisreport has become the benchmark for financialand operational performance among Oilheatcompanies. Gray, Gray & Gray also offersthe FuelExchange™ clearinghouse for buyingand selling Oilheat businesses, which hasoverseen a number of successful transactionsover the past decade. Gulf Oil lP Booths 132, 134Matthew Harrison, Denise Hash100 Crossing Blvd.Framingham, MA 01702Ph: The physical assets, proven aptitude andfinancial strength of the people you buyproduct from are among the many valuesthat draw retail marketers toGulf Oil. Gulf’s name hasbeen paramount in thepetroleum industry forclose to a century. Offeringreliable, quality, andcompetitive products atevery terminal we marketthrough. That recognition andtheir renewed commitment to the resellermarketplace give you the opportunity tobenefit from their industry expertise: experi-enced trading desks, and secure access toproduct via a growing list of proprietaryterminals and exchange locations. hedge Solutions, Inc. Booth 267500 Commercial St., Suite 303Manchester, NH 03101-9956Ph: 603-644-3343Toll Free: Hedge Solutions is a riskmanagement consultingcompany, advising clientson hedging, purchasingand marketing strategiesto grow and safeguardtheir businesses. Intellidyne llC Booth 525303 Sunnyside Blvd., Suite 75Plainview, NY 11803Ph: 516-676-0777Fax: Intellidyne manufactures a complete lineof energy efficiency controls for hydronic,steam and forced airheating systems plus a lineof microprocessor-basedcontrols for AC and com-mercial refrigerationsystems. Intellidynecontrols utilize “dynamiccycle management” tech-nology to reduce burner/compressor run time thatresults in energy savings. The products havea 15-year replacement warranty and a “moneyback” performance guarantee. OILHEAT BIOHEAT® DIESEL PROPANE SOLAR
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JUNE 2009 • 25 Irving Oil Corp. Booths 415, 417, 419, 421170 Commerce WayPortsmouth, NH 03801Ph: Irving Oil is a family-owned and privately-held regional energy processing, transportingand marketing companyheadquartered in SaintJohn, New Brunswick,Canada, with U.S. market-ing operations in Ports-mouth, New Hampshire.Irving serves wholesale, commercial, andretail customers in Eastern Canada, Quebec,and New England. Itron Booth 153Joseph Engram1310 Emerald RoadGreenwood, SC 29646Ph: 864-942-2238Fax: Neptune refined fuelmeters have been thetrusted choice sincethe beginning of theautomotive age. Nowa part of Itron, theNeptune product linecontinues this legacy with advanced metersand registers that deliver unmatched accuracyand performance. KME-Kovatch Organization Booths 604, 606, 608, 610Philip Gerace1 Industrial ComplexNesquehoning, PA 18240Ph: As one of the nation’s largest fuel truck sup-pliers and a true sole-source tank manufac-turer, KME makes purchasing a new truckeasy, and keeping your trucks on the road eveneasier. KME offers fuel trucks, refueling ve-hicles and specialty transport trucks, and is afranchised truck dealer for Ford, Isuzu, GMCand International. KME offers full-servicecapability for chassis, tank, pump, meter andparts and has in-stock parts ready to ship thesame day. KME regularly has stock units readyfor immediate sale and even offers no-hasslefinancing and leasing. lincoln laboratory Booths 205, 207David LoddingP.O. Box 381Leicester, MA 01524Ph: 508-892-4717Fax: Lincoln Laboratory’s Tank-Guard Program isan oil tank protection service for Oilheat deal-ers. It provides a proven chemical corrosioninhibitor for residential oil tanks that isbacked by the unique Free Tank replacementWarranty. Full marketing plan. No upfrontinvestment. Guaranteed dealer profit. “Tank-Guard saves customers.” lIt tank Sales & Service llC Booths 605, 607, 609, 611David Wernersbach1400 South Willow St.Manchester, NH 03103Ph: 603-623-8873, ext. 237Fax: Distributor of Amthor International truck-mounted tanks. Product lines include refinedfuel, propane, vacuum/septic, fire and othercustom bodies. lynn Manufacturing Inc. Booth 114Patrick Garvey15 Marion St.Lynn, MA 01905Ph: 781-593-2561Fax: Lynn Manufacturing Inc. manufactures per-fect-fit replacement combustion chambers andchamber “kits” for most residential and com-mercial boilers/furnaces. The company alsooffers high-temperature refractory insulationssuch as boards, blankets (wet and dry), strips,insulating firebrick, castables and rope thatcan withstand temperatures up to 3000degrees Fahrenheit. Additionally, Lynnproduces the “Clearview” liquid level tankgauge which offers botha 1-1/2” and 2” bushingin one unit with aneasy-to-read no-foggingtop. This gauge is UL listed and comesstandard in 26”—27” and 42”—44” sizes(special-order sizes upon request). Monitor Products Inc. Booth 350Ralf Erlenhoff7A Marlen DriveRobbinsville, NJ 08691Ph: 800-524-1102Fax: The MWH180 is the newadvanced technology ofgas fired water heaters. It isEnergy Star rated with anefficiency of 82 percent. Witha capacity of 5.8 GPM ata 54 degree Fahrenheittemperature rise, it allowsyou to use up to three plumb-ing fixtures simultaneously (e.g. one showerand two hot water faucets or two showers). MPE Inc. Booth 414Robert Ceppi10 Pendleton DriveP.O. Box 259Hebron, CT 06248Ph: MPE provides engineering services andspecializes in:•	Complete	Turnkey	Bulk	Storage	Facility Design and Construction•	SPCC	Plans	For	Fuel	Storage	Facilities(40 CFr Part 112)•	Existing	FacilityModifications, Upgrades,Maintenance and repairs•	System	“As-Built”CAD Services•	Appraisals	and	Cost Analysis•	API	650/653	Certified	Tank	Engineering Inspections•	Facility	Containment	and	Spill	Control System Development•	Fuel	Management	Card/Key Access Systems•	Fire	Protection	Systems OILHEAT BIOHEAT® DIESEL PROPANE SOLAR
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26 • OIL&ENERGY NAOhSM Booth 519Judy GarberPO Box 67East Petersburg, PA 17520-0067Ph: 888-552-0900Fax: The National Association of Oil Heating ServiceManagers is an industry trade associationdevoted exclusively to the education andadvancement of Oilheat service professionals. National Biodiesel Board Booth 404Paul Nazzaro, Sr.P.O. Box 104898Jefferson City, MO 65110-4898Phone: 1-866-213-3219Bioheat® Hotline: National Oilheat Research Alliance(NORA) / NORA Education Center Booth 719600 Cameron St., Suite 206Alexandria, VA 22314Ph: 703-340-1660Fax: NOrA is a collaborative program establishedby the Oilheat industry to improve educationand training for employees in the industry,provide customers with more information, andto develop new higher efficiency products forcustomers. NOrA provides the opportunity forthe industry members to work cooperativelyfor a better and stronger industry. NOrA hasdeveloped world-class education programsthrough the NOrA Education Center, moreefficient appliances, and a strong consumereducation campaign that highlights thebenefits of Oilheat and the recent advancementsin efficiency. NEFI legislative & RegulatoryAction Center Booths 716, 718Jim Collura, Dave RoccoPO Box 9137Watertown, MA 02472-9137Ph: 617-923-5022Fax: The New England Fuel Institute’s Legislative& regulatory Action Center was establishedin January 2006 and its mission is toprovide constant, up-to-date information onpublic policy, legisla-tive and regulatorydevelopments andcompliance issues thatimpact NEFI membercompanies and the industry at-large. TheAction Center’s staff is located in Boston,Mass. and Washington, DC. NEFI technical training Center Andrea MedinaBooths 716, 718PO Box 9137Watertown, MA 02471-9137Phone: 617-924-1000Fax: The NEFI Education Foundation has longbeen regarded as the nation’s leading sitefor the training ofOilheat technicians.They offer profes-sional training forboth entry-levelheating techniciansand continuingeducation for experienced oil heating personnel.Courses are held in Watertown, Mass., as wellas other locations throughout New England.Course time is divided equally betweenclassroom and “hands-on” instruction utilizingthe Oilheat laboratories at each location. New England Fuel Institute Booths 716, 718Tracy GoodwinPO Box 9137Watertown, MA 02471-9137Phone: 617-924-1000Fax: For more than 50 years, the New EnglandFuel Institute (NEFI) has been dedicated toproviding a profitable and stable operatingenvironment for the independent heatingoil dealer and fuel marketer. Today, NEFI’smission is meeting the challenges posed bylegislative, regulatory and competitive forces.The association’s Legal Action Fund providesextensive lobbyist support and representationbefore federal agencies and elected officials onbehalf of marketers. NEFI is a nationallyrecognized business association of some 1,000member companies. In addition to industryrepresentation, the association benefitsmembers by way of lower cost businessproperty and health insurance, medical anddental coverage and advantageous retirementplans. NEFI also provides cost-effective optionsfor meeting government regulations. Newmac Furnaces & Boilers Booths 166, 168, 170PO Box 9, Lancaster CrescentDebert, NS B0M 1G0CanadaPh: 902-662-3840Fax: Newmac is primarily a manufacturer of qual-ity furnaces and boilers and markets a completeline of these products through its distributornetworks in Canada and the United States. Oil & Energy Magazine Booth 51867 Foster St., 2nd Floor RearPeabody, MA 01960Ph: 978-535-7606Fax: Oil & Energy, the official monthly publicationof the New England Fuel Institute (NEFI), isthe leading magazine of the Oilheat industry,providing in-depth andtimely coverage of keyissues such as regulations,fuel supply, equipment,technology, alternativefuels, hedging and manage-ment. Distributed to fuelretailers, wholesalers,equipment manufacturersand others in the heatingoil industry, the magazine features monthlyadvice and commentary from leading expertsin biofuels, hedging and weather trends.Key business and government decision makersare seen in our pages each month sharingtheir ideas on a variety of topics importantto the average Oilheat retailer and servicetechnician. Oilheating Journal Booth 648Doug Bacile3621 Hill RoadParsippany, NJ 07054Ph: 973-331-9545Fax: OILHEAT BIOHEAT® DIESEL PROPANE SOLAR
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JUNE 2009 • 27 Onspot of North America, Inc. Booth 730555 Lordship Blvd.Stratford, CT 06615Ph: 800-766-7768/203-377-0777Fax: Onspot automatic tire chains allow theoperator to engage and disengage tire chainsat the flip of a dashboard switch withoutstopping to enhance traction and reducebraking distanceon snow and icein forward andreverse. Onspotsare available asa factory optionfrom more than150 builders or for retrofit of existing vehiclesfrom half-ton to Class 8 tractor trailers. PriMedia Inc. Booth 457Richard Rutigliano990 Stewart Ave., Suite 550Garden City, NY 11530Ph: 800-79-MEDIA (800-796-3342) Since 1993, PriMedia has been a leader inproviding full-service marketing andcommunications solutions to the Oilheatindustry. PriMedia’s line of services includesInternet strategy(SEO/SEM),graphic design,direct marketing,strategic planning, corporate identity andbranding, event marketing, customer relation-ship management (CrM), public relations,print and broadcast advertising all designedto strengthen our clients’ brand identity andaddress the challenges of an ever-changingmarketplace. PriMedia specializes in the homeheating marketplace and customizes servicesfor each project and client. They also provideleading-edge Internet services. Simpson dura-Vent Booth 119Howard BermanP.O. Box 1510Vacaville, CA 95696Ph: 800-835-4429Fax: Complete venting solutions for the hearthindustry. The leading manufacturer of hearthventing systems in North America, producingthe highest quality UL-listed chimney linersand chimneys for wood stoves and inserts,pellet and corn stoves, and direct ventgas appliances. With more than 50 years ofengineeredexcellence,SDV contin-ues to supplythe hearthmarket withinnovativeventing solutions and excellent customerservice. Made in the USA. Smith’s Environmental Booth 632Sam Williams300 Pond St.Randolph, MA 02368Ph: Smith’s Environmental Products is a leadingproducer of kick space heaters and otherrelated hydronic space heating products. Kickspace heaterscome in foursizes: 4,000,6,000, 8,000and 10,000 BTUh.Other hydronic heat-ing products range as highas 40,000 BTUh and come inmany different creative configurations to meetyour particular heating needs. All productsuse Teflon bearings to provide the quietestperformance on the market. Splash® Insurance Programtrident Insurance Services of NewEngland, Inc. Booth 717280 Summer St., 4th Fl.Boston, MA 02210-1131Ph: 866-650-4016Fax: Insurance for Oilheat dealers. Sprague Energy Corp. Booths 138, 140Two International DrivePortsmouth, NH 03801-6809Ph: Sprague Energy is a wholesale supplier ofenergy and provides materials handlingervices for products such as: home heating oil,diesel fuels, residual fuels, Bioheat®, gasolineand natural gas. Sprague has strategicallylocated deep-water terminals in theNortheastern U.S. tekmar Control Systems ltd. Booths 360, 3625100 Silver Star RoadVernon, BC, Canada, V1B 3K4Ph: 250-545-7749Fax: New in 2009, tekmarNet® Systems fortwo-wire retrofits. tekmarNet systems utilizetwo-way communication to provide benefitsthat surpass basic thermostat/outdoor resetcontrol. Interior heat gains or losses areincluded in the Outdoor reset Module’scalculations, providing target temperaturesthat more accurately reflect changingconditions. Now, with tekmarNet 2 Thermo-stats, you can use existing two-conductor,18 AWG wire to replace old thermostats withmodels that offer the energy savings, comfortand convenience your customers want. therma-Flow Inc./Everhot Booth 143Ed HillPO Box 416Watertown, MA 02471-0416Ph: 800-654-8045, 617-924-3877Fax: Therma-Flow manufac-tures water heaters andthe newest additions totheir line are the stainlesssteel indirect water heaterand the stainless steelbooster. Because each tankis made of stainless steel,both maintain hot watertemperature better thanconventional systems andoffer exceptional long-term performance. Theindirect heater features alifetime warranty againstleakage. All Therma-Flow/Everhot tanks are madein the U.S.A. OILHEAT BIOHEAT® DIESEL PROPANE SOLAR
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28 • OIL&ENERGY tjernlund Products Booth 578Tim DwyerTjernlund Venting Products1601 Ninth St.White Bear Lake, MN 55110Ph: Make hot or cold rooms more comfortablewith the AireShare by Tjernlund. Transferair from room-to-room or level-to-level.The perfect companion for homes with splitsystem or window A/C and space heaters,stoves and fireplaces. Easy to install. Whisperquiet operation. tMC Services Inc. Booth 142Kelly Dillon1 William WayBellingham, MA 02019Ph: 508-966-6015Fax: TMC Services is a leading New England areafull-service environmental servicescompany offering specialized services toclients, from the localhomeowner to thefederal government.TMC provides environ-mental, construction,and abatement servicesto owners, commercialentities, general con-tractors, engineers,and municipal andgovernment agencies. Additionally, TMCoffers 24-hour emergency spill responseservices across the entire New Englandregion. TMC maintains the widest coveragein New England, offering a guaranteedtwo-hour response across most of the area. total Control Systems Booth 125Dan Murray2515 Charleston PlaceFort Wayne, IN 46808Ph: 260-484-0382Fax: Total Control Systems isa manufacturer of custodytransfer approved pistonand rotary positivedisplacement flow metersfor aviation, petroleum,chemical and industrial applications.Mechanical or electronic registration, aireliminators, strainers, preset valves; air checksand many other accessories are available in1 1/2” thru 4” sizes, with flow rates from .2 to600 GPM, DEF custody transfer meter approvals.5 to 50 GPM. Made in Fort Wayne, Ind. total Energy Solutions Booth 720100 International Drive, Suite 260Portsmouth, NH 03801Ph: 877-436-9812 Total Energy Solutions is a multi-source pe-troleum distributor offering No. 2 heating oil,diesel products, kerosene, and branded gaso-line at multiple pick-up locations. They havecompetitive pricing, risk managementprograms, competitive credit terms andconsultation services. They are celebratingtheir 10th year in business this year. trans-tech Industries, Inc. Jim RennieBooths 225, 227, 229, 231, 325, 327,329, 33142 Coffin AvenueBrewer, ME 04412Ph: Trans-Tech truck tanks are designed and builtin Maine with the most modern technologiesavailable. Patented tank design utilizingextruded rails and box sills, offset baffleopenings to reduce product surge, superiorelectrical system, and equipment areadesigned for driver safety and efficiency. UEi Booth 4718030 SW NimbusBeaverton, OR 97008Ph: 503-644-8723Toll Free: Founded in Beaverton, Oregon, in 1967,Universal Enterprises, Inc. is a leadingmanufacturer of portable testing andmeasuring equipment for the HVAC industry.UEi backs their products with industry-leading warranties, professional servicetechnicians, in-store training, phonesupport and prompt maintenance and repairturnarounds. Weil-Mclain Booths 161, 163, 165, 167, 260, 262, 264,266500 Blaine StreetMichigan City, IN 46360-2388Ph: Founded in 1881, Weil-McLain has manufac-tured home comfort heating products. Theirproducts include oil- and gas-fired boilers,furnaces, air conditioners, and more. Warm thoughts Communications Booth 314200 Meadowlands Parkway, 2nd Fl.Secaucus, NJ 07094-2302Ph: Warm Thoughts is a marketing firmspecializing in the unique needs of companiesthat sell home comfort products and services.They provide clients with service plans,newsletters, internet marketing, billinginserts, fuel price protection and more. OILHEAT BIOHEAT® DIESEL PROPANE SOLAR
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STOP Are you still trying to manage today’s volatile energy markets on your own?Find out how our clients had their best margins in years during the mostturbulent market environment in the history of our industry! Isn’t the most vital part of your business worthone conversation? Call us.No pressure – straight answers. 800-709-2949 ~
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30 • OIL&ENERGY Oil Market Stance thE lAtE MIltON BERlE ONCE SAId, “IFopportunity doesn’t knock, build a door.”I would tweak this famous quote by saying“If opportunity doesn’t knock, fill yourstorage.” When looking at the forward curve,both crude and heating oil have economicallyviable carries, while gasoline currently, asI pen this article, does not. Assuming thatmost of you don’t haveany reason to fill yourstorage with crudeoil, this article willfocus on heating oil.Why would any-one want to chartera tanker, fill it withcrude and anchor it offthe coast for a futuresale? The answer isto make money byutilizing NyMEX.Given the rate of return on many investmentscurrently, the storage play is looking veryappealing. Dare I say a no-brainer?According to a Bloomberg News articlewritten this past month by AlexanderKwiatkowski, since at least November, oilcompanies such as royal Dutch Shell Plc andBP Plc have sought to profit from storing oilon tankers, benefiting from the so-calledcontango, where crude for longer-datedcontracts is more expensive than near-termsupply. Traders are storing 100 million barrelsof oil at sea, enough to supply Europe for fivedays, said Frontline Ltd., the world’s largestsupertanker operator, back in April.What is contango? A market is consideredto be in contango when prices are higherin the succeeding delivery months than inthe nearest delivery month for futures.The Prophet X quote sheet below shows uswhat contango is. Pay close attention to thecolumn titled “Last.” This column representswhat the last price was at the time when I tooka snapshot of the NyMEX heating oil futuresfrom June 2009 to February 2010. As you cansee below, the carry is .2589.February screen minus June Screen =.2589 carryNow the fun part! Here are the nutsand bolts:First, fill your storage. Contact your whole-sale supplier and get a quote for a differential.Hopefully since you are committing to onesupplier, you will be able to get a discount offthe current rack. Some suppliers and brokerswill fill the storage for you and defer paymentfor the oil, but always remember that theless you store, the less money you make.This storage opportunity can easily be donein house as long as you have the funds tofill the storage, plus the ability to trade futuresor swaps.Second, sell the futures or swaps againstyour purchased oil in order to lock in thespread (carry). For instance, you would sellFebruary futures or swaps in order to protectthe value of the inventory that you just putinto your storage facility. By selling futures orswaps, you not only lock in a carrying chargebut also protect yourself against a decline inthe value of your oil.Third, determine how long you shouldhold the heating oil instorage. The longeryou hold the heatingoil in storage, thebigger the returnbecomes. If you needto empty your storagebefore perhaps Janu-ary, then you wouldwant to sell futures orswaps in the month(s)that correspond tothose in which youplan on selling the fuel.Selling futures or swaps protect you ina falling market by paying you back shouldthe value of your inventory decline. On theother hand, if your inventory value increasesdue to the price of heating oil going up thenyour future or swap position will requiremaintenance margin. That means you wouldneed to pay your broker.After everything is said and done, youwill walk away with a nice profit afterexpenses. As is the case with any financialdecision, make sure you have a good graspof the logic behind this type of businesstransaction before diving in. Given all theregulations and costs of maintaining storage,it is nice to know that all that hard work canpay off nicely at a time like this. Opportunity Knocks Using Storage to Your Advantage By Mark Skaparas, Hedge Solutions Symbol Month BidAskhigh lowlast Change QHOM9 9-Jun1.46881.46981.47291.41601.47050.0443QHON99-Jul1.50111.50241.50421.45001.50130.0427QHOQ99-Aug1.53621.53791.54021.48641.53810.0445QHOU99-Sep1.57061.57271.57101.51951.56940.0408QHOV99-Oct1.60441.60681.60901.56001.60600.0428QHOX99-Nov1.63731.64011.63951.60921.63570.0400QHOZ99-Dec1.67001.67231.67501.62491.67100.0428QHOF010-Jan 1.70101.70401.70631.66851.70630.0466QHOG010-Feb 1.72471.72731.72941.70171.72940.0447 Some suppliers and brokers will fill thestorage for you and defer payment for theoil, but always remember that the less youstore, the less money you make. This storageopportunity can easily be done in house aslong as you have the funds to fill the storage,plus the ability to trade futures or swaps.
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JUNE 2009 • 31 BOSTON TANKS COVER THE USA Boston Steel & Mfg. Co. 490 Eastern AvenueMalden, MA 02148ph: 781-324-3000 fx: 781-397-9269 BOSTON always delivers best! Financing/Leasing; Stock unitsavailable in our inventory! 1-800-333-6970 BOSTON continuesto build and deliverthe finest and mostdurable truck tanks inall phases of the fueldelivery business. We know the marketand your need to meetdiversified productdelivery. Chalk it up to over 94 years of experience that stillprovides the bestvalue you can obtainfor any tank in oursize and class. Massachusetts REGUlAtORY FRAMEWORK FOR BIOFUElMANdAtE dISCUSSEdState energy officials recently beganholding a series of meetings to begin theprocess of writing the regulations to supportthe July 2010 biofuel blend mandate inMassachusetts for home heating oil and dieselfuel, with the Massachusetts Oilheat Council(MOC) there to monitor the proceedings.As MOC has been reporting for months,the start of the regulatory process has beeneagerly awaited because it will provide theframework for how the wholesale andretail heating oil network will implement themandate. The initial meeting drew a largegroup of “stakeholders” including MOC staffand advisers, a strong contingent of wholesaleheating oil companies, biofuel manufacturersand distributors. The discussion centeredmainly on the input and concerns from theretail and wholesale side of the business.“Without a doubt, MOC and our wholesalepartners including Global, Irving, Sprague, Gulf,Exxon/Mobil and CITGO were front and centerat the meeting, and I believe that we accuratelyframed our tacit support for the mandate, butalso acknowledged the significant wholesale State News infrastructure issues we must overcome tomake this mandate workable in 14 months,”said MOC President Michael Ferrante. Vermont ClEANUP BIll PASSES WIthSEVERAl ChANGESLawmakers have passed a bill reauthoriz-ing the Petroleum Cleanup Fund (PCF) withsome critical changes. First, a provision thatwould have assessed a gross receipts tax onall dyed diesel has been removed. In its placeis clarifying language that applies the existingheating fuel gross receipts tax to dyed dieselused for heating.The bill also clarifies that the existingPCF fee of a half cent per gallon on heatingfuel also applies to the sale of dyed dieselused for off-road purposes. There is alsolanguage to prevent future raids on the PCF.If the heating fuel account tops $3 million,fuel dealers will not be required to continueto collect the fee. Owners of undergroundstorage tanks that have less than five facilitieswill be able to borrow from the fund interest-free. Those with five or more facilitieswill be able to borrow at an interest rate of2 percent.Finally, the bill also sets in motion a planto repeal Stage II requirements. On Jan. 1, 2013,gasoline station owners in Vermont will not berequired to have Stage II vapor recovery con-trols on their pumps. In addition, dispensingequipment installed before 2013, includingthose upgraded with PCI-compliant systems,will not be required to have Stage II controls.RENEWABlE ENERGY PROdUCtION CREdItPASSES hOUSEThe Vermont House passed legislation thatwould encourage wind and solar powerproducers by paying them more for theirelectricity than other producers. Under the bill,solar power producers would receive 30 centsper kilowatt-hour and wind power producerswould receive 20 cents per kilowatt-hour. Thegoing rate for power from the Vermont yankeeplant in Vernon is about 4 cents.The Public Service Department hasestimated that these provisions could increaseelectricity costs by as much as 3 percent. Thebill also requires that $22 million in federalstimulus funds allocated for the state energyprogram be deposited into the clean energydevelopment fund. The money can also be usedto pay for thermal or geothermal projects.
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32 • OIL&ENERGYCOMING NEXt MONth IN PRICE PROtECtION & hEdGING profiles INNOVAtION RECEIVES BIOdIESEl MARKEtINGANd PROdUCtION ACCREdItAtIONInnovation Fuels, the New york-basedrenewable energy company that manufactures,markets and distributes biodiesel has becomethe first Northeast biodiesel producer toreceive BQ-9000 accreditation in both theareas of biodiesel production and marketing,according to the company.Innovation Fuels received both accreditationsfrom The National Biodiesel AccreditationProgram, a cooperative and voluntary programfor the accreditation of producers and market-ers of BQ-9000. The program is a combinationof the ASTM standard for biodiesel and a programthat includes storage, sampling, testing,blending, shipping, distribution and fuelmanagement practices. To receive accreditation,Innovation Fuels passed a rigorous review andinspection of their quality control processes byan independent auditor to ensure that qualitycontrol is fully implemented.NORItZ ANNOUNCES EXClUSIVE REPRESENtAtIVESThe roemer Agency and McKee-Nixand Associates, manufacturer’s representativesfor tankless water heaters in the UnitedStates, will now carry the Noritz line oftankless water heaters exclusively, Noritzrecently announced.Noritz offers savings on all 20 of theirEnergy Star-rated residential units thanks tothe new guidelines handed down in PresidentBarack Obama’s recently passed stimuluspackage. In addition, consumers canalso take advantage of the many local taxrebates available in regions across the UnitedStates with the purchase of a Noritz tanklesswater heater.For more information on Noritz AmericaCorporation and the entire line of Noritz’sEnergy Star tankless water heaters and a fulllist of rebates, call (877) 986-6748 or visit BIOdIESEl MANUFACtURER REGANNOUNCES PRESIdENtrenewable Energy Group (rEG), a biodieselmanufacturer and marketer, recentlyannounced Daniel Oh, chief operatingofficer, will transition into the role ofpresident as well.Oh will oversee biodiesel manufacturing,sales and marketing, procurement and riskmanagement, production operations andtechnology services, in addition to alternativefeedstock research and commercialization,and corporate development programs forrEG’s growing domestic biodiesel business.Oh takes over for Nileramsbottom, who served asrEG’s president since thecompany’s incorporation in2006. In the nine yearsramsbottom served at rEG andits predecessor West CentralCooperative, the company’s biodiesel businesshas grown from a 1 million gallon-per-yearbatch plant to a network with the morethan 300 million gallons of annual productioncapacity.rEG markets a biodiesel product lineup—rEG-9000 biodiesel, which exceeds ASTMquality specifications—through existingnationwide diesel infrastructure. rEG-9000biodiesel is produced by rEG network produc-tion facilities consisting of proprietarymultiple feedstock technology. Daniel Oh
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In recognition of ourappreciated sponsors andsupporting organizationsfor the New England FuelInstitute’s 2009 EXPOand Energy Summit. Thank You! OILHEAT BIOHEAT® DIESEL PROPANE SOLAR 2009 EXPOSPONSORSGOLD SPONSORS BRONZE SPONSORS SILVER SPONSORS Hedge Solutions PLEASE VIEW PLATINUM SPONSORS ON PAGE 6!
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34 • OIL&ENERGY Tech Talk WIth thE WINtER hEAtING SEASON WRAPPINGup and the warm temperatures signaling thereturn of spring and summer, it’s time totake a look in the rear view mirror at ourmost recent season. When all is said and done,the winter of 2008-09 will turn out to bea relatively normal winter. What makes itseem colder is that our winters have beenabove normal for several years and we werestarting to get used to it. Last summer, whenoil prices jumped to record levels, peoplepanicked and many jumped ship to thenatural gas utilities.The media portrayed the oil dealer as thebad guy, when in fact he was just as mucha victim as the consumer. The oil dealer nowmust dispel this image and the best way to dothis is to help the consumer through thesehard times. There has never been a better timethan now to offer them some relief. We haveto start thinking about how to sell fewergallons to more people.Heating systems are designed to heat thebuilding to a certain temperature under theworst outside conditions. These conditionsactually occur only about 5 percent to 7 percentof the heating season. Without an outdoorreset device, the heating system does not knowif it is a cool autumn night or the coldestwinter day. It’s like driving your car as fastas you can, then slamming on the brakes.This is neither an efficient way to drive a car,nor run a heating system.A device that made its debut back in the1970s was the outdoor reset control. Back in1976, a company known as American Stabilisintroduced the Enertrol® to the heatingindustry. The Enertrol was state of the artfor its day. It consisted of an outdoor andindoor temperature probe and a solid-statecontrol. This control was then wired into theexisting high limit control of the boiler andeffectively lowered the boiler temperatureas the outdoor temperature increased.The main drawback was how to heat domestichot water, since all we had back then weregas and electric heaters or tankless waterheaters; indirect water heaters had not yetbeen invented.Taco took the next step and incorporatedthe Enertrol with a rotary program timer thatwould allow the boiler to return to normaltemperatures at preset intervals. This productwas known as the MasterMind II. It workedpretty well for its day, but the weak linkwas the timer. If there was a power failure orthe timer failed, the customer either hadno hot water when they expected it or nooutdoor reset.There are functions available in today’scontrols that did not exist in the 1970s, suchas warm weather shutdown, a starting watertemperature setting and a minimum boilersupply temperature. Most reset controlsystems can monitor the water temperaturereturning to the boiler and will adjust themixing device to keep this return temperatureabove the programmed minimum. This boilerprotection feature is a necessity in largevolume systems to prevent condensation orboiler damage.“Smart” reset controls also optimize cycletimes, so the boiler fires less often, but remainson longer when it does fire. This increasesboiler life and efficiency, because a boiler, likea car engine, is not efficient until severalminutes after continuous operation. Long runcycles are much more efficient than short ones.Domestic hot water override ensures an un-interrupted supply of hot water on demand.Outdoor reset controls have been installedin commercial applications for years, butnow they are available to the homeowner.With the information sent by the outdoorsensor, the control can match heat outputcloser to the actual needs of the home. Withoutdoor reset, zone valves and zone pumpscan have longer on/off cycles or can remaincontinuously operating throughout theentire heating season—which extends themechanical life and reduces the start-upenergy consumption.Some of the European imports have thesecontrols built in as part of the package. Taco,Tekmar and Heat Timer all offer a variety ofoutdoor reset controls that are affordable, easyto install, program and understand. Savingswill depend on many factors, but a recentstudy performed by the Environment andresource Center in St. Paul, Minn., showedthat outdoor reset controls saved an averageof 14 percent. By adding an outdoor resetcontrol that works alongside your boilerand thermostat, a typical payback of less thana year can be achieved.While no one was noticing, on Jan. 18, 2008,the U.S. Department of Energy (DOE)implemented recommendations for newdesign requirements for hot water boilersthat call for “temperature reset” featurethat automatically adjusts the boiler outputaccording to the outdoor ambient airtemperature. This rule, which went into effecta little over a year ago, has a compliance dateof Nov. 19, 2015. you don’t have to wait untilthe manufacturers start producing thesecontrols as part of the boiler package. you cando this yourself with off-the-shelf controlsthat are easily added to any type of hydronicsystem. Now is the time to step up to the plateand embrace the concept of outdoor reset.Don’t let the world pass you by. Learn allyou can about this technology because thefuture is here today. Getting to Know Outdoor Reset Technology Could Become Compulsory in 2015 By Bruce Marshall, Emerson Swan Outdoor reset controls have been installed incommercial applications for years, but nowthey are available to the homeowner. With theinformation sent by the outdoor sensor, thecontrol can match heat output closer to theactual needs of the home.
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YOUR INDEPENDENT STATE ASSOCIATIONS: Working to serve your interests as your in-state resource. Working in tandemwith New England Fuel Institute on regional and national affairs. MASSACHUSETTSOILHEAT COUNCIL Michael Ferrante, President118 Cedar StreetWellesley Hills, MA 02181Ph: 781-237-0730800-722-0623 (MA Only)Fax: 781-237-2442 INDEPENDENT CONNECTICUTPETROLEUM ASSOCIATIONExecutive Offices: 10 Alcap RidgeCromwell, CT 06416Ph: (860) 613-2041Toll Free 1-866-521-ICPA [4272] Fx: (860) 632-1122 Eugene A. Guilford, Jr.Executive Director & CEO MAINE OIL DEALERSASSOCIATION25 Greenwood RoadPO Box 249Brunswick, ME 04011Phone: 207.729.5298Fax: 207.721.9227Web: www.meoil.comEmail: jamie@meoil.comJamie Pye, President & CEO Phone: 603-895-3808Fax: 603-895-3325Email: Oil Heat Instituteof Rhode Island873 Warwick Ave.Warwick, RI 02888-3645Phone: 401-865-6055E-mail: Be it heating oil, propane, or biofuels, these state associations, in concert with New England Fuel Institute work24/7 to protect your business interests and the well being of consumers served by the vast and vital networkof independent fuel distributors. We encourage you to take advantage of the many benefits provided by stateand regional membership. Contact your respective state association and New England Fuel Institute via phoneor email and help yourself grow your business. It is the best and most immediate way to stay informed aboutindustry news and critical regulations that impact your operations daily. New England Fuel InstituteOffices at 20 Summer Street, Watertown, MA 02472617-924-1000 •
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36 • OIL&ENERGY IN PASt ARtIClES FOR OIl & ENERGY, I hAVEdevoted considerable space to the dramaticnews regarding oil spills experienced withinthe industry. However, it is worth the effortto detail some of the success stories accom-plished by the industry, learning from priorincidents and progressively moving forward.A key facet observed is the successful marriageof profitability and prevention.To that end, I want to offer a brief updateon a Massachusetts initiative to meld oilline upgrades with homeowner’s insurancecoverage. This could provide a proactivemarketing opportunity to a service departmentto not only replace un-sleeved fuel lines, butalso develop a consistent flow of off-seasonservice work.AFtER-hOURS ACCOUNt ACCESSA Massachusetts-based full service oilcompany modified their accounting systemand provided key employee laptop computerswith remote wireless access. The after-houremployees would check the account paymentstatus, as well as delivery/service history,when a call would come in. Profitability wasmaintained by allowing the account statusto be checked prior to any after-hours oil orservice dispatch. This allowed the companyto determine the credit/payment historyprior to any further deliveries or significantservice. In addition, the system was used todetermine oil delivery history for after-hour“run outs” to insure that the delivery infact was likely needed. The company hadspecifically been involved in an after-hoursrun out and filled a tank with a leaking line,though they had also filled the tank severaldays prior to the after-hours run out call.The funding for the laptops was justifiedby insuring deliveries/services would bepaid for. The spill prevention was a value-added portion and assisted in presenting thecompany as progressive during insurancerenewals.SAFEtY tRAINING StANd-dOWNA Connecticut-based full service oilcompany conducts an annual safety afternoonin the late fall, just prior to the typical surge indelivery and emergency service calls. Full-timeand seasonal delivery service staff are requiredto attend an afternoon of lunch and paid timefor defensive driver training and spill prevention.In this case, their insurance carrier provided thetrainers at no cost to the insured. The programis geared to be an open forum between thetrainers, staff and management. This providedmanagement a prime opportunity to gaugeemployee attentiveness and attitude towardthese vital issues. In addition, it providedan opportunity for employees to interact onvarious types of deliveries and service eventsincorporating their experiences. Overall, afterseveral years of conducting this driver training,accidents and spill situations have decreased.SERVICE PROFItABIlItY IN SAFEtYA rhode Island-based oil company hasproactively worked with their customerson upgrading basement storage tanks andfuel lines. Instead of focusing on potentialimminent “perils” of an old tank or un-sleevedline, the marketing focused on upgrading.Homeowners were asked to consider that theoldest part of their house was probably the oiltank and line. Because roofs are replaced andbathroom remodeled, why not market tanksand lines on the same basis? A considerationwas given to creating a new diamond-levelservice plan, which would include upgradingvent piping, alarms, safety valves and fuellines to current code within the annual cost,spreading the cost out for several years.MASSAChUSEttS OIl lINE SAFEtY UPdAtEOn Jan. 5, Massachusetts Gov. DevalPatrick signed into law An Act Relative toHomeowner Heating Safety. This act is focusedon offering homeowner insurance coveragefor home heating oil releases when oil linescurrently meet or are upgraded to thestandards set forth in the act. Most people arenot aware that pollution coverage is generallyexcluded from their homeowner policies. Onoccasions, homeowner carriers will fundcleanups when third parties are impacted orthreatened. However, the homeowner carrier’sinvestigation process to reach this decisionpoint usually takes days, weeks or monthsafter the release. The act contains two mainsegments: if an oil line is upgraded to thestandards, then pollution insurance wouldneed to be made available to the homeowner.These provisions of the act are to take effecton July 1, 2010.Under the act, residents with a heating oiltank with one or more fuel supply lines orreturn lines in direct contact with concrete,earth or other floor surfaces must encloseany fuel supply line with a continuous non-metallic sleeve; install an oil safety valve at thetank; or employ any other release preventionmethod approved by the board. However,these upgrades are not required if the burneris located above the fuel storage tank and theentire fuel supply line is connected to, andabove, the top of the tank. These upgradeswould require an inspection and certificationby a licensed oil burner technician on a fireprevention form that has yet to be created.These provisions do not apply to any tankfor which fuel supply lines or an oil safetyvalve were installed or upgraded on or afterJan. 1, 1990, as long as that installation orupgrade complied with 527 CMr 4.03 and527 CMr 4.04. This condition would requirean inspection and certification by a licensedoil burner technician on a fire prevention formthat also has yet to be created.The act provides that homeowner carrierswriting residential insurance policies inMassachusetts will make available first-party property coverage for cleanup costsincurred in response to a release of heatingoil from a residential fuel tank or any piping,fuel supply lines, equipment or connectedsystems. This would also provide for liabilitycoverage for third-party claims. There wouldbe minimum coverage of $50,000 per occur-rence for first-party property and minimumcoverage of $200,000 per occurrence forthird-party liability and legal defense costs,subject to a deductible not to exceed $1,000per claim. At this time, it is unknown at whatadditional premium cost this would be offeredto homeowners. looking at the Bright Side Success Stories in Proactive Spill Control By Glenn Goral, Response Environmental Inc. This is just a brief summary, the entire text of the act can be found at Spill prevention
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JUNE 2009 • 37 • 877-DESTWIN • The industry’s most advanced On-line Managed oil price contract system •Real-time data displays contract sales, purchases, options, programfees, and margins•Sell any product or service plan online•On-line customer information center•Manage ALL oil price contract sales,including Internet, telephonic, and walk-in’s•Syncronize buying and selling, any time of the year•Real-time customer contract pricing can be automatically updatedwith a live NYMEX data feed•On-line secure credit card and e-check bill pay•Integrates with most popular petroleum back-office systems Web tools for the Oil & Propane Industry TM Here’s what a few industry people had to say about Destwin... "No more program “hand grenades” (unknown commitments), no more uncontrolled “special deals”, no more waiting for the print house, and no more being out of sync withmarket swings - this is the future of risk control." Taylor Hudson, Hedge Solutions, Inc.“Even in these volatile times, I don’t worry about our margins, Destwin allows us tohedge with virtual precision” Gary Sippin, Sippin Energy Products“In today’s volatile marketplace, I can’t imagine any dealer NOT using this system”Rick Bologna, Westmore Fuel See us atthe AREEShow at Booth803 NEW! Risk Management By State News Connecticut hEAtING OIl CONtRACt AUdItS UNdERWAYThe Connecticut Department ofConsumer Protection (DCP) is conductingrandom audits of heating oil dealers that offerguaranteed price contracts. DCP has informedthe Independent Connecticut PetroleumAssociation (ICPA) that several heating oildealers have not secured their oil contractswith the 75 percent (increased to 80 percentfor 2009) futures contracts as required by law.DCP is concerned that dealers who are notin compliance with the law may be subject toenforcement action and fines. Oil dealerswho plan on offering contracts should refer toICPA Member Services Bulletin 2.6 on how tocomply with the law and properly constructtheir contracts.BIOFUEl MANdAtE COUld BEGIN IN 2010ICPA recently met with the ConnecticutBio Association to voice concerns about SB1019, a bill that would mandate the use ofa 2 percent biofuel blend in 2010, 3 percentin 2011, 4 percent in 2012, 5 percent in 2013in heating oil and diesel fuel.ICPA’s primary problem with thelegislation is the ability for heating oil dealerswho pick up product in rhode Island, Newyork and Massachusetts ability to obtainthe Connecticut mandated fuel, fuel quality(BQ-9000), price differentials and the abilityfor the state to waive the mandate in the eventof supply shortages. The Bio Associationagreed to several amendments, including:•	Adopting	ASTM	D6751,	D396	and	D975;•	Allowing	retailers	in	border	states	todeliver non-biofuel in Connecticut as longas the terminal that they pick fuel up fromin another state does not have biodiesel;•	Allowing	the	state	to	waive	the	mandate for up to one year if in-state biofuelproduction does not meet 50 percent ofthe mandate, the price of biofuel exceedsthe price of No. 2 oil or diesel by 50 percentor there are other supply shortages;•	Requiring	that	50	percent	of	themandated fuel is produced in-state. Pennsylvania NEW INCENtIVES tO INCREASEGREEN ENERGY JOBSPennsylvania’s efforts to attract solarenergy manufacturers to the state, spur anincrease in projects that harness the sun’spower, and create green collar jobs hastaken a major step forward, according toGov. Ed rendell.Pennsylvania businesses, economicdevelopment organizations and politicalsubdivisions now can apply for a share ofa new $80 million program for solar energy.The program is designed to advance projectsthat generate and use solar energy, or thatmanufacture and assemble solar equipment.The fund is expected to create at least 10,000new jobs and attract more than $3.5 billion inprivate investment to Pennsylvania.Under the guidelines, applicants mustprovide evidence of at least $1 in matchingfunds for every $1 of program funds awardedby the commonwealth.Solar energy generation or distributionprojects and solar r&D facilities are eligiblefor loans of up to $5 million or grants of up to$1 million. Companies that manufacture solarcomponents for renewable-energy generationequipment may receive loans of up to $35,000for every new job they project to createwithin three years after being approved; theymay receive grants of up to $5,000 for eachnew job created. See us at theNEFI EXPO atbooth 304!
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38 • OIL&ENERGY Bioheat® thE WORld WIdE WEB CAN CERtAINlY BEa double-edged sword. With honed searchingskills, Google can put enough information atyour fingertips to raise your level of expertisein just about any subject matter. Then again,the vast amount of information availableat your fingertips could be dangerous. Forexample, it allows anonymous people to offerup opinions that could be entirely unfounded.Just how much information is out there,you ask? Well, at the least it’s more than4 billion pages, since there are approximately4 billion individual Web site addressesregistered. Now compare that number to thenumber of pages you’ve seen on each Web site!FORWARd thINKERSBoy, Ben Franklin had the right idea whenhe said, “Believe none of what you hear andhalf of what you see.” Now don’t get me wrong:to suggest the World Wide Web has beenanything but a boon of historic proportionsto business and industry in general would bean understatement. Then again, you reallyneed to do your homework.If there is anyone out there that thinksbiofuel/biodiesel is a passing fancy, they havenot been following what people are bloggingabout out there! When you see the number ofpeople ramping up production in their ownbackyard, you have to say, “There must bea business in this!” We owe it to the consumerto create educational forums online or on sitethat provide current information that we havethe alternative fuel answering many of theissues plaguing this country, such as energysecurity, greenhouse gas emissions, etc.Take a look at a random posting from “EDMONDS, Wash.— Trying to live green and beat high gasolineprices, some enterprising Americans areturning cooking oil into biodiesel in theirgarages. Problem is, some of these do-it-yourselfers are burning down the house.Fire officials around the country are warningof the dangers and considering new restrictionsto make sure people don’t torch the wholeneighborhood.”There are two items worth mentioninghere. First, the backyard pioneers are workingtheir angle and slowly becoming a danger tothemselves and their communities.We shouldn’t lose sight of the fact that theirexploits can become an unnecessary hurdleto your success. Is there any doubt that in theenergy world, a fuel-related accident can hurtthe image of that particular product? This isn’ta scenario that needs to happen, and won’twith an educated consumer.Second, those few hearty souls that wantto take the sting out of their wallets and makean impact on the environment certainly seevalue in their experimentation. Why is it thatwhen visiting some heating oil industry groupsthere is so much grumbling about biofuelinitiatives? The sky is falling, my friends!Is there any reason that we as a united frontcan’t take the biofuel message to market?Why can’t the distillate industry cometogether as one, top down and bottom up, tolay the foundation for a unified plan linkingproduction capacity with infrastructure andeducation/marketing plans? If you envisionthe next generation in a family businesscarrying on into the future, we need to beginthe education process of our customers andthose opposed to the survival of your businessand our industry. you can wait for the Websurfers to get their fragmented and incompletestory out through the blogs and forums, butit’s up to you to get them the facts now!A key hurdle is education. Facts need to bemade clear to the consumer and policy makers.While there are many trade organizationssupporting the move, retailers still need totake part. you have the customer’s faith andtrust. your brand and the services you providekeep your customers coming back year afteryear. you are the face of your company and theindustry. you are the most direct route tocommunicating this important information.Think about it. For the average personwith little extra time in the day, there’s justtoo much information to gather, organizeand analyze from news sources. How many ofyour customers are working two jobs andsaddled with mortgages, credit card debt andfamily education funds or the lack thereof?Who’s sitting in front of the eveningnews when there are sports, scouts and otherfamily responsibilities?lEVERAGE thE WEBNow is the time to go to www.bioheatonline.comand register as a certified retailer of Bioheat®.Taking a few minutes today will position youas an early adopter. What that means to youis market acceptance before your statemandates B2 to B5 blends in the heating oilindustry. This is a competitive differentiatorthat cannot be overlooked. Put yourself ina position to receive high-quality marketingtools that can be customized with your logoand business name.NBB’S YOUtUBE ChANNElyouTube is the No. 1 Web site for onlinevideo sharing. A staggering 70 million peopleworldwide visit it each month. I’m sure oneor two of your customers are there ona daily basis. The National Biodiesel Board(NBB) youTube channel features a widearray of biodiesel information. Clips fromcelebrity users, samples of news coverageand informative videos are among the nearly50 videos already available.“Sites like youTube and Facebook are morethan just fun and games today,” said NBBdirector of communications Jenna Higgins.“They drive public awareness, public opinionand mainstream media coverage. We want tohave a voice in this forum and ensure anopportunity to learn about the benefits ofbiodiesel is reaching the people who seek it.”Biodiesel fans can become subscribers tothe channel and find out when new videos areposted, offer comments and share videos withfriends. The playing field has been now have the tools to meet the needs ofyour business, and in the end, your customers.From the top down or bottom up, you canbegin to introduce yourself to a new, cleaner,healthier way of doing business!For more information about Bioheat marketingtools, contact Nazzaro at (978) 664-5923 Bringing Your Biofuel Message Online By Lou Nazzaro, Advanced Fuel Solutions; National Biodiesel Board
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JUNE 2009 • 39 Credit Cards ARE YOU FEElING A lIttlE OVERWhElMEd BYthe concept of Payment Card Industry (PCI)security standards? Have you looked at therequired Self-Assessment Questionnaire(SAQ) and realized that since you are a fueloil dealer who happens to store credit carddata, you must complete the SAQ with 226questions?Well, let me help clear up some confusion.First, it is true that any merchant that acceptscredit cards must comply with PCI. The PCIstandards were established by the major cardbrands to protect consumers, merchants,processors and themselves. The part that getsconfusing is exactly what you must do, asa relatively small merchant.To assist you in the massive effort of achiev-ing full PCI compliance, the security counselhas developed a “prioritized approach.”The prioritized approach provides sixsecurity milestones that will help yourorganization incrementally protect against thehighest risk factors and escalating threatswhile on the road to PCI compliance. Theprioritized approach and its milestones areintended to provide the following benefits:•	A	roadmap	that	an	organization	can	use to address its risks in priority order;•	A	pragmatic	approach	that	allows	for “quick wins;”•	Support	for	financial	and	operational planning;•	Promoting	objective	and	measurable progress indicators;•	Helping	promote	consistency	among Qualified Security Assessors.To break it down even further, theprioritized approach encourages yourorganization to focus on items such as: yourorganization’s firewall, the data your companystores and the application you are using toprocess payments.The applications that are used to processpayments—such as your internal softwareprogram that stores credit card data—arethe highest area of vulnerability for mostorganizations. If this system is used to processyour credit card payments, it is yourresponsibility to make sure it is secure andabides by all PCI standards. There is evena certification process the software companymust complete to verify their compliance! Prioritizing Payment Safety Taking the First Steps Toward Compliance By Tracy Richmond, COCARD/Richmond Financial ServicesThis is also a great place to point outanother simple concept addressed in theprioritized approach: if you don’t need it, don’tstore it. I agree that this is a simple concept, butyou never want to face a situation with one ofyour customers when a credit card number iscompromised and you were never supposed tohave that card on file in the first place.It is much more realistic to work withyour staff to complete the worksheets for theprioritized approach than tackling PCI andthe entire SAQ in a short period of time.I do want to remind each of you that theSAQ must still be completed and you mustbegin to work with a trusted company toperform vulnerability scans on all of yourcomputers that are connected to the Internet.The prioritized approach does not eliminatethis need. rather, it helps you address yourbiggest areas of concern first.Another extremely important point tokeep in mind is that in most states, therequirement of protecting your customer’ssensitive data is the law. There are now44 states that have passed data securitylegislation. This includes all major heating oilstates. For more information on these lawsand the latest credit card processing news,see
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40 • OIL&ENERGY thIS PASt WINtER PROVEd tO BE A lONGchallenging one for propane marketers andwholesalers. Starting back in July 2008,consumers faced record prices for gasoline,fuel oil and propane. Many customers calledtheir marketer and put deliveries on holduntil they could save some money to paythe bills.At the same time, many were buying uppropane for the coming winter at the recordhigh prices. Marketers, facing credit lineissues with suppliers and banks, held back onfilling their storage due to those same highprices. Fall weather arrived early in Octoberand never let up, creating record demand onthe TEPPCO pipeline system following theslowest summer in years.The reserve storage at Watkins Glen,N.y.—full on Sept. 1—was nearly empty byThanksgiving. Allocation was imposedand the Cavern was fully depleted beforeChristmas, causing long lines and frustrationat all levels of the supply chain. In mid-November a ship carrying about 18 milliongallons of propane collided with anothervessel at sea in the Atlantic, causing damageto the hull and necessitating a return toGibraltar for repairs. That cargo tied up twoof the four ships that bring propane to theEastern U.S. for nearly a month. The volumefrom that accident never arrived at Newington,N.H., until winter was over. Some have calledthis winter the perfect storm, but if it was,we seem to be experiencing those perfectstorms on a fairly regular basis. Accordingto one leading propane supplier who servesthe Northeast, trucks from the Midwesthave been pressed into service in five ofthe past eight winters to meet NortheasternU.S. supply needs.SOlVING thE SUPPlY PROBlEMWhat is the answer? If there were only oneor two this would be easy, but it is a verycomplex problem. Storage is the key! We allknow that nobody wants added storage in theirbackyard. Portland, Conn., recently passeda community ordinance prohibiting additionalfuel storage in the community in excess of1,000 gallons.The industry is working to coordinateefforts to add storage to existing facilities orcreate new ones. The Propane Gas Associationof New England (PGANE) is providingsupport, with information for local officialsand testimony at hearings. The propaneindustry needs to build a case of how manyattempts have been made for added storageand how many of those were successful.Public education is a key component. Marketersneed to have a week’s worth of storage attheir facilities. This alleviates pressure on thetransportation system and the local deliverysystem. One key area of storage that is oftenoverlooked is the tertiary (consumer) storage.Imagine a world where customers onlyneed three or four deliveries per year insteadof one every two or three weeks. Imaginea bobtail that empties out an extra timeeach day by making half as many deliveries!These things are possible and won’t happenovernight, but by putting larger storage at yourcustomer locations you can achieve theseresults. The margin on the initial delivery tothe larger tank in most cases will nearly payfor the increased tank cost! Factor in the priceof a bobtail and driver and this idea starts tomake dollars and sense.IMPROVING thE PIPElINEBeyond storage, there are key elements inthe supply process. The first is to developa supply plan utilizing multiple supply pointsand transportation methods, includingpipeline, rail and import terminals. Dependingon distance to those facilities, the mix willvary from marketer to marketer. However,every marketer needs to have the insuranceof a contract at each supply point. The nextkey is to contract what you plan to sell—allof it! Unlike other fuels where the suppliermaintains the supply for customers, propaneis based on contractual commitment. It is thatsame storage issue again.The wholesale supplier does not have thestorage to hold extra product in the regionjust in case, so your contract is key! A majorcomponent of the supply contract is ratio:gallons sold in the six winter months versusgallons sold in the six summer months. Themarketer can impact this ratio greatly, but canhave storage low at the end of the wintermonths, refill in the beginning of the summermonths and be totally filled on Sept. 30. Thesame holds true for customer tanks. Pushsome late March deliveries into early April andall customer tanks should be full at the end ofSeptember. This delivery pattern minimizesyour ratio to your benefit. The lower yourratio, the easier time you will have over thewinter months ensuring adequate supply foryour company.What are key actions between now andSept. 30? review your supply plan and makesure that you have contracted 100 percent ofyour needs at diverse supply points. you canstill buy contracts now to fill the gaps. Workwith your dispatcher on the delivery cycles.Start to fill customer tanks used for heat-onlynow. Before the end of September, top off everycustomer tank and your own storage tanksso you minimize your ratio. Consider offeringa summer fill special with a prompt paydiscount for all the will-call customers. Beginthe additional storage permitting process now,even if you are not sure you can put it in thisyear. It has taken more than a year to getpermits in many cases. Once you have a permitin hand, the rest of the project seems to fallinto place much more easily.Last, and most importantly, communicateyour plans with your banker, your suppliers,your customers and your employees. Everyonesaw the stress of last winter on your face andthey should know and will care that you aretaking proactive steps to alleviate that stressfor a smoother operation in the future. Thatwill make every one of these stakeholderssleep a little easier, even you! Solving the Propane Supply Problem Proactive Steps to Avoid Last Winter’s Issues By Joe Rose, Propane Gas Association of New England propane Begin the additional storage permitting processnow, even if you are not sure you can put it in thisyear. It has taken more than a year to get permitsin many cases. Once you have a permit in hand,the rest of the project seems to fall into placemuch more easily.
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Irving’s Superior ULSD is now Irving Blue Diesel. Visit us at booth # 415 at the NEFI Energy Expo in Boston June 9-10. U Maximized BTU formulations for more engine power. This is Blue. U Unique dewaxing process for trucks that always start. This is Blue. U Clean complete combustion for improved mileage. This is Blue. U Consistent reliable quality. This is Blue.
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42 • OIL&ENERGY thERE ARE A lOt OF ERRONEOUS NOtIONSabout fuel additives that keep some heatingoil retailers from using these chemicals andreceiving the numerous benefits that additivesprovide. This article addresses the mostprevalent misconceptions, in order to enablemore informed decisions regarding the valueof heating oil treatment programs.Myth 1: the primary cause of sludge inheating oil storage tanks is microorganisms.“Bugs,” which can occur in the fuel/waterinterface, contribute to tank sludge, but theyare far from the primary cause of this problem.Experience has shown that microorganismsare the cause of less than 5 percent of thesludge-clogged filters that result in no-heatservice calls. The other 95 percent are due tosludge generated by unstable heating oil thathas degraded in storage over time.What is meant by “unstable” and “degraded”?refineries employ a cracking process wherebylarge hydrocarbon molecules (heavy oils)are cracked apart to form smaller molecules(light products). These cracked molecules areunstable, because their cracked bonds arechemically reactive. Over time, many of theseunstable molecules will recombine and clumptogether, i.e., degrade, resulting in sludge instorage tanks.Myth 2: Additives are effective ineliminating microorganisms, but they can’tstabilize heating oil. Some additive suppliersfocus on eliminating “bugs” and thereforethey work hard to vastly overstate the bugproblem, while perhaps also casting doubtabout the ability of additives to stabilizefuel. The truth is that several additivepackages contain an effective fuel stabilizercomponent, which disables chemicallyreactive (cracked) bonds, thus preventingcracked molecules from recombining andforming sludge. Be wary of additive supplierswho overplay the microorganism problemand downplay the instability issue.Myth 3: Only older residential heating oiltanks have excessive sludge. Sludge fromunstable fuel occurs and accumulates fairlyrapidly, especially since tanks are not emptywhen replenished and consequently there isfuel carryover from delivery to delivery.New tanks can accumulate significant sludgein two to three years, unless the heating oil isstabilized with additive, and transferringfuel from old tanks to new tanks typicallyaccelerates this process.Myth 4: Additives break up existing sludgetoo aggressively, causing a rash of cloggedfilters, i.e., “shocking” the system. Mostadditive manufacturers are abundantly awareof the potential for filter problems if thedispersant component in their additivepackage ministers on sludge too aggressively.Proper dispersant dosing is the key to properperformance. Underdosing won’t eliminateexisting sludge, overdosing will break it upand clog filters and proper dosing willgradually dissolve sludge into particles thatare fine enough to pass through filters andburn. If you try an additive and experiencea rash of clogged filters, don’t put in lessadditive, because this may cause other additivepackage components to underperform.Instead, you should change additives.Myth 5: heating oil additive is a netexpense for the heating oil retailer. Depend-ing on the type of business you run, thisnotion may or may not be true. If you operatea full-service heating oil company, witha large portion of your customers on servicecontracts, you will save more money—perhaps a lot more money—on serviceexpense than you will spend on additive.That’s because a good, multifunctionaladditive package will reduce your fuel-related service calls by more than 50 percent,at a cost of about a half-cent per gallon oftreated heating oil.If you don’t offer service or if you’re a full-service company with a minimal segment ofyour customers on service contracts, additivemay indeed be a net expense. However, sinceadditive allows you to sell premium heatingoil and since it cuts down on no-heat callsrelated to sludge, which reduces customerangst, you should ask yourself if improvedproduct marketability and improved customersatisfaction are worth spending a modestamount of money on additive.If you don’t provide service, you’re notoff the hook. If a service problem is fuel-related, the service tech can only accomplisha temporary fix; the problem will recur.When the homeowner complains about theirrepetitive equipment failure, the technicianwill have no choice but to throw you, and thefuel you deliver, under the bus.Myth 6: Residential sludge problemsshould be addressed as they occur, ratherthan before they occur. This concept is wrongon many levels. If this is how you feel, whywould you ever perform a tune-up on heatingequipment? Most likely you do tune-ups—and use additive—because preventativemaintenance is preferable to correctivemaintenance, i.e., preventing problems is dispelling Additive Myths By Rick Trout, Fuel Advantage/Avalux If you operate a full-service heating oil company,with a large portion of your customers on servicecontracts, you will save more money—perhapsa lot more money—on service expense than youwill spend on additive. That’s because a good,multifunctional additive package will reduce yourfuel-related service calls by more than 50 percent,at a cost of about a half-cent per gallon oftreated heating oil.
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JUNE 2009 • 43 additives better than fixing them. The customersatisfaction implications are obvious.Also, consider that if you only treatproblem tanks, by the time you take remedialaction, your customer is living on the edgeof a roaring sludge debacle. remember,additive package dispersants graduallydissolve existing sludge, by design, so thatbreak-off sludge won’t clog filters. It’s going totake time to reduce sludge to a less-than-troublesome level. In the meantime, everydelivery is an adventure, because it stirs upa mess in the storage tank.Myth 7: treating a residential tank duringthe annual tune-up is an effective way toprovide year-round additive protection. Thisapproach involves over-treating the heatingoil initially, so that when the additized fuelis diluted by subsequent untreated fueldeliveries, the chemical in the commingledfuel will still be sufficiently potent to upgradethe quality of the untreated deliveries.Does the math bear this out? If an additivehas a recommended treat rate of 1 gallon ofadditive to 12,000 gallons of heating oil andthe service tech pours 8 ounces of chemicalinto 250 gallons of fuel, the heating oil isreceiving three times the recommended dose.If the additive package contains a dispersant,a triple overdose may shock the system, withbreak-off sludge clogging filters.Subsequently, if 170 gallons of untreatedheating oil are delivered every time the fuelin storage drops to 85 gallons and there arefour deliveries during the winter, the additivedose will be 100 percent of the recommendedtreat rate after the first delivery, 33 percentafter the second delivery, 11 percent after thethird delivery and 4 percent after the fourthdelivery. It is unlikely that the additive willbe effective at 33, 11 and 4 percent of therecommended treat rate.Myth 8: A heating oil retailer can’t beheld responsible for poor fuel quality, becauseit was already in that condition when hebought it. Fair or not, the consumer holdsthe heating oil retailer responsible for poorfuel quality. your customers don’t know whorefined, transported or terminaled the heatingoil they purchased, but they do know the nameon the truck that delivered it. Because heatingoil has been commoditized, the retailer isthe consumer’s only line of defense againstmarginal, unstable, sludge-producing fuel.And it’s not as though retailers are withoutrecourse. They can additize, at a modest cost,for the benefit of both themselves and theircustomers.Heating oil retailers often proudly proclaimthat they are full service. But is this enough?Isn’t it just as important to be full quality?It’s what your customers expect.
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44 • OIL&ENERGY WE ARE PLEASEDTO WELCOME Rhode Island members of New England Fuel Institute with competitive dental plan options,featuring:• Special group rates• Two plan options• Best-in-class account & member serviceWe look forward to administering their dental benefits to ensure good oral health. Please contact: Donna Carcerano Benefits AdministratorNew England Fuel InstitutePO Box 9137Watertown, MA 02471-9137(617) 924-1000 ext. 220 Delta Dental of Rhode IslandEIA PROJECtS FAStER ClEAN ENERGYGROWth WIth RECOVERY ACt FUNdSDespite the challenges presented by thecurrent global recession, the stimulus providedby the American recovery and reinvestmentAct (ArrA) is expected to spur energyefficiency gains and greater long-term growthin renewable energy than previously expected,according to the Department of Energy’sEnergy Information Administration (EIA).The EIA released its Annual EnergyOutlook in March, but that publicationreflected the situation in November 2008,before the full effects of the recessionwere clear and before the passage of theArrA. The EIA has now updated thepublication to include an energy outlookwithout the stimulus of the ArrA and anoutlook that accounts for the ArrA.The benefits of the ArrA directing a largeamount of funding toward energy efficiencyimprovements in homes are most obviousin heating and cooling. By 2030, energyconsumption for household heating drops by1.7 percent, while energy consumption forhousehold cooling drops by 3.4 percent.Between now and 2030, the annual householdenergy costs are projected to average$64 per year lower than without the ArrA.Total annual residential and commercialenergy bills are projected to be $21 billionlower by 2030. The ArrA also achievesa short-term advantage for cutting greenhousegas emissions, resulting in emissions thatare 1.3 percent lower in 2013 than theno-stimulus case.NFU StAtEMENt: EthANOl’S lIMItEd IMPACtON FOOd PRICESNational Farmers Union President rogerJohnson recently commented on a reportreleased by the Congressional Budget Office(CBO) on the impact of ethanol on foodprices in response to frequent claimsthat ethanol production drove up food priceslast year.“The CBO report states what we haveknown all along, America’s farmers are nota significant reason for increasing grocerystore prices. The report states that increasedethanol production caused a mere .5 and.8 percentage point increase in the price offood between April 2007 and April 2008,” hesaid. “Increased ethanol production savedconsumers $48 billion at the gas pump in2007. The food cost increase attributableto ethanol is far less—between $6.1 and$9.7 billion per year. In other words, forevery extra dollar consumers spent on food,they saved between about $5.00 and $8.00 ingasoline cost.“Despite the efforts by some to blamehigher food costs on farmers and commodityprices, it is evident this is not the case. NFUis again calling for Congress to reconvenehearings to investigate higher retail foodprices; while commodity prices have tankedsince last summer’s peak, grocery store pricesremain high.”WINd POWER INdUStRY INCREASESEMPlOYMENt BY 70 PERCENtThe U.S. wind power industry directlyemploys about 85,000 people today, a 70 percentincrease from a year ago, according to a newreport from the American Wind EnergyAssociation (AWEA).The trade association’s annual wind indus-try report found that 10 new manufacturingfacilities went online in the past year, while17 were expanded and another 30 new facilitieswere announced. The new facilities are locatedin 24 states, so the economic benefits are beingdistributed around most of the country.The U.S. market for small wind turbinesnearly doubled in 2008, as more than 10,000
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JUNE 2009 • 45 Fire Box turbines were sold, adding 19.2 megawatts(MW) of new wind power capacity.The industry is bullish on continued growth,projecting a 30-fold increase in as little asfive years, despite the economic slowdown.The United States continues to commandroughly half of the global market for smallwind turbines, and one-third of the globalmanufacturers are located here.A record 8,545 MW of wind powerwere installed in 2008, but for 2009 thegrowth is expected to drop to only 5,000 MW.The American recovery and reinvestmentAct is meant to help with that by allowingalternatives to tax credits, which lost theirappeal during the economic downturn.RGGI AUCtION PRICES FOR JUNE SEtThe 10 Northeast and Mid-Atlantic statesparticipating in the regional GreenhouseGas Initiative (rGGI) recently releasedauction details, including reserve price andnumber of allowances offered for sale for theJune 17 auction.The June auction will be the second heldsince compliance obligations under the10-state rGGI CO2 Budget Trading Programstook effect on Jan. 1, and the second to offerallowances from current (2009-2011) andfuture (2012-2014) control periods.States will offer 30.8 million current controlperiod allowances (all for the 2009 vintage)and 2.1 million allowances for the futurecontrol period (all for the 2012 vintage).The states—Connecticut, Delaware,Maine, Maryland, Massachusetts, NewHampshire, New Jersey, New york, rhodeIsland and Vermont—will continue to usea reserve price of $1.86 for all allowances.In addition to the first complianceauction in March, rGGI’ also held two“pre-compliance” auctions in the fall of 2008.In each auction, all allowances offered weresold and demand for allowances exceededsupply. Clearing prices of $3.07 in September,$3.38 in December, and $3.51 in March ledan independent market monitor to describeall auctions as “robust.”The March auction was the first to offerallowances from the second three-yearcontrol period beginning in 2012. All of2012 allowances cleared at a price of $3.05,providing a first look at future marketprices for rGGI CO2 allowances. By theend of 2009, the rGGI states will haveoffered 5 percent of the total supply of2012 allowances. Cargas Energy is a comprehensivesoftware solution for distributors ofheating oil, propane, and motor fuels. Don’t Go Another Season Without: Measurable ROILower Total Cost of OwnershipImproved ProfitabilityProven & Measurable Savings:Streamlined Delivery Operations Immediate Service Efficiencies Real-Time Mobile for Drivers Better Executive Decision Making Choose Cargas to Deliver: Visit to request a free 2 hour system review or custom demonstration of Cargas Energy! Lancaster & Pittsburgh, PA | 888.611.3138 | Operational Savings you can Measure.People and Softwareyou can Trustto deliver. Ⓡ
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46 • OIL&ENERGY REPORTING DATE: 4-30-2009 Total ActualNormalActualNormalStationAccumulationAccumulationAccumulationNext 30-DayTo DateTo DateTo This DatePeriod1-Yr. AgoCaribou, ME877189848937417Portland, ME664668416505361Concord, NH695570866771302Burlington, VT708673056692283Albany, NY635065585965240Worcester, MA625664796008278Boston, MA540153495111233Hartford/Springfield582558715429195Providence, RI548754894986221Chatham, MA542354274889357Bridgeport, CT53065258468620 Report compiled by John Bagioni, a consulting meteorologist who runs Fax-Alert Weather Service LLC, Burlington, Conn.He can be reached at: (860) 675-9091, or at: Degree Day Reporting Form thE FIRSt thING FOR EVERYONE tO REMEMBERis that the summer outlook tries to define whatthe three-month temperature average (June-July-August) will end up being. All summers,in fact all seasons, are more often than nota series of temperature pulses. The predictedend of the season average tries to determinewhether or not the cold pulses (cold periods)will out duel the warm pulses when all is saidand done, or vise versa.This year the summer forecast is goingto be highly dependent upon the expecteddevelopment of an El Nino signal and thenature of the spring rainfall pattern. We willlikely be going into the neutral phase of theequatorial Pacific signal from now into at leastearly June, before ending the summer in atleast a weak El Nino configuration. How fastthe transition into the El Nino occurs and howstrong the El Nino is by summer’s end willgreatly impact the summer forecast. I amcounting on it reaching weak status duringthe mid- and late-summer season.Based on the analogs I have looked at,a weak El Nino would eventually favor muchof the Eastern U.S. running near normal tocooler than normal for an end-of-the-summeraverage. As we move fully out of a La Ninaphase through the neutral phase between nowand late June, the pattern should favor muchof the eastern and southern thirds of thenation averaging warmer than normal.During July, the analogs suggest a coolerto much cooler-than-normal pattern woulddevelop across the Southeast, Midwest andNortheast/New England regions, whilewarmth dominates the rockies, parts ofthe far western Plains, parts of the interiorNorthwest, western and west-central Canadaand Texas. In this scenario, July would bethe coolest month for the Northeast/NewEngland regions.By August, the pattern trends would favorcooler-than-normal or near-normal tempsfor the Midwest and Northeast/New Englandregions with a shrinking of the warmthacross the rockies, but warmth possiblyexpanding into the Plains and Texas beforeoverspreading much of the Deep South.Cooler-than-normal conditions could returnto parts of the Pacific Northwest and farSouthwestern sections of the country duringthe late summer period.I do not see an overwhelming signal forexcessive heat this summer across the country.There will be a hot zone across parts of thewestern U.S., but it remains to be seen whetheror not this hot area can become truly excessive.It should also be noted that studying thespring rainfall pattern can often provide tipsas to which areas may struggle to run hotterthan normal even if the large-scale patternseems to be favoring heat. As of mid-May,rainfall totals had been running way abovenormal from parts of the Southern Plains andnortheastern Texas north and east across theMissouri Valley, the Midwest, northern partsof the Deep South and much of the Ohio andTennessee Valley areas. These areas maystruggle to run warmer than normal evenwhen a hot signal starts to show itself due tothe natural cooling impacts of evaporationfrom the wetter-than-normal surfaces. Thiswill be especially true during the early partsof the summer. If sustainable heat (more thana few days in a row) is going to occur in theseareas, it is more likely later in the summerthan early on.NORthEASt SUMMER SUMMARYJune: Warmer than average, and overallwarmest month of the summer comparedto normal.July: Cooler than normal and likely theoverall coolest month of the summer forthe Northeast.August: Near normal to slightly coolerthan normal; not as cool as July comparedto normal.The forecast does not mean hot weatherwill not occur across the Northeast thissummer. There will be hot days! June couldwell be quite hot at times, and even thoughJuly and August are predicted to averagecooler than normal, hot days will occur. It isjust that I am predicting fewer than normal hotdays, thus fewer 90 degree days than normal.Any rapid onset of the El Nino and in-crease in intensity prior to the end of thesummer might skew temperatures across theNortheast and Eastern U.S. quickly abovenormal. right now that seems unlikely, butthe intensity of the oncoming El Nino iscritical and will need weekly assessment.It’s important to look at the severe weatherpotential this summer. The expected patternseems to favor a second year of enhanced severethunderstorm activity, especially from June intoJuly. Given the likelihood that a few very warm/hot and humid air masses will come northwardinto the Northeast/New England only topushed aside by regular intrusions of coolerand drier Canadian air, some classic severeweather outbreaks are expected. Of course,severe weather outbreaks are often verylocalized. But that does not mean they cannotbe highly destructive, as noted by the deadlyNew Hampshire tornado outbreak last July. Warm thoughts The Summer Heat is Coming, But Might Not Stick Around By John Bagioni, Fax-Alert Weather Service Weather Trends
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JUNE 2009 • 47 “ Power lift your profits & lower your injuries.” See all the videos@ andcall today to place your order 1-800-697-6283 Visit our NEFI Booth 115-117 Give your business theboost it needs in thesetough times.PowerMate®saves money, time,labor and backs! Get a PowerMate® NORA AWARdEd tWOFUEl RESEARCh PROJECtSThe National Oilheat research Alliance(NOrA), through the Liquid Fuels researchCenter (LFrC), has been awarded a New yorkState Energy research and DevelopmentAuthority (NySErDA) contract for implicationsof reduced heating oil sulfur content forboiler and furnace design.There is currently strong discussionwithin the manufacturing and regulatorycommunities about reducing heating oilsulfur levels to low (500 ppm) and ultra-low(15-100 ppm) levels. These levels may presentmanufacturers with new opportunities todevelop and market very high efficiencyappliances for oil with reduced cost.U.S. manufacturers, however, generallyhave little experience with designing heatexchangers for low and ultra-low sulfur fuels.Under this project, materials considered ascandidates for high performance boilers withlow sulfur fuel, including aluminum, mildsteel, and stainless steels will be selected.rate of corrosion charts will be prepared asa function of the above conditions. This willbe a public domain research project withresults available to all manufacturers toencourage their rapid development of new highefficiency appliances. Both near-condensingand condensing conditions will be included.The second project (also through theLFrC) for which NOrA has been awardeda NySErDA contract is the self-powered, oil-fired heating systems based on photovoltaicpower. The project involves the commercialdevelopment of an oil-fired residential heatingsystem that is self-powered using thermopho-tovoltaic (TPV) generation of electric power,a small battery, low power system componentsand appropriate controls.hOME dEPOt ANNOUNCESSChOlARShIPS FOR tRAdESHVAC Excellence has announced that theHome Depot is pledging more than $300,000in scholarships to support the constructiontrades, including HVACr programs.The Home Depot Trade ScholarshipProgram is open to students currently enrolledin building and construction trades programsat colleges, trade schools, universities andapprenticeship programs.The Home Depot Trade ScholarshipProgram will recognize more than 600 studentsnationwide that are on track to graduatewithin the next 12 months with a $500 schol-arship to help offset the cost of their qualifyingtuition and related expenses.The application deadline is June 20, 2009.Scholarship winners will be announced inSeptember 2009.To apply for the scholarship and learnmore, visit and click onthe scholarship link. Industry News
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48 • OIL&ENERGY www.NewmacFurnaces.come-mail: newmac@ca.inter.net902-662-3840 (ph) 902-662-2581(fax) Local Availability NE860-882-0213PA/MD/DE/VA 800-565-3840NY585-223-5982ID/MT/WA 250-497-5332Solid Fuel & Oil Furnaces Oil Boilers Marketplace 1-800-210-1498 For links to theseadvertisers, and more,visit Fuel Oil & Propane Management Software A full featured Delivery and Service Systemtightly integrated to A/RAlso available: G/L, A/P, P/RElectronic Meter & Credit Card InterfaceData Conversions & More! Taurus Systems, Inc207-666-3167 www.taurus-systems.comEmail: Info@taurus-systems.comPO Box 201, Bowdoinham, ME 04008 Fuel DealerSystem • Degree Day Forecasting• Service Department Mgmt• Budget & Prebuy Plans• Sales/Motor Tax Reporting• Invoice/Ticket Printing• Statement Printing ...Plus Many More Features Special PricingAvailable ForEarly Birds! Software • Hardware • Service • KSI 800-221-0204 Incorporated K-SYSTEMS SUPER LOWCREDIT CARDPROCESSINGFEES800-221-0204
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JUNE 2009 • 49 Complete Accounts Receivable.Plus…Seasonal Delivery Scheduling • Ticket Printing• Route Building Service Scheduling • Service Van Routing• Contract Management Unlimited Customer Notes!The Best Support in the Industry! Hundreds and Hundreds of Usersfrom Coast To coast in theUnited States and in Canada since 1981 Are You Getting GreatSoftware Support? 800-255-5242WWW.DRMNET.COM Place Your Marketplace Ad Here! Only $140/month per 3-time order or more.Contact Oil & Energy at (978) 535-7606or fax to (978) 535-7826. Biz Tip I dEAl WIth OIl COMPANY OWNERS EVERYdAYthinking about selling their business. Onequestion comes up frequently: Do I needa valuation of the company before putting iton the market?The answer is an unequivocal, “It depends!”If the sale is due to an unexpected situation,such as a divorce, death of an owner orbreakup of a partnership, then a formalvaluation by a Certified Valuation Analyst(CVA) is warranted.But if you just want to get an idea ofa possible selling price before entertainingoffers, then paying thousands of dollars fora valuation may not be necessary. The currentvalue of a company should be determined bythe ultimate judge: the market. The true valueof a business is what the market currentlybears and what buyers are willing to pay.dEtERMINING VAlUELet me give you an example from outsidethe oil industry. I recently went in search ofa very specific toy for my young son. It wasa toy that I had enjoyed as a child. Imagine mydisappointment when I discovered that it wasno longer manufactured.Not one to be easily deterred, I fired upmy computer and went to planet’s best sourcefor “lost” toys, eBay. Within moments I wasable to locate the exact item that I was seeking,with an “asking price” of $15. However, I wasnot the only parent determined to purchasethis toy. Others had already bid up the costwell above the original $15.In the end, I triumphed in the biddingwar. But instead of paying the $15 price thatI expected, the toy carried a final price tagof $90—six times the “book” value.Why was this simple toy worth sixtimes its original price? Because the marketdetermined that $90 was the correct price atthis time. There were enough people willingto pay a premium to obtain the toy that thebook value had no meaning. The “marketvalue” was $90. Before you ask, yes, I did spendthe $90 to purchase the toy. I am havingfun with it, even if my son has already movedon to other things!The same principle applies to oil compa-nies, only on a larger scale. If you pay to havea formal valuation, you will get a very accurate“book value” of your company. Great for settlingdisputes or seeking bank financing. But if youput your business on the market for its bookvalue, you may be selling yourself short.ENtERING thE MARKEtDon’t settle for getting one or two offers.Instead, open up to a wider range of potentialbuyers. Let them compete against each otherto bid the price up. Market forces willdetermine the real value of your company.What you finally accept as a selling pricewill depend on several factors, including yourown tolerance for risk. Do you want a lumpsum check up front so that you can walk awayfrom the business cleanly and maybe even sailoff into the sunset? Be prepared to settle fora lower offer. But if you are willing to stayon, run the company for a couple of yearsand transition your customer list and sellthe company on retained gallons, you may beable to get a higher price.The value of any oil business can be cal-culated based on “book” assets both tangibleand intangible. But the real proof of valuecomes when somebody is willing to step upand open their checkbook. Should the Market decide the Value ofYour Business? By Kelly Monestime, FuelExchange LLP Don’t settle for getting one or two offers. Instead,open up to a wider range of potential buyers.Let them compete against each other to bid theprice up. Market forces will determine the realvalue of your company. Insurance Isn’t Just For You,It’s For Your Whole Family. •	Guarantee	Issue	Life	and	AD&D Insurance	up	to	$150,000	regardless of	your	company’s	size.•	One	rate	for	all	employees.•	For	example,	$50,000	of	Life and	AD&D	Insurance	would	be just $6 per week.•	Plus	$10,000	Retiree	Life	Insurance. Employers	who	participate	in	the	Trust	may	elect	to insure	owners,	proprietors,	or	partners	when	they	retire for	$10,000	life	benefits	that	do	not	reduce	due	to	age. The	owner,	proprietor,	or	partner	must	retire	on	or after	10/01/04 Join	the	hundreds	of	other	members	in NEFI’s	Group	Life	and	AD&D	Plan. For	more	information,	please	contact	Donna	Carcerano	at: Phone:	617-924-1000 Fax:	617-924-1022	or	617-924-5962This	plan	is	managed	by	Bostonian	Solutions	and	Fort Dearborn	Life	Insurance	Company
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50 • OIL&ENERGY Calendar For the industry’s most comprehensive full year calendar,log on to: 9-14Empire State Petroleum Association’s Summer Convention, Hyatt Regency Resort,Lake Tahoe, NV. 518-449-0702 • 16NORA Silver Seminar & Certification Exam (Test for Gold Available), FW Webb, Wil-liston, VT. 802-223-7750 • 19-21Pennsylvania Petroleum Marketers & Convenience Store Assn. (PPMCSA)Summer Conference, Grand Hotel, Ocean City,MD. 717-902-0210 • 28NAOHSM’s “Crossing the Generational Divide” Workshop, Hilton Hotel, Woodcliff Lakes,NJ. Phone: 888-552-0900 • 8-10National Propane Gas Association’s “Propane Days” and board of DirectorsMeeting, Washington, DC. 202-466-7200,Ext. 228 • 9“Oil Heat Cares” board of Directors Meeting, 11:00 a.m., Room 111, HynesConvention Center, Boston, MA.888-552-0900 • 9-10NEFI’s 33rd North American Heating and Energy Exposition & NEFI businessConvention, Boston, MA. 11-19NEFI Spring Energy Conference, Italy (extension trip June 19-22).617-923-5015 • 15-16“Hedging College,” 9am-3pm, Hedge Solutions, Manchester, NH. 800-709-2949• 16, 18EPA Section 608 universal Training and Certification, 2-session eveningcourse, 6-10 pm, NEFI Technical Training Center,Watertown, MA 17“Advanced Hedging College,” 9am-3pm, Hedge Solutions, Manchester, NH. 800-709-2949 • 12NORA Energy Conservation Analysis Seminar, FW Webb, Rutland, VT.802-223-7750 • 17Massachusetts Oilheat Council’s Golf Tournament, Pinehills Golf Club, Plymouth, MA.800-722-0623 • 25Carlin “u” Residential Oil Class, 8am-5pm, NEFI Technical Training Center,Watertown, MA. 617-924-1000 • 31Maine Oil Dealers Association 17th Annual J. Garrie Murray Golf Classic,Penobscot Valley Country Club, Orono, ME. 207-729-5298 • FOR MORE EVENTS, VISIT WWW.NEFI.COM/CAlENDAR 18EPA Section 608 universal Training and Certification, 7am - 3:30 pm, NEFITechnical Training Center, Watertown, MA.617-924-1000 • 18Oil Heat Council of New Hampshire’s Golf Outing and Membership Meeting,Stonebridge Country Club, Goffstown, NH.603-895-3808 • 21-23Maine Oil Dealers Association 55th Annual Convention, Harborside Resort& Marina, Bar Harbor, ME. Phone: 23-24Propane Gas Association of New England/NYPGA’s Joint Summer Conference,The Sagamore Resort, Lake George, BoltonLanding, NY. 603-544-2226 • 23bacharach Combustion Analysis, 8am - 12:00 noon, NEFI Technical TrainingCenter, Watertown, MA.617-924-1000 • 25-26Independent Connecticut Petroleum Assn. (ICPA) 59th Annual Meeting,Water’s Edge Resort & Spa, Westbrook, CT.860-613-2041 • Former NEFI director Passes Away William J. Bursaw Jr., 89, owner and president of Bursaw Oil Co. for more than 50years, died May 1, in North Andover, Mass.Bursaw was very active in industry trade associations during his career, serving asdirector of the New England Fuel Institute (NEFI), director of the Better Home HeatCouncil, president of the Massachusetts Home Heating Council and Northeast regionalvice president of the National Oil Jobbers Council.He graduated from Holten High School in Danvers and Middlebury College in 1941.Bursaw joined the Navy in 1942 and received the Navy’s Silver Star Medal for gallantryand intrepidity in action while serving as a commanding officer before his discharge asa lieutenant senior grade in 1946.After the war, Bursaw resumed management of the family oil business, which hisfather had started in 1927. The business was based in Salem, Mass., for 40 years beforerelocating to Danvers, Mass., in 1967.Bursaw raised eight children with his wife of 64 years, Patricia. Bursaw was activeon town boards, church committees, United Way, rotary International, and the PeabodyEssex Museum, and also served as a director to several local banks.He leaves his wife of 64 years, Patricia, three daughters, four sons, six grandchildren,and 11 nieces and nephews. Condolences may be sent at
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JUNE 2009 • 51 For the best in Oilheat and Residential Air Conditioning Training: TRAIN AT “THE INDUSTRY’S SCHOOL™” The New England Fuel Institute Technical Training Center The entry level course is designed to prepare each student for employment asa qualified oil heating technician; the receipt of a certificate of competency canlead to a license appropriate to the state or regional authority where the student plansto work as a professional technician.Continuing education programs are designed to accelerate understanding of newand existing energy concepts (and applications) and provide opportunity for careeradvancement within the service industry. These courses include:•	Residential	Home	Heating•	Electrical	Management	Control	Systems•	Residential	Whole	House	Air	Conditioning•	NEW!	Masters	Course	for	advanced	training	on	controls,	venting,and whole house comfort systems•	Gas	Heat	Training	for	the	Oilheat	technician Auxiliary	Courses	Include:•	Heat	Loss	Calculation	Courses•	HAZMAT	Training	Seminars Courses	held	regularly	at	our	Watertown,	Mass.	training	facility	and	affiliated	school locations	in	Rhode	Island,	New	Hampshire,	Vermont	and	Springfield,	Mass. The most fully equippedand advanced trainingfacility of its kind inthe country.Completely renovatedand specializedequipment labsAll types and models ofworking equipment as wellas the necessary testinstruments from leadingmanufacturers.Low ratio of studentsto instructors Training	Center	Licensed	ByCommonwealth	of	Massachusetts,	Dept.	of	Education The	NEFI	Technical	Training	Center	offers	both professional training for entry level heatingtechnicians and continuing education forexperienced	Oilheat	personnel.	Courses	are held	at	NEFI’s	training	center	in	Watertown, Mass.,	and	at	several	schools	throughoutNew	England. To	obtain	a	training	brochure,	email	or	phone	617-923-5019.REGISTER	ON	THE	WEB	FOR	OILHEAT	AND	AC	COURSES.Log	on	to	and	click	the	“Education”	tab. Courses are accredited by NORA NEW ENGLANDFUEL INSTITUTE EDUCATION Financial	assistance	available	on	training	courses.For	information,	visit EPA SECTION 608uNIVERSAl TRAININGAND CERTIFICATIONin Watertown, Mass.Day & Evening CoursesAvailable Starting June 16 Go towww.nefi.comfor information
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52 • OIL&ENERGY Want information from advertisers? Faster? Checkoff boxes, and FAX to 978-535-7826. Or check boxes,and mail to: Oil & Energy, 67 Foster St., Peabody, MA01960. your request will be sent to desired companiesfor response direct to you. Be sure to include yourname and address. advertiser Index Industry News ASSOCIAtIONS PItCh IdEAS FOR BIOFUEl MANdAtEThe Pennsylvania Petroleum Marketers & Convenience Store Association (PPMCSA)and the National Biodiesel Board (NBB) have begun a collaborative effort to addressissues pertaining to the biodiesel mandate being implemented by the PennsylvaniaDepartment of Agriculture. PPMCSA and the NBB participated in a call with stateAgriculture Department officials to express concerns and offer input into the developmentof the biodiesel program. State law established a requirement that every gallon of dieselsold in the state contain 2 percent biofuel on the date of implementation, currentlyslated for Jan. 1, 2010. In January, the governor certified that in-state production had metthe statutory threshold to trigger the mandate.Before the date of implementation is finalized, the department must have threepublic hearings to determine if the infrastructure is in place to provide smooth deliveryof the product. After the hearings, a report will be issued that will determine if themandate will begin as scheduled.REPORt: RGGI tRAdING VOlUMES GROW IN FIRSt qUARtER OF 2009A report released by the states participating in the regional Greenhouse Gas Initiative(rGGI) shows that the secondary market for rGGI CO2 allowances continues to mature.The report, which addresses trading in the first quarter of 2009, finds no evidence ofanti-competitive conduct and identifies increased market participation and tradingvolumes as a “sign of competitiveness and efficiency.”The report on the Secondary Market for rGGI CO2 Allowances was independentlyprepared by Potomac Economics for rGGI Inc. on behalf of the rGGI participating states.Potomac’s other key findings include the following:•	Although	first	quarter	trading	volumes	remain	“modest”	considering	the	number of allowances sold in auctions, the volume of trading on secondary market exchangeshas risen considerably—from an average of 303,000 allowances per day in December2008 to 979,000 per day in March 2009.•	Market	price	volatility	declined	significantly	from	the	last	quarter	of	2008	to	the first quarter of 2009.•	By	the	end	of	the	first	quarter	of	2009,	26	firms	held	a	significant	quantity	of	futures and options contracts on secondary market exchanges.This is a positive sign for the competitiveness of the secondary market at thisearly stage.Potomac’s conclusions were based on the analysis of data reported to the CommodityFutures Trading Commission, the Chicago Climate Futures Exchange, the New yorkMercantile Exchange and other data.“rGGI Inc. will continue to monitor the rGGI CO2 allowance market throughour independent market monitor,” said Jonathan Schrag, executive director of rGGI Inc.“We are grateful to have Potomac Economics, an experienced monitor of electricitymarkets across the region, as an independent monitor of the rGGI market, supportingeach rGGI participating state’s regulatory oversight of this young program.” Tracy and Larry Richmond of credit card processingcompany COCARD met with Tom Peters at the EmpireState Petroleum Association (ESPA) during a recent Oil HeatInstitute (OHI) meeting celebrating five years of workingtogether to reduce the fees oil and propane dealers pay toprocess credit cards. Amthor, p. 19.................................................................................... □www.amthornewengland.comAngus Energy, p. 17 ...................................................................... □ • 800-440-0472Association Block, p. 35 ................................................................ □Beckett, p. 13 .................................................................................... □ •, p. 56 ............................................................ □ • 877-251-5463Blue Cow Software, p. 48 ..............................................................□ • 888-499-2583Boston Steel & Mfg., p. 31............................................................ □ • 800-333-6970Cargas Systems, p. 45 .................................................................... □ • 888-611-3138Delta Dental, NH, VT, p. 45 ...........................................................□www.nefiinsurance.comDelta Dental, RI, p. 44 .....................................................................□www.nefiinsurance.comDestwin, p. 37 .................................................................................. □ • 877-DESTWINDR Micro, p. 49 ................................................................................ □ • 800-255-5242Energy Web Solutions, p. 39 ....................................................... □ • 866-796-7320FISC Solutions, p. 32 .......................................................................□ • 888-433-4924Global Companies LLC, p. 2, 55 ................................................. □ • 800-685-7222Gray, Gray & Gray, p. 43 ................................................................ □www.gggcpas.comGulf Oil Ltd. Partnership, p. 5 ..................................................... □ • 800-446-4853Hedge Solutions, p. 29 ................................................................. □ • 800-709-2949Irving Oil Corp., p. 41..................................................................... □ • 877-942-3600K-Systems, Inc., p. 48 ..................................................................... □ • 800-221-0204Market Line Computers, p. 48.................................................... □ • 800-210-1498NEFI, p. 3, 6, 10-11, 33, 49, 51 ..................................................... □ • 617-924-1000Newmac, p. 48 ................................................................................. □ • 888-291-0990Oil Equipment Manufacturing, p. 43 ....................................... □www.oil-equip-mfg.comPowerMate®/LP International Inc., p. 47 ................................. □www.powermate.infoRenRe Energy Advisors Ltd, p. 14 ............................................. □ • 832-592-0076Sprague, p. 9 .................................................................................... □ • 800-225-1560Total Energy Solutions, p. 15 ...................................................... □ • 877-436-9812Taurus Systems, p. 48 .................................................................... □www.taurus-systems.comUEi, p. 47 ............................................................................................ □ • 800-547-5740Wehofforms, p. 48 .......................................................................... □ • 800-221-1209
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JUNE 2009 • 53This is a recent graduate of the NEFI Basic OilheatTechnician Training program (160 hour training)who is seeking employment. TECHNICIAN POSITIONWANTED GOT TICKETS??? WE DO!We are a leading provider of Meter DeliveryTickets. Please call John for a price quote beforeyour next order.(800) 519-3691 or ONL 0609 Classifieds ClASSIFIED RATES: bIG RESPONSE — lITTlE $ $40 gets you four lines of text (approx. 25 words) for 2 issuesof Oil & Energy and 4 months on www.nefi.comPhotos are accepted at $30 additional. Additional text linesat $10. To obtain these rates, ads must be placed onlineat: regular rates not submitted online and for display clas-sifieds, call 978-535-7606. OIlHEAT INSTRuCTOR WANTED The New England Fuel Institute ( seeksa qualified individual to teach its industry standard160 hour basic oil heat technician and installationcourse. This course entails classroom as well ashands-on heating instruction using live heatingequipment and follows the industry-standardcurriculum. We seek to fill a year round positionteaching adult students from around the region. Fulltime and part time candidates are urged to apply.All classes are taught in both the classroom andin our state-of-the-art lab at our Watertown, Mas-sachusetts facility, but we also have need for in-structors willing to teach at our other locations inthe northeast.Instructor Candidates for Massachusetts classesmust have a valid Massachusetts oil burner license.Send resume and letter of interest to Bob Messia,Principal Instructor,, or mail to:Bob Messia, Principal InstructorNew England Fuel Institute20 Summer St.Watertown, MA 02472Norman Camire206 Middle StreetLeominster, MA 01453Ph: 978-840-3121Email: WEbSITE DESIGN FOR FuEl DEAlERSDon’t waste time teaching a web design firmabout the fuels business. buildswebsites for fuel dealers only. We have the experi-ence to design the perfect website for your fuelbusiness.Phone: 413-768-0051 ONL 0609 OP-TECH ENVIRONMENTAl SERVICES“Response, Service, Experience”24 hr Emergency Response, Tank Cleaning andInstallation, Sub 0609 NORTHEASTERN PETROLEUMSERVICE & SUPPLY, INC.NEW PRODUCTS AND SERVICES 2009 BOOTH 450 AT NEFI SHOW • Yearly Veeder-Root monitor certifications &upgrades.• Prep for under ground tank 3rd party inspectionprior to August 8, 2010.• Bottom tank cleaning of under and aboveground tanks.• Fillrite 275 gal. pump-out system w/ 110-Vdiaphragm pump.• FOR SALE: 1990 Int. CT466 – 5/2 100,000miles, 28 gal. 1-C TW Alum Bikini, new piping -$19,900.Urgently need listings of used alum tank trucks to sell,especially 2-C and tandems. Will visit and appraise. Jerry Mello617-522-8390 Ext. 12 NORTHEASTERN PETROLEUMSERVICE & SUPPLY, INC. 37 Brookley RoadJamaica Plain, MA 02130-3624617-522-8390 Ext. 12Fax: 617-524-1633Email: Jerrym@nepss.comWeb: NEFI SEEKS EDuCATORS – TECHNICAl AND buSINESS The New England Fuel Institute (NEFI) seekscontract educators with training content readyfor presentation to fuel marketers. We seekfuel-related and general business curriculumfor integration into our ongoing technical andnon-technical offerings. NEFI’s education andtraining offerings are given in traditionalclassroom and laboratory formats as well aswebinar and webcast formats.Interested parties are urged to contact Shane Sweet, CEO, at or (617)923-5011, with proposals or questions. Avalux Heating Oil Stability AdditiveProven to Reduce Fuel Related Service Calls byAlmost 60% • Generates Service Savings • ReducesService Tech Workload • Gives You a PowerfulMarketing ToolCall Rick or Ryan Trout at 888-584-2422. X 1109 Clean Harbors, Inc.Clean Harbors is North America’s leadingEnvironmental Services provider; 100 locationsand 4000 employees. 781-792-5000 Sub 0709 G & I Management Services, Inc.Competitive Market Survey Specialists for fueloil and propane companies across the 518-783-7661 Sub 0709 PetroProperties & Finance“Your 1st Choice in Petroleum Financing andM&A Activities” Fueling Marketers’ Success! • Adrian 203-292-3094 Sub 07-09 “Optimum Discovery”“Optimum Discovery”™, brought to you byAdvanced Fuel Solutions. For over 13 yearswe’ve been helping our customers achievetheir business goals through the thoughtfulidentification of the barriers to financial success.Our team, in concert with industry professionals,have built Premium Heating Programs; Bioheat®business strategies and improved on-road andoff-road fleet performance for the leaders in ourindustry! Let us help you identify cost containmentand marketing opportunities in preparation forthe challenges facing your business next season.Take advantage of a complimentary businessreview by calling Lou Nazzaro at (978) X 0610 WWW.GENERAlFIlTERS.COM(866) 476-5101 office • (248) 349-2366 X 1109 National biodiesel boardP.O. Box 104898Jefferson City, MO 65110-4898Toll Free: 1-866-213-3219Primary Contact: Paul NazzaroBioheat® Hotline: • X 0610 TRANS-TECH INDuSTRIES, INC.Quality aluminum truck tanks. Visit our to find a distributor andcompleted units available, or call 207-989-0100. X 0610
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54 • OIL&ENERGY The Stats page Think about It 54 • OIL&ENERGY Oil & Energy Securities Recap Distillate Stocks by PADD (Million Barrels) PRODUCTS IN STOCK: MOST RECENT WEEKS Ultra-Low Sulfur / 15 ppm and underWeek EndingDistrict 05/15/09 05/08/09 Year Ago East Coast (PADD I)19.518.813.6NEW ENGLAND2.12.11.5MID-ATLANTIC8.98.46.2SOUTH TO FLA. (PADD II)27.027.723.0Gulf Coast (PADD III)29.328.319.5Rocky Mtn. (PADD IV) Coast (PADD V) Total87.887.167.4 Low Sulfur / 15 ppm+ to 500 ppmWeek Ending District 05/15/09 05/08/09 Year Ago East Coast (PADD I) ENGLAND0.70.70.2MID-ATLANTIC3.94.11.6SOUTH TO FLA. (PADD II) Coast (PADD III) Mtn. (PADD IV) Coast (PADD V) Total20.420.718.0 CompanySymbol5/20/09 4/15/09 Change Greater than 500 ppm (0.05%) SulfurWeek EndingDistrict 05/15/09 05/08/09 Year Ago East Coast (PADD I) ENGLAND0.70.70.2MID-ATLANTIC3.94.11.6SOUTH TO FLA. (PADD II) Coast (PADD III) Mtn. (PADD IV) Coast (PADD V) Total20.420.718.0 TOTAL DISTILLATE STOCKSWeek EndingDistrict 05/15/09 05/08/09 Year Ago East Coast (PADD I)57.556.132.6NEW ENGLAND9.89.83.8MID-ATLANTIC33.032.418.1SOUTH TO FLA.14.713.810.7Midwest (PADD II)33.033.929.4Gulf Coast (PADD III)42.641.931.2Rocky Mtn. (PADD IV) Coast (PADD V)11.812.511.3U.S. Total148.1147.5107.8 Sources: Energy Information Administration, Weekly Petroleum Status Report.For information about distillate stocks, contact Diana House:202-586-9667 or by e-mail at Weather Summary Selected U.S. Cities (Population Weighted Heating Degree Days) The weather for the nation, asmeasured by population-weightedheating degree-days from July 1,2008 through May 16, 2009 hasbeen 3 percent warmer than lastyear and 1 percent cooler thannormal. CurrentNormal % Change7/1/087/1/08Currentthruthruvs.Location05/16/0905/16/09NormalBoston55345501+1%Chicago64456369+1%Hartford59686003-1%New York46514721-1%Philadelphia 45984716-3%Pittsburgh569657180%Portland68196786-3%Providence 564356340%Raleigh30813443-11%Richmond37383889-4%Washington 42004031+4% Ashland Inc.ASH27.4215.02+12.4BP-AmocoBP 48.2038.85+9.35ChevrontexacoCVX 65.7966.57-.78Conoco PhilipsCOP 46.8439.29+7.55ExxonMobilXOM70.2768.12+2.15Global PartnersGLP15.6612.55+3.11hess Corp.HES 63.9856.74+7.24lUKOIlLUKOY50.1545.31+4.84Marathon OilMRO30.8728.60+2.27National Grid PlcNGG47.4039.37+8.03OccidentalOXY64.4658.26+6.20Royal dutch Shell PlcRDSA 51.7542.35+9.40Star GasSGU3.442.99+.45SunSUN29.6427.91+1.73tesoro PetroleumTSO 17.6115.19+2.42totalTOT 56.4847.47+9.01Valero EnergyVLO22.020.89+1.11 RESEARCh IS KEY tO OIlhEAt’S FUtURE NO MAttER WhERE hOME hEAtING OIlretailers believe the industry is headed, it’sobvious that offering a single, petroleum-based fuel in an old-fashioned system willeventually cease to be a viable option. Withultra-low sulfur and biofuel mandates,new and frequently updating blends maybecome more common, requiring upgradedand compatible systems.In addition to future fuels, though, theindustry could also be moving towarda future where oil is not burned in conven-tional ways, or not even used as the onlyfuel in a system. The Freewatt system isa combined heat and power (CHP) unitcurrently available for residential use thatprovides both heat and electricity througha process called cogeneration.This method uses what would normallybe exhausted “waste heat” to produceelectricity to increase efficiency and use lessfuel. Currently available for natural gas, withplans for a propane unit, this type of out-of-the-box product may be what heating oilneeds to stay marketable in the face of climatelegislation and fluctuating fuel costs.The National Oilheat research Alliance(NOrA) has been instrumental in bringingmore efficient oil-burning technology tomarket by providing grants and support.Dr. Tom Butcher of Brookhaven NationalLaboratory, recently returned from the ISHtrade show in Europe where the technologyfor home heating is seemingly light yearsahead of the United States.He came away with many ideas for waysthat home heating with oil could be improvedto be more efficient and emit fewer pollutants,but admitted we are years away from adaptingthem. While integrated oil and solar waterheaters are already coming to the market,this is an area he expects more growth in,including oil and electricity integration.Another target of research could be inoil-fired heat pumps, which would guaranteemuch greater efficiencies than current tech-nology. Butcher cited a big initiative in Europefor heat pump adaptation as part of the attrac-tion, though he noted the high costs. Whilethe units are initially expensive, the expectedefficiencies and dual use as a heating andcooling unit could pay off quickly.These admittedly far-off projects willmost likely take years to bear fruit. Andcertainly most heating oil customers willnot be able to make such large investmentsin new technology as soon as they are avail-able. The industry must push for researchinto these possibilities, however, if it wantsto continue to offer heating oil, no matterthe blend or type of system it goes into.
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e energy to serve you. Global Companies LLC • 800 South Street • Waltham, MA 02454 • 800-685-7222 • HEATING OIL DIESEL FUEL GASOLINE KEROSENE GLOBAL provides retail distributors with direct access to our Wholesale Risk Manager,in addition to our knowledgeable bank of field representatives. Led by industry veteranBill Braunig, you can ask us for as much guidance as you judge necessary when buy-ing oil. We can explain the mechanics of prompts, futures, options and hedging toolsto protect your purchase and review your contract before you make a commitment.In today’s market, relying on the skills and expertise of a professional risk manager canprovide objective, real-time advice aimed at making your buys more attuned to yourspecific business and customer base.Taking on risk can have its rewards. Having an informative discussion with Globalbeforehand has the potential to make your transaction less risky, and thus morerewarding. We are always available to assist you. Bill BraunigWholesale Risk ManagerOffice: 800-685-7222Direct: 781-398-4318Cell: 508-769-6049Fax: 781-398-9217BBraunig@globalp.comYahoo I.M.: wlb009 HELP WITHRISK MANAGEMENT IS BUT A PHONE CALL AWAY
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