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Managing Your Fuel Distribution Business within a Challenging and Changing Environment
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Paul Nazzaro Advanced Fuel Solution |
The ultimate goal of the petroleum supply chain, no matter what one's position within it, is to bring fuel from production to consumption with 100% customer satisfaction. While some perceive customer satisfaction as a product of low price, in reality the price of customer satisfaction is high product quality. In our industry, product quality, and thus customer satisfaction, is challenged at every stage of the supply chain. From the refining process to logistics, transportation and storage, all the way down to distribution, fuel quality is compromised by time, temperature, organic and inorganic contaminants and unintended contact with other petroleum products and blends, all of which impair the future performance of the fuel. Maintaining fuel quality and performance is further complicated by the changing makeup of the supply pool itself-not to mention the equipment it's intended to power. Increasingly stringent regulatory standards regarding sulfur content and renewable fuel levels, as well as mounting pressure on
original equipment manufacturers (OEMs) to
increase fuel efficiency and decrease carbon emissions, has widened the compatibility gap between today's equipment and fuel, placing more responsibility on fuel distributers to proactively ensure that fuel quality is maximized, consumer messaging is clear and customer satisfaction is achieved.
Fortunately, fuel distributers have a story worth sharing. As rapidly as hardware developments have been proceeding in recent years, so too has fuel additive technology. Today's advanced additives can mitigate fuel problems and optimize performance to create premium products, tailored to meet the needs of customers. Cold flow additives prevent fuel gelling to keep diesel engines and heating systems running smoothly through the winter. Detergents keep tanks and injector systems clean and free of deposits. Combustion catalysts increase fuel efficiency and decrease emissions. Lubricity agents have never been more essential to counteract the removal of sulfur (a natural lubricant) in ultra-low sulfur diesel (ULSD). Water control treatments prevent fuel degradation and other water-related issues. Biocides control microbial contamination. Biodiesel is a cleaner burning and highly marketable renewable fuel that can be blended with traditional diesel at rates that beat natural gas on environmental benefits (this is why Bioheat is emerging as a mainstream heating product in the east). In short, for a few cents more per gallon, customers can have a far cleaner, more efficient and higher performing product that will quickly pay for itself in the form of reduced consumption, fewer service calls and less down time.
Offering premium fuel can only serve as a differentiator if consumers are educated on the subject. Raising consumer awareness via website, social media, marketing brochures, traditional advertising, customer newsletters and through personal interaction are all good ways to promote the long-term benefits of superior fuel quality over the shortsighted practice of chasing price. But the most effective marketing strategy is to provide evidence that the enhanced fuel actually works. Showing customers their fuel filters, tracking efficiency measures and recording drops in maintenance issues goes a long way towards strengthening your value proposition, reconditioning your customers' take on fuel and building loyalty not only to your brand, but to our industry.
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NORA Hosts Technical Workshop
 A varied assembly of 50 industry professionals met in Newport, RI to hear about the latest in oilheat technology advances. The workshop, hosted by the National Oilheat Research Alliance (NORA) and crafted by NORA's Director of Research, Dr. Thomas Butcher, featured 21 presenters covering topics under four major categories:
Advanced Burner Concepts, ULS Heating Oil and Premium Fuels, Biofuels and Advanced Equipment.
Additionally, opening presentations were included on the
Overview of the NORA Research Agenda and two from European oilheating trade associations;
Achieving 80% Reduction in CO2 Emissions in Germany by 2050: Impact on Oilheat, by Lambert Lucks, IWO, Germany and
The Oilheat Situation in the U.K. and the Biodiesel Experience, Paul Rose, OFTEC, England.
In
Session I:
Advanced Burner Concepts, the attendees heard from four speakers that highlighted biodiesel compatibly, modulating burner heat output, vaporizing burners as well as burners that may allow the use of liquid fuels gas-fired appliances.
Session II:
Ultra Low Sufur Heating Oil( ULS) and Premium Fuels addressed the positive impact of ULS on oil burner components, the possibility that ULS may be contributing to underground tank corrosion and the labeling definition and labeling of "Premium" heating oil in the UK.
Session III:
Biofuels focused on the status of the biodiesel industry, lab experience with higher blends of biodiesel in heating oil, results of a field quality survey and an online marketer use survey regarding biodiesel and a report on the negative effect of the addition of raw vegetable oil in heating oil.
In the final session,
Session IV:
Advanced Equipment, presenters covered the new NORA tool for selling oil-fired heating equipment (FSA, see page 12 of this issue), condensing boilers, advanced venting options for competing with condensing gas technology thermal heat pumps and high efficiency tankless coil boilers.
Dr. Butcher, commenting on the proceedings said, "The workshop had a wide variety of topics and opinions. I really enjoyed the open exchange of viewpoints on important industry challenges and future pathways. It's hard not to come away with new ideas from a workshop like this. With NORA's mandate to champion and stimulate technological advancements in oilheating technology, we intend to host additional workshops in the future".
John Huber, NORA's president, summed up NORA's commitment to new technology this way, "Advancing the application of new technologies to oilheating is core to NORA's existence. These advances will surely enhance the customer experience through greater efficiency, reliability and versatility while continuing oilheat's position as an environmentally viable fuel well into the future."
The agenda and presentations from the 2016 Technicial Workshop can be found
here.
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Star Gas Offers 25% Matching Contribution to AEC
 The American Energy Coalition (AEC) announced that for the fourth straight year, Star Gas (Petro, Meenan, Champion, Griffith, Carroll and others) will match all contributions to the AEC Fall Fundraising Campaign with twenty five cents on every dollar contributed. The decision by Star Gas President and CEO Steven J. Goldman and first announced by Star Gas Vice President of Operations and AEC Vice President Neil Bianco, challenges other Retail Dealers to also support the AEC effort to promote the benefits of Oilheat and keep a check on false and misleading messaging often heard from Gas Utilities and their Trade Associations. The Star Gas Match will apply to all donations received by the AEC beginning September 1st and running thus December 15th, and the AEC thanks Steve Goldman and his Organization for their continued generosity, Industry Leadership, and especially their strong support for the AEC.
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NORA Delivers FSA Calculator 2.0
Powerful tool helps salespeople demonstrate the value of Oilheat upgrades
The National Oilheat Research Alliance (NORA) has released the new version of its
Fuel Savings Analysis Calculator, which uses test data on oil-fired boilers to demonstrate the value of equipment upgrades with consumer-friendly metrics.
The FSA Calculator 2.0 is an application for PCs, tablets and smartphones that expresses the true savings potential of new oil-fired boilers and combination heat/hot water systems. NORA Research Director Thomas A. Butcher and fellow scientists at Brookhaven National Laboratory developed the data sets that the calculator uses. A contractor can choose data for a system that closely resembles the installed system in a customer's home and compare it to one or more systems that the customer could install.
"The FSA is an important step for NORA's commitment to energy efficiency," said NORA President John Huber. "It provides a vital tool for the industry to evaluate and communicate with customers the efficiency savings from upgrades, which includes combined systems for heat and hot water, the energy use of the home and the weather where the home is."
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| Click image to get FSA 2.0 |
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FSA 2.0 is designed with a simple, clean interface in a responsive design that resizes automatically based on device type, according to John Bruno PriMedia Inc., a New York-based provider of software and marketing services that developed the FSA interface.
Also assisting in the development process were NORA Education Director John Levey; Roger Marran, of Energy Kinetics; Robert O'Brien, of Technical Heating Co.; Kevin Steele, of H.B. Steele & Son, Inc.; and Don Farrell, of the Oilheat Manufacturers Association.
To get started with the new calculator, individuals and/or companies register with NORA (individual accounts can be linked under a single company). The user indicates where they are located and the FSA 2.0 will use localized degree-day data in its calculations. Each user logs in to a dashboard where they can view the audits they have done previously and add comments to them.
Audits can be viewed in basic or advanced mode, which determines the level of detail in the displayed information. In basic view, the display offers a simple expression of how much money can be saved with each replacement equipment type in four increments: five years, 10 years, 15 years and 20 years. Users can compare up to three new equipment types at a time.
Users can prepare and revise audits using oil prices that they select. Users can also select from a variety of preloaded equipment types to find the one that best matches the customer's current equipment, or they can enter basic, easy-to-find information to profile the system. They can also adjust the location for precise degree-day data and profile the customer's house size using the number of rooms.
While providing valuable support for Oilheat equipment sales, the new FSA calculator will also assist NORA in assessing the energy savings of its programs, which is key to the industry's development and also required by the NORA statute. The FSA calculator will automatically provide this information to NORA.
The FSA calculator can help Oilheat salespeople overcome the limitations of the Annual Fuel Utilization Efficiency (AFUE) metric. AFUE is a measure of how efficient an appliance is in converting the energy in its fuel to heat over the course of a typical year, and the Federal Trade Commission requires all new furnaces or boilers to display their AFUE for the benefit of consumers. Despite its mandated use, AFUE is ineffective at measuring boiler efficiency, and ratings typically under-represent the energy-savings potential of new oil-fired boilers. Unlike AFUE, the data sets used in the FSA Calculator accurately reflect the efficiency of boilers and combination systems.
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Energtek Inc. Signs Agreement for Acquisition of HOP Energy
 Energtek Inc., a frontrunner in hi-tech natural gas solutions and Adsorbed Natural Gas (ANG) technology, announced that it has entered into an agreement and plan of merger with HOP Energy Holdings, Inc. (HOP) pursuant to which Energtek will acquire HOP for a cash purchase price of $65 million dollars. HOP is among the largest full service energy companies in the Northeast, serving about 80,000 commercial and residential customers, and presents an enviable platform from which Energtek plans to deploy its leading mobile natural gas technology in order to further its strategic goal of making natural gas available to previously unserved areas at affordable prices. The merger, which is subject to customary closing conditions, is anticipated to be completed during the fourth quarter of 2016. As of the closing, the combined group will be renamed American Mobile Power, Inc.
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Hedge Solutions hires Rachel Luc
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Hedge Solutions announced that they have hired Rachel Luc to manage client
support at the 24-year-old consulting firm. Prior to Hedge her work included one-on-one personal banking responsibilities with clients in both Vietnam and the US. She also served with a US non-profit organization as an assistant treasurer.
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Peterson
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Fujitsu General America, Inc. announces new President & COO
As of October 1, Matt Peterson will lead Fujitsu's heating and cooling business, including both split system heat pump and VRF systems, throughout North America. His responsibilities also include leadership of the company's sales, marketing, service and engineering. Peterson will also take charge of the firm's strategic planning and growth initiatives.
Tedd Rozylowicz, outgoing president, joined Fujitsu General America in 1999 and served as the company's president since 2004. During his tenure at Fujitsu he was responsible for developing Fujitsu as a market leader of both plasma televisions and ductless air conditioning products.
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OESP new Executive Director
The membership of the National Association of Oil and Energy Service Professionals (OESP) has unanimously voted to hire Jaffe Communications of Newark, NJ to serve as the new Executive Directorship, following the retirement of Judy Garber. The decision followed an extensive, year-long search for Garber's replacement, as OESP sought a multi-pronged firm that could provide all management services, as well as implementation of a comprehensive, ongoing public relations program and a strategic plan to engage and expand the membership base. Through the selection process, many of the members of OESP met with Jonathan Jaffe and Lisa Strug of Jaffe Communications, who will now be handling the day-to-day operations of OESP. Jaffe will focus on strengthening communications among the chapters and securing new revenue opportunities for the Association. Strug will focus on member services and management of the Association, as a one-stop resource for anyone with inquiries.
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New wall-mounted indoor units from Mitsubishi
Mitsubishi Electric US, Inc. Cooling & Heating Division (Mitsubishi Electric) announced its new MSZ-EF Wall-mounted Indoor Units Designer Series that provide increased flexibility in design, efficiency and personalization. The new indoor unit has a simple, sleek and low-profile design that complements any room's overall aesthetic. It is available in three colors-black, white and silver. Mitsubishi Electric's Designer EF Model is compatible with the multi-zone system connecting to an MXZ-C outdoor unit. The new design is available with Btu/h capacity units in 9,000, 12,000, 15,000, and 18,000. It also has an electrostatic anti-allergy enzyme filter that catches harmful allergens, like dust and mites, ensuring the circulated air is kept fresh. There is also a nano platinum filter that kills bacteria and deodorizes circulating air-working to control dust, mold spores, pollen, smoke, bad odors, formaldehyde, bacteria and viruses. The washable and reusable filters have an extended lifespan, helping to save money on energy usage and reduce harmful environmental impact.
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T
aco Adds Multi-Volt Zone
Sentry Zone Valves
Taco has added a new Multi-Volt Zone Sentry zone valve for use in hydronic heating and other HVAC systems such as those with fan coils and air handlers. The new mechanical valve allows one actuator to accept input voltages between 120 and 277VAC 50/60HZ. This means one valve effectively replaces approximately seven standard zone valves. Like the 24VAC version of the Zone Sentry, the Multi-Volt provides similar energy efficient characteristics-for both heating and cooling applications. The valves are available in a normally closed, or normally open configuration.
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Biofuels, Biodiesel and Bioheat®
These three terms are being heard from every quarter of the oilheating industry. Often they are used interchangeably---this is not correct. Each one has a specific meaning and knowing the difference matters. Here are very short definitions to help keep them straight. These are not meant to be technical definitions, but a usage guide.
Biofuel: a fuel derived directly from living matter. Often used as a generic term that may include various fuels such as biodiesel or ethanol. Usually considered renewable.
Biodiesel: a very specific product produced in a very specific way to meet very specific specifications. The feedstock to create biodiesel can vary and may include soy oil or tallow. Here is what the National Biodiesel Board has to say about it: "a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100,
and meeting the requirements of ASTM D6751." If not... it's not biodiesel.
Bioheat®: A registered trademarked name whose definition is a liquid fuel that is comprised of a blend of petroleum #2 distillate fuel (heating oil/diesel) and Biodiesel (see above). To meet the definition, the petroleum component must meet the ASTM D396 standard and the biodiesel component must meet the ASTM D6751 standard. If those two criteria are not met, it can not be called Bioheat®.
Remember, biodiesel is a biofuel but not all biofuels are biodiesel. Also, biodiesel is the only acceptable biofuel component in Bioheat®
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Gas Appliance Service/Timmie McElwain
Upcoming Training Sessions
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