December 10, 2012 | Vol. 62, No. 26
|Dear PEI Member:
For PEI members, 2013 will mirror 2012. Some winners, some losers and a lot in the middle. Consolidation will continue throughout all membership divisions.
Retail customers will get larger. Small and midsize fuel marketers
will consolidate at a faster pace, yielding fewer but larger,
better-capitalized marketers who will build more extensive retail networks
to secure better pricing with higher throughput. Smaller jobbers will
be squeezed while mom-and-pop operators will do what they can
with the marginal locations.
The market for fast-charging electric vehicle (EV) equipment will remain modest, with most EV drivers preferring to power up fully at home, either overnight through a Level 1 110-volt wall outlet or through a Level 2 charger installed at home, at work or in a public charging station, such as a parking garage or shopping mall. Fast-charging units will be nice to have, but not necessary.
The demand for diesel exhaust fluid (DEF) equipment will reach a new high. The orders will come from both the retail and commercial markets as the U.S. Class 8 fleet goes full steam ahead with selective catalytic reduction (SCR) technology.
Slow growth in 2013 for E15 and higher ethanol blends. Although the Renewable Fuel Standard (RFS) requires refiners to blend 13.2 billion gallons of corn-based ethanol into the nation's gasoline supply this year and 13.8 billion gallons in 2013, current RINS (Renewable identification Numbers) stockpiles will be more than adequate to cover the extra 600 million gallons needed for 2013. Based on EPA's figures, refiners will roll over at least 2 billion RINS generated this year into the 2013 compliance year. With diminished flex-fuel vehicle (FFV) penetration (CAFE credits for their sale are being phased out), a smaller motor gasoline pool for blending alcohol and cellulosic biofuels just beginning to emerge, E15 availability at the pump will remain low.
Stage II vapor recovery equipment decommissioning should begin in earnest during the second half of 2013. Steady interest from the states regarding decommissioning has been shown over the last three months and rules/procedures should be in place in most states by summer to permit stations to remove Stage II if doing so makes economic sense.
by e-mail to the editor, Robert Renkes at email@example.com
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No new federal underground tank rule next year. The federal EPA says the new rule will be out during the fall of 2013, but I wouldn't count on it until early in 2014.
FRANKLIN FUELING ACQUIRES FLEX-ING
REGISTER NOW FOR THE YOUNG EXECUTIVES WINTER CONFERENCE
Early registration (December 16 deadline) is $395 for YE members and $495 for non-members. The registration fees go up $100 per person after December 16.
The Sheraton Sand Key Resort is one of America's top ranked hotels and is located on one of the nation's top ranked beaches. Rates are $169 per night. Reservations should be made directly with the hotel at 727-593-6001. Housing reservations must be made before January 6, 2013, to assure you a room at that rate.
To register for or to obtain additional information about the 2013 Young Executives Winter Conference, visit www.pei.org/YE or contact Chris Bouldin at 918-236-3964.
PEI SERVICE RATE SURVEY
GROWTH ENERGY JOINS PEI PRIORITY CLUB
The PEI Priority Club is an exclusive category of membership within PEI. Club members commit additional resources to the organization to support ongoing programs and events. Benefits of Priority Club membership include recognition throughout the year at PEI conferences and in PEI publications, discounted advertising and sponsorship opportunities, and first choice booth selection at the PEI/NACS tradeshow. Priority Club members and their guests also attend the President's Priority Club dinner held during PEI's annual convention. For more information about PEI's Priority Club, contact Carletta Denison at firstname.lastname@example.org.
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The TulsaLetter (ISSN 0193-9467) is published two or three times each month by the Petroleum Equipment Institute. Robert N. Renkes, Executive Vice President, Editor. Opinions expressed are the opinions of the Editor. Basic circulation confined to PEI members.