March 28, 2013 | Vol. 63, No. 06
Dear PEI Member:
Last week I received a telephone call from the trade press asking questions about E15 compatible equipment. She had been told by trade associations representing the petroleum marketing industry that there were serious equipment compatibility problems with gasoline blends above 10 percent ethanol (E10). It had been explained to her that "practically no petroleum marketer" has equipment compatible with E15. She wanted to confirm what she had been told.
I quickly replied that I didn't have those facts and figures on hand and that I assumed nobody knew for sure how many stations in the United States had E15-compatible equipment on the island and in the ground. Still, based on anecdotal information I had gathered over the past year, I concluded that the trade association executives were right: There are not too many stations currently set up to handle E15.
As soon as those words were out of my mouth, I posited that the stations being built today were outfitted with tanks, piping, valves, dispensers and hanging hardware that IS compatible with E15. She matter-of-factly remarked, "Yeah, that makes sense with all that's going on." And we moved on to talk about other ethanol-related matters.
Our conversation got me wondering if I was correct in assuming that all new stations―or rehabbed older ones―were E15 ready. So I surveyed 20 PEI members and asked them this one question: "Looking back at the last 10 gasoline refueling locations you installed―retail or commercial―how many were outfitted with 100% E15-compatible equipment."
The results of the little unscientific survey surprised me. Our 20 members responded that less than half (42 percent) of their last 10 installations were 100 percent E15-compatible. It's surprising because every piece of equipment manufactured today can be made E15-compatible and most equipment arrives from the factory E15-compatible as standard issue.
So why aren't the gasoline marketers and commercial users installing E15 compatible equipment? The top five explanations offered by our members: Denial. Cost. Short-sightedness. Anti-ethanol. Uninformed. So I'm glad I asked. I was wrong. Wasn't the first time; won't be the last.
HOUSE ENERGY COMMITTEE BEGINS REVIEW OF RFS
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"It has been more than five years since the RFS was last revised, and we now have a wealth of actual implementation experience with it," the white paper explains. "In some respects, the RFS has unfolded as expected, but in others it has not. Some implementation challenges have emerged that received little if any consideration prior to passage of the Energy Independence and Security Act of 2007. Furthermore, the overall energy landscape has changed since 2007. It is time to undertake an assessment of the RFS."
The committee compiled a list of stakeholder questions in the first white paper, and aims to address each concern with higher ethanol blends in the new report. The committee is requesting interested stakeholders to send responses to these questions by April 5, 2013.
COALITION SEEKS SUPREME COURT REVIEW OF E15 CASE
DEADLINE FOR CHARLES D. KEMP SCHOLARSHIPS IS MARCH 31
Each year the non-profit PEI Foundation awards Charles D. Kemp scholarships to deserving dependents of full-time employees of PEI member companies. Scholarship recipients are selected based on academic achievement, leadership, character, financial need and the applicant's intent to contribute to the future of the petroleum and energy handling industry. Eligible applicants must have a pre-declared major of business, engineering, distribution studies or similar degree program. The scholarships are $1,000 each and awarded to multiple deserving individuals each year.
Visit www.pei.org/foundation to download the complete scholarship guidelines and application. Deadline for completed applications is March 31.
PEI CONVENTION AT THE NACS SHOW 2013
The PEI Board of Directors will meet next month to review convention sessions proposed by the PEI Education and Convention Committee. Click to view a tentative schedule of events. More information to come as sessions and speakers are confirmed.
As of today, there are 156 PEI members exhibiting in 524 booths in the Fuel Equipment & Services area at the 2013 NACS Show. Only 59 booths remain available for purchase. Contact Bob Young to discuss exhibit opportunities at firstname.lastname@example.org or 918-236-3966.
Early convention registrants receive significant discounts. Full Early-Bird registration is $295 for members and $495 for non-members. This includes admission to education sessions, all three days of the trade show, the PEI Industry Reception and the NACS Welcome Reception. Companies that register five or more employees are eligible for group discounts.
Be ready to register and make your hotel reservations on Monday, April 1, to enjoy the greatest savings and selection of hotel options.
U.S. OIL DEMAND REMAINS WEAK
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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.