July 8, 2013 | Vol. 63, No. 13

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In This Issue

Dear PEI Member:

The program for the 2013 PEI Convention at the NACS Show (October 12-15, Atlanta) is complete. Registration numbers are trending well ahead of previous PEI Conventions in Atlanta, the trade show sold out in record time, and an exciting lineup of speakers and topics has been arranged for PEI educational sessions.

If you have not already, we recommend that you register soon. Early bird and group registration rates, which are only available through July 31, offer savings of up to $200 per attendee. Don’t wait until the last minute. Register and reserve your hotel accommodations today.

This issue of the TulsaLetter is a preview of the PEI Convention at the NACS Show. For a detailed schedule of dates, times and descriptions for the events taking place, along with hotel and registration information visit www.pei.org/show.


General Sessions

PEI Kick-Off Breakfast and Keynote. Walter Bond takes the power of personal accountability to a whole new level. With stories rich in humor, emotion and authenticity, his specialty is helping people turn self-limiting beliefs into self-empowering strategies that are sure to deliver results. Kick your PEI Convention experience off with this eye-opening, energizing presentation. Tickets are $30.


PEI Membership Breakfast and Meeting. Start your morning with a hearty breakfast and listen to PEI President Terry Cooper and PEI Executive Vice President Bob Renkes share their take on the association and our industry. Officers for 2014 also will be elected, new directors will be installed and two amendments to the PEI Constitution and Bylaws will be considered.


10-Groups Breakfast and General Session. Michael E. Workman, Ph.D., will discuss “Who’s Making Money Today and How” by introducing effective profit-enhancing models used by other distribution and service industries; identifying products and services in our industry that can be unbundled effectively; and offering options for phasing in such processes. All those interested and eligible for 10-Group membership are welcomeand encouragedto take part.


NACS Closing General Session. Former Secretary of State Hillary Rodham Clinton will speak during the NACS Closing General Session. Secretary Clinton's presentation continues the long-standing tradition of having the world's top leaders share their insights and insider's perspective at the NACS Show.



   Sunday, October 13:

  • Economic UpdateBrian Beaulieu, CEO of the Institute for Trend Research, returns to share his insight on a broad array of economic topics. From global to regional and short- to long-term forecasts, his knowledge will leave attendees with a better understanding of what the future may bring and strategies for leveraging it to their advantage.

  • CNG Fueling Stations 101Three distinguished and diverse panelists with hands-on CNG experience will share their knowledge and individual perspectives.

    • Andy Grimmer, ANGI Energy SystemsFor more than 30 years, ANGI has been involved in the design, manufacturing and delivery of CNG fueling systems. Grimmer will discuss equipment trends and possibilities for PEI members.

    • Eric Beavers, Beavers PetroleumThis long-time PEI member company has designed, built and installed more than 70 CNG fueling stations. Beavers will discuss what they have learned and what you need to know.

    • Brian Novy, Kwik TripThis highly regarded c-store chain is embracing CNG in a big way. Come to hear why Kwik Trip believes in CNG—and why other marketers are likely to follow.

    Marcel Moreau, consultant to the PEI committee drafting RP1500: Recommended Practices for the Design, Installation, Operation and Maintenance of CNG Fueling Facilities, will moderate the panel.

  • Getting Serious About Profitability... FinallyAl Bates, Ph.D., begins this special extended session by examining profit trends for PEI members. Over the course of the session he will discuss ways to stop wasting time and energy and focus on what really drives profitleaving attendees with a roadmap for achieving a dramatic increase in their bottom-line results.

  • “What Do I Need To Do About This Safety Stuff?”―Art Sodermark, President, Platinum Engineering & Safety, Inc., brings years of experience to his interpretation of OSHA requirements and his insights on how to build a sound framework for a solid safety program.

2013 PEI Atlanta Convention Program

UNITI Trade Show 2014 In Stuttgart

Distributor Profitability Survey Deadline: July 12

House Energy Subcommittee Hears RFS Testimony

In This Issue

Save Big with Early Bird Rates

PEI and Industry News »




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    Monday, October 14:

  • Mergers & Acquisitions: Friend or Foe to the Industry?Michael Marks, managing partner, Indian River Consulting Group, will help PEI members navigate the hows and whys of today’s mergers and acquisitions landscape. Marks will describe the opportunities and pitfalls that lie ahead in our changing industry. Whatever your position and strategy, come to this intense, fast-paced program to see how you can make moneynot just on an Excel spreadsheet but in the real world.

  • Understanding the True Cost of a Service TechJoey Cheek, JMP Solutions and PEI immediate past president, is back with his session on determining the actual hourly cost of service labor. Cheek will focus on the identification and quantification of all cost components, along with adjustments for rate assumptions.

  • Women in PEIShare your thoughts and insights to what is likely to be PEI’s newest member benefit program. This will be an informal reception-like event for women in the industry to meet, mingle and discuss ideas on what a “Women in PEI” peer group might look like moving forward.

  • Healthcare Reform: What It Means for Your BusinessGene Marks, President, Marks Group PC, author and columnist, brings a straightforward presentation on how the Affordable Care Act (ACA) affects small- and medium-sized companies. Attendees will leave with a better understanding of the effects of the ACA and what steps they can take to navigate their way through this complex legislation.




This year’s schedule includes multiple opportunities to network, create new relationships and build lasting partnerships.

Young Executives Discussion Groups and Reception. All PEI members age 21 to 45 are invited to attend the YE discussion groups and reception. If you’re not already a YE member, but are interested in joining, this is an ideal opportunity to get a feel for what the group is all about and how it can help advance your future in the industry.

PEI Industry Reception. Unwind, listen to live music, and enjoy delicious food and libations in the company of fellow PEI members. The PEI Industry Reception, located at the top of the escalators as you exit the Fuel Equipment & Services section of the trade show floor, is the place to be on Monday, October 14, at 5:30.

PEI After-Hours Lounge. Held on the first two nights of Convention, the PEI After-Hours Lounge is located at the Westin Peachtree Plaza Lobby Bar, and is a great way to relax and catch up with industry peers before heading out to dinner in Atlanta.

Find Red―Find PEI. Find Red volunteers make a valuable contribution to PEI by helping guide Convention attendees to various sessions and events. This an excellent way for personnel and companies to interact with industry professionals, while receiving added exposure on Convention signage and in the Convention program. To participate contact Carletta Dension at 918-236-3962 or sign up online.


Trade Show


Last but certainly not least is the Trade Show (October 13-15). A whopping 555 booths sold out in record time this year to 173 PEI member companies. There is no better way to learn about the latest products, technologies and services in our industry than to spend time at the trade show. (Note: The complete Exhibitor Guide for the Fuel Equipment and Services area will be included in the 4Q PEI Journal, available at the Convention. If you are an exhibitor and would like to enhance your free Exhibitor Guide listing with a company logo and/or a QR code, contact Dana Roseberry at 239-542-8123 or droseberry@pei.org)

UNITI expo, a new European trade fair for the retail petroleum and fuel handling markets, will be held June 3-5, 2014, in Stuttgart, Germany. The event is organized by UNITI, the German federation for petroleum retailers. UNITI expo is billed as an "international exposition for manufacturers, distributors, installers, retailers, PMCs and commercial operators of petroleum equipment, petrol forecourt services and retail technology." UNITI expo will also host the 2014 Future of Forecourts Forum, an international conference for major petroleum retailers, oil companies, government agencies and trade associations throughout Europe. Working closely with UNITI on developing UNITI expo is com-a-tec GmbH (publishers of PetrolPlaza, an online petroleum industry portal) and McLean Communications Ltd. (organizers of erpec, an industry meeting forum). For further information visit www.uniti-expo.com

The deadline for the annual Distributor Profitability Survey has been extended to July 12. The confidential survey is your chance to benchmark your financial wellbeing to industry norms. Simply submit your balance sheet and income statement for the most recent full fiscal year and answer 13 questions. The survey questionnaire can be downloaded here.

Each participant in the survey will receive a free copy of the Distributor Profitability report. If you have any questions on any aspect of the survey, please contact Chris Bouldin at 918-236-3964 or cbouldin@pei.org.

Source North America Corporation
, Addison, Illinois, has acquired the business operations and selected assets of California-based Commercial Petroleum Equipment (CPE). All CPE facilities transitioned to Source branded facilities July 1.

U. S. Senators Debbie Stabenow (D-Mich.) and Ron Wyden (D-Ore.) on June 26 introduced the Alternative Fueled Vehicles Competitiveness and Energy Security Act of 2013, which would expand existing Department of Energy loan programs to support advanced vehicle technologies and fuel the growth of new-generation infrastructure for innovative fuels. The bill would also provide funding for manufacturers of cars, heavy-duty trucks, trains and other vehicles using natural gas, propane, electricity, biofuels and hydrogen.

The bill encourages public-private partnerships by providing technical assistance to state and local governments for alternative fuel vehicle deployment and building the related infrastructure. The bill also provides grants to community colleges and higher education institutions to establish training programs for a next-generation workforce to manufacture, install and maintain a growing alternative fueled vehicle fleet and refueling infrastructure.

The House Energy and Commerce Committee Subcommittee on Energy and Power held a hearing June 26 that featured testimony from government agencies that play a role in implementing the Renewable Fuel Standard (RFS). Witnesses included representatives from the Environmental Protection Agency (EPA), the Energy Information Administration (EIA), and the Department of Agriculture (USDA). Key takeaways include:

  • "For 2013, we expect compliance with the RFS standards through the use of RINs generated in 2013 and those generated in 2012 that are available under the regulations for use (carryover RINS) in complying with 2013 standards. In 2014, the situation could be different."―Christopher Grundler, Director of the Office of Transportation and Air Quality at EPA.
  • "Corn ethanol production increased dramatically over the past decade, from just 2 billion gallons in 2002 to almost 14 billion gallons in 2011. Driven by a combination of favorable market forces and government biofuel policies, including the RFS, the increase has spurred corn production and corn use for ethanol and has been one of the factors in the recent grain price boom and overall improvements in farm balance sheets including record farm incomes over the past few years. The rise in commodity prices over the past few years has been due to a variety of factors, such as increasing global demand, key production shortfalls due to droughts, as well as increasing energy prices, and any increase in farm prices for corn and soybeans due to increased biofuels production has likely had only a small effect on U. S. retail food prices."―Joseph Glauber, Chief Economist, USDA.
  • "The RFS program is not projected to come close to achievement of the legislated target that calls for 36 billion gallons of renewable motor fuels by 2022. Substantially increased use of biofuels can only occur if they can be used in forms other than the low-percentage blends of ethanol and biodiesel that account for nearly all of their current use. The implicit premise that cellulosic and other advanced biofuels would be available in significant quantities at reasonable costs within 5 to 10 years following adoption of the 2007 RFS targets has not been borne out."―Adam Sieminski, Administrator, EIA.  

A federal appeals court upheld a Dallas ordinance
that was designed to curb ozone pollution by allowing taxicabs powered by compressed natural gas to cut ahead of gasoline-powered cabs when picking up passengers at a municipal airport. The U.S. Court of Appeals for the Fifth Circuit found that the Clean Air Act does not preempt the local ordinance and affirms a ruling by the U.S. District Court for the Northern District of Texas.
Poet-DSM Advanced Biofuels, LLC, is ready to start construction on a plant in early 2014 that will produce 20 million gallons of cellulosic bio-ethanol annually, later ramping up to 25 million gallons a year.
Casey's General Stores, Ankeny, Iowa, sold about 10.3 million RINs from February through April at an average price of 46 cents per gallon, which added 1.3 cents per gallon to overall fuel margins.―Q4 2013 Earnings Conference Call, June 14, 2013.
According to the NACS State of the Industry Report of 2012 Data, the convenience store industry had record sales of $700.3 billion in 2012. In-store sales increased 2.2 percent to reach a record $199.3 billion and motor fuels sales increased 2.9 percent to a record $501.0 billion. Convenience store pretax profits reached a record $7.2 billion in 2012, but taken as a percent of total sales, profits only moved from 1.027 percent to 1.028 percent of total sales. 

June 30 was the deadline for oil marketing companies in India to blend 5 percent ethanol into their petroleum. Harivndersingh Bhatia, president of Vidarbha Petroleum Dealers' Association, told The Times of India that water in the storage tanks containing ethanol cannot be entirely controlled, especially during the rainy season.

VPS Convenience Store Group
, Wilmington, North Carolina, has acquired the 17-store BreadBox chain located in the greater Knoxville, Tennessee, area.
GF Convenience LLC, the parent company of the Eagle Stop convenience stores, has added 10 convenience stores through the purchase of Mertens Oil. Both companies are based in Jefferson City, Missouri.

Maryland mobile fuel purification company
. Clean Fuels Associates, Inc., 7364 Edgewood Road, Building A, Annapolis, Maryland 21403, has applied for service and construction division membership. David A. Bishop is director of business development for the firm, which was established in 1986. The company offers mobile fuel purification and installs, maintains and removes fuel storage tanks. Sponsored for PEI membership by Gisele Griffin, K&GPtrSer, Crownsville, MD. www.cleanfuelsassociates.com
Tennessee installation and service company. ProTech Services, LLC, P. O. Box 181, Cookeville, Tennessee 38503, has applied for service and construction division membership. David Montgomery is president of the firm, which was established in 2001. The company installs, removes, repairs and services petroleum equipment. Sponsored for PEI membership by Richard H. Long, RDMElec, Nebo, NC.
Washington construction and service firm. Rapid Service, Inc., 101 East Linden Street, Tacoma, Washington 98404, has applied for service and construction division membership. Ruben A. Pachco is president of the firm, which was established in 2011. The company builds new refueling sites and upgrades existing sites. Rapid Service also services and maintains refueling equipment. Sponsored for PEI membership by Paola Bravo, BravoInc, Commerce, CA.


  • Zhejiang Galaxy Machinery Manufacture Co., Ltd., Wenzhou, Zhejiang, China (mfr)
  • Penn State Fiberglass, LLC, Huntingdon, PA (S&C)
  • Ramesh Kamineni, RK Investors Group, Sunnyvale, CA (O&E)


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© 2013
Petroleum Equipment Institute
P. O. Box 2380
Tulsa, OK 74101-2380

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.