Tulsaletter- click here to read this in your web browser...
November 10, 2015 | Vol. 65, No. 21

respond | preferences | login | unsubscribe

In This Issue

Dear PEI Member:

A record 404 people attended Integer Research’s 8th Annual DEF Forum held recently at McCormick Place in Chicago. Here are some of the takeaways concerning diesel exhaust fluid (DEF) from the presentations and conversations at the conference and at the PEI convention held last month in Las Vegas.

  • Selective catalytic reduction (SCR) technology remains the core NOx control technology supported by DEF.
  • DEF is alive and well in North America (U.S. and Canada). DEF consumption in North America is expected to reach 522 million gallons in 2015. Industry researchers look for DEF consumption to exceed 1 billion gallons in 3-4 years. While SCR will continue to equip the majority of medium- and heavy-duty trucks in North America, the development of natural gas engines could lower these figures.
  • Robust Class 4-8 truck sales are the key driver to rising DEF consumption, with over 100,000 vehicles sold each quarter for the past five quarters. Class 4-8 sales in North America are expected to surpass the 500,000 vehicles/year mark in 2019. Over one million Class 8 power units have been delivered in North America since June 2010.   
  • Heavy-duty vehicles lead the way in terms of DEF consumption (74 percent), followed by off-highway vehicles (14 percent), marine diesel (7 percent) and locomotive diesel (4 percent). Passenger vehicle usage accounts for just a sliver of North American DEF consumption, and nobody we talked with at the conference believes that DEF will be sold to consumers at the retail pump any time soon, except at truck stops and travel plazas.
  • Business for U.S. manufacturers of DEF storage, metering and dispensing equipment continues to be strong in North America and select international markets such as China, Brazil, Argentina, Chile, Colombia, Turkey and Russia. That said, the strong dollar has hurt some international sales.
  • Prices for urea, the key substrate for DEF production, are following energy prices and are down internationally as the market becomes more competitive. Urea producer margins have weakened in 2015, despite lower input costs, as supply continues to outweigh demand in international markets.
  • Acceptance of PEI’s Recommended Practices for the Storage and Dispensing of Diesel Exhaust Fluid (PEI/RP1100) is stronger than ever following the October 2015 release (www.pei.org/rp1100) of the document’s first revision since its original publication in 2010. 
  • The International Organization for Standardization (ISO) is a non-governmental standard-setting body. The high quality urea solution AUS 32 is defined by ISO 22241 specification “Diesel engines – NOx reducing agent AUS 32.” The 2008 edition of ISO 22241 is currently being revised, with Part 1 (quality requirements) and Part 3 (handling, transportation and storage) already completed. Work on Part 4 (refilling interface) is about to begin. The status of Part 2 (testing) is not clear. Whether the documents will be released separately or after all four parts are completed is also uncertain.    
  • Many PEI distributors remain uncomfortable with selling equipment to the DEF market and continue to underserve those customers.

Diesel Exhaust Fluid

CROMPCO Acquires Quality Nozzle

Patriot Capital Acquired By State Bank






Respond to this Newsletter

by e-mail to the editor, Robert Renkes at rrenkes@pei.org

or join the discussion in the Petroleum Equipment Forum

to unsubscribe or change preferences see below.

return to top of page

Crompco LLC
, Plymouth Meeting, Pennsylvania, has acquired Quality Nozzle Co., Bethel, Connecticut. Following the acquisition, Crompco will change Quality Nozzle’s name to Quality Petro Services. Brian Ripley, vice president of marketing for Quality Nozzle, will remain with Crompco as director of customer development.
State Bank and Trust Company, a wholly owned subsidiary of State Bank Financial Corporation, announced October 20 that it had purchased the equipment finance origination platform of Patriot Capital Corporation. Chris Santy, founder and president of Patriot Capital Corporation, will join State Bank as president of the newly created Patriot Finance Division.

Chris Newton
has notified the board of directors of the Texas Food & Fuel Association of his intent to resign as president of that organization effective December 31, 2015. Newton has accepted an offer from the Texas Apartment Association to become its new executive vice president. Rick Golman, chairman of Texas Food & Fuel Association, will meet soon with the association’s members to form a transition team to guide the search for a new president.
Tait Environmental Services, Inc., Santa Ana, California, has promoted Dennis Tweedy to national accounts director. He was previously senior project manager with Tait.
The Environmental Protection Agency (EPA) has sent its final rule establishing the renewable fuel volume obligations under the Renewable Fuel Standard for 2014, 2015 and 2016 to the White House Office of Management and Budget for review. This is the final step before the rule is released. EPA is under a court-ordered deadline to issue the final rule by November 30, 2015.
World Fuel Services has purchased 100 percent of the equity securities of Pester Marketing and its wholly owned subsidiaries, Alta Fuels and Alta Transportation, which include 57 convenience stores.
CST Brands Inc. has entered into an exclusivity agreement to finalize the terms of the definite agreement for CST to acquire 100 percent of the outstanding shares of Flash Foods Inc. and certain related entities in Georgia and Florida from the Jones Co. The acquisition would include 164 convenience stores in Georgia and Florida.
Hess Corp. will pay $4.4 million to Massachusetts to settle claims related to payments the company received from a state fund established to expedite the cleanup of petroleum spills from underground storage tanks (USTs). The claims related to reimbursement obtained from the UST fund to cleanup projects at dozens of gasoline stations throughout the state. The settlement resolves an issue from the 1990s between Massachusetts and Merit Oil, a gas station operator that was later acquired by Hess.  
Flyers Energy LLC has completed the acquisition of Southern California lubricants and fuels distributor SKS Oil. The purchase included three bulk plants and 13 commercial fueling sites.
“A coalition of federal and Vermont agencies, non-profit groups, and businesses is now working to educate gas station and convenience store owners about their responsibilities under the ADA and Vermont’s Public Accommodations Act.”—The Herald of Randolph.
A La Salle County Circuit Court entered a Judgment Order against Alpine International, Inc., a dissolved Illinois corporation, for $504,000 and against Ghulam Murtaza for $52,500. The order came in response to the defendants’ failure to remove abandoned petroleum USTs at a closed gasoline station, along with other violations of the Illinois Gasoline Storage Act.
Town Star Holdings LLC has purchased five convenience stores in Florida from RaceTrac Petroleum.

Honduras distributor
. COINS, S.A., Jardines del Valle, 1 Etapa, 3 Calle, Pedro Sula, Cortes 504, Honduras has applied for distributor division membership. Alberto Diaz is CEO of the firm, which was established in 2014. COINS provides equipment and repair services for retail gasoline stations, transports and industrial facilities. The company represents BareDev, Catlow, EmcoWheatn, Flexrite, MCarderInd, Natl-Spncr and Pneumrcatr. Sponsored for PEI membership by David Fiala, FMGLLC, Maitland, FL.
Mexico distributor. Petroland S.A. de C.V., J. P. Sarte 1516-15, Monterrey, Nuevo Leon 64630, Mexico has applied for distributor division membership. Luis Carlos Gonzalez is general manager for the firm, which was established in 2014. The company supplies equipment to gasoline stations in Mexico and represents BareDev, Catlow, EmcoWheatn, Flexrite, HoseMaster, Natl-Spncr, Pneumrcatr and PtrCntmt. Sponsored for PEI membership by David Fiala, FMGLLC, Maitland, FL. www.petrolandmx.com
Surge suppression provider. Surge Suppression of Georgia Inc., P. O. Box 6057, Sandersville, Georgia 31082, has applied for affiliate division membership. Jeremy L. Garrett is sales and marketing manager for the firm, which was established in 2001. Surge Suppression of Georgia specializes in providing complete surge suppression packages for convenience stores and fleet fueling systems. Sponsored for PEI membership by Gene Pope, PopeAscs, Tampa, FL. www.ssiofgeorgia.com
Texas repair and service company. AllTex Fueling Solutions, 8500 Commerce Park Drive, Suite 108, Houston, Texas 77036, has applied for service and construction division membership. Abid Momin is purchasing manager for the firm, which was established in 2013. The company repairs equipment at service stations and convenience stores. Sponsored for PEI membership by Rod Smith, FreedomElec, Kennesaw, GA.


  • Bush Distributing LLC, Paramus, NJ (dis)
  • Comadosa, S.A. de C.V., Puebla, Mexico (dis)
  • Industrial Fuel Systems, Atlantic, IA (mfr)
  • Intermountain Truck Rebuilders, Ogden UT (aff)
  • Paul and Associates, Inc., Montclair, CA (aff)
  • Calcraft Corporation, Rialto, CA (S&C)
  • Prism Design & Construction, Wasilla, AK (S&C)
  • WCC Tank Technology, Inc., Wallkill, NY (S&C)
  • Job Olufemi Akintan, Joaks-Link, Okuta Ogun, Nigeria (O&E)
  • Roberto Lopez, V Energy, La Vega, Dominican Republic (O&E)
  • Paul Mason, Mason’s Shell, Quincy, MA (O&E)



Manage Your Subscription

This newsletter is a member benefit of the Petroleum Equipment Institute intended for %full_individual_name%. To unsubscribe by email click here or manage all your newsletter subscriptions online at www.pei.org/membersonly.

Do not reply to this message.
This newsletter is sent from an unattended mailbox.
To respond to this newsletter use these options.

PEI® and the PEI mark are registered trademarks
of the Petroleum Equipment Institute.
Copyright © 2015 All rights reserved.

return to top of page

© 2015
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.