The PEI Tank Installation
Committee, which is responsible for the 2017 edition of PEI/RP100, is
composed of the following expert installers, environmental engineering
consultants, and state and federal regulators:
- Leland M. Freemen, Petroleum Solutions, Inc. (chair)
- Blake Bammer, Jones & Frank
- Carl E. Bayliss, II, B C & C LLC
- Joey Cheek, Guardian Fueling Technologies
- Ryan Haerer, U.S. Environmental Protection Agency
- Gina Jaimes, Sunoco LP
- Michael Mizicko, Western Pump, Inc.
- David J. Piercey, JD2 Environmental, Inc.
- Peter Rollo, DNREC–Tank Management Branch
- Greg Thomas, C. E. Thomas Co.
- Bill R White, D&H United Fueling Solutions, Inc.
Kevin Henderson of Kevin
Henderson Consulting served as consultant to the committee.
7-ELEVEN ACQUIRES 1,110
Seven & i Holdings, the parent company of 7-Eleven, signed an agreement on
April 6 to purchase 1,110 of Sunoco’s 1,350 convenience stores for $3.3
billion in cash. The stores, which are concentrated in Texas and along the
Eastern Seaboard, operate under the Stripes and APlus brands. As part of the
agreement, 7-Eleven agreed to buy 2.2 billion gallons of fuel annually from
Sunoco for the next 15 years. In a company press release, Sunoco also stated
its intention to sell another 200 stores by the fourth quarter of 2017.
NACS CONSUMER FUELS SURVEY RELEASED
The recently released
2017 NACS Consumer Fuels
several findings of particular interest to PEI members. Among the biggest
- Convenience stores, which sell more than 80 percent of all U.S. motor
vehicle fuel, reported a 9.2 percent decline in fuel revenue in 2016. The
decline was the result of low gas prices, which dropped from $2.44 per
gallon in 2015 to $2.17 in 2016.
- Fuel margins fell from 23.4 cents per gallon in 2015 to 23.1 cents in
2016; however, fuel volume rose 2.6 percent. As a result, gross profit on
fuel sales increased 1.6 percent.
- Convenience store customers, on average, said that gas prices would
have to increase to $3.37 per gallon (more than one dollar above present
levels) before they would drive fewer miles.
- Price remains the top factor influencing U.S. drivers’ decisions on
where to fuel. However, the number who put price first (51 percent) has
fallen 6 percent in the past two years. Convenience store food and
beverage options are becoming more important in the decision-making
- More fuel purchasers are taking the time to walk into the store—some
42 percent in 2016, a 7-point jump from two years ago. Improved food and
beverage offerings also are driving this trend.
CALIFORNIA AFFIRMS HIGHER
FUEL ECONOMY STANDARDS
On March 24, the California Air Resources Board (CARB) unanimously affirmed
fuel efficiency standards of 54.5 mpg for model year 2025 vehicles in the
state. The decision comes less than two weeks after President Trump ordered
a review of the federal Corporate Average Fuel Economy (CAFE) standards for
model year 2022-2025 vehicles.
Twelve states (Connecticut,
Delaware, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon,
Pennsylvania, Rhode Island, Vermont and Washington) and the District of
Columbia have pledged to follow the California standards. Collectively,
these states account for approximately one-third of U.S. new car sales.
CARB also reiterated its
support of zero-emission vehicles and its intent to pave the way for “new
regulations to rapidly increase the number of zero-emission vehicles
required to be sold in California after 2025."
ECONOMIC INDICATORS LOOKING
conversations with PEI distributors and manufacturers reveal lots of
optimism about the U.S. economy. Two new studies show that the country as a
whole is equally encouraged about the nation’s economic future. The highly
Consumer Confidence Index
produced by the Conference Board rose in March to its highest level since
2000, with consumers strongly optimistic about business conditions, jobs and
personal income. The
2017 First Quarter
produced by the National Association of Manufacturers showed 93.3 percent of
manufacturers are somewhat or very positive about their companies’
prospects. That number—a 20-year high—is up from 56.6 percent one year ago.
PEI MEMBER NEWS
Guardian Fueling Technologies
has acquired Alliance
Petroleum Services of Greensboro, North Carolina. The new branch will be the
11th location for Jacksonville-based Guardian. Alliance founder and managing
partner Stuart Bowen will stay with the company as branch manager.
Seneca Companies named JC Risewick as its new president. Risewick
joined Seneca as a field services representative in 2006, was promoted to
general manager of Seneca’s industrial division in 2009, was named vice
president of sales in 2013, and became chief operating officer in 2016. He
succeeds Murray Nelson, who stepped down March 31, after 16 years as
Solutions, Inc. (PSI)
has promoted Luke
Clements to regional sales manager for the Houston/Beaumont region. In his
new role, Clements will oversee sales strategies, sales targets and the
sales staff for this region.
“The [global] gas station equipment market will grow at an annual rate of 5%
during the next 5
years, according to a report from MarketResearchReports.biz. … One of the
key trends identified by the report is the growing presence of
technologically advanced fuel dispensers, while the customization of these
as per retailers’ requirements is expected to also boost the market.”—PetrolPlaza,
March 31, 2017
“The Indiana Office of Energy Development (OED) and the Indiana Corn
Marketing Council (ICC) today announced that publicly-accessible fuel
retail stations in Indiana can begin applying for a share of $122,687.29
through the fourth round of applications for the Hoosier Homegrown Fuels
(HHF) Blender Pump Program. The first three rounds provided more than
$1,358,800 in grant funding.”—AgriMarketing, April 6, 2017
“Wyoming reported the nation's highest operational compliance rates for
underground storage tanks (USTs) in fiscal year 2016, according to a
January 4 announcement from the state’s Department of Environmental Quality
(DEQ).”―Underground Storage Tank Guide, April 2017
“Mexico's retail sector is underdeveloped and fragmented, with 80
percent of fuel retailers owning from one to three stations, according to
data from Onexpo. The country counts less than 12,000 stations nationwide,
or one station for every 10,500 inhabitants, four times less than the one
per 2,600 inhabitants ratio in the US, according to energy regulator CRE.”—Argus
Media, March 30, 2017
“Gasoline demand jumped 2.2% in 2016 and is now up 5.1% over the past two
years. This marks the fourth straight year of increase. Demand per
driver edged up last year even though the vehicle fleet became more fuel
efficient.”—Lundberg Letter, March 16, 2017
“The economy is nearing ‘full employment,’ when further decreases in
the jobless rate would hike wages enough to spur a wave of inflation.”—The
Kiplinger Letter, March 3, 2017
GasDevs.com, 550 N. Central
Expressway, #2685, McKinney, TX 75070, has applied for distributor division
membership. Jaime Del Angel is managing member of the firm, which was
established in 2015. The company offers sales and distribution of petroleum
parts and equipment and represents Cim-Tek, ContiTech, EmcoWheatn, Freedom,
IRPCOinc and OPW-FC. Sponsored for PEI membership by John Register,
PerformInk, Columbia, South Carolina.
California payments and technology provider.
MagTek, 1710 Apollo Court, Seal Beach, CA 90740, has applied for affiliate
division membership. Rebecca Robinson is marketing manager for the firm,
which was established in 1972. The company’s solutions include
authenticating transaction data across the retail, financial and OEM
industries. Sponsored for PEI membership by Bob Chase, Bennett, Spring Lake,
California gasoline dispenser display provider. L&M International
Inc., 25 Deergrass, Irvine, CA 92618, has applied for affiliate division
membership. Lulu Huang is vice president of the firm, which was established
in 2015. The company sells multimedia displays for gasoline dispensers.
Sponsored for PEI membership by Zhao Miao, Accugauge, Qingdao, China.
Michigan service company. Capital Business Control, 6067 N. Vernon
St., Dearborn Heights, MI 48127, has applied for service and construction
division membership. Sal Mehdi is vice president of the firm, which was
established in 2009. The firm provides line testing and meter calibration.
Sponsored for PEI membership by Ken Neeley, ESCO, Tampa, Florida.
Ontario installation and service company. G.V. Mitchell Maintenance
Ltd., 8744 Minifie Road, RR #6, Cobourg, Ontario, K9A 4J9 Canada, has
applied for service and construction division membership. Gerry Mitchell is
president of the firm, which was established in 1983. The company installs
and upgrades equipment, repairs dispensers and provides tank removal
services. Sponsored for PEI membership by Chris Vassos, WalecoInc,
MEMBERSHIP TRANSFER REQUEST
Unified Contracting Services Inc.,
2425 N.E. 46th Ave., Des Moines, IA 50317, has requested its membership in
PEI be transferred from the service and construction division to the
distributor division. Unified Contracting Services represents Bennett,
BravoInc, ClayBailey, Cree, EmcoWheatn, FuelMaster, OPW-FC, Wayne and
Xerxes. The transfer is sponsored by Mike Sprague, DicksPtrCo, Tripoli,
Iowa, and Arthur Wentworth, Pipeco, Bettendorf, Iowa.
ADMITTED TO PEI
- Brett Vignali, Cumberland Farms, Westborough, MA (O&E)