Dear PEI Member:
Each week in the fuel
handling equipment industry brings lots of reports, announcements, and
predictions about U.S. vehicle fuels. Many turn out to be agenda-driven puff
pieces or speculation with no data behind them.
But a few
of the stories represent real developments with a direct bearing on PEI
members’ businesses. Five such developments emerged in the past two weeks —
two on electric vehicles (EVs), two on E15 and one on ultra-low sulfur
diesel (ULSD). Here’s a quick summary of each — and why they matter.
- Vehicle Fuel Costs.
The U.S. Energy Information Administration (EIA) reported Nov. 25 that EVs’
estimated annual fuel costs were the lowest of all 2019 model year
- All-electric: $500 to $900
- Plug-in hybrid electric: $600 to $1,950
- Hybrid electric: $650 to $2,500
- Gasoline: $1,000 to $4,100
- Diesel: $1,150 to $2,250
The estimates, which considered both city and highway
driving, are based on 15,000 annual miles and fuel prices of $2.55 per
gallon for regular gasoline, $3 per gallon for premium, $2.85 per gallon for
diesel and $0.13 per kilowatt-hour for electric.
Why This Matters: Sooner or
later, EVs will achieve purchase price parity with liquid-fueled vehicles.
When that day arrives, consumers will begin to weigh second-tier factors
such as vehicle fuel costs in their purchasing decisions. The EIA data shows
EVs score well on that variable.
Tesla Cybertruck. During its Nov. 21 unveiling,
the Tesla Cybertruck’s supposedly unbreakable window glass shattered
twice. Online commentators mocked the pickup’s boxy, angular design. And
when Tesla claimed victory in a tug-of-war demo with a Ford F150, some
experts said the outcome was more about physics than vehicle towing power.
Even so, within days of the launch, 250,000 consumers put
down a $100 deposit to preorder a Cybertruck.
Why This Matters. Nearly a
year remains before the Cybertruck’s release date. Tesla has time to fix the
glass and fine-tune other vehicle features. However, the extent to which
Ford, Chevy and Dodge truck owners will transfer their loyalty to Tesla
remains an open question. Those 250,000 Cybertruck preorders are less than
half of the 518,000 preorders Tesla gained for its Model 3 sedan — and the
Model 3 required a $2,500 down payment.
York Approves E15. The New York Department of
Agriculture and Markets on Nov. 15 approved the sale of E15 in the state.
The department had rejected E15 sales in 2016.
Why This Matters. Only a
handful of states have not yet approved E15. Some of the holdouts, including
California, might follow New York’s lead, giving a boost to E15 sales and
fueling infrastructure upgrades.
2020 Model Year Vehicles Support E15. The
Renewable Fuels Association’s annual vehicle fuel survey showed that E15
is approved for use in 97% of all 2020 model year light duty vehicles.
That’s up from 93% of 2019 models.
Why This Matters. Any
lingering concerns about E15 misfueling likely will disappear within the
next few years. As a result, UST owners and operators will have greater
incentive to ensure their fueling infrastructure is E15 compatible.
Pemex Challenges Mexico’s ULSD Mandate. Earlier
this year, a Mexico district court temporarily suspended enforcement of
the country’s nationwide ULSD mandate. Recently released court documents
show Pemex, Mexico’s national oil company, is now seeking to stay
Why This Matters. Enforcement
of Mexico’s ULSD mandate might lead to UST system maintenance problems
similar to those U.S. owners and operators have faced since 2007, the year
ULSD was introduced in the U.S.
Five Fuel Stories That Matter
Wisconsin Allows One-Hose E15 Dispensing
Registration, Sponsorships Open for Purchasing & Inventory Conference
Data Standards for UST Systems?
Respond to this Newsletter
e-mail to the editor, Rick Long at
join the discussion in the Petroleum Equipment Forums
WISCONSIN TO ALLOW ONE-HOSE E15 DISPENSING
Wisconsin Gov. Tony Evers signed legislation Nov. 25 allowing fuel retailers
in the state to offer E15 and E10 through a single fuel hose. Under previous
state law, dispensers installed after Feb. 1, 2009, had to use separate
fueling nozzles and hoses for E10 and E15. In practice, this kept many
Wisconsin retailers from offering higher level ethanol blends.
new law, stations that dispense E10 and E15 through a single hose must
maintain at least one dedicated E10 (or pure gasoline) dispenser.
REGISTRATION OPENS FOR PEI PURCHASING & INVENTORY CONFERENCE
Register now for PEI’s
2020 Purchasing & Inventory Conference,
April 1-3 at the Courtyard Marriott San Antonio Riverwalk. Early bird
registration through Feb. 28 is $325 for PEI members and $595 for
nonmembers. Rates will increase March 1 to $425 for members and $745 for
conference offers a combination of inventory roundtable discussions, general
sessions and networking opportunities. Speaker Randy Disharoon, a certified
nuclear engineer at age 23, led officer training courses for the Navy by age
25. Two years later, he entered the private sector, focusing on operations
and technical sales at a distribution and manufacturing company.
Purchasing & Inventory Managers Conference sponsorships provide
cost-effective ways for PEI member companies to reach key buyers, managers
and influencers. Members already committed to sponsoring the event include
RDM Industrial Electronics, Husky Corp. and Freedom Electronics.
more, register and reserve your hotel room
here. For details on available
click here or
contact PEI Advertising Director Tom Leibrandt at
firstname.lastname@example.org or 918-236-3962.
STANDARDS FOR UST SYSTEMS
In response to the industry’s increasing adoption of online databases,
mobile inspection apps and remote equipment monitoring, PEI is participating
Conexxus effort to develop a digital
data standard for underground storage tank (UST) equipment. The proposed
standard would normalize how data is structured and managed so fuel
marketers, service contractors and regulators can better track and analyze
equipment registrations, testing, inspection and other UST measurements.
invites interested members to review and comment on the preliminary
structure and plan for the equipment to be included in the standard (tanks,
lines and line leak detectors, sensors, dispensers and tank monitors). To
learn more or participate in this effort, contact Scott Boorse at email@example.com
by Dec. 20. Conexxus plans to release the standard in the third quarter of
Hockman-Lewis Ltd. named Ravi Kumar Ramamurthy
regional sales director-MEA. Kumar has years of technical and sales
experience in the petroleum equipment industry.
Petroleum Parts Inc. (PPI) appointed Scott Beam vice president of new
business development. Beam earned a bachelor’s degree from Purdue University
and a master’s from Indiana Wesleyan University. He has more than 30 years
Unified Services of Texas, Inc. (UST) acquired the assets and
personnel of Lawrence, Kansas-based KRK Petroleum Engineering Solutions LLC.
The KRK team will relocate to UST’s Olathe, Kansas office and operate as
UST’s Compliance & Services division. Kevin Polian, the previous
owner of KRK, will lead the division.
“The Oklahoma Department of Environmental Quality (DEQ) is very pleased to
announce that the ChargeOK grant program has issued awards
for $1,453,933 to install 55 electric vehicle (EV) charging stations across
Oklahoma. A second round of awards will be announced in the future.” —
Oklahoma Department of Environmental Quality, Nov. 14
“According to the Federal Highway Administration, the average fuel
economy for all light vehicles on the road today is 22.3 miles per gallon
(mpg) and the average annual miles driven is 11,484 miles. The Federal
tax on gasoline is 18.4 cents per gallon, and each state has a gasoline tax,
ranging from 8.95 cents in Alaska to 58.7 cents in Pennsylvania. ... Based
on average mpg and miles driven, a person owning a gasoline vehicle pays
between $141 and $398 in fuel taxes each year, depending upon the state in
which the fuel is purchased.” — DOE Vehicle Technologies Office, Dec. 2
“Parkland Fuel Corp. has rolled out a 94-octane gasoline in Canada.
The company opened its third-quarter earnings call showing off its first
Chevron-branded company gas station in Calgary, Alberta. … OPIS has learned
that the fuel is marketed as ‘Supreme Plus’ and is dispensed out of a
separate nozzle from multi product dispensers that also carry a 91-octane
‘Supreme’ gasoline, an 89-octane ‘Plus’ gasoline, and 87-octane regular
gasoline. The Supreme Plus is ethanol-free.” — Oil Express Alert,
Colorado consulting firm. Palmetto Environmental
Group LLC, 4995 York Street, Denver, CO 80216, applied for affiliate
division membership. John Drafts is senior geologist/principal member for
the company, which was established in 2003. Palmetto Environmental Group
provides environmental compliance, testing, consulting and remediation at
petroleum storage and dispensing facilities, as well as Phase I/II ESAs,
SPCC plan inspections, AST integrity testing and UST removal services.
Sponsored for PEI membership by Craig Hoyer, Kubat Equipment & Service Co.,
Pennsylvania service company.
Cribbs & Associates Inc., PO Box 44, Delmont, PA 15626, applied for
affiliate division membership. Gary Cribbs is president of the firm, which
was established in 2004. Cribbs & Associates performs installation and
removal of UST systems in Pennsylvania. Sponsored for PEI membership by
William Brandenstein, Steel City Fueling Systems Inc., Pittsburgh,
storage tank company. Maestranza e Ingenieria lo
Espejo, Av. La Divisa 0649, San Bernado, Santiago 8060027, Chile, has
applied for affiliate division membership. Christopher Ward is sales manager
for the company, which was established in 1955. Maestranza e Ingenieria lo
Espejo makes jacketed underground storage tanks and aboveground storage
tanks. Sponsored for PEI membership by Andres Magini, Ingenieria y Proyectos
W3G S.p.A., El Bosque, Chile.
Dark Horse Enterprises Inc., Pasadena, Maryland (service and
DDS Environmental, Inc., San Dimas, California (service and
LoneStar Fueling, Katy, Texas (service and construction)
Optimal Tank Solutions, Huntingtown, Maryland (service and
Relevant Fuel Solutions, Houston, Texas (service and construction)
Moreau Services LLC, Harvey, Louisiana (distributor)
International Drying Corp., Prairie Grove, Illinois (manufacturer)
Sound Payments, St. Petersburg, Florida (manufacturer)
Brian Decker, SC Fuels, Orange, California (operations and