NPN Magazine April 2013

National Petroleum News (NPN) has been the independent voice of the petroleum industry since 1909 as the opposition to Rockefeller’s Standard Oil. So, motor fuels marketing and retail is not just a sideline for us, it’s our core competency.

Issue link:

Contents of this Issue


Page 6 of 27

to the RFS, RINs, or ethanol use, the report found. "There is a distinct seasonal pattern to gasoline prices and crack spreads," the analysis notes, adding that "[t]he increase in gasoline prices and crack spreads during the first quarter of 2013 has been generally consistent with increases experienced in 2011 and 2012, despite the fact that conventional ethanol RIN prices averaged $0.03 during the first quarter of 2011 and $0.02 during the first quarter of 2012." Citing a Department of Energy analysis, the Informa report also notes that higher gasoline prices have stemmed from planned and unplanned refinery maintenance; the low starting level for gasoline crack spreads going into 2013; preparation for seasonal fuel specification changes; and developments in global product demand. American Fuel & Petrochemical Manufacturers (AFPM) President Charles T. Drevna issued the following statement in response to an analysis commissioned by the Renewable Fuels Association (RFA) on Renewable Identification Number (RIN) credits and the price of gasoline: "Another day, another breathless defense of an indefensible program. This study is brought to you by RFA, the same group who claims that using 40 percent of the corn crop doesn't impact corn prices and has promised that cellulosic biofuels are 'just around the corner' every year for the last decade. While continuing to select 'facts' for their story, RFA conveniently neglects to point out that ethanol prices increased about 45 cents per gallon since the beginning of the year. "Additionally, RFA's cost comparison ignores the fact that ethanol has only about two-thirds the energy content as gasoline. In fact, at today's wholesale price consumers would pay $1.04 more per gallon to drive the same distance using ethanol as they would if they used gasoline. AAA [American Automobile Association] reports that consumers filling up with E85 will pay 55 cents more than regular gasoline on an energy-adjusted basis.  n  NPN Magazine "Perhaps RFA's members would understand markets better if they had to compete rather than having the use of their product mandated." AFPM, the American Fuel & Petrochemical Manufacturers (formerly known as NPRA, the National Petrochemical & Refiners Association) is a trade association representing manufacturers of gasoline, diesel, jet fuel, other fuels and home heating oil, as well as petrochemicals. INDUSTRY ANNOUNCEMENTS n ADD Systems celebrates 40 years of success ADD Systems (Flanders, N.J.) celebrated 40 years in business on February 22, 2013. Since 1973, ADD Systems has strived to give its customers the advantage over their competition by providing them with the tools they need to make sound management decisions and run their operations with the efficiency needed to strengthen their bottom line. The company started with one employee in a one-room office and built itself into an organization of 170 employees with four offices in two countries. ADD Systems has grown from a northeastern regional customer base into a customer base of over 600 companies that span 44 states and Canada, in North America. "In 1973 we jumped on an ever-advancing wave of technological innovation, and we've ridden it ever since, relentlessly seeking innovative ways to use that technology to solve our customer's most pressing challenges. It's why our shared future is so bright," said Bruce C. Bott, president of ADD Systems. Robert Culbertson, Chief Operating Officer at ADD Systems said, "ADD System's longevity is attributable to three key things; our customers, our employees and the products that have been created by both. We thank our customers for their valuable insight and support over the past 40 years." ADD Systems is a leading provider of software for the petroleum, pro- pane, gasoline, and convenience store industries. The organization has over 40 years of industry experience, 170+ employees, and 600+ customers across the US and Canada supported from offices in Flanders N.J. (HQ), Orlando Fla., Montréal Quebec, Canada and Cranston R.I. Their software solutions include ADD Energy E3®, ADD eStore®, Atlas Reporting® Business Intelligence, RAVEN® and Pegasus® Mobile computing and SmartConnect® a Web services gateway. n Convenience store sales topped $700 billion in 2012 The convenience store industry had record sales of $700.3 billion in 2012, with in-store sales increasing 2.2% to reach a record $199.3 billion and motor fuels sales increasing 2.9% to a record $501.0 billion, according to figures released by NACS. The industry's 2012 numbers were announced at the NACS State of the Industry Summit, a two-day conference that reviews and analyzes the industry's key economic indicators. The industry's overall sales reflected real growth per store, with sales outpacing the 0.7% increase in convenience stores in 2012, according to the NACS/Nielsen Convenience Industry Store Count released in January 2012. In-store sales growth was driven by double-digit sales gains in several subcategories: alternative snacks, which include meat snacks and health, energy and protein bars (12.2%), liquor, a relatively small subcategory (11.6%), cold dispensed beverages (11.3%) and sweet snacks (10.3%). Beyond sales, convenience stores are an important part of the economy. They employed 1.84 million people and generated $171 billion in federal, state and local taxes in 2012. Overall, convenience stores sales represent 4.5%—or one out of every 22 dollars—of the entire $15.68 trillion U.S. gross domestic product. Convenience store pretax profits reached a record $7.2 billion in 2012, but taken as a percent of total sales, April 2013

Articles in this issue

Links on this page

Archives of this issue

view archives of NPN - NPN Magazine April 2013