Fuel Oil News

Fuel Oil News April 2015

The home heating oil industry has a long and proud history, and Fuel Oil News has been there supporting it since 1935. It is an industry that has faced many challenges during that time. In its 77th year, Fuel Oil News is doing more than just holding

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A s fuel oil dealers adapt to the advent of ultra-low sulfur heating oil and diesel, and the marketing of biofuel, bulk plants are adapting to those trends to keep in step with their customers. And, just as many fuel oil dealers have had to adjust to the idea of helping their customers burn less fuel— by marketing high-efficiency equipment, for example—some bulk plant operators are opting to downsize storage capacity at their sites. In other cases older bulk plants that have become out- dated are being decommissioned instead of upgraded to new standards, said Bob Ceppi, project manager for MPE, Inc., a bulk terminal developer based in Hebron, Conn. Demolition of such plants currently comprises a growing portion of his company's business, Ceppi said. Bringing existing plants into compliance with environmental regulations, and updating or expanding existing sites drive the design and construction side of his business. "We see a lot of small oil dealers who have old facilities basically shutting down—tearing down their facilities and going to bigger facilities for throughput," Ceppi said. "The bigger guys are getting bigger and the little guys are disap- pearing." Ceppi said that most facilities that are built now are designed for two or three days of supply. "Oil dealers now are buying futures in the commodity markets. They buy ahead of time. They don't do [high-volume] storage. In the old days they bought oil for 25 cents in the summer and sold it for 50 cents in the winter. Those days are over." To replenish, they run to marine terminals and fill up their tanks, Ceppi said. FUELS By Stephen Bennett Bulk plants Diversify As fuel oil dealers diversify, some bulk plant operators are doing the same 18 April 2015 | FUEl Oil NEWS | www.fueloilnews.com Some of the major renovations conducted at a bulk plant operated by Mercury Energy Distributors in Waterbury, Conn.

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