NPN

NPN Magazine May/June 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: https://read.dmtmag.com/i/131382

Contents of this Issue

Navigation

Page 6 of 27

to provide ULSD will be seriously compromised. In particular, the terminal in Arcadia, La., has been a crucial source of ULSD in the aftermath of hurricanes. With the termination of ULSD shipments by Enterprise, if emergency responders are forced to rely on rail, barge and trucking to transport ULSD into the area, emergency preparedness will be seriously compromised. The associations also expressed concern about whether alternative supply sources will be able to absorb the ULSD volume when TEPPCO abandons interstate shipments, in addition to the high costs associated with trucking product long distances, the availability of common carrier tank trucks for additional ULSD shipments, driver hours-of service limitations and other logistics challenges. n U.S. diesel car registrations increase Clean diesel car registrations increased by 24.3 percent in the U.S. from 2010 through 2012 following similar trends of double-digit diesel car sale increases throughout the country, according to new data compiled for the Diesel Technology Forum. The national registration information was compiled by R.L. Polk and Company and includes data for all types of passenger vehicles – cars, SUVs, pickup trucks and vans – in all 50 states and the District of Columbia from January 1, 2010 through December 31, 2012. "This new data of total national vehicle registrations coincides with what we've been seeing in the monthly auto sales – clean diesel and hybrid cars are showing consistent and impressive growth patterns in the U.S.," said Allen Schaeffer, the executive director of the Diesel Technology Forum. "This consistent growth in clean diesel registrations in the last three years is particularly noteworthy since it has occurred during an economic recession, the availability of an extremely large number of fuel efficient vehicles, which was topped off by some of the highest diesel fuel www.npnweb.com  n  NPN Magazine prices in U.S. history. Even in the face of these significant challenges, diesel buyers are seeing the big picture and long-term value by investing in record numbers of clean diesel cars and SUVs." Diesel car and SUV registrations increased from 640,779 in 2010 to 796,794 at the end of 2012 – a 24.34 percent increase. During this same period, hybrid car and SUV registrations increased from 1,714,966 to 2,290,903 – a 33.58 percent increase. In contrast, the total car and SUV registrations in the U.S. increased by just 2.75 percent during the same period. "When all passenger vehicle registrations are included - cars, SUVs, pickup trucks and vans – the diesels currently account for 6,658,399 vehicles while hybrids account for 2,295,500 vehicles throughout the U.S," Schaeffer said, noting that there currently are 27 diesels available in the U.S. market compared to 46 hybrids. "While total diesel vehicle registrations are slightly less than three percent in the U.S., auto analysts and market researchers virtually all agree diesel sales are going to increase significantly as the number of new diesels made in available domestically will more than double in the next two years," Schaeffer said. "Some analysts predict diesel sales will reach 10 percent of the U.S. market by 2020. "In addition, clean diesel vehicle sales are also projected to increase as the U.S. moves toward increasing fuel efficiency standards to 54.5 mpg by 2025," Schaeffer said. "Because clean diesels are 20 to 40 more efficient than gasoline engines, diesel cars and trucks will play a major role in achieving these new standards. And an interesting wild card will be the emerging market domestically and internationally of clean diesel hybrid vehicles that will achieve astounding mpg numbers." n CST Brands spins off from Valero CST Brands, Inc. which includes Corner Store and Dépanneur du Coin, announced that it spun off from Valero Energy Corporation on May 1. It enters the market as the second-largest publicly-traded fuel and convenience merchandise retailer in North America, according to the announcement. The newly independent entity, with approximately 1,900 sites in the United States and Canada, reported $13.1 billion in revenues last year as a division of Valero. "At our core, we are a retail company focused on serving customers," said Kim Bowers, CST president and CEO. "This move will allow us to benefit all the stakeholders. We will continue to grow our footprint, expand our signature food offerings, provide more opportunities for our CST Team Members and maximize profitability for shareholders. We are all extremely excited about the possibilities." CST's network of convenience stores offers a broad array of convenience merchandise, beverages, snacks and fresh food. In the U.S., CST Corner Stores sell Valero fuels. In Canada, CST is the exclusive provider of Ultramar fuels. Effective 12:01 a.m. on May 1, CST shares were distributed to Valero shareholders at a rate of one share of CST for every nine shares of Valero common stock held as of 5:00 p.m. EDT on April 19, 2013. Regular way trading of CST common stock began on May 2, 2013. CST stock will be traded on the NYSE under the ticker symbol "CST." In 2013, CST plans to build 15 new stores in the U.S., adding to its network of more than 1,032 stores throughout Texas, Louisiana, Arkansas, Oklahoma, New Mexico, Colorado, Wyoming, Arizona and California. More than half of CST's U.S. Corner Stores are located in Texas, one of the fastest-growing states in the nation. In Canada, CST sells Ultramar fuels through 848 retail sites in Quebec, the Atlantic provinces and eastern Ontario and is one of the largest retail distributors of home heating oil in Eastern Canada. The network includes 80 card MAY/JUNE 2013 7

Articles in this issue

Links on this page

Archives of this issue

view archives of NPN - NPN Magazine May/June 2013