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
Issue link: https://read.dmtmag.com/i/287367
editor's note E D I T O R I A L S T A F F Editorial Office 1030 W. Higgins Road Suite 230 Park Ridge, IL 60068 847/720-5600 Publisher John Prusak 763/383-4402 jprusak@snowgoer.com Editor Keith Reid 847/720-5615 kreid@specialtyim.com Managing Editor Nicholas Upton 763/383-4466 nupton@epgmediaLLC.com Columnists Charles Bursey, Sr. Shane Sweet George Lanthier List Rentals MeritDirect, Jim Scova jscova@MeritDirect.com 914/368-1012 Reprints Debra Welter, dwelter@SpecialtyIM.com P R O D U C T I O N Production Manager – Karen Kalinyak Art Director – Brian Snook A D v E R T I S I N g S A L E S East – Dave Campbell, Associate Publisher 413/528-8835 Cell: 413/717-1007 dcampbell@specialtyim.com Central & South Rich Alden 603/899-3010 Fax: 603/899-2343 ralden@specialtyim.com Barbara Reynolds 603/588-2086 breynolds@specialtyim.com West – Ken Jordan 972/540-2122 Fax: 972/540-2127 kjordan@specialtyim.com M A I N O F F I C E 1030 W. Higgins Road, Suite 230 Park Ridge, IL 60068 847/720-5600 • Fax: 847-720-5601 C U S T O M E R S E R v I C E 847/763-9565 • Fax: 847/763-9569 Fuel Oil News PO Box 2123, Skokie, IL 60076-7823 Don't let Washington get you down t his month there is a bit of a focus on Bioheat © . For starters, there's a useful article provided by the Renewable Energy Group on managing RINs. There have been a number of concerns in recent years relative to fraud and volatil- ity in the RIN market, and the process itself can be complicated. This article provides an overview on how a business interested in embracing biofuels can best handle the RINs, and also decide if they want to be a blending entity or accept blended product from the supplier. In another piece, Michael Devine, one of the early leaders in the industry's adoption of biofuel, offers a call to action in his article "Biodiesel's Added Value" on page 29. It's a thoughtful piece that addresses the changing climate in Washington relative to some of the supports biofuels have received in the past. While there is hope in the industry that the renewable fuel volume obligations will be ramped back up and that the tax credits will return—nothing is certain. As he notes, it's been too easy to focus on the previous cost advantages of the product, and not on some of the major marketing points that were really the initial drivers of it becoming an important part of the industry. It's generally true that to the consumer the primary driver behind "green" solutions settles out with the green associated with the dollar. It's easy for a consumer to wish for green environmental outcomes, but that tends to go away when those outcomes have a notable cost. Fortunately, the heating oil industry is at least somewhat resistant to a cost increase in the biodiesel component. Unfortunately, the same cannot be said for the biodiesel industry itself, or at least the smaller or less efficient producers. Current Bioheat © mixtures at a 2% or 5% level should not radically impact a con- sumer's bill, particularly given the current cost of the majority, petroleum component. As the industry moves on to a 20%—B 20—future it will likely become somewhat more of an issue if you take for granted that the tax supports are gone for good. That is certainly not assured. And, of course, RINs still supply a notable amount of price support. As Devine points out, If you move beyond price the message to consumers and legislators in is still a very positive one. Biodiesel, combined with ultra-low sulfur diesel, can create a product that is not just environmentally friendly, but cleaner burning than natural gas which has long campaigned on its environmental qualities. Fortunately, the heating oil industry is centered in the Northeast and the Northwest, where the environmental message is well received. In fact, it would be hard to find a part of the country better suited to this message with the exception of California, which unfortunately for the industry suffers from nearly perfect weather year round. A great many consumers will respond positively to the green message associated with this fuel, and positively to companies that brand themselves around offering that fuel. And as noted, the cost hit should not be extreme. A second message that markets well is the domestic fuels angle. Of course, we are now flush with more conventional, domestic petroleum fuels. But for a long time the message has been one of "all of the above" and biofuels are still seen as fitting into that picture. A gallon of biodiesel is a gallon that has been produced by U.S. workers all the way through the supply and production chain. Keith Reid 8 APRIL 2014 | FUEL OIL NEWS | www.fueloilnews.com l F o n Membership applied for January 2014