Fuel Oil News

Fuel Oil News December 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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EDITOR'S NOTE E D I T O R I A L S T A F F Editorial Office EPG Media & Specialty Information 10405 6th Ave. N., Ste 210 Plymouth, MN 55441 Publisher John Prusak 763/383-4402 jprusak@epgmediallc.com Editor Keith Reid 763/ 383-4406 kreid@epgmediallc.com Senior Contributor Stephen Bennett Columnists Charles Bursey, Sr. Shane Sweet George Lanthier List Rentals MeritDirect, Jim Scova jscova@MeritDirect.com 914/368-1012 Reprints Robin Cooper rcooper@epgmediallc.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@epgmediallc.com Central & South Rich Alden 603/899-3010 Fax: 603/899-2343 ralden@epgmediallc.com West – Ken Jordan 972/540-2122 Fax: 972/540-2127 kjordan@epgmediallc.com M A I N O F F I C E EPG Media & Specialty Information 10405 Sixth Ave N, Suite 210 Plymouth, MN 55441 C U S T O M E R S E R V I C E 845/856-2229 • Fax: 847/763-9569 customerservice@epgmediallc.com Fuel Oil News PO Box 2123, Skokie, IL 60076-7823 A s 2015 comes to a close there are certainly reasons to be optimistic. Oil prices have dropped and it looks like that is going to be more of a baseline than an exception. The production of oil from shale through the fracking process has become increasingly efficient. Further, the technology can be turned on and off easier than more conventional oil production. If the prices get too low produc- tion will be curtailed, but as soon as they start going up the needed production can be brought back online stabilizing prices. And, the good work the industry did to combat speculation in the oil markets similarly seems to be reaping some rewards, even though it was watered down somewhat in the rulemaking process. I can't help but be somewhat cautious however, because commodities can swing in strange and mysterious ways. Or maybe it's just my conditioning as a Chicago sports fan. There is already an indication that the lower oil prices have curtailed some of the extraordinary pressures that were on the industry in the past few years relative to natural gas conversions. In our Sourcebook Survey (pg. 22) natural gas was not seen as being quite as pressing a concern as it has been in past years, according to the respondents. The same forces that have made the United States a petro superpower where oil is concerned have, of course, done the same thing (and for longer) with natural gas. However, the differential has narrowed enough that unless a utility has sold (would "bought" perhaps be the better word?) legislators and regulators on the idea of subsidizing conversions in one form or another, it's going to be a much tougher sell. That also is borne out in the consumer survey conducted by Warm Thoughts Communications for NORA (pg. 28). Still, there is no call for complacency. Just because a threat is reduced does not mean that threat has been eliminated, and that holds true equally for our readers that distribute propane. The natural gas industry is a fierce competitor, and while it certainly enjoyed the luxury of a significantly favorable price differential the closing of that gap simply means that new vulnerabilities will be identified and attacked. Therefore, as I do every year about this time (and more often than that), I implore any reader that is not a member of the appropriate trade groups to join up. Beyond that become active in the organizations, and particularly in the legislative affairs process. These organizations need your help. While the dues check is certainly a part of that, your expertise, dedication and personal involvement in these activities take your support to an entirely different level. Shane Sweet talks about this in his column (pg. 20), as well. Look at it this way. With the holidays here this can be a special holiday present to your- self, the family you support, your employees and the business that you worked so hard to build and maintain. Without your support it's far too easy for the Scrooge in the state- house to take your livelihood away. On behalf of the staff here at Fuel Oil News, happy holidays and happy New Year. l F O N Keith Reid 8 DECEMBER 2015 | FUEL OIL NEWS | www.fueloilnews.com Happier Holiday

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