Issue link: https://read.dmtmag.com/i/668677
8 Oil Prophets J. Bart Fletcher, CAE P&CMA President Recently I had the pleasure of speaking to the Greenville Lion's Club. I was invited by P&CMA member and Past President Jim McGowin and his brother Mints. I have participated as a speaker at civic organizations over the years and always enjoy the opportunity to share what I believe to be interesting tidbits about our industry. It always amazes me how few people (both inside and outside our industry) really understand the sheer volume of product that moves through Alabama. Specifically speaking about the general public, it is also interesting to learn just how few people know how the gasoline gets to their local retail location, much less how it gets to Alabama in the first place. I thought it might be interesting to share some of the interesting facts about our industry with you. Who knows, you may need some material for use at a boring cocktail reception or you may want to speak to the civic club in your area (I am also glad to come on behalf of the Association). So here we go……… The National Association of Convenience Stores reports that there are 4,225 retail convenience stores in Alabama. Combined, these stores employ more than 63,000 Alabamians, handle more than 4.7 million transactions per day and have total annual sales that exceed $19.5 billion! Of this total sales figure, NACS reports that $4.3 billion is derived from merchandise sales; $885 million comes from food sales and the remainder from motor fuels sales. I don't know about you, but for me these figures are impressive. Consider the amount of sales tax, motor fuels tax, payroll taxes, salaries and benefits, etc… that goes along with 63,000 employees and $19.5 billion in sales. Even more shocking to many is the total amount of motor fuel sold annually in Alabama. NACS estimates this number at 4.3 billion gallons, but using hard data from the Alabama Department of Revenue we can confirm 3.3 billion gallons of TAXABLE fuel sold in 2014. Even when using the smaller of the two numbers, the result is staggering. Next time you are in a small group setting ask the random question, "How many gallons of motor fuel is sold annually in Alabama?" I would venture to guess few would set the number as high as 3.3 billion gallons. In my remarks to the Greenville Lions, I also provided information on the Colonial Pipeline, the larger of the two pipelines serving Alabama. Did you know that the Colonial Pipeline is actually two pipelines running parallel? One is 40" in diameter, the other 36". One is dedicated primarily to gasoline while the other carries distillate products. The Colonial Pipeline stretches more than 5,500 miles from Port Arthur, TX to the Port of New Jersey and delivers a daily average of 100 million gallons of gasoline, diesel fuel, aviation fuel and other refined products throughout the south and eastern United States. Products typically move through the pipeline at 5-8 mph, and the average transit time from Texas to New Jersey is 18 days. There are 15 tank farms associated with the Colonial Pipeline (most are aware of the one on I-65 in Pelham, AL) that store more than 1.2 billion gallons of fuel, enough to provide a 45-day supply for local communities. These are in addition to the terminals associated with the loading racks where P&CMA members pick up their fuel. Wow. These numbers never cease to amaze me. Our industry……….your businesses………they're impressive! The sheer magnitude of what you provide on a daily basis; how important those products are to the daily lives of all of Alabama's citizens and the volume of product and transactions, always leave the attendees at the civic clubs I am fortunate to speak to with their eyes wide and their jaws dropped. At least those who haven't fallen asleep during my presentation…………… Sincerely, J. Bart Fletcher, CAE P&CMA President PRESIDENT'S PERSPECTIVE Our Industry - Your Business