Fuel Oil News

Fuel Oil News - December 2016

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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32 DECEMBER 2016 | FUEL OIL NEWS | www.fueloilnews.com OTHER BUSINESS OPERATIONS A total of 36% of respondents reported having business opera- tions besides residential and commercial heating. Among the other lines of business they identified were: firewood, gasoline stations, convenience stores, an un-manned fueling facility, a carwash, a laundry business and a fish farm. MARKETING AND PROMOTION A total of 44% said they are involved with their associations' leg- islative initiatives. And 73% said they advertise their businesses separately from whatever funds they contribute to their associa- tions for marketing purposes. The methods and media they use independently include: marketing firms, print, radio, billboards, direct mail, and the internet, including websites, social media and Angie's List. THE FIGHT AGAINST NATURAL GAS The fight against natural gas continues, and is dramatically demonstrated in this year's survey, in which 87% of respondents report that they have lost residential oil customers to natural gas. In addition, 71% of those who responded say they regard conver- sions to natural gas as a serious threat to their business. This year, the fuel oil industry has had some wins against natu- ral gas. Most recently, Connecticut dropped its plan to expand natural gas availability in the state. Connecticut's Department of Energy and Environmental Protection announced in October that it was cancelling a request that sought proposals for natural gas resources, including liquefied natural gas, natural gas pipe- line capacity and natural gas storage. The Connecticut Energy Marketers Association had opposed the state plan. Connecticut DEEP Commissioner Robert Klee said, "While we are not select- ing projects under the natural gas RFP [request for proposals] at this time, we are taking steps to secure additional clean energy resources that address gaps in our energy infrastructure." In Massachusetts, four electric utilities withdrew peti- tions for capacity on Access Northeast, a $3 billion pipeline planned by utility companies.The plan had been opposed by the Massachusetts Energy Marketers Association. The withdrawal of the petitions came after the Massachusetts Supreme Judicial Court ruled that charging residential electricity customers to subsidize a so-called "pipeline tax" to pay for construction of pri- vate natural gas pipelines is unlawful. The ruling stemmed from a lawsuit against the pipeline plan, brought by the Conservation Law Foundation, Boston, Mass. Meanwhile, the American Energy Coalition continues to respond to messaging from the natural gas industry with radio commercials, bill inserts, data sheets, e-mail blasts, social media outreach and through its website, americanenergycoalition.com. l F O N The fight against natural gas continues, and is dramatically demonstrated in this year's survey, in which 87% of respondents report that they have lost residential oil customers to natural gas. In addition, 71% of those who responded say they regard conversions to natural gas as a serious threat to their business. TO THE QUESTION, "ARE YOU TAKING STEPS TO PREVENT CUSTOMERS FROM CONVERTING TO GAS?" 56% OF THOSE ANSWERING SAY THEY ARE DOING SO. THESE ARE SOME OF THE STEPS THEY SAY THEY ARE TAKING: Offering incentives to stay with petroleum distillates Much better service Newsletter information [and] employee training We have a retention plan and quote on the high cost of conversion and long payback cycle Marketing new, high-end efficient boilers or furnaces Free efficiency testing, mailer program We are having a detailed conversation with the customer about the benefits of and pitfalls of each fuel option based on the specific application. Many are truly better off to stay with oil heat, but gas/propane/electric may make sense in some cases. If propane is chosen it is often due to cus- tomer convenience (Multi-use, buried tank, etc., rather than efficiency concerns) Educating customers on high-efficiency oil systems and the overall freedom of choice. Historically oil has [cost] less

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