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PMAA's weekly update on important national industry issues.

 
PMAA's Weekly Review - September 12, 2014  [WR-14-36]

 

 

In This Issue:
 

ALMOST 18 YEARS OF NO GLOBAL WARMING

 

EIA’S 2014 GASOLINE USE FORECAST RELEASED

 

HOUSE HEARING EXAMINES DOMESTIC OIL SHIPPING CAPACITY

 

FMCSA TO STUDY LINK BETWEEN CDL DRIVER PAY AND UNSAFE DRIVING HABITS

 

BUY TICKETS FOR A CHANCE TO OWN AN iPAD AIR

 

FINAL CALL: NACS SHOW 2014 SET FOR OCTOBER 7-10

 

PMAA PARTNER SPOTLIGHT FEATURING: MERIDIAN ASSOCIATES, INC.

 

PMAA MEMBER SERVICES SPOTLIGHT FEATURING: STAPLES ADVANTAGE®
 

 
 

 
 

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Telephone:
703-351-8000

Petroleum Marketers Association of America

(PMAA)

1901 North Fort Myer Drive

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Arlington, Virginia 22209

ALMOST 18 YEARS OF NO GLOBAL WARMING

The Daily Caller is reporting “the numbers are in and the verdict is that there has been no global warming for 17 years and 11 months, according to satellite data. Satellite data prepared by Lord Christopher Monckton shows there has been no warming trend from October 1996 through August 2014 — 215 months. To put this in perspective, kids graduating from high school this year have not lived through any global warming in their lifetimes. According to Monckton — the third Viscount Monckton of Brenchley and a former policy adviser to U.K. Prime Minister Margaret Thatcher — the rate of warming has been half of what climate scientists initially predicted in the early 1990s. The United Nations Intergovernmental Panel on Climate Change (IPCC) first predicted in 1990 that global temperatures would rise at a rate of 2.8 degrees Celsius per century. But the temperature rise since the IPCC’s prediction has only been at a rate of 1.4 degrees Celsius per century.”    

EIA’S 2014 GASOLINE USE FORECAST RELEASED

On Wednesday, the Energy Information Administration’s (EIA) latest Short-Term Energy Outlook (STEO) expects 2014 gasoline consumption to be 135.2 billion gallons. This includes the volumes of ethanol contained in all gasoline-ethanol blends including both E10 and higher blends. STEO forecasts future gasoline consumption by analyzing a number of factors including gasoline prices, economic and employment trends, weather, demographics, changes in consumer behavior patterns and new data on actual consumption. EPA uses STEO data to determine RFS blending volumes each year.

EPA Administrator Gina McCarthy said last week that the long-delayed 2014 RFS blending volume requirements final rule will be higher than what was proposed in late 2013 in which she indicated the ethanol numbers will go up to reflect the increase in gasoline sales volume. However, she did not indicate the exact amount. This week’s EIA STEO report all but assures a future slight increase in the final 2014 RFS corn-based ethanol blending numbers.

The 2014 RFS proposed rule has been sent to the Office of Management and Budget (OMB) for final review. It is unclear when EPA will issue the final rule.

HOUSE HEARING EXAMINES DOMESTIC OIL SHIPPING CAPACITY

This week, the House Transportation and Infrastructure Subcommittee on Coast Guard and Maritime Transportation held a hearing to examine the current status of the American domestic maritime industry, specifically, its shipping companies, ship construction, repair yards and its workforce. Testifying before the Committee were Mark Tabbutt, chairman of Saltchuk Resources; Niels Johnsen, chairman and CEO of the International Shipholding Corporation; Don Marcus, president of Masters, Mates and Pilots; and Matthew Paxton, president of the Shipbuilders Council of America.

Mr. Tabbutt highlighted the rapid growth of shale oil across much of the U.S. which has driven record levels of new vessel construction at American shipyards. Tabbutt said there are 22 new large tankers and articulated tug-barges under contract which will add approximately 6.4 million barrels of new capacity while inland barges reached an all-time high with 336 new vessels delivered, totaling more than 8.2 million barrels of capacity. Mr. Paxton echoed those comments saying that industry is currently building out 19 large petroleum product carriers with 341 tank barges delivered in 2013, up over 250 in 2012.

While this is welcome news, U.S. shipping rates continue to remain higher compared to foreign-flag rates. Additionally, there still is not enough U.S. shipping capacity to alleviate the Gulf Coast oil supply glut due to the 94-year-old Jones Act which only allows U.S. flagged and manned vessels to ship crude and refined product between U.S. ports. The Congressional Research Service (CRS) reported recently that the majority of U.S. refineries are located near navigable waters to take advantage of both oil imports and exports. However, for refineries switching from imported to domestic crude oil, the advantage diminishes considerably due to the Jones Act. The CRS Report also said that Texas oil is moving to refineries in Eastern Canada and bypassing U.S. Mid-Atlantic refineries due to the higher cost of Jones Act compliant ships.

PMAA supports efforts to reform the Jones Act to alleviate the Gulf Coast supply glut which will bring cheaper motor fuels and heating oil prices to consumers.
  

FMCSA TO STUDY LINK BETWEEN CDL DRIVER PAY AND UNSAFE DRIVING HABITS

The U.S. DOT’s Federal Motor Carrier Safety Administration (FMCSA) is undertaking a new study on CDL driver compensation and unsafe driving habits. The primary purpose of the study is to analyze the possible unintended safety consequences of the various methods of driver compensation. Compensation methods that will be scrutinized include salary, hourly, truckload and per mile.

In addition to the primary purpose of the study, a number of other potential variables that may lead to unsafe driving will be assessed. These variables include: type of commercial motor vehicle operation (long-haul, short-haul, or line-haul); size of carrier (very small, small, medium or large); whether for-hire, private, or owner operated and whether the carrier can be characterized as a truckload, less- than-truckload, regional, tanker, or other type of carrier; average length of haul, primary commodities carried; number of regular full-time drivers the carrier employs; average driving experience, in years, of drivers working for the companies included in the sample. The data collected in the study will be used to determine if these variables also contribute to unintended safety consequences. Unintended safety consequences include driver out-of- service rates, vehicle out-of-service rates, and crash rates.

The study will be conducted using an online questionnaire. Randomly selected motor carriers will be notified by letter from the FMCSA that explains the study and elicits their participation. Participation is voluntary. Participants will receive an email directing them to a Web site to complete the online questionnaire. FMCSA says the study will assist motor carriers in making informed decisions regarding driver compensation as it relates to safe driving performance.

The results of the study will be available to the public in 2015 and will be published on the FMCSA publications and reports Web site: www.fmcsa.dot.gov. No risks to individuals are anticipated as a result of the study.      

BUY TICKETS FOR A CHANCE TO OWN AN iPAD AIR

PMAA Small Business Committee (SBC) PAC Co-Chairs Gerry Ramm and Michael Fields wish to thank this year’s PMAA Fall Conference award donor, Kevin Thoma of the Minnesota Petroleum Marketers Association, for an iPad Air for the raffle.

The PAC raffle will be held on October 7 during the PMAA Las Vegas conference. Advance purchase tickets are available until October 1, 2014. Ticket sales will continue at PMAA’s conference in Vegas until the drawing on October 7. You do not need to be present to win.

You have to hold iPad Air to believe it. It’s just 7.5 millimeters thin and weighs just one pound. The stunning Retina display sits inside thinner bezels, so all you see is your content. And an incredible amount of power lies inside the sleek enclosure. So you can do so much more. With so much less.

The proceeds of the raffle will benefit the PMAA SBC PAC. The money distributed to the PAC is used to benefit federal legislators who support the industry and have a solid record on key industry legislative issues.

Tickets are $20 each or, better still, six for $100! Tickets must be paid for with personal funds – in full - by credit card, cash or check (checks should be made out to the PMAA Small Business Committee). To purchase tickets until October 1, contact PMAA’s Sabrina Pitcher at 703-351-8000.    

FINAL CALL: NACS SHOW 2014 SET FOR OCTOBER 7-10

The NACS Show being held from October 7 to 10 at the Las Vegas Convention. With more than 70 education sessions, over 1,000 exhibitors and any number of social events at this year’s NACS Show, it’s guaranteed to be a busy week in Las Vegas! To help attendees get the most out of their investment, NACS offers valuable tools to enhance the Show experience, both in advance and on the ground. The NACS Show MyShow Planner is an online and mobile tool, designed to help attendees explore all that the Show has to offer. Just log in and indicate which educational sessions you’d like to attend, exhibiting companies you’d like to visit or products you want to see — all before you arrive in Las Vegas.

In addition to online registration and housing, the NACS Show website features the latest information about exhibitors, housing, speakers, educational sessions and networking events. Please note that the NACS Show registration is separate from the PMAA Meeting Registration.

PMAA will hold its Fall Meeting in conjunction with the NACS Show on October 6-7 at Westgate Las Vegas Resort and Casino. The PMAA meeting will begin with a Board Orientation for new Directors mid-afternoon on October 6 followed by a Board Briefing. A welcome reception with NACS to State Association Leaders will follow. On the morning of October 7, there will be a Buffet Breakfast followed by Region and Committee Meetings. The PMAA Board of Directors meeting is scheduled after PMAA’s Distinguished Service Award Luncheon honoring Craig Eerkes. Please view the Conference Schedule for PMAA’s Fall Meeting.

If you have not registered to attend the meeting, we would encourage you to do so now to expedite your time during the conference! Please complete the appropriate Registration forms here at your earliest convenience. Hotel reservation information can be found here. Changes and reservations can be made up until the start of the show and are based on availability.

We look forward to seeing you in Las Vegas!  

PMAA PARTNER SPOTLIGHT FEATURING: MERIDIAN ASSOCIATES, INC.
What Keeps Some Marketers From More Profit? by Betsi Bixby

Every petroleum marketer I know, regardless of size of company, number of employees, or industry sectors, wants more profit!

Making a few million a year? You want more! Struggling in the thousands, you want more! Seeing some red ink occasionally, you definitely want more! As I’ve worked with companies over more than two decades, getting them “unstuck” from whatever current level of profit they were achieving, I’ve noticed five profit barriers that must be removed to break through to new record profits.

Please read Betsi’s article in its entirety here. To learn more about PMAA’s Platinum Partner, Meridian Associates, please visit or contact them at 800.728.9008.

PMAA MEMBER SERVICES SPOTLIGHT FEATURING: STAPLES ADVANTAGE®

The PMAA / Staples Advantage program brings many benefits to all PMAA members.  Not only does Staples have great prices on office supplies and technology items, but we also offer a wide variety of products and services to help you consolidate vendors, streamline processes and cut down on ordering costs.

Weekly Specials: Fantastic savings on furniture, technology, office supplies and more!  Be sure to check back weekly!

Facility Solutions: When the whole building is counting on you to keep everything running smoothly, you can count on Staples® Facility Solutions. Our facility experts are here so you can expect the unexpected and make it through the day.

Breakroom Solutions: It's easy to make your breakroom or kitchen a place where people feel happy, energized and comfortable. Count on Staples Advantage® to tailor water and coffee delivery programs as well as furniture solutions especially for your office.

To find out more about making Staples your one source for all of your business needs or to check for further discounts or a custom program when ordering large ticket technology, furniture, bulk purchases and custom printing, please contact PMAA’s National Inside Account Consultant Albina Oboimova or 888.224.3784 extension 4117.  You can also call Staples Customer Service at 877.826.7755 or Order@StaplesAdvantage.com

 

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