February 4, 2020 | Vol. 70, No. 3

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In This Issue
Dear PEI Member:

Glass half full or half empty? Convex or concave? How you see things often depends on your perspective.

The electrification of the U.S. light-duty vehicle fleet is a perfect example. People tend to see what they want to see or what their biases condition them to see.

Recently released 2019 vehicle sales figures are likely to continue that pattern. The 244,271 battery powered electric vehicles (EVs) sold in 2019 continued a five-year period of consistent EV sales growth. Here’s a summary of both raw sales numbers and EVs as a percentage of total light-duty vehicle sales since 2015:

EV Sales
2015: 72,374 (0.41%)
2016: 80,039 (0.46%)
2017: 99,142 (0.58%)
2018: 208,573 (1.20%)
2019: 244,271 (1.43%)

By any measure, more than tripling EV sales in five years is an impressive accomplishment. However, EVs’ 1.43% market share in 2019 remains a small part of the total sales picture.

For comparison purposes, liquid fuel vehicles (gasoline, diesel and hybrids) retained their dominant position in 2019 with 98% of the market, down only 1.3% since 2015.

Liquid Fuel Vehicle Sales
2015: 17,357,844 (99.3%)
2016: 17,399,102 (99.1%)
2017: 17,033,429 (98.8%)
2018: 16,974,059 (98.1%)
2019: 16,738,081 (98.0%)

Anecdotal evidence also suggests that EVs have a long way to go to challenge liquid-fuel vehicles in the market. Here are two recent examples:

2019 EV Sales

EPA at 50: Submissions Wanted

C-Store Count Falls, Big Chains Get Bigger

Virginia Rejects Mobile Fueling

 

 

 

Respond to this Newsletter

by e-mail to the editor, Rick Long at rlong@pei.org

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Last September, RS Automotives, a Takoma Park, Maryland gas station used a $786,000 public/private grant to switch out all of its gasoline dispensers for EV charging stations. At the time, Maryland had about 21,000 EV registrations. Four months later, how’s business at the all-electric station? Well, the owner says he is charging an average of four to five vehicles a day. Can you imagine any of your fuel marketer customers trying to build a business on those numbers?

Just as interesting was a recent experiment by Motor Trend to compare the fuel cost of electric and gasoline-powered Hyundai Kona sedans on a 450-mile round-trip between Los Angeles and Paso Robles, California. To juice up the Kona Electric, Motor Trend used public Electrify America stations that charged a $1 session fee plus $0.69 per minute of charge.

Total charging costs for the Kona Electric were $140.97. Total fuel costs for the gas-powered Kona were $63.03. Although the researchers cautioned that the EV probably would score better on long-term total cost of ownership, even they were surprised at the comparative fuel costs.

The future of EVs? What do you see?

EPA AT 50: STORIES AND PHOTOS WANTED
December 2020 marks the 50th anniversary of the U.S. Environmental Protection Agency (EPA). To celebrate, the EPA has launched a year-long effort to highlight the agency’s achievements in creating a cleaner, healthier environment for all Americans.

In July, the campaign will focus on the EPA’s success in preventing, discovering and cleaning up underground storage tank (UST) leaks.

Because of the important role PEI members have played in this effort, the EPA’s Office of Underground Storage Tanks (OUST) has asked PEI’s help in telling the UST story. PEI members who would like to contribute are encouraged to submit their photos, stories and other recollections about the UST world prior to the federal UST regulations. To make the submission process easy, PEI has created a simple form. Please send in your contributions as soon as possible but no later than April 15.

TOTAL C-STORE COUNT DECLINES, BIG CHAINS GET BIGGER
The number of U.S. convenience stores declined by 517 from 2018 to 2019, according to the 2020 NACS/Nielsen Convenience Industry Store Count survey. The 2019 total of 152,720 represents a 1% decline from 2018’s 153,237.

Smaller operations bore the brunt of the decline, with marketers owning 10 or fewer locations showing a net loss of 569 stores. Mega chains with more than 500 stores gained 312 locations.

Company Size

Store Count Change

1 to 10 stores 

 -569

11 to 50 stores

 -249

51 to 200 stores

-145

200 to 500 stores

 134

501+ stores

312

VIRGINIA REJECTS MOBILE FUELING
A Virginia House subcommittee defeated 7-1 a bill that would have accepted mobile fuel services as licensed fuel distributors in the state.

The Virginia Petroleum Convenience and Marketers Association (VPCMA) opposed the bill on the grounds that mobile fueling is dangerous and the truck-based services have an unfair competitive advantage over traditional capital-intensive fuel retailers. VPCMA also noted that with 4,200 retail fueling locations already operating in the state, Virginia did not need a new fueling solution.

BRIEFLY NOTED
“Tesla Inc. reported $105 million in net income for the fourth quarter of 2019, down from $143 million in the previous quarter, and ended last year with an $862 million loss, which was less than the electric car company's two previous yearly losses. Tesla's revenue rose to $7.4 billion in the fourth quarter from $6.3 billion a quarter earlier.” — Morning Consult Energy, Feb. 2, 2020
“Ukraine's SBU Security Service has stopped the operation of 407 illegal filling stations in nine regions of Ukraine, according to SBU press center. … The fuel stations were closed and counterfeit fuel and lubricants were seized, as these sites were selling products of dubious quality in violation of safety rules and without the relevant permits.” — PetrolPlaza, Jan. 22, 2020

DEATHS
Terry Stinson, 73, died Jan. 2. Stinson was, for many years, a manufacturers representative in the petroleum equipment industry. Survivors include his wife of 38 years, Lynn; a son Christopher; and siblings Richard Stinson and Nancy Trott.

Ken Hagman, 75, president of E.O. Habhegger from 1976 until his December 2019 retirement, died Jan. 27 after a brief battle with Bulbar ALS. Hagman began his E.O. Habhegger career in 1967 as an equipment salesman. Survivors include Caroline, his wife of 52 years; daughter Kimberly Duke (Scott); son Chris (Theresa); and five grandchildren: Alexa, Andrew, Kylie, Madelyn and Matthew. The family invites friends wishing to honor Ken’s memory to support ALS research by donating to the Greater Philadelphia Chapter of the ALS Association.

PEI MEMBER NEWS
Jones & Frank changed its corporate name to the JF Petroleum Group. The move is designed to unify under one brand the parent company and its most recent acquisitions, Petroleum Solutions Inc. and ANS Distributing. As part of the rebranding initiative, the company released a new company logo and soon will launch a new company website at www.jfpetrogroup.com.

Matrix Capital Markets Group Inc. announced three promotions: William J. O’Flaherty to director for the Consumer & Industrial Products Group; Stephen C. Lynch, CFA, CPA to director and Martin C.P. McElroy, Jr., CFA to associate in the Downstream Energy & Convenience Retail Group. The company also hired Edward M. Farley V as an analyst for the Downstream Energy & Convenience Retail Group.

Blair Shwedo, vice president of business development for Guardian Fueling Technologies’ Mid-Atlantic division, was appointed Civilian Aide to the Secretary of the Army (CASA). The Hon. Ryan D. McCarthy, Secretary of the Army, selected Shwedo to represent North Carolina (West). CASAs promote good relations between the Army and the public and advise the Secretary about regional issues.

Veeder-Root named Dave Coombe president. In his new role, Coombe will work to accelerate global integrated site solutions for distributors and retail fueling customers. Coombe joins Veeder-Root after more than 15 years with Gilbarco Veeder-Root, most recently as managing director for Europe. Coombe also was president of the Committee of European Manufacturers of Petroleum Measuring and Distributing Equipment (CECOD).

Wilson/Rogers & Associates Inc. announced the merger with Steve Latimer & Associates Inc. Wilson/Rogers & Associates has provided manufacturers representation in 13 western states since 1989. Steve Latimer comes to Wilson/Rogers as a principal after operating his manufacturers representative firm since July 2018. Greg Bruce (quotation specialist) also will join the Wilson/Rogers team, composed of Scott Wilson (president), Ron Weeks (PT Coupling warehouse operations lead), Kirk Jackson (senior sales representative), Erika Kibitskaya (sales, marketing and administrative coordinator) and Erik Mickelson (Utah warehouse operations lead).

MEMBERSHIP APPLICATIONS
Kansas software company.
Aptora Corp., 8877 Bourgade St., Lenexa, KS 66219, applied for affiliate division membership. Stephanie Hock is marketing manager for the firm, which was established in 1996. Aptora Corp. offers a complete service management software program for the petroleum equipment industry. Sponsored for PEI membership by Brantley Crosby, Petroleum Services Group LLC, Waycross, Georgia.
www.aptora.com

Vermont manufacturer. McCabe & Sons Inc., 771 Clark Road, Danville, VT 05828, applied for manufacturer division membership. Joseph McCabe III is president of the company, which was established in 1930. McCabe & Sons Inc. manufactures water level indicators and gasoline level indicators, which are sold primarily through distributors. Sponsored for PEI membership by Brad Egeland, Keller Equipment Supply Ltd., Calgary, Alberta, Canada.
www.mccabeandsons.com

New York service company. NW Contracting, 3553 Crittenden Road, Alden, NY 14004, applied for service and construction division membership. Nicole Savage is president and CEO of the firm, which was established in 1989. NW Contracting performs fuel system installations, removal and remediation, as well as maintenance, compliance and testing services. Sponsored for PEI membership by Edward Ware Jr., Francis Smith & Sons Inc., Scott Township, Pennsylvania.
www.nwcontracting.com

Colorado installer. Advanced Petroleum Repair, 24227 Road G.2, Cortez, CO 81321, applied for service and construction division membership. Brian Lyons is the owner of the company, which was established in 2007. Advanced Petroleum Repair performs service station installations and repairs. Sponsored for PEI membership by Thomas Lyons, Petroleum Network Solutions, Arlington, Texas.

Mexican software company. Brentec Soluciones Tecnologicas SA de CV, Calle 20 No. 235 int 1009 x 15 y 7 Altabrisa, Merida 97130, Mexico, applied for affiliate division membership. Gerardo Alejandro Canto Valdez is CEO of the firm, which was established in 2006. Brentec Soluciones Tecnologicas SA de CV offers volumetric control software as well as fleet management control software for gas stations in Mexico. Sponsored for PEI membership by Renee Mackenzie, Bennett Pump Co., Norton Shores, Michigan.

Colorado service provider. Kenosha Consulting LLC, PO Box 817, Pine, CO 80470, applied for service and construction division membership. James Yaun is the owner of the company, which was established in 2016. Kenosha Consulting LLC performs UST/AST removal and sampling, environmental site assessment and remediation, line tightness testing, leak detector testing, hydrostatic spill bucket and sump testing, monthly compliance inspections, overfill protection verification, and tank gauge inspections. Sponsored for PEI membership by Brandon Fagerberg, Don’s Maintenance Service Inc., Greeley, Colorado.

ADMITTED TO PEI

  • Wes Sherman, PetroCard Inc., Kent, Washington (operations and engineering)
  • Brian Blackwell, Blackwell Oil Co. Inc., Idaho Springs, Colorado (operations and engineering)
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The TulsaLetter is published two or three times each month by the Petroleum Equipment Institute. Richard C. Long, Editor. Opinions expressed are the opinions of the Editor. Basic circulation confined to PEI members.