Wednesday, December 23, 2009
E85 Makes Inroads on Cost and Availability
Source: AutoWeek
Three years ago, we embarked on a Midwest road trip in search of what was then the Holy Grail of fuel: E85. Our findings weren't too positive--there were far more E85-compatible vehicles on the road in 2006 (5 million) than there were E85 pumps to fuel them (about 700 out of some 200,000 fuel stations
nationwide). In addition, those burning the mix of 15 percent gasoline and 85 percent ethanol were paying a pretty penny for their earth-friendly ways, losing about 15 percent in fuel economy while often paying the same price as regular unleaded.
Experts assured us it was only a matter of time before E85 became more available, and at more reasonable prices. So here we are, in 2009, wondering whether those predictions have come true.
The answer? Yes, sort of.
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Wednesday, December 16, 2009
Big Oil Letting Go of Retail Outlets
Source: NACS Online
IRVING, Texas – Major petroleum refiners have been under the gun recently over the sale of company-owned gasoline stations, The Wall Street Journal reports. Some retailers have filed complaints with companies like BP, ExxonMobil and Royal Dutch Shell because Big Oil has been shedding retail outlets.
The refiners say the properties are being sold, usually to fuel distributors, because the stations are a low-profit business. An ExxonMobil spokesman pointed out that any ownership changes should be “transparent” to its customers, who can still fill up with “gas at Exxon and Mobil-branded stations across the U.S.”
However, that’s not comforting for many small-business retailers who are concerned about staying in business, noted the Journal. With a refiner-owned or leased station, dealers received allowances and fuel price rebates. But a distributor-owner might charge a station more for fuel, putting the retailer in a bind because of its contract to sell only a certain brand of fuel.
Already, BP has sold more than 550 stations in New York, New Jersey, California and Arizona. Recently, 20 New Jersey BP dealers filed a lawsuit to stop the oil company from severing its business arrangement.
Single retailers say it can be difficult to purchase an individual station because refiners find “there are less headaches” in working with a company interested in purchasing a group of stations, Ralph Bombardiere, executive director of the New York State Association of Service Stations and Repair Shops, told the newspaper.
This past summer, New Jersey passed legislation that would let retailers have “first right of refusal” when their stations were for sale by a Big Oil company.
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Tuesday, December 15, 2009
Missouri Opens First Blender Pump
Source: Missouri Corn Growers Association
JEFFERSON CITY, Mo. — Missouri welcomed its first ethanol blender pumps last week, as Warrenton Oil Company unveiled four new pumps at its FastLane station located in Moscow Mills. Presenting drivers with additional options when it comes to filling up, each blender pump offers three blends of ethanol as well as two grades of conventional gasoline.
“By partnering with Missouri Corn and the Missouri Department of Agriculture, we are offering our consumers more choices at the pump,” said Dave Baker, Warrenton Oil Company vice president of sales. “We look forward to growing this new market that supports a homegrown fuel and Missouri jobs.”
Located off Highway 61 at 240 College Campus Drive in Moscow Mills, Mo., the blender pumps at this FastLane location allow drivers to fill up with E20 (20 percent ethanol, 80 percent gasoline), E30 (30 percent ethanol, 70 percent gasoline), E85 (85 percent ethanol, 15 percent gasoline), 87 octane gasoline or 91 octane gasoline.
These blender pumps are part of a pilot program with the Missouri Department of Agriculture Division of Weights and Measures. Each blender pump pulls from two underground tanks, one with unleaded and one with denatured ethanol. A dispenser then blends the appropriate percentages of the two fuels to create any fuel blend of ethanol from 20 to 85 percent. Although all gas-powered engines can utilize E10, (10 percent ethanol, 90 percent gasoline), ethanol blends higher than 10 percent are currently approved for use in Flex Fuel vehicles only.
“This is a great opportunity to utilize a product grown and refined in Missouri,” said Gary Clark, Missouri Corn Merchandising Council senior director of market development. “We are looking forward to the continued expansion of blender pump locations across the state. This will allow Missourians to experience the benefits of mid-level ethanol blends and support a product that is helping reduce our dependence on foreign oil.”
There are currently over 100 blender pumps operating nationwide.
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