CHICAGO -- Energy independence is a fallacy and reliance on all parts of the world for fuels supply will increase in the coming years, stressed Mark Routt, senior consultant for Energy Security Analysts Inc. in his Outlook for Motor Fuels presentation at the 2006 NACS SOI Summit in partnership with CSP.
Increasingly fuel operations, from upstream exploration and production through to refining, wholesale and distribution, will be international and all of these handoffs matter to you and your business, said Routt.
If you're at [image-nocss] the end of a long distribution chain, challenges abound, said Routt, citing in particular issues related to this year's transitions from MTBE to ethanol and from low sulfur diesel to ultra-low sulfur diesel fuel.
Global energy trade and political stability remain key supply issues that immediately affect us all, said Routt. Oil is actually one of the most international commodities I can think of. Secure supplies at all levels will remain important, he added, urging attendees to consider how secure their supplies are and what that is worth to them.
With price volatility expected to continue every spring and fall during seasonal transitions, Routt stressed to attendees that their ability to manage price volatility and risk is going to directly affect ultimate profitability.
As an end result, retailers will have to carefully ask questions of their suppliers, where are they getting fuel and what is the quality, especially in relation to new fuel requirements, where legislation will always play a wild card, Routt said. If you don't know, you better find out.
More than 450 top convenience and petroleum retailing executives, suppliers and advisorsexamined the industry's operational and financial performance at the Westin O'Hare in Chicago during the Summit, which concludes today. NACS has developed the annual State of the Industry report, the industry's premier benchmarking tool, since 1971.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.