Stressing the importance of perspective, he noted how Costa Rica is often held up as an example of a country succeeding at lowering carbon emissions. "Costa Rica's climate fluctuates by eight degrees," Petrowski said. "My temperature fluctuates by eight degrees when I run the treadmill."
In general, Petrowski suggested letting market forces drive energy policy, noting how technology today can allow better access local resources and that the United States underutilizes its abundance of compressed natural gas (CNG).
On the retail side, he also suggested a diversified strategy. He said his chainwhich operates about 600 sites, has another 400 of its own dealers and supplies product to 1,600 open dealers and distributorsis preparing for both consolidation and fuel diversification, noting how they are adding diesel at sites today where they had previously been phasing it out.
"We're adding tanks and compartments, having multi-grades at specific sites," he said. "Because I don't know which fuel will win."
He noted that quick-serve restaurants (QSRs) will be a part of the equation, as will distribution efficiencies, developing brand advantages and maintaining a strong balance sheet.
Petrowski made other observations:
Large chains and the small-site operator will survive, noting how scale and cost will become important. Petroleum prices will head higher while volumes will decline. Tobacco may be "fading to black." Store count will continue to decline, possibly from the current 165,000 to somewhere between 92,000 and 113,000. Looking ahead, Petrowski suggested retailers become active in the political process and push past rhetoric to ascertain the facts.
He noted how countries like China may make initiatives to lower their so-called "carbon footprint," but that when countries grow at exponential rates officials there are not going to ignore their natural resources.
"China is the Saudi Arabia of coal," he said, noting how it is currently building 53 plants that will utilize that natural resource.
"I'm not that far Right Wing to say government should stay out of everything," he said, noting how government should enforce the rules they promulgate. "But there are places where they shouldn't go."
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