Bob Kenyon, president of Colonial Oil Inc., a Savannah, Georgia-based fuel marketer and distributor of petroleum products with over 5,000 customers in the Southeast, sees plenty of room for growth in petroleum delivered to commercial customers amid an extended period of volatility in the industry.
“Volatility is here to stay,” said Kenyon, who entered the fuels industry in 1994.
As the industry has evolved, Colonial Oil has expanded its product line of petroleum-based products, including gasoline, diesel, biofuels, lubricants and Diesel Exhaust Fluid. The company has grown both organically and through acquisitions to increase its reach efficiently, Kenyon said.
The company serves independent Chevron, bp and Sunoco dealers and other retail and commercial customers, such as trucking companies, landscapers, the Georgia Ports Authority, FedEX and JCB, a construction company and equipment manufacturer.
“We know there are alternatives coming out of the market. We still see a huge demand for fossil fuels. We’re finding ways for customers to have alternatives. I think that’s going to be a long, long burn,” Kenyon said.
Colonial Oil isn’t looking to enter the EV market in a big way. “I think it’s going to be difficult to replace the current infrastructure and the need for traditional fuels in this market for quite some time,” he said.
With a shortage of commercial drivers nationally, the company’s Jan. 16 acquisition of Pooler, Georgia-based Strickland Oil provides Colonial Oil with a way to ensure it has a sufficient number of experienced drivers to service its customers in Georgia, South Carolina, North Carolina and Florida.
The acquisition is expected to net about 400 customers and 650 ship-to locations for Colonial Oil, which is one of 10 companies owned by Colonial Group, the company said. The acquisition brought eight Strickland employees to Colonial, including drivers and key back-end personnel. It provided route density and allowed for more efficiencies with delivery, he said.
“The added driver count was really key,” Kenyon said. “There are efficiencies we can gain with maximum routes and stop. It improves our overall position in the market.”
Kenyon called Strickland a friendly competitor and said both companies shared a commitment to customer service. “This is in our backyard, so knowing the customer, the streets, the names, the personalities (of customers) has really been a good match for everyone,” he said. “It was a great opportunity for us to expand our reach and add some rally great talent with drivers and back up.”
Colonial Oil notified the Strickland customers it acquired that the drivers they were accustomed to seeing would be staying on. “We were very proactive upfront in making sure customers knew how to engage with Colonial,” he said. “Those same smiling employees would be making deliveries on a daily basis.”
Strickland approached Colonial Oil about the deal, he said. While the purchase price wasn’t disclosed, Kenyon said, “it was a well-negotiated deal, and we took all of the assets of the business in an all-cash transaction.”
Strickland Oil has served Savannah, Georgia, and the surrounding region for 47 years, delivering commercial fuel and lubricants, as well as operating a cardlock location in Pooler.
Strickland kept its propane business but wanted to divest its fuels and lubricant arm, Kenyon said. The fuels industry has become more challenging to navigate as the need for technology investments and innovation have increased, he said.
“They’ve been a local, friendly competitor in the region for many years,” he said. “That’s why when they opted to exit the fuel and lubricant business, they picked up the phone to us.”