Irish News
Market views
AS WE MOVE CLOSER TO THE START OF ANOTHER HEATING SEASON, IRISH CORRESPONDENT AINE FAHERTY HAS SPOKEN
WITH FUEL OIL DISTRIBUTORS TO GET THEIR THOUGHTS ON THE STATE OF THE CURRENT OIL MARKET, TO FIND OUT HOW
THEIR BUSINESS HAS FARED THROUGH THE HOT SUMMER, AND TO ASCERTAIN THEIR VIEWS AS TO THE FUTURE OF LIQUID
FUELS IN IRELAND
A recent uplift
“There was a lively enough start to September,”
said John Sweeney, managing director of
Sweeney Oil in Oranmore, Galway as he looks
forward to ‘another long and lively winter!’
“The long winter nights up to April 2018,
followed by an exceptionally good summer,
have left everyone short on volume with an
inevitable drag on home heating oil volumes.
“We’ve seen a recent uplift in both fuel
for construction and commercial concerns as
the country recovers economically. This has
been good for business, and with the long hot
summer, we also saw the tourism industry
consume greater volumes.
Looking to the future, John says: “We don’t
see very significant growth for this industry
in the future, particularly as those in gas and
alternative fuels become bigger players, but
we do expect to see more consolidation in the
industry.”
Sweeney Oil has seen an uplift in volumes from
its construction and commercial customers
“With the vast majority of customers only
purchasing home heating oil when they need it
during cold spells, this means during those busy
periods our staff have to really excel. During
the times when business is not as forthcoming,
as a responsible fuel distributor, it’s important
that we stay loyal to our staff and ensure they
are fairly rewarded. Tankers and equipment
must be well-maintained and there’s always
the need to keep up to date with an ever-
moving digital world and much more. To
enable us to be responsible we must therefore
maximise the profit we make during the winter
months.
“The Northern Ireland Oil Federation
recently said that profit is not a dirty word. I
believe that rather than always trying to be
the best on price, we should always focus on
providing the best service. Experience has
taught us that if our service excels then our
customers will remain loyal to us.
“There’s no magic formula but with the
knowledge that the winter season comes
every year, it’s up to us to ensure that we have
sufficient staff/systems in place to handle the
surge in demand.
“We believe that oil has a future in
Northern Ireland, as ourselves, and many other
fuel distributors, provide an excellent customer
service. As an industry, we usually complete
emergency deliveries on the very same day
they are requested by the customer. With this
high level of service, our customers are not
actively looking for an alternative heat source.”
Profit is not a dirty word Declines and increases
“Extreme weather conditions have resulted in
an-all-or-nothing approach to the market,” says
Ross Patterson of Craigavon-based Patterson Oil. In the Midlands, where the very long, hot
summer has had a significant impact on grass
and tillage growth, Rita Lambe, managing
director of Tullamore-based Lambe’s Oil
reported ‘a very negative effect on farming
incomes which will affect the farming
community’s fuel spend.’
The summer also saw a sharp decline in
kerosene sales, but like all oil distributors Rita
is now banking on a good kick start to heating
oil sales that will continue right until the end of
April 2019!
On the flip side Lambe’s Oil is also
experiencing ‘an increased demand in the
commercial sector as the Irish economy
continues its rapid recovery.’
Being better prepared
Even before last winter’s heavy snowfall,
Drogheda-based Tiger Oil was ‘having a good
winter in relative terms’ commented managing
director, Michael Grogan.
“We would have settled for that and then
we got the beast from the east bonus,” added
Michael who pointed out just how many
distributors were unprepared for the high
demands over this period.
“Although it was a challenge from start
to finish, being a family-run business, we were
able to supply locally quite successfully,” added
Michael.
Hoping for a good winter season, Michael
would ideally like to know well in advance
if adverse weather is forecast… Having
experienced the all-hands-on-deck scenario
earlier this year, he believes the company
would be that bit better prepared.
As to alternative fuel sources, Michael
would ‘only ever take a short to medium term
view’. He remains confident that supply and
demand for oil will remain constant for the next
five to ten years.
Team Donegal recently completed the
Race Across America – read the full
story online at https://fueloilnews.
co.uk/2018/08/team-donegal-oil-
conquer-the-race-across-america
www.ifundraise.ie3801_donegal-oil-
foundation-fundraising-page-in-aid-of-
autism.html
Fuel Oil News | October 2018 23