From supply chain disruptions to UST corrosion control, there was quite a lot to talk about at this year’s PEI Convention at the NACS Show in Chicago. With that in mind, here are five fueling-related “hot topics” that convenience operators should keep tabs on as 2021 winds down.
Take Advantage of the Source University Training Center’s Meeting Capabilities
Featuring a classroom and equipment exhibit, the Source University training facility provides a place to deliberate about the challenges facing — and potential solutions for — the fueling industry. To inquire about hosting a meeting or training session at the Source University training center in Arlington, Texas, contact the Source University Team.
1. State tank insurance funding
If underground storage tank (UST) insurance switches to a risk-based pricing model, which has been suggested, obtaining insurance coverage through state funds may become more challenging and more expensive. USTs that are more than 30 years old, as well as single-walled tanks, could be prohibited under this approach. Owners of high-risk USTs may be forced to secure coverage through private insurers at higher premiums. The change may also provoke states to quit supplying tank insurance altogether.
2. Future fuel for trucking
Far and away, diesel remains the leading heavy-duty fuel being consumed in North America. However, several next-generation fuels are expanding. Biodiesel, renewable diesel and alternative power sources, including electric, hydrogen and CNG, are all jockeying for market position. As such, the power source that will displace diesel for heavy-duty transportation applications is not yet clear. State-supported low-carbon initiatives that provide a framework for adoption of alternative fuels may be an indicator of which heavy-duty fuels will become dominant players.
3. Potential biofuel alliance
Historically, agricultural and petroleum interests have been at odds with one another. However, some common ground has emerged between these two powerful lobbies: preserving a market that supports a petroleum-based biofuel as the high-octane, low-carbon solution for the next quarter century. How exactly this will play out, though, isn’t clear. At least three major refiners—Valero, ExxonMobil and Marathon Petroleum—have announced plans to expand biofuel production. Watch for news from the American Petroleum Institute and the Renewable Fuels Association regarding developments on this topic.
4. Infrastructure funding
Convenience operations depend on safe roadways to not only transport their customers to and from their stores, but to give them a reason for stopping (to re-fuel) in the first place. If funding is approved to repair and expand infrastructure, convenience stores will benefit from customers who may be willing to travel more, especially in places where traffic congestion is a detractor. If funding improvements to the electrical grid are a substantive part of the bill, then the transition to electric vehicles (EVs) may be closer than previously thought.
5. Technological disruption
Breakthrough technologies continue to arise that could create major disruption in the fueling industry. For example, Indiana is testing in-pavement wireless charging technology that will charge heavy-duty vehicles as they drive over the roadway. If a game-changer like this comes to fruition, c-stores may need to reinvent themselves. It is vital for fueling operations to stay abreast of disruptive technologies and be prepared to pivot accordingly.
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This post is sponsored by Source North America