What a winter! One of the coldest winters on record and snowfall record to add to it.
I had prepared for this winter a long time ago. In April of 2001 I finally received approval for a 35000 gallon,
state of the art, oil storage facility on Route 106 in Halifax. It was a big investment but I felt I had to build it
to have a secure source of oil for our customers. As a result, we have significant protection against supply
disruptions that many oil companies in the area experienced this year.
The huge snow falls this winter created slow
going for oil trucks delivering oil and also driving to the deep water terminals in Braintree and Quincy. We did not
lose all that time.
The cold weather then froze over Weymouth Harbor, stopping all shipping to the deep water Citgo
terminal in Braintree. One of the two Quincy terminals also ran out of oil in February. This created delays and supply problems
for the retail oil companies without storage facilities of their own.
I was able to continue delivering oil without
disruption because I could bring in trailer loads of heating oil from the deep water terminals in Rhode Island which did not
have a supply problem.
We received hundreds of calls from other oil company customers who needed oil that their
companies could not provide. Our regular customers take priorty, but I am proud of the effort we took to take care of
many of these people in need.
The inherent expense of my bulk oil terminal which includes initial investment, annual
taxes, maintenance and related expenses has an impact on our competitive pricing of oil, but I believe the peace of mind it
gives our customers is worth a few pennies per gallon. It was a tough winter for everyone, but the days are getting
longer and warmer.
Stayed Tuned Rick
Brent crude oil, a benchmark for more than half the world's crude oil, has tumbled about
25% since June. Countries, like Saudi Arabia, have cut prices on exports to stimulate demand. The U.S. has increased
it's production to the highest output in 3 years. Libya's OPEC govenor is calling for production cuts of at least 500,000
barrels a day instead of cutting prices. My bet is Libya will not cut it's own production. It s still trying to up production
after all the unrest slowed production last year. It's getting interesting!