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HEARING ON OIL PROFITS
The Senate Energy and Natural Resources Committee and the Senate Commerce, Science and Transportation Committee held a joint hearing last week to examine oil company profits and price gouging. The top executives from ExxonMobil, ConocoPhillips, Shell, BP America and Chevron gave testimony explaining their recent company profits and future intentions to invest in production capacity. All of the company representatives reiterated that oil and gasoline prices are set on world markets that they do not control. Written transcripts of their testimonies can be found on the U.S. Senate Committee on Energy and Natural Resources website.
Also at the hearing, the FTC Chair Deborah Platt Majoras indicated the FTC is moving forward on a price gouging study. Majoras said the FTC has formally demanded documents and other data from many of the major oil companies in connection with investigations into pricing activities after Hurricane Katrina and into whether companies have manipulated prices by reducing refinery capacity. The refinery investigation was directed by the energy policy act passed last summer, with a report due to Congress in the spring.
In addition, Senate Commerce Committee Chairman Ted Stevens (R-AK) asked the nation’s state attorneys general to provide Congress with recommendations for a federal standard to define price gouging. SIGMA plans to work with congressional staff if this directive moves forward.
In similar news, the House and Senate passed an appropriations bill last week that further directs the FTC to investigate gasoline pricing focusing on the months of August through September.
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INDUSTRY ULSD WORKSHOP
Approximately 400 people participated in a multi-day ultra low sulfur diesel (ULSD) fuel workshop in Phoenix, Arizona on November 9-11, 2005. Discussions focused on the potential difficulty of moving ULSD through the pipelines without contamination. Pipeline companies indicated they have spent over $500 million to upgrade their infrastructure through which product will be transported. Representatives from the terminal and trucking industry shared best practices when handling ULSD. Marketers were also on hand to discuss their progress in meeting the ULSD deadline. Many more issues concerning ULSD need to be addressed. SIGMA is planning to provide a session at the Spring Convention in San Antonio to educate marketers on final steps they need to take ensure a smooth and efficient transition to the new regulations. Stay tuned for more information on this planned workshop.
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EPA RULE EASES ULSD TRANSITION
To facilitate the transition to ultra-low sulfur diesel, EPA is providing a 45 day extension for terminals and retail outlets to comply with the 15 parts per million ULSD standard moving the retail compliance date to October 15, 2006. During this extended period, diesel fuel meeting a standard of 22 parts per million can be marketed as ULSD at the pump. The rule also extends the terminal compliance to September 1, 2006. The agency does not expect to adjust the schedule again. The 45 day extension does not affect the start date for refineries to produce ULSD fuel.
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8-HOUR OZONE STANDARD
On November 9, EPA issued its second rule regarding implementation of the 8 hour ozone air quality standard. The rule establishes a timetable and requirements for states to implement reasonably available control technology and measures (RACT/RACM) for reducing ozone pollution from stationary and mobile sources. These measures can include vehicle emissions reduction programs, such as vehicle inspection and maintenance, carpooling programs, and reformulated gasoline requirements. In particular, included in the Phase 2 rule is a requirement for non-attainment areas that currently require reformulated gasoline to continue to use the fuel until they achieve attainment. State Implementation Plans (SIPs) must be submitted to EPA by June 2007.
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SIGMA WINTER LEADERSHIP
Now is the time to sign up for this year’s Winter Leadership Conference! The meeting will take place in Denver, CO on January 19-20, 2006, in advance of the NPN/SIGMA Executive Leadership Conference at Winter Management.
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SIGMA IN BRECKENRIDGE!
It’s that time of the year! SIGMA is teaming up with National Petroleum News (NPN) and Oil Price Information Service (OPIS) to offer the 2006 Executive Leadership Conference at Winter Management (formerly known as the Winter Management Conference) in Breckenridge, Colorado at the Beaver Run Resort and Conference Center, from January 22-25, 2006.This meeting will have all of the fun of the Winter Management Conference with an enhanced educational program through the collaboration with NPN and OPIS to deliver a better meeting for marketer leadership.
Following tradition, this meeting is open to a broad-based group within the petroleum industry and will include SIGMA’s signatures: education, networking and lively social events. Educational sessions will include an Executive Roundtable series, as well as OPIS, NPN and SIGMA branded sessions on everything from “closely-held” business relations, to strategy fundamentals that will carry your business through a new year. Plus, don’t forget the wintertime activities:
Afternoons are free for skiing, snowboarding, and other winter sports on great mountains with more than 200 marked trails. Or enjoy an afternoon of gold mining, dog sledding, or snowmobiling—you name it, Breckenridge has it!
See you and your family in Breckenridge, Colorado on January 22-25, 2006! If you’ve attended in the past, this one will be so unique you’ll not want to miss it. Rates go up on December 8!
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ANNUAL MEETING EVALUATION
Thank you to the 107 Annual Meeting participants who’ve already filled out the online evaluation! For those of you who attended SIGMA’s Annual Meeting in Philadelphia, PA, and have yet to complete the survey, we want to get your feedback before November 16, 2005. SIGMA’s response rate goal is 25 percent—or 126 responses. We’re just 19 responses away! Help us reach our goal and make SIGMA meetings even better by completing this on-line survey today.
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FEBRUARY SHARE GROUP
The market continues to morph and real time pricing, exchanges, pipeline shipping (wet and paper barrels), super jobbers and balancing the risks with hedging strategies are all available options. The question is which or what combination? Join your peers and exchange lessons learned, success stories and get current on your options to consider and deploy. SIGMA will hold this Share Group, “How to Ditch the Rack and Move Up the Supply Chain Profitably,” in Chicago on February 8-9, 2006.
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GOLF IN SAN ANTONIO 2006
The SIGMA Spring Convention will be held in San Antonio, Texas April 27-30, 2006 at the Westin La Cantera Resort! SIGMA’s spring signatures—golfing, a great destination and industry-renowned educational sessions—will make this meeting a must attend. Sign up before November 30, 2005, and you’ll get the “Early Bird Special,” which will save you up to $200! Register today! Great golfing awaits:
The Westin La Cantera Resort in San Antonio offers two gorgeous golf courses which provide the best of both worlds to the business and leisure traveler. The resort even features a golf academy, for those who want to brush up on their skills before hitting the green. With their unique landscaping of artistically carved rock and colorful foliage, The Resort Course at La Cantera and The Palmer Course at La Cantera are the first in South Texas to provide 36 holes of championship golf designed by golfing legends.
The Resort Course at La Cantera opened in 1995 and lured the historic Texas Open, one of the oldest stops on the PGA Tour, to its greens that same year. Golf Magazine named the par-72 course one of the Top 10 public access golf courses in the U.S. The course, now home to the PGA Tour’s Valero Texas Open at La Cantera, is known for its breathtaking views. Winding through the Texas Hill Country, the course highlights spectacular views including a sheer, 80-foot drop from the 7th tee to the fairway and the downtown San Antonio skyline.
The Palmer Course at La Cantera opened in March 2001 and offers visitors a second 18-hole course, designed by Arnold Palmer and the Palmer Course Design Co. The 6,926-yard, par-71 magnificently scenic course is set in the Texas Hill Country and will challenge your skills from tee to green. Located adjacent to the existing Resort Course at La Cantera on 225 acres, this course provides golf enthusiasts with several signature holes, including the par 3 No. 4 hole with dramatic waterfalls along the entire front of the green and a tribute to Palmer’s late wife. The jewel of The Palmer Course would certainly be the 15,300-square-foot clubhouse that overlooks the 18th green.
The Golf Academy at La Cantera, a Golf Digest school, features a custom-designed learning center complete with indoor hitting bay, covered tee areas and a spacious grass hitting area for both long and short game work. Headed by Mike Lamanna, the academy offers a wide variety of programs to ensure player improvement at every skill level. To set-up a tee time at either golf course, please call 1-800-446-5387.
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SIGMA Weekly Report November 14, 2005 © Copyright SIGMA, 2005
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