Page 3 - Oil and Energy January 2013
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January 2013 • 3
The Front Burner
The Federal Motor Carrier Safety
Administration (FMCSA) requires
strict compliance with Federal drug
and alcohol testing regulations for
motor carriers and drivers. Employers
in violation are subject to civil and
criminal penalties.
The NEFI Alliance Consortium is
a simple, quick, and pensive
inex
solution to this federal requirement. As
a non-profit group, the NEFI Alliance
is able to offer this comprehensive
program at a most reasonable cost.
Avoid severe fines…
Join today!
Mandatory Drug & Alcohol Testing
Regulations for Motor Carriers…
It’s The Law!
NEFI, MOC Raises Concerns About New England Council Report
New England Fuel Institute (NEFI) and The Massachusetts Oilheat Council (MOC)
have raised objections about a recent report by the New England Council (NEC) and
Deloitte Consulting LLP that calls for more natural gas heating in New England.
NEFI President and CEO Michael C. Trunzo recently communicated NEFI’s concerns
about the report, entitled
Smart Infrastructure in New England: An Investment for Growth
and Prosperity,
in a letter to NEC. “What concerns NEFI, its affiliated state associations
and heating oil members is the recommendation in the report which states it would be
in the best economic interest of the region to decrease its dependence on heating oil and
encourage residential conversions to natural gas,” Trunzo wrote. “We disagree strongly
with this policy proposal. We are also concerned that the NEC means to insert itself into
the competition between heating oil providers and natural gas companies/utilities, both of
which are members of the organization.”
Trunzo noted that fuel switching would have dire economic impacts on the region,
because there are more than 1,900 Oilheat businesses in New England employing 19,000
people. He also questioned the assumption that natural gas pricing will remain favorable,
because natural gas could face upward price pressures due to increased natural gas use in
power generation and transportation and an increase in natural gas exports. At the same
time, U.S. crude oil production is at the highest volume since 1998, and many energy
analysts are predicting that crude oil prices will drop to as low as $50 per barrel, setting
the stage for lower heating oil prices.
In a separate letter, MOC wrote that NEC should:
• Applaud the Oilheat industry for its voluntary advancements in energy efficiency and
cleaning burning fuels;
• Seek ways to further strengthen the Oilheat industry’s role in the region’s energy
portfolio;
• Embrace the industry’s contributions to employment and the overall economy in
Massachusetts and New England; and
• Rather than encouraging “investment in infrastructure for natural gas”, NEC should
be encouraging the gas utilities to improve the environmental safety of their current
infrastructure.
Study Provides Support for U.S. LNG Exports
A study conducted for the U.S. Department of Energy (DOE) says that exporting lique-
fied natural gas (LNG) would benefit the U.S. through increased economic activity and
tax revenue. Prepared by NERA Economic Consulting, the report will help DOE decide
whether to license natural gas export operations. The report indicates that exporting
natural gas could cause domestic natural gas prices to rise.
NEFI Alliance Consortium
303 Wyman Street, Suite 210
Waltham, MA 02451
For program information
and application information,
call 617-924-1000,
fax 617-924-1022, or
email
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*Figures taken from Energy Information Administration’s “This Week In Petroleum.”
THE BAROMETER
Comparing Heating Oil to Other Financial Products
December 4, 2012
One Year Ago
No. 2 Fuel Oil/New York (dollars/gallon)
2.990
2.964
WTI Crude (dollars/barrel)
$88.04
$100.94
Brent Crude (dollars/barrel)
$109.99
$110.18
10-year Treasury Bill
1.62%
2.04%
30-year Mortgage
3.34%
3.99%
Dow Jones Average
12,952
12,098
THE DIFF.
Spot Prices (Cents/Gallon) as of December 4, 2012*
New York Harbor
New York Harbor
U.S. Midcontinent
No. 2 Fuel Oil / Heating Oil
No. 2 ULSD
No. 2 ULSD
2.990
3.060
2.975
