Post on 12-Jun-2022
Understanding Fuel: Costs,
Purchasing, Pricing Strategy,
& Internationally
PRESENTED BY:
Walter P. Chartrand
Aviation Training Academy
Schedulers & Dispatchers Conference | New Orleans, LA | January 14-17, 2014
Thursday, 1/17/14 | 8:45 a.m. - 10:15 a.m.
Download the NBAA Scheduler’s & Dispatcher’s Conference App Today
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Pay It Forward
Benefitting:
Dress for Success - New Orleans for Women
Volunteers of America - Greater New Orleans for Men
Drop off clothing at designated spots in the convention center.
First Time Attendee Passport Program
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• 8 stickers required
• Stickers from 5 Educational Sessions
• Visit NBAA Regional Booth # 1256
• Ambassador Resource Desk
• Visit Sponsor Universal Weather and
Aviation Booth # 525
• Must fully complete evaluation
• Must be present at Grand Prize Luncheon
to win TBD!
Guidelines to Win
• Silence your mobile devices.
• If you must take a call, please exit and return quietly.
• Complete and turn in your Session Review before you
leave. Your feedback is important!
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Please remember to…
First a little test…
• As you came in the door you should have
been handed a short and simple
questionnaire…did you get one?
• Please take a moment to answer the
questions to the best of your ability in the first
set of blanks.
• OK…OK… JUST GUESS!
Where does fuel come from?
• Crude Oil…What is Crude Oil?
Complex mixture of chemicals, mainly
hydrogen and carbon compounds called
HYDROCARBONS
• Where is it found ?
Top World Oil Producers and Consumers
Exploration & Production
First oil well ever drilled was in the middle of a
quiet farm community in northwestern
Pennsylvania in 1859
Refining Process
What is the Primary method
for processing crude oil into
refined products called?
Supporting Slide Heading DISTILLATION
Supporting Slide Heading
• Gasoline – 18 gallons
• Kerosene and Light fuel Oils – 10 gallons
• Residual Fuel Oil – 5 gallons
• Jet Fuel – 3 gallons • Lubricating Oil, Asphalt, Wax - 2 gallons
• Manufacturing Chemicals - 2 gallons
• Other - 2 gallons
The type of crude being processed determines the exact amount of
each product obtained from each particular barrel, but on average…
Gallons distilled from each Barrel (One Barrel = 42 U.S. Gallons)
Aviation Turbine Fuels (Jet fuel) is D-1655 56 different evaluation standards tests
Aviation Gasolines (Avgas) is D-910 33 different evaluation standards tests
Fuel Specifications
ASTM - American Society for Testing and Materials ASTM International is one of the largest voluntary
standards development organizations in the world,
It is a trusted source for technical standards for
materials, products, systems, and services.
Jet Fuel shipping via pipeline
• Pipelines are typically made of steel and vary in size from
12 to 47 inches in diameter
• Multi-product pipelines are designed to transport two or more
different products in the same line
Jet Fuel shipping via pipeline
Jet Fuel shipping via pipeline
Fuel Delivery Terminals
The vast majority of fuel delivered to airports is
performed by over-the-road transport trucks
Transportation
• Over-the-road transport trailers designed to haul aviation fuel, should be “product grade dedicated”
• Although these trailers do not have filtration, the fuel is filtered into the trailer at the terminal, and filtered again when delivered into airport storage
• Inspections of these trailers should occur both before and after loading at the terminal
Product Supply Chain Jet (Typical)
Refinery
Pipeline
Ship / Barge
Rail
Distribution Terminal
Ship / Barge
Pipeline
Rail
Dedicated
Truck
FBO Lab RQC Lab
Manufacturing/blend
Tank
Shipping Tank
Receipt Tank
Shipping Tank
Delivery Terminal
Receipt Tank
Lab
Shipping Tank Dedicated
Truck
Pipeline Ship / Barge
Release
Certificate
Lab
QC QC
QC
QC QC
QC
QC
QC
QC
QC
QC
QC
QC
QC
QC QC QC
Inspection
Refinery Quality Certificate (RQC) Certificate of Analysis (CoA)
Certific
ate
of A
naly
sis
(Co
A)
QC
QC
Specification
verification
QC
Quality Control
Certificate of Analysis
This is the document that is the fuels
“Birth Certificate”
It must show the products test
evaluation results
• Provides information to assist the end user in evaluating the independence
and/or absence of contamination to the material
• Confirmation of test evaluation results matching field evaluation ensure
product integrity
Product receipt checklist
• 21 steps BEFORE
delivery hose is connected
• 8 procedures to start and
ensure safe delivery
• 12 steps to be performed
after load is received
All performed to ensure the correct
product is received clean, dry and
on-spec into the correct tank, without
incident
Fuel Farms
Fuel storage tanks can be single-wall or double wall,
and require pumping, filtering and metering system
Fuel Farms Here is a typical a two product above ground,
fuel storage tanks with delivery system
What does an above ground, double wall, 12K Avgas
and a 20K Jet Fuel storage tank with pump system cost?
Fuel Farms
Estimated costs of a two
product fuel farm
One Avgas, 12,000 gallon double wall tank $ 85,000.00
One Jet 20,000 gallon double wall tank $ 125,000.00
Tanks and delivery system ONLY $ 210,000.00
Installation costs $ 4,000.00
Ground work and concrete $ 3,000.00
Containment with Oil Water Separator $ 100,000.00
Fencing/security $ 3,000.00
TOTAL $ 320,000.00
Larger facilities will have multiple fuel storage tanks
with different delivery systems to ensure product segregation
• 11 Daily checks
• 7 Monthly inspection items
• 10 different Quarterly,
Bi-Annual and, Yearly
inspections
All performed to ensure the
fuel storage tanks are
providing clean, dry and
on-spec into fuel trucks and
aircraft, without incident
Fixed Fuel Facility Checklist
Jed’s Jet Fule
Fuel Trucks
What does a new 5000 gallon Jet Refueler cost?
$175,000.00 - $250,000.00
• 17 Daily checks
• 10 Monthly inspection items
• 9 different Quarterly,
Bi-Annual and, Yearly
inspections
All performed to ensure the
fueling trucks are
providing clean, dry and
on-spec into aircraft,
without incident
Fueling Vehicle Inspection Checklist
Trained personnel…How many hours of training should
an aircraft service technician receive before
being considered qualified?
A minimum of 100 hours of training is required to
qualify for Supervisor certification
Mis-Fueling Prevention Training
Cessna 441 Conquest II
Cessna 421C Golden Eagle
Avgas
Jet Fuel
On-Specification, Clean, Dry Fuel
is the beginning of a safe flight
What is Retail, Contract or Wholesale Fuel?
A. Retail fuel is all gallons paid for to the provider who pumped the fuel
into the airplane. i.e. an FBO
B. Contract fuel is fuel uplifted from a provider and billed to the end
user through a third party. i.e. Colt, Mariah, JetEx
C. Whole sale fuel, is typically bulk fuel (8000 gallons +) that operators
who own a fuel farm can purchase from the fuel dealers at a bulk
rate and store in their tanks for their own use. i.e. Tribute Aviation
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Resellers VS Refiners
A. Resellers – Companies who have purchased large volumes of fuel
from the refiners.
B. Refiners – Companies that produce refined oils and gas for use by
the end users.
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Why Do Operators Use Both Resellers and
Refiners to provide the fuels they
consume?
Simple, to get the most out of the resources the operator has, they will buy
from several different providers. This will ensure the operator they are
paying the lowest price for the fuel they consume.
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Great Hall
Ernest N. Morial Convention Center
Friday, January 17th, 2013 1200-1400
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Schedulers & Dispatchers
Grand Prize Luncheon