Staff Writer
PRESQUE ISLE – A recent breakfast hosted by the Presque Isle Area Chamber of Commerce provided an opportunity for participants to discuss a variety of energy issues.
“The Chamber presented an informative Breakfast Biz, sponsored by Dead River Company, at the Presque Isle Inn and Convention Center,” said Theresa Fowler, executive director of the PIACC. “The topic of the event was “Energy Update,” presented by Jamie Py, president of the Maine Oil Dealers Association.
Py began his presentation by noting fuel prices were dropping nationally but noted that fuel prices are hard to predict because so many variables factor into the equation.
“We’re still going to need these fuels. The world oil companies are no better at predicting prices any better than you are,” Py told those in attendance. “The whole market is going up.”
To address demand, Py said more energy needed to be produced.
“We need more energy. We need more everything,” he said.
According to Py, the majority of Maine’s fuel-related businesses are family-owned and –operated. He said those businesses have been struggling like any other small businesses faced with rising energy costs.
“Maine fuel dealers are family-owned. All small businesses are trying to make a living. Historically, local dealers don’t make any money at all. Only 10 percent of the price at the pump has to do with the local dealer,” said Py, adding the remainder of the price goes toward taxes, delivery costs and the distributing oil company.
Part of the problem driving the cost of gasoline in the states, said Py, is that the majority of cars used by Americans are gasoline-powered.
“The United States is the only country in the world that has a gas-based market for personal vehicles. The rest of the world uses diesel. It’s a supply and demand issue,” said Py. “There’s actually more gas out there than diesel fuel,” but production of gas internationally is less, since the majority of the world market uses diesel.
As the dollar strengthens, Py predicted prices would continue to go down.
“We can’t predict how changes will happen. We have to be careful in making decisions,” said Py.
Py said the United States has been on a bit of a learning curve and has improved production methods based on lessons learned.
“With Ike, Katrina – hurricanes happening – better technology has prevented disasters, leaks,” said Py.
Money-saving tips were also offered.
“A person can save 3 to 6 percent with a tune-up. Five percent can be saved with a programmable thermostat – 1 degree equals 1 percent savings, up to 5 degrees,” said Py.
Py said space-heating solutions can also save fuel. And more can be saved with domestic hot water efficiency. New controls can save 10-15 percent – for low cost.
“Replacing old equipment can save 40 to 50 percent, depending on the existing system – highway vs. city mileage,” said Py.
And with winter just ahead, Py said it’s extremely important to weatherize.
Py said there are a number of options available to help lesson the pinch on one’s wallet this winter.
“Talk to your dealer. Many will help you set up budgets, plans, or offer financial incentives and other options. Or talk to your bank or credit union. Many, including MSHA (Maine State Housing Authority), are offering low-cost loans,” said Py.
Py said Maine fuel dealers will continue to work closely with the governor, federal and state legislators and regulators on energy policies for Maine and the nation.
“We’re working with suppliers. We’re communicating with customers about their options and available programs,” said Py.
Py said efficiency is a key element in helping customers save.
“We’re promoting conservation and energy efficiency. National efforts need to be made to provide sound policies to deal with speculation, good biofuels and simplification of fuel types,” he said.
Education was another important factor, according to Py.
“Providing training to professionals through our education foundation to be home energy efficiency experts” helps ensure customers get the most from their money, said Py.
Like computers, vehicles and home heating systems have undergone many improvements over the years. Py said its up to consumers to take advantage of those improvements to get the most for their hard-earned cash.
“Modern (home heating) systems have reduced the average usage from 1,300 gallons to 800 gallons. Future technology is on the way that can bring it down to 500. Many systems currently in use are over 30 years old,” said Py, comparing older systems to older computers. “Are you using a 30-year-old computer?”
Py said it’s up to consumers to make the decision that will best suit their needs. He said customers may find it more difficult to obtain credit when filling their tanks this winter, thanks to the current state of the economy.
“The credit crisis has trickled down to the dealers. They won’t be able to provide credit as easily to customers. Banks won’t be as able to provide dealers with loans to pay their oil suppliers, so more of them will need payment on delivery than in the past. Credit issues will be a lot different than in the past,” said Py. “But there are options when it comes to payment; contact your dealer, bank or Maine State Housing Authority.”
Py said it’s hard to predict what will happen in the energy markets. He said while overall it’s not a good thing “to have the kind of economic calamity now taking place, it may be a good thing for oil prices.”
“There’s plenty of product. I’m of the camp ‘do it all.’ Do the windmills, offshore oil drilling,” said Py. “Liquid fuels will continue to be an important part of Maine’s energy mix. I want to assure you that we are doing everything possible to address the challenges and needs of our customers.”
Staff photo/Kathy McCarty
JAMIE PY, president of the Maine Oil Dealers Association, was in Presque Isle recently, where he served as guest speaker at the Breakfast Biz meeting presented by the Presque Isle Area Chamber of Commerce and sponsored by Dead River Company. Py discussed the price of fuel in the current market and provided tips on how to get the most from one’s fuel dollar.
