Greg’s Petroleum Service Salutes Our Veterans

To help celebrate and give back to our veterans, Greg’s Petroleum Service is partnering with KGET for the Veteran Salute Contest.

Our Veterans are our real-life heroes, for all they have done past, present and future. That’s why we want you to help us honor the Veterans in your life. Encourage them to share their inspiring stories for our community to see and celebrate, and for a chance to win a $150 gift card. A very small token of appreciation for their service.

Kern County strongly celebrates our veterans because even if you haven’t served, you know a loved one who did. We are a close-knit family community that supports our Vets and all they’ve done for us, our community, and our country.

Studio 17’s Ilyana Capellan talks to Gabriel Sauceda, sales manager of Greg’s Petroleum Service, and veteran who served in the U.S. Marine Corps, about the importance of giving back to veterans in Kern County. Check out his live interview, here.

To nominate the veteran in your life for a chance to win, click here. We’ll randomly draw one lucky winner on March 25, April 22, and May 27. Good luck and thank you for your service!

To learn more about Greg’s Petroleum Service and check out their job openings, visit our website.

These case studies show that Chevron ISOCLEAN Certified Lubricants make a difference!

Investing in new equipment is a great way to increase productivity and efficiency, but only if the equipment is maintained correctly. As a fuel and lubricant supplier, we want to help our customers make the best lubrication decisions for their business. In this blog, we will share two case studies from Chevron that showcase the importance of adopting lubricant cleanliness standards to maintain equipment.

Case Study #1- Trinity River Lumber Co.
First, let’s explore the Trinity River Lumber Co. in Weaverville, CA. For 75 years, the mill has processed fir and white fir logs into lumber, but a decade ago, the mill needed to rebuild after a devastating fire. As a result, the owners invested in new equipment, including 20 electro-hydraulic servo values that helped keep the logs flowing into the mill. The mill began implementing lubricant cleanliness standards to protect these valves and the new equipment.

They started by switching to Chevron ISOCLEAN® lubricants. Making the switch to ISOCCLEAN® lubricants was a no-brainer for the company. They began using Chevron’s Rando® HD 68 Hydraulic fluid for their hydraulic needs. They also implemented the ISOCLEAN® SmartFill label program to improve oil storage. The lead lubrication technician, Jeffery Evans, says, “We adopted the ISOCLEAN® product about four years ago. [We found] that the oil in our system lasted longer, and we saw a higher level of reliability.”

Make the switch to ISOCLEAN® Certified Lubricants
The first lesson that this case study shows us is the importance of switching to Chevron ISOCLEAN® Certified lubricants. We can’t say enough about how great this program is and why it’s so valuable for our customers. Here is a quick overview of the program and why it works.

The ISOCLEAN® certified lubricants are cleaner than typical lubricants. Chevron’s higher testing and production standards help reduce particle contamination and improve cleanliness. Suppliers and customers know that even brand-new lubricant products straight from the supplier can become contaminated with particles that will damage your equipment over time. All this contamination often occurs during processing, transportation, or storage. Typically, new lubricant products can contain 32x more particle containments than is recommended for equipment use. Chevron’s ISOCLEAN® lubricants are lab-tested using Chevron’s state-of-the-art processes to meet OEM cleanliness standards. The increased cleanliness of ISOCLEAN® lubricants means that they increase component life, improve reliability, and help reduce the need for equipment maintenance and onsite filtering. Chevron has even created a calculator that you can use to save how much your company will save by switching to ISOCLEAN® lubricants.

Try Chevron’s SmartFill® labeling system
The other tactic that helped to improve lubricant cleanliness and performance for Trinity River Lumber Co. was implementing Chevron’s SmartFill® labeling system. Proper lubricant storage and labeling are essential to maintain cleanliness and avoid lubricant waste. However, many businesses struggle to implement such programs. It takes time and effort to organize a dedicated lube room and labeling program. Chevron saw that many business owners were struggling with this and decided to create the SmartFill® program.

The SmartFill® program makes it easier to maintain lubricant integrity with proper storage and labeling practices. This system utilizes strong visuals and process flow maps to improve productivity and sustain lubricant cleanliness. The SmartFill® program provides operators with labels for different lubricants and storage materials with charts to track everything. These tools make it easier for operators to categorize supplies by product name, ISO grade, shelf life, and other standards. It’s a ready-to-go program that simplifies lubricant storage, so you don’t have to create a whole system from scratch. At Trinity Lumber Co., they used the system to create a dedicated bulk storage area with Des-Case breathers and direct couplers to maintain cleanliness.

Case Study #2- Full-Service Waste Provider in Georgia
Communities depend on waste collection providers to keep their streets and homes clean, but waste providers’ machinery and equipment go through a lot of wear and tear. The local waste service provider in the Central Savannah River Area of Georgia knows this too well. The locally owned company has 26 waste collection trucks with different engines and lubricant needs. From 2011 to 2012, the company began struggling. Their lubricant supplies were not doing the job, and several of their trucks were experiencing hydraulic issues. The hydraulic fluids and engine oil weren’t performing, which caused excessive heat leading to seal failures in the valve bodies and cylinders. Unfortunately, the extra heat was also causing engine oil breakdowns. The only way to deal with that issue was to change the oil every 250 hours!

After an audit and lab analysis of their equipment and oil samples, they realized that lubricant cleanliness was the problem. The oils they were using didn’t meet OEM ISO Cleanliness requirements. However, the company was determined to fix the problem, so they switched to Chevron ISOCLEAN® certified lubricants and engine oils. Like Trinity River Lumber Co., they started using Chevron Rando® HD 68- ISOCLEAN hydraulic oil and saved an estimated $400 a truck! In addition, they found that “sticking valves and leaking seals were costing us over $12,000 each year in pump cylinder and valve body cost. [When we switched] to ISOCLEAN Certified Rando HD 68 in midstream, one pump’s life was almost doubled.”

Making the switch to ISOCLEAN® is worth it!
As a certified Chevron supplier, we know the value of their ISOCLEAN® certified lubricants and engine oils. Just like these case studies show, it makes a difference. We’ve seen our customers’ results when they make the switch and implement lubricant cleanliness standards in their business. If you want to protect your equipment, you need to invest in clean lubricants to reduce equipment downtime and maintenance. From our point of view, your best bet is Chevron ISOCLEAN® certified lubricants. So, if you’re ready to make the switch, contact your Greg’s Petroleum Service representative to start today!

Supply chain issues are plaguing the lubricant industry. Are you prepared?

Supply chain disruptions are nothing new, especially in the oil industry. A hurricane can wipe out production at a refinery leading to shortages and price increases, or a ship can get stuck in a canal. These things happen. In fact, in 2005, Hurricane Rita caused significant disruptions to the lubricant industry. Tammi Walts, then the vice president of Idemistu Lubricants, could not fill an order for a US automotive plant because the hurricane disrupted the supply chain. She didn’t have the additives and base oils she needed to complete the order, so she had to call in a big favor and have the fluids airlifted from a supplier warehouse in Japan!

This example shows how easily the supply chain can be disrupted, especially in the oil and fuel industry. As we all know, the supply chain for every type of good has been under tremendous stress over the past few years. It started with the shutdowns at the start of 2020 when COVID-19 was declared a pandemic. Problems have continued through other significant events like the ice storm in Texas and the blockage of the Suez canal. In addition, the decreased demand for fuel and lubricant supplies in early 2020 and 2021 have also exacerbated production and supply chain issues.

Now, in 2022 as our economy recovers and oil and fuel demand skyrockets, shortages are occurring everywhere. Almost every industry has been affected, and orders take longer to fill. In the lubricant world, deficits are being reported of some of the most common engine oils and lubricants, including 15W-40 and 5W-40 heavy-duty engine oils, full synthetic passenger vehicle oil, way oil, hydraulic oils, synthetic gear oils, and EP grease.

What is causing lubricant shortages now?
First off, it’s important to remember that the supply chain never fully recovered from the events of 2020 and 2021. Demand for fuel and lubricants skyrocketed when things were starting to improve at the end of 2020, which caused further strain. By 2021, lubricant manufacturers began to feel the pressure as base oil, and additive supply tightened worldwide. This strain caused seven record price increases from December 2020 to October 2021 for base oils and additives. These issues continue to plague the market in 2022. But new supply chain complications are also causing problems, such as:

  • The Omicron variant is a big issue for our supply chain management. While this new variant is typically milder, it is more contagious and has led to record high cases, which leads to worker shortages and production delays.
  • Labor shortages are also causing issues for various industries. In November 2021, there were a record-high 10 million job openings across the country, as more than 4.4 million people quit their jobs. The movement is known as the ‘great resignation’ as workers protest working conditions, hours, and pay. This labor shortage affects all industries, including the oil and lubricant industry.

There are a lot of issues that affect the supply chain, but one of the largest right now is the shortage of truckers. Nearly every good we buy from our produce to our motor oil is transported at some stage by a truck driver. 72% of all goods we consume are moved by truck. Trucks are a critical part of the supply chain, and right now, drivers are in short supply. The industry has long faced workforce challenges, including long hours, pay issues, and poor working conditions, but those became increasingly apparent during the pandemic. Truck drivers scrambled to meet demand, stay safe and healthy on the road and faced significant challenges. Turnover is high among drivers, and the workforce is aging and struggling to recruit younger drivers. The Biden administration even announced a Trucking Action Plan to address these concerns and issues and to help strengthen the trucking workforce across America.

How will these supply chain issues affect your business?

It may be harder to get your lubricant and fuel supplies. Unfortunately, there’s not much we can do to prevent supply chain issues. But we can help you prepare for the changes that may come. Here are a few things you should expect in 2022.

  • Longer wait times for lubricant supplies. The supply chain issues the industry is facing may increase wait times for specific products or make them harder to find. We suggest planning out your needs when ordering so that you have time to wait for your order to arrive. Make sure you also plan your maintenance schedule around reduced lubricant supplies.
  • Be prepared for price changes. If you’ve recently filled up at the pump, you’ve probably noticed that gas prices are up. Gasbuddy reports that the national average is up 12.3 cents from Jan 2022 and 97.5 cents per gallon higher than a year ago. Fuel prices are a great indicator of how the whole oil and lubricant industry will be affected. If fuel prices are increasing, lubricant prices will not be far behind. So take time to look over your budget and begin preparing for increases now.
  • Reduced Inventory. Most of the supply chain issues directly affecting the oil and lubricant industry are additive and base oil-related. As a result, there isn’t as much stock available, causing shortages for some products, especially ones with additives. As a result, it may be more challenging to find specific products. Be prepared to order alternatives when needed.

Trust us to be your fuel and lubricant supplier
As your fuel and lubricant supplier, we will do our best to mitigate the effect of these supply chain disturbances. But sometimes, the effects of these disturbances may be out of our control. We will do our best to work with each of our customers to ensure that you have the supplies you need, even if that means we have to stretch our inventory a little.
In the 2005 lubricant shortage crisis, one of the ways that the industry worked to meet orders was by communicating with one another and working together. Blenders worked together to share inventory and regularly reached out to base oil and additive distributors to help make orders for companies. Sometimes they reduced orders to ensure that everyone got some of what they needed until things picked back up. That spirit of cooperation and collaboration is what we are striving for during these tumultuous times. We will do our best to communicate directly with you to meet your needs and work with our various partners to find what you need. Together we will be able to weather this crisis until things cool down. We appreciate your patience and trust in us as your fuel and lubricants supplier.

Gas Prices are Heading to an All-Time Record High.. and so is Theft

With fuel prices at a 14-year high, it’s hard to imagine paying even more at the pump. Yet, prices are only getting higher. As of Monday, the average price for a gallon of gas in California hit $5.28 and diesel skyrocketed to $5.76 per gallon, according to the US Energy Information Administration. With this most recent increase, people are paying 70-80 cents more than just a month ago.

As fuel prices rise, fraudulent activity typically rises too. Increases in employee theft are common during periods of severe inflation, as we are seeing now. That means it’s more important than ever to keep an eye on your transactions to prevent this from happening to you.

If you would like to review your current program, we can look at your card’s restrictions and limits to ensure they are current and set up the way you would like them. If you aren’t already, this is also a good time to start regularly checking your transaction reports to monitor all fuel usage and to help prevent any unusual activity.

As a reminder, our CFN fuel card program, helps protect against fraud in a number of ways such as:

  • Network-wide protection against fraudulent transactions
  • Fraud protection notifications when unusual or suspicious activity is detected
  • Protection from card skimming and software attacks

In addition to these benefits, here are some other tips to prevent CFN loss and theft:

  • Make sure that your card restrictions and limits are appropriate for your business needs. This ensures that there are not gallons available to be taken without drawing attention.
  • Set up e-receipts to get transaction details sent to you when fueling occurs.
  • Do not write or leave pin number on your cards. This is easily the most common way fraud occurs with fuel cards.
  • Keep track of critical information. Make it a point to know the potential use amounts of fuel for your vehicles, the patterns and habits of drivers and the typical charge amounts on your card. This can easily be done by running transaction reports via our customer portal.
  • Stay informed and aware. Make sure you are always up-to-date on the most commonly used fraudulent practices including wanding, skimming and shimming.
  • Put preventative measures in place. One easy thing to do is to purchase RFID blocking wallets or sleeves to prevent wanding. This sleeve comes with our card and we recommend having your drivers use it!
  • Notify us immediately if you lose a card or pin, or notice any questionable transactions.

If you have any questions or would like help reviewing your account, please contact Aryana Trams at aryana@gregspetro.com.

Havoline Loyalty Rewards Rebate Starts April 1st

From April 1 – May 31, bring customers back to your shop with a Chevron–funded offer of up to $18.00 off! If you haven’t yet, this is also a good opportunity to bring in the new Havoline PRO-RS™ Renewable Full Synthetic (ask your Greg’s Petro sales rep) as well as Techron® pour-in fuel additives. Be sure to maximize value of the promotion to your customers and to your business by stocking all of the Qualifying Products.

This Loyalty Rewards Rebate offers benefits for both YOU and YOUR customers. Here are just a few benefits from participating:

Benefits for Installer

  • • Chevron-funded rebate
  • • FREE point-of-purchase materials
  • • Promotes higher margin premium products
  • • Increases the average ticket and revenuek

Benefits for Customers

  • • Save on Havoline and Techron services
  • • Easy online only claims processing
  • • Rewards loyalty to the site

Your customers will submit an online claim to receive a check from Chevron made out to your location that they can use toward payment of their next premium oil change. You accept that check and deposit it in your bank account…it’s that simple! Complete details are in the promotion flyer here.

Enrolled Installers will receive digital promotion assets by email to use in your local off-site advertising to attract new customers, and, a physical promotion kit a few days before the start date. Advertising the offer off-site, on your website and on your social media platforms will help draw new customers to your facility(ies). The key to attracting NEW customers is off-site, digital advertising.

The top 5 sites nationally, based on valid customer claims, will receive 10 limited edition Havoline Yeti® Ramblers. The top performing site will receive a limited edition Havoline neon sign! As your lubricant supplier for your Havoline quick lube franchise, we are here to help you make this a successful promotion!

Russia – Ukraine Conflict Impacts Fuel & Oil Prices

The ongoing crisis between Russia and Ukraine means that oil supply disruptions are likely and the energy market may soon experience market instability. This means higher gas prices for the US, at least for the time being.

As Russian President Vladimir Putin continued his attack on Ukraine this week, gasoline prices have already increased.

Last Friday, the average gas price rose to $2.57 a gallon. This means that gas prices have risen by approximately one cent per gallon every day over the last week, according to reports by the AAA motor club. The national average is currently about a dollar higher than it was a year ago.

According to some experts, the price per gallon could rise as high as $4 by early spring. In California and Hawaii, prices could rise to $5/gallon. Oil prices may approach $125 a barrel, according to Goldman Sachs.

Here’s why.

Russia is the second-largest oil-producing country globally, and the U.S. gets about 3% of its oil from Russia.

Allies around the world have begun imposing economic sanctions on Russia. On Monday, several countries announced increased sanctions on the country.

Why are gas prices going up?

Experts fear the conflict between Russia and Ukraine could disrupt oil supplies in the region, which would lead to a bump in gas prices.

The U.S. and other allies have already imposed sanctions on Russia’s military, shipping, and space program. Some of the most extensive sanctions target Russia’s banks. The hope is that this will negatively impact Russia’s economy and make it harder to do business.

So far, the stock market in Russia has tanked by 1/3 in just one day. As a result, Russia has done several things, like stockpiling gold and aligning with China to shield the country from these sanctions.

However, Russia’s most significant shield to this sanction is its energy sector. Russia is the second-largest producer of oil. They export $400 million worth of oil each day. However, there have been no sanctions imposed on Russia’s oil because of the global dependence on Russia’s production.

Some reports believe that even without oil sanctions, inflation could rise in the country, ultimately affecting their economic stability while utilizing their oil.

What this means to you?

Chevron’s CEO, Michael Wirth, explains that before the Russia-Ukraine crisis, we were experiencing a strong but not complete economic recovery since COVID. We already were coming out of a period where demand had collapsed and there were concerns of where to store supply. In 2020, supply had to be contracted to recognize the decreased demand. Now, as we all know, supply is struggling to keep up, and we are seeing that reflected in our prices. We are also know experiencing geopolitical concerns with the Russia-Ukraine invasion – creating jitters in many commodity markets and causing gas prices, oil prices, and inflation to increase. To watch his full interview, click here.

Greg’s Petroleum Service continues to work hard to control costs and deliver quality products and valuable service at competitive prices. Unfortunately, we must advise all customers and our community that the industry will be experiencing price increases due to the Russia-Ukraine conflict.

We regret having to pass this increase on to you. As a valued customer, please know we will only increase prices due to the direct supplier increases we receive. If you are not using our cardlock fueling program, please reach out to Aryana Trams at aryana@gregspetro.com or 661-446-2286. With our program your cost on the road will follow the fuel commodity cost without being subject to retail markups.

We greatly appreciate your continued business and partnership. For questions on how Russia’s Ukraine invasion could affect your prices, please contact your Greg’s Petroleum Service sales rep today.