World fuel services – beyond fuel physical science electricity review worksheet

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Michael Kasbar has a plan . The CEO of global giant World Fuel Services wants to reinvent his company, taking it beyond its original business of buying and selling fuel and into the broader realms of energy, technology, logistics and payments. He’s already part way there, but there’s more to be done to transform WFS into, as Kasbar puts it, “a ubiquitous global energy management, logistics and payments company to the transportation, commercial, industrial and governmental sectors.”

It’s a Bold Vision, and Kasbar’s ultimate goal is “to make myself irrelevant.” He quips that some people think he already has, but he knows better. To get to the next level requires a steady hand at the helm (his), and the commitment of a team of dedicated professionals. “Do good and make a profit,” he says. “It’s as simple as that.” As incentive, he keeps a poster in his office reminding him of his first big blunder – when he was young and inexperienced and just learning the ropes. It was a valuable lesson.

Kasbar has spent his entire career buying and selling fuels and bunkering ships. electricity out in one room Today, WFS generates about $27 billion annually from its aviation, marine and land-based operations – a number that varies depending on the price of fuel. It operates in 190 countries and employs over 5,000 people, supplying more than a million barrels of product daily. Aviation is the biggest and most profitable sector while marine continues to suffer from a protracted market slump. gas vs diesel truck Land is the newest and fastest growing part of the business.

He recalls with a laugh graduating early from the State University of New York at Plattsburg with a degree in environmental science and having no idea of what he really wanted to do. After his mother vetoed an assistant baker’s job, she instructed him to visit his sister’s manufacturers sales representative business in the garment industry. After some discussion, he realized the oil industry intrigued him, and he began to systematically call every oil company in the Yellow Pages. He finally landed a job in marine fuel sales and worked there for five years.

He left to establish marine operations for a global business but soon found there were too many issues at the company. Along the way he had the good fortune to meet and hire Paul Stebbins, who would become his lifelong business partner and friend. In 1985 Kasbar and Stebbins founded bunker trading firm Trans-Tec, and by 1995 it had become one of the largest marine fuel suppliers in the world.

With an eye toward accelerating growth, Kasbar and Stebbins then sold Trans-Tec to Miami-based and publicly traded International Recovery Corporation for $14.5 million. gas density units The two friends signed employment contracts and continued to manage the business. Later that year IRC, whose main businesses were aviation fuels and oil recycling, changed its name to World Fuel Services but retained its original ticker symbol (INT).

The recent bankruptcies of Hanjin Shipping Lines in 2016 and OW Bunker in 2014 are stark reminders of the ever-present risks in the marketplace. In 2014 OW Bunker started the year with a promising IPO but quickly accumulated more than $1 billion in debt and filed for bankruptcy in November of that same year. gas prices map The Hanjin bankruptcy resulted in write-offs for dozens of customers and suppliers, including WFS.

Nonetheless, the company has built a solid reputation over the years based on its financial strength and global office network, which can identify risks in the marketplace earlier than most. “A successful business strategy is based on the assessment of risk,” Kasbar says. “Working with an experienced global specialist like World Fuel Services is smart because we manage the performance risk. Our global market intelligence and local focus allows us to proactively spot a multitude of risks and issues so problems can be identified and resolved before they impact operations or rapidly respond when they do.”

The process has been used for decades in other sectors of the oil industry, especially on land and in refinery operations. It’s a proven technology already in use in some quarters of the bunkering industry as well, but Singapore is the first nation to mandate its use and impose strict requirements. The MFM systems must be from accredited laboratories and recalibrated three years after they were first approved. In fact, the systems are subject to verification checks quarterly for the first year and every six months thereafter.

But the IMO’s Marine Environment Protection Committee decided to move forward on the original timetable based primarily on a study released last July by the Netherlands research institute CE Delft. The analysis stated that the refining industry could meet the 2020 deadline and there would be sufficient low-sulfur fuel available by that date.

In reaching that conclusion, the study assumed that roughly 3,800 ships would be outfitted with scrubbers by 2020 and therefore would not have to use ultra-low sulfur fuel since the scrubbers would remove the necessary pollutants. 76 gas card login Others argued that this was an optimistic assumption given that fewer than 1,000 ships are outfitted with scrubbers today. If significantly fewer than 3,800 ships have scrubbers by 2020, demand for ultra-low sulfur fuel could outstrip supply, potentially causing disruption in the market.

Kasbar sees the company’s future in software, financial technology, technological breakthroughs and energy management. “The energy diet of our customers is changing,” he explains, “so we need to diversify our offerings – LNG, renewables, special fuel blends and the like.” All in all, WFS supplies over 180 discrete energy and industrial products.

He’s a big believer in the Industrial Internet and combining the use of technology with physical fulfillment – “a vision that resonates with me.” Recent acquisitions in energy management include European companies Bergen Energi in 2015 and Utilities Exchange Ltd. last year. In the U.S., subsidiary KTM has been busily expanding its energy management and regulatory offerings, and Xisot is building its cloud-based predictive analytics to dynamically manage the myriad sources of electricity.

The newly formed Kinect Energy Group combines the collective and diverse offerings of six companies that now provide energy management advisory and fulfillment services in over 30 countries and energy reporting in over 150 countries in almost every language and currency. Customers include consumers of natural gas, power, solar, wind, biogas, biomass, and virtually every form of energy aside from nuclear.

Multi-Service Technology Solutions continues to focus on niche B2B payments solutions primarily to the energy and logistics space and streamlines complicated cross-border transactions in 25 countries, 10 currencies and nine languages. It handles 19 million transactions annually, services 4,500 fleets with its over-the-road fuel fleet card and services another 200 global fleets or 700,000 trucks with parts procurement and the associated payments. Multi-Service also provides commercial driver’s license protection for 15,000 truck drivers in the U.S. and, combined with AVCARD, is the largest closed-loop aviation fleet fuel card.