Fuel is the largest operating expense for an energy sector fleet. Whether it’s a well site, plant, facility or delivery point, vehicles are the lifeblood that take production to market.
The bottom line is that each mile of travel and each consumed gallon of fuel has a precise cost! And properly managing these fuel costs is a must if businesses want to maintain operating efficiency, prevent monetary spillage and hit environmental targets.
In This Article:
The Impact of Fuel Costs on Energy Operations
Fuel costs are volatile, affected by instability in the geopolitical arena, disruptions in supply and political change. For energy companies with hundreds of vehicles in their fleet, an additional $0.10 of cost per gallon can expand annual fuel budgets by tens of thousands of dollars.
Fleets carry heavy equipment and supplies into the wildcat fields in upstream operations. Also, they also use more fuel because of weight and terrain and idle hours. Midstream fleets perform pipeline inspection and maintenance.
These have to cover long distances over a wide area, and this means higher consumption of fuel. Retail and consumer end-trucks move products downstream to the final customer — inefficiencies here make distribution cost more and take longer.
It is not just an expense management challenge, but a competitive necessity to service that cost of fuel.
Key Drivers of High Fuel Expenses
Below are the most important cost drivers that energy companies must understand to curb escalating fuel costs effectively:
- Idle Time: Extended periods of idle time increase fuel usage and cut into productive mileage. Some trucks idle as much as 40% of the time their engines are running—particularly in colder areas or while waiting on-site.
- Wasteful Routing: Inefficient routing will mean more distance travelled, and greater fuel use. Tight routes or inefficient delivery routes are a waste of time and effort.
- Type of Vehicle: Old model and poorly serviced motors will damage the overall fuel efficiency. One 1 psi drop in tire pressure, for instance, lowers gas mileage by 0.2 percent.
- Driver Behavior: Aggressive acceleration, speeding and inadequate gear management increases the amount of fuel consumed by 15-30% on each trip.
These variables are the basis for adopting focused fuel-saving measures.
Integrating Data-Driven Fuel Management
Nowadays, fuel management is driven by data analytics and real-time information. GPS tracking, engine diagnostics and fuel sensors offer fine-detail insights into when, where and how fuel is used.
A body control system combines vehicle functions into one system. It highlights:
- Route and vehicle specific fuel use in real time
- Driver Search Fuel usage distribution
- Deteriorations in fuel economy due to maintenance
- Fuel purchases unauthorized or off route
With that data, fleet managers can compare performance, ensure fuel policies are followed, and better predict fuel requirements.
Importance Of Preventive Vehicle Maintenance
Engine Tuning
The engine burns extra fuel, due to misfiring spark plugs and clogged filters. Tuning the engine and keeping it tuned is something that always pays you back in good fuel burning and performance.
Tire Alignment and Pressure Checks
Low tire pressure and poor alignment make the engine work harder. Monitoring them is a good way to save fuel and keep your vehicle floating smoothly down the road.
Oil And Filter Changes
Used engine oil will thicken and provide resistance in the engine. Oil and filter changes keeps the engine running more freely and saves fuel.
Fuel System Inspection
Fuel systems that are clogged or leaking waste fuel before it gets to the engine. These components are used to enable the vehicle to burn the correct amount of fuel effectively.
Taking care of vehicles is one part of saving fuel, but tracking how fuel is bought and used is just as important. That’s where a Fleet Fuel Card plays a big role in managing fuel spending smartly.
What Is The Role Of Fleet Fuel Card?
A Fleet Fuel Card keeps all fuel purchases in one place. It helps track fuel spending and gives access to fuel discounts.
Fuel cards stop fuel misuse by setting limits on fuel type and how much can be filled. They also block buying from stations that are not approved.
Managers can see all fuel use clearly and spot strange activity. These cards also make it easier to match fuel bills with company accounts.
Knowing the role of a Fleet Fuel Card helps control where, how, and how much fuel is used. But to fully manage fuel costs, companies need to follow clear steps and smart strategies every day.
How Exactly Can You Manage Fuel Expenses in Energy Sector Fleets?
1. Use Geo-Fencing for Refueling Zones
Geo-fencing applies digital perimeters to desired refuelling sites. Vehicles are notified upon arriving at permitted zones, discouraging unauthorized/ high-cost fuel stops.
Geo-fencing means refueling occurs at optimal locations. Such control immediately stabilizes the price per gallon.
2. Analyze Fuel Economy by Load Weight
The heavier the load, the more fuel is consumed. Monitoring mileages by weight loading adds value to both the route planning and vehicle matching.
Information about fuel and load from a load-based fuel analysis is used to optimize load distribution. This is to minimize fuel consumption per trip.
3. Apply Incentive Programs for Fuel Savings
Reward drivers for low fuel consumption and good driving habits. Incentives would encourage long-term change and accountability.
Bonuses, Reward, or recognition will translate into better driving. Fuel savings becomes part of a common goal, not just management’s task.
4. Schedule Refueling Based on Fuel Price Trends
Leverage software to monitor and forecast regional fuel price movements. Buy fuel during off-price hours.
Purchasing during low prices contributes to the cost savings as well. Intelligent scheduling beats random or desperate refueling.
5. Monitor Engine Idle RPM in Cold Starts
High engine RPMs during cold starts burn unnecessary fuel. Watching idle speed at startup saves fuel that’s otherwise wasted.
To maximize savings, energy companies can also explore broader energy solutions by leveraging tools for Business Energy Comparison, which help identify cost-effective energy plans tailored to fleet operations.
By maintaining cold-start RPMs, this helps to eliminate peak fuel wastage. Those small tweaks add up over many stars.
Conclusion
Keeping fuel costs in check for energy fleet is considered to be a daily challenge and requires intelligent planning. Simple actions such as using data to manage, training drivers and maintaining vehicles lead to savings money and fuel.
Analytics, mapping software and controlled refueling allow it to better manage those resources. They make it simpler to snag waste and better tune how fleets operate.
Small changes in habits, and better tools, can make a pretty big difference over time. Saving fuel can help fleets run cleaner and more efficiently, as well as save money.
