Does Z Energy have a future?
Our guest speaker this week was Chris Durno, formerly of OPUS, the London Underground, and Kiwirail, and now chief strategist at Z Energy, where he has been for seven years. He is a personable Canterbury-trained engineer and therefore can turn his hand to anything, including finance, marketing and branding.
Z is a dominant player, and heavily invested, in the fuels industry. It imports, refines (via Marsden Point), stores, distributes and sells about 45% of fuels used in New Zealand. It has an unrivalled network of service stations, now including Caltex. It is going to great lengths to make its core business as efficient as possible.
Z is in a sector that has changed little in the last 100 years. The auto industry has traditionally been closely tied to the oil fuel sector. But change is coming: there is a drive towards renewable energy and electric vehicles. By the late 2020s EVs will be as cheap to buy and cheaper to run than internal combustion types. By 2040, 50% of annual sales and 40% of the national fleet will be EVs.
So the problem facing Z is that the demand for oil fuel, its core product, is falling. Fuel sales peaked in 2018 and have now entered a period of steady decline.
Z’s response is twofold: to increase its share of the declining fuel market, and to invest in new products and services outside its traditional core business.
Z will, for example, sell more coffee and give quicker service to forecourt customers. The ‘customer experience’ will improve.
More importantly, Z will start to invest outside its current position. Targets are ‘future fuels’, (biofuels, fuel cells etc), electricity trading (Z has bought Flick), and ‘mobility as a service’. Presumably the latter includes ride sharing and autonomous vehicles.
Z will have to reinvent itself to survive. This is a big challenge and they will face stiff competition from new and specialist players. Good luck!
Poll: Is it rude to talk on the phone on a bus?
Buses can be a relaxing way to get home if you have a seat and enough space. However, it can be off-putting when someone is taking a phone call next to you.
Do you think it's inconsiderate for people to have lengthy phone calls on a bus? Vote in the poll, and add your comments below.
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65.3% Yes
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32.3% No
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2.4% Other - I'll share below
International Volunteer Managers Day
Yesterday marked International Volunteer Managers Day. So throughout this week we will be spotlighting several amazing volunteer managers from across the Wellington region.
Liv has recently started managing a diverse team of volunteers at The Free Store Wellington. Here are some words about what she loves about her role!
OCTOBER'S WEATHER IN KĀPITI
This third spring month in Kāpiti was milder and sunnier than average, and for three weeks we also seemed to be heading for a record dry one, but rain here and over most of the country on the last week changed that.
We ended up with 110mm of rain (airport), but this was only 12mm above the historic average for this month that is frequently our wettest. Despite the rain, we had the equivalent of 15.5 sunny days, slightly above average.
Our daily average maximum temperature was 17.8, almost 0.4C above average and 0.7C above last year, and our overall mean temperature was 14.2C, 1.3C above last year, and the warmest in central New Zealand.
November could average around 20C, as it often does, so we can look forward to the possibility of enjoying our first summer month.
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