17th November 2011 Shell Lubricants Celebrates Five Years as World's Number One Lubricants Supplier HOUSTON, Nov. 17, 2011 /PRNewswire/ -- For the fifth year running Shell Lubricants (Shell) topped the list of the world's leading lubricants suppliers, according to annual research into the global lubricants market. The study, conducted by Kline & Company (Kline), gave Shell more than 13 percent of the market by volume in 2010 and a two percent lead over its nearest competitor. The report also found Shell to lead in the branded lubricants category. In 2010, Shell correspondingly maintained its leadership position in the North American market with almost 13 percent share by volume, and its leadership in the U.S. lubricants market specifically with more than 11 percent share. In addition, Shell strengthened its leadership position in Mexico, the fastest-growing North American market, achieving 23% market share. "We are very proud to have retained our leadership in North America, and much of the credit goes to our employees' and distributors' efforts to defy the economy and continue to succeed in the marketplace," said Lisa Davis, president, Shell Commercial Fuels and Lubricants, Americas. "We are also pleased with our performance in South America, where our employees and macro distributors are poised for ongoing success." Global demand for lubricants as a whole grew by around 6 percent over 2009 – indicating a slight recovery from the recession-and the U.S., the largest single market in terms of lubricant volume demand, accounted for 23 percent of global consumption. Looking ahead, Kline forecast slow growth for the market as a whole, but identified growth opportunities at country and product level. The strongest growth is predicted to come from the BRIC countries-Brazil, Russia, India and China--plus South Korea. Predicted continued growth for South America bodes well for Shell, which increased its share in 2010 in both Brazil and in South America overall. The study also highlights increasing demand for synthetic lubricants, which help end users improve energy efficiency and prolong equipment life. "Five years at the top is a remarkable achievement. It shows that our consistent strategy of focusing on leading technology and strong customer relationships has served us well," said Mark Gainsborough, Head of Lubricants for Shell. * Kline & Company is a worldwide consulting and research firm. All data in this media release has been sourced from Kline & Company's report "Global Lubricants Industry 2010: Market Analysis and Assessment," unless otherwise stated. Lubricants report November 24th, 2011 Shell Lubricants' First Gas-To-Liquid Product Shipment Reaches America From The Qatar-Based Pearl GTL Plant the Port of Houston. The high-quality product, the first from theQatar-based Pearl GTL plant to reach the Americas, will be stored at a hub in Houston and routed to Shell Lubricants' GTL-enabled blending facilities throughout the United States.. Shell Lubricants will use Pearl GTL base oil, a high-quality Group III base oil, in the manufacture of its premium motor oils. Group III base oils are the foundation for formulating next-generation oils that address needs for improved energy efficiency, longer equipment life and reduced maintenance costs.. "The arrival of the first shipment of GTL base oil to the Americas is an extremely exciting event for Shell Lubricants and our customers," said Lisa Davis, president, Shell Commercial Fuels and Lubricants, Americas. "This new base oil is another clear example of Shell Lubricants' commitment to using technology and innovation to meet the growing demand for premium motor oils and to sustain our position as the world's leading marketer of finished lubricants.". Pearl GTL, a partnership between Royal Dutch Shell and Qatar Petroleum, has built the world's largest gas-to-liquids plant in Ras Laffan Industrial City, Qatar. The plant uses natural gas from Qatar's North Field to manufacture high-quality base oils and other GTL products. Once the Pearl GTL plant is operating at full capacity, it will be one of the world's largest sources of lubricant base oils with the capacity to produce about 30,000 barrels per day, enough to fill 225 million cars per year. Shell will be the only oil major capable of meeting all of its Group III base oil needs from internal sources.. Compared to typical base oils, which are refined from crude oil, GTL base oils represent an alternative starting point for the manufacture of finished lubricants. Within the range of commercially available base oils, Group III oils have high viscosity index, low volatility and good low-temperature fluidity and are often used to make synthetic motor oils. Shell GTL base oil usage will be an essentially invisible change to Shell Lubricants' existing premium formulations, although in some cases lubricants using GTL base oil may appear lighter in color. |
Lubricant report
3 september , 2010
Vol. 9 Issue 32
Shell to build USD 100m lubricant blending plant in Russia
The plant, which is being built in Torzhok in the Tver region, north-west of Moscow, will have a
capacity of 200 million litres a year (about 180,000 tons), making it one of the largest in the
Shell network worldwide. Commercial operation is expected to begin by the end of 2010.
As a leading international supplier of lubricants and greases to Russia, Shell will bring
advanced technology to the local market and ensure high quality products through stringent
quality control. Bringing world-class production capacity closer to customers will allow Shell to
supply a full range of high-quality motor oils, transport oils and industrial lubricants to the
Russian market, with the potential to expand distribution to neighbouring countries in the
future. Large industrial customers will benefit from the bulk delivery of technologically
advanced products, speeding up delivery times and reducing storage costs.
David Pirret, Executive Vice President for Shell Lubricants, said: "Russia is a country of
strategic importance for Shell, and today's announcement is further evidence of our
commitment to grow our business here, not only in upstream but also in downstream. Russia is
the third largest lubricants market in the world and it is vital that Shell, as the leading global
lubricants supplier has a significant presence here. Shell Lubricants has seen seven
consecutive years of profitable growth in Russia and we believe that setting up lubricants
production facilities will help us capitalise on further growth opportunities."
Dmitry Zelenin, the Governor of the Tver region, noted: "We are glad that Shell is building a
lubricants blending plant in the Tver region. The plant will use advanced operational and
organizational technologies, employ Russian workforce – from maintenance to managers, and
create around 150 new jobs. The regional administration will continue supporting our foreign
partners. I am confident that there will be no difficulties to hinder the project implementation,
and commercial operation will start by the end of next year as planned."
Lubricant report
3 september , 2010
Vol. 9 Issue 33
Sub-Standard lubricants in Nigeria
The petroleum products' enforcement agent, which confirmed influx of substandard lubricants into the
country at a workshop organised by the Tribologists Society of Nigeria (TSN) in Lagos, said that the
nation is "losing so much on this importation," challenging local producers and blenders to brace up
for the shortfall, which may arise from the stoppage of off-spec lubricants' importation.
TSN, it would be recalled, alerted Nigerians through the coordinator of the first TSN national
lubrication workshop, Dr. John Erinne, of the influx of larger volumes of adulterated lubricants into the
Nigerian market, which consumes 300, 000 barrels (47 billion litres) per annum.
The DPR's assistant Director, Pipeline, Plants and Installations, Olumide Adeleke, who presented a
paper at the workshop gave a January, 2010 deadline to stamp out the sales of lubricants in bulk
tanks and in plastic bottles at filling stations.
He said: "In order to effectively stem the menace of the sale of substandard lubricants, some
additional measures were recently taken like the branding and packaging of all lubricants by January
1, 2010 thereby stamping out the sales of lubricants in bulk tanks and in plastics bottles at filling
stations and at road sides respectively. "Conduct a nationwide inspection of lube blending plants to
determine the current state of blending facilities, collection of production data over a three-year
period, determine the average capacity utilisation of respective blending plants and shutting down
unlicensed and erring plants."
TSN President, Professor Steven Odi-Owei, had earlier reiterated the society's resolve to end
importation, production and distribution of substandard lubricants in Nigeria, "through sensitisation of
the public, because the country's industrial sector is at risk of machine breakdowns and knocks."
The tribologist said the Power Holding Company of Nigeria (PHCN) and other heavy lubricants users
in Nigeria could also be at the receiving end.
"Lubricants users, who also include car owners, are at risk, and they should beware of even imported
off-spec products", Erinne had said at a press conference to herald the workshop in Lagos.
Speaking in the presence of Kayode Sote, Imafidon Osarenkhoe and David Obadare, Erinne stated
that the "Minimum Quality Lubricant Standard (MQLS) is not being respected by the importers of the
products and some of local producers, thus the workshop to sensitise the public."
The total market turnover of the downstream sector in Nigeria, the Managing Director of Matrix
Petrochemical Limited said, "is N900 billion while the profit margin of the lubricants market is between
N30-N40 billion, which constitutes some great percentages."
Stressing that the TSN's workshop would be held in collaboration with two major regulating agencies
-the Standard Organisation of Nigeria (SON) and the Department of Petroleum Resources (DPR),
Erinne pointed out that the "workshop was aimed at getting all major stakeholders to formulate a
communiqué which will change the situation for the better."
Corroborating Erinne's view, Sote noted: "The base oil market in Nigeria is worth $300 million and
about 10 marketers, who have formed a cartel single-handedly make $45 million of the revenue at the
expense of the Nigerians."
About one third of energy generated is, according to him, "due to friction and wears and this explains
why PHCN is not working at optimal level."
He said a minimum of N50 million is needed to build a lubricant plant in Nigeria, the Chief Executive
Officer (CEO) of Lubeservices maintained that about 24 standard lubricant oil plants have been built
in Nigeria, "showing that Nigeria has abundance of experts and expertise that can successfully fill the
vacuum that would be created by the stoppage of substandard oil into the Nigerian market."
Epoxy Oil Lubricant report
8th october 2010
vol.9 Issue 33
Market Research: Global Recession Levels Serious
Blow to Lubes Industry
By Geeta Agashe, Vice President, Energy Kline
The worldwide recession has sent the global lubricants market into a tailspin – even demand in the usually burgeoning
Asia-Pacific region has slipped by almost 3%. But, while the global community may be “in it together,” the specific market
drivers and impacts of the recession vary significantly from one geographic region to the next. Given this uncertainty,
what might the finished lubes industry look like once the worst is over?
The onset of the global recession, fueled in large part by the mortgage meltdown and high fuel prices in the United
States, has weakened the market for finished lubricants around the globe. While few nations have been spared from the
effects, the contributing factors and varying impacts have demonstrated that, while we all may be in trouble together,
there is no one-size-fits-all solution for recovery.
LUBRICANT DEMAND BY REGION 2008
lubricant demand by region
The Underwhelmed United States
Demand for consumer lubricants in the United States contracted significantly as the recession drove consumers toward
frugality. Job losses and home foreclosures kept Americans off the road, with vehicle miles traveled in 2008 down by
3.6% over 2007. Fewer miles driven means longer drain intervals, which translates into less business for both DIY retail
sales and bulk PCMO outlets like quick lube and service stations. Until the recent “Cash for Clunkers” program,
consumers were also holding tight to their older vehicles, sending new car sales down significantly and stifling demand
for factory fill.
In the commercial market, stymied consumer spending and cutbacks in industrial production have resulted in a slump in
the freight-hauling industry – and a corresponding slide in HDMO demand. Meanwhile, lubes consumption in the mining,
construction, and manufacturing industries has plummeted as industrial production of nearly all varieties and new home
construction has sunk to the lowest levels in years.
The U.S. economy has shown a few meager signs of improving, but with the segment that suffered the worst losses –
industrial lubes – so closely tied to overall recovery, it is unlikely that we’ll see a significant rebound until near the end of
2010.
Germany Withers Under Export Losses
Where the U.S. economy has suffered domestically, Germany’s has taken a major hit in its manufactured goods
exporting trade. With nearly two-thirds of German exports falling into the automotive, machinery, and chemicals industry
– each which has seen significant contraction in other markets – the German economy is reeling with industrial
production in the first quarter 2009 down by 20% compared to the same time last year. Meanwhile, domestic
consumption remains mostly unchanged, further indication of this export-based economy.
In one bright spot, sales of cars and light vehicles were up by 18% for the first half of 2009, spurred by a government
subsidy program similar to that of the United States. However, the trucking and logistics industry remains depressed,
alongside manufacturing, which will likely hold German lubricants consumption in a slump over the next two years.
Russian Outlook Grim
Farther to the east, the Russian lubes market is facing an even gloomier outlook. Similarly dependent upon the export
business, albeit it the export of oil, metals, and minerals, the Russian economy is on the verge of total collapse sparked
by government-spending-induced inflation and fears of sudden deflation. State firms are under tremendous pressure to
meet enormous debt obligations undertaken during the boom in crude prices last year without laying off employees,
against the backdrop of a manufacturing meltdown, rising interest rates, depleted foreign credit, a pull-back in consumer
demand, and significant overstock inventories in various supply chains.
The numbers are down in nearly every lubricants consumption class: sales of automobiles are dismal; construction is at
a near stand-still; freight is barely moving; industrial production is at a crawl. Lubricants consumption is expected to
decline by more than 10% in the consumer segment and more than 20% in the commercial and industrial sectors
through 2010.
The Unshakeable Chinese
In the Far East, the Chinese economy remains significantly more resilient. Car sales have soared 30% over the past
year, creating strong demand in the factory fill and overall PCMO markets. In the commercial segment, the trucking
industry has taken a significant loss, but represents only about one-fourth of the overall commercial market –
consumption in the construction, agriculture, mining, and public transportation sectors are all up for the period October
2008-March 2009.
Likewise, the hardest-hit industrial markets (textiles, primary metal, and transportation equipment) comprise only 20% of
overall consumption in the segment. Consumption in most other major segments is up. Given the relatively small impact
the recession has had on the Chinese lubricants market, growth – albeit relatively small – is expected through 2010.
The Global Prognosis
Given the varied impacts across each of the major markets, the prognosis for the industry varies with each segment.
PCMO will likely recover more quickly buoyed by the growth in vehicle population throughout Asia and global fuel prices
which remain in the moderate range. Improvement in HDMO consumption is closely tied to the overall economic recovery
in each country and will improve slowly as global recovery inches ahead. Industrial lubes will likely remain the most
depressed. Finally, metalworking fluids will suffer the longest given this segment’s dependence on the slow-to-recover
automotive industry.
Survival under these conditions will be much easier for larger, multi-national and well-diversified marketers. Those with
broad product portfolios, wider end-use segments and greater geographic reach can leverage the ability to shift
production and distribution focus from struggling segments and depressed markets to those that remain on the plus
side. Meanwhile, specialty suppliers who may see severe contracting in their specific niche markets will likely fare much
worse as the global economy refuses to recover at the same speed with which the bottom dropped out.
8th october 2010
vol.9 Issue 33
Market Research: Global Recession Levels Serious
Blow to Lubes Industry
By Geeta Agashe, Vice President, Energy Kline
The worldwide recession has sent the global lubricants market into a tailspin – even demand in the usually burgeoning
Asia-Pacific region has slipped by almost 3%. But, while the global community may be “in it together,” the specific market
drivers and impacts of the recession vary significantly from one geographic region to the next. Given this uncertainty,
what might the finished lubes industry look like once the worst is over?
The onset of the global recession, fueled in large part by the mortgage meltdown and high fuel prices in the United
States, has weakened the market for finished lubricants around the globe. While few nations have been spared from the
effects, the contributing factors and varying impacts have demonstrated that, while we all may be in trouble together,
there is no one-size-fits-all solution for recovery.
LUBRICANT DEMAND BY REGION 2008
lubricant demand by region
The Underwhelmed United States
Demand for consumer lubricants in the United States contracted significantly as the recession drove consumers toward
frugality. Job losses and home foreclosures kept Americans off the road, with vehicle miles traveled in 2008 down by
3.6% over 2007. Fewer miles driven means longer drain intervals, which translates into less business for both DIY retail
sales and bulk PCMO outlets like quick lube and service stations. Until the recent “Cash for Clunkers” program,
consumers were also holding tight to their older vehicles, sending new car sales down significantly and stifling demand
for factory fill.
In the commercial market, stymied consumer spending and cutbacks in industrial production have resulted in a slump in
the freight-hauling industry – and a corresponding slide in HDMO demand. Meanwhile, lubes consumption in the mining,
construction, and manufacturing industries has plummeted as industrial production of nearly all varieties and new home
construction has sunk to the lowest levels in years.
The U.S. economy has shown a few meager signs of improving, but with the segment that suffered the worst losses –
industrial lubes – so closely tied to overall recovery, it is unlikely that we’ll see a significant rebound until near the end of
2010.
Germany Withers Under Export Losses
Where the U.S. economy has suffered domestically, Germany’s has taken a major hit in its manufactured goods
exporting trade. With nearly two-thirds of German exports falling into the automotive, machinery, and chemicals industry
– each which has seen significant contraction in other markets – the German economy is reeling with industrial
production in the first quarter 2009 down by 20% compared to the same time last year. Meanwhile, domestic
consumption remains mostly unchanged, further indication of this export-based economy.
In one bright spot, sales of cars and light vehicles were up by 18% for the first half of 2009, spurred by a government
subsidy program similar to that of the United States. However, the trucking and logistics industry remains depressed,
alongside manufacturing, which will likely hold German lubricants consumption in a slump over the next two years.
Russian Outlook Grim
Farther to the east, the Russian lubes market is facing an even gloomier outlook. Similarly dependent upon the export
business, albeit it the export of oil, metals, and minerals, the Russian economy is on the verge of total collapse sparked
by government-spending-induced inflation and fears of sudden deflation. State firms are under tremendous pressure to
meet enormous debt obligations undertaken during the boom in crude prices last year without laying off employees,
against the backdrop of a manufacturing meltdown, rising interest rates, depleted foreign credit, a pull-back in consumer
demand, and significant overstock inventories in various supply chains.
The numbers are down in nearly every lubricants consumption class: sales of automobiles are dismal; construction is at
a near stand-still; freight is barely moving; industrial production is at a crawl. Lubricants consumption is expected to
decline by more than 10% in the consumer segment and more than 20% in the commercial and industrial sectors
through 2010.
The Unshakeable Chinese
In the Far East, the Chinese economy remains significantly more resilient. Car sales have soared 30% over the past
year, creating strong demand in the factory fill and overall PCMO markets. In the commercial segment, the trucking
industry has taken a significant loss, but represents only about one-fourth of the overall commercial market –
consumption in the construction, agriculture, mining, and public transportation sectors are all up for the period October
2008-March 2009.
Likewise, the hardest-hit industrial markets (textiles, primary metal, and transportation equipment) comprise only 20% of
overall consumption in the segment. Consumption in most other major segments is up. Given the relatively small impact
the recession has had on the Chinese lubricants market, growth – albeit relatively small – is expected through 2010.
The Global Prognosis
Given the varied impacts across each of the major markets, the prognosis for the industry varies with each segment.
PCMO will likely recover more quickly buoyed by the growth in vehicle population throughout Asia and global fuel prices
which remain in the moderate range. Improvement in HDMO consumption is closely tied to the overall economic recovery
in each country and will improve slowly as global recovery inches ahead. Industrial lubes will likely remain the most
depressed. Finally, metalworking fluids will suffer the longest given this segment’s dependence on the slow-to-recover
automotive industry.
Survival under these conditions will be much easier for larger, multi-national and well-diversified marketers. Those with
broad product portfolios, wider end-use segments and greater geographic reach can leverage the ability to shift
production and distribution focus from struggling segments and depressed markets to those that remain on the plus
side. Meanwhile, specialty suppliers who may see severe contracting in their specific niche markets will likely fare much
worse as the global economy refuses to recover at the same speed with which the bottom dropped out.
Epoxyoil Global news
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| Africa Lubes Market Sparks Interest!!! By Mark Townsend from Imakenews DUBAI – Africa has long been largely neglected by the lubricants industry, but it is beginning to attract more attention – and deserves it, according to an official from Saudi Arabian lubricant marketer Petromin. Speaking at the ICIS Middle East Base Oils and Lubricants conference Oct. 12, 2010 Petromin’s general manager for exports, Imran Mufti said the industry’s growing focus on emerging markets is enhancing the attraction for several African nations. According to Mufti, annual lubricant consumption in the continent is 1.8 million metric tons, which represents around 5 percent of global demand. The major segments are transport, which accounts for 47 percent, [consumer] automotive with 22 percent, power generation (9 percent), cement and mining (8 percent) and agriculture (4 percent). Total base oil produced in the continent meets only 52 per cent of overall demand, Mufti said, so 20 percent of the base oil that the industry uses is rerefined. The main refineries are in South Africa, Egypt, Algeria and Morocco, producing a total of 25,100 barrels per day, Mufti said. Demand is concentrated in the key markets of South Africa, Egypt, Algeria, Nigeria, Sudan and Morocco, which account for 75 percent of the overall African lubricant market. Given the low levels of income throughout much of Africa, price remains a crucial determinant of purchase choices, followed by brand and quality, Mufti said. Price alone is responsible for 26 percent of buying decisions. Spare part distributors play an important role as a result of what he describes as “suggestive selling” and ongoing credits. With the emphasis on price, quality therefore remains skewed towards lower lubricant grades, typically API CC, CD and CF and SAE 40 and SAE 50. For gear oils, GL1 and GL4 grades predominate. But Mufti added that the market is evolving towards higher tier lubricant quality, with considerable quantities of finished lube imported from the Middle East. Still, shortages frequently occur, boosting the use of recycled oil. Competitive dynamics are changing and recently Vitol and Helios won Shell's downstream stakes in 19 African countries. BP has also announced it intends to sell its marketing business in several countries. Chevron is also understood to be reviewing operations in all markets outside South Africa, he said. The South African market remains attractive for several reasons, said Mufti. With a market of 360,000 tons per year, it accounts for around 1 percent of global consumption and 20 percent of African demand. It also has a car population of around 2.1 million. Major companies such as Shell, BP and local Engen, as well as Chevron and Total, are present in the market. Mufti acknowledged it is a largely deregulated market, broadly competitive with a high number of international brands. The larger but more complex market in Egypt consumes 450,000 tons per year and equates to 25 percent of the entire African market. It includes major players such as ExxonMobil and Shell, local players COOP and Misr, and also Caltex, Total, Tamoil and Petromin. Higher viscosity engine lubricants remain in demand with API SF, CD and CF dominating in a car population of 4 million. Distributors and spare part outlets account for 60 percent of supply. Customs import duty is not levied if the import originates from Arab or African countries and 10 percent is charged on imports from Europe. Perhaps the market that continues to excite many is Nigeria, Mufti said. With 154 million people, it is Africa's most populous nation but one of the most institutionally corrupt. A market of 185,000 t/y and 10 percent of the overall market, it has attracted companies such as ExxonMobil, Total, Texaco, Africa Petroleum, Conoil, Oando, and AP The car population is around 6 million with API SL, SF, CF and CD constituting the bulk of consumption. There is also a high demand for diesel engine oil because of the dilapidated nature of the power infrastructure in the country. Key industries include petrochemicals, power generation, mining, transportation, rubber and paper. Algeria is similarly problematical, Mufti said, with a complicated import process that includes a 17 percent customs duty and foreign exchange restrictions that make money transfers subject to clearance. Lube demand is 150,000 t/y, which corresponds to 8 percent of the African market. The Algerian car population 1.3 million, estimated Mufti. The main suppler is Sonatrach but Caltex, Castrol and Fuchs also meet demand and high viscosity engine oils are very popular, he said. Morocco is essentially a low grade market typically CD and SF with a size of 80,000 t/y and 4 percent of the total African market. It has a car population of 1.8 million. The market is dominated by government related business that includes municipalities, mining, transport and rail. Company contract business is a high proportion of the overall lubricant market Mufti said. Customs duties can reach 50 percent but are not levied if the origin is from Arab states. Semi- and fully synthetic lube requirements are also growing. Shell, Afriquia, Mobil (Oilibya) and Total are the main competitors with CMH, Somap, Petromin and Zic also present. The continent's fastest growing market is Sudan, but political issues continue to resonate, presenting a challenge for companies operating in the market. It has a market size of 87,000 t/y representing 5 percent of the African market and a car population of 1.4 million. Fuchs and Petronas are the main players followed by Lama, Afro King and Petromin. Mufti added he expects growth to average 3 to 5 percent per annum. |
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| Copyright © 2011 all rights reserved Epoxy Oilserv Nigeria Limited Home | About Us |Contact Us |Services |Shell Lubricants | Policy | News | Privacy email : info@epoxyoil.com, Lagosoffice@epoxyoil.com, PHoffice@epoxyoil.com, USAoffice@epoxyoil.com Tel:+2348053390165, +2348053390164 +44 7031923163 |