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%
"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.
November 24th, 2011
Shell Lubricants' First Gas-To-Liquid Product Shipment Reaches America
From The Qatar-Based Pearl GTL Plant
Shell Lubricants announced today the arrival of its first shipment of gas-to-liquid base oil at
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
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
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
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
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
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
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 Lubricant news
|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
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
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
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
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.
technology systems, market for lubricants and greases, which are defined as machine fluids that enable smooth functioning of
machines, is forecast to continue to witness steady growth. Economic, regulatory, and political issues are rewriting the
demand and supply dynamics of the worldwide lubricating oils and greases market. Though volume growth is forecast to be
slower, modernization in manufacturing machinery and increase in motor vehicle fleet will call for superior quality lubricants.
For instance, as the automotive industry continues to be overturned by issues pertaining to energy conservation, efficiency
high quality lubricants are long lasting and are capable of extending oil drain intervals, thereby reducing the overall lubricant
need thus explaining the deceleration in volume growth. As a result, commodity lubricants will witness steady replacement by
new generation lubricants and robust opportunities in dollar growth are forecast to continue into the foreseeable future.
The geography of the markets as well as the demographics of several regions, when coupled together, will keep the oils
burning. While developed markets have moved into the maturity stage, developing markets project a bright future outlook for
lubricants. Against a fiscal climate strained by deficit where consumers turn frugal, cost conscious, and demand cost-
performance benefits, the clout exerted by developed countries as major lucrative importers is steadily weakening, pushing
export oriented economies like China to depend heavily upon growth in domestic consumer spending. Also, with debt laden
developed US and European economies slowing down, the strengthening of Asian currencies against the Dollar and Euro is
straining Asian producers’ competitive advantage in the international market.
While recovering auto production, new vehicle sales, increasing vehicle population, increasing average operating life of
vehicles, rise in the number of vehicle miles travelled, and increased focus and spending on maintenance are driving demand
for automotive lubricants, increasing activity in the worldwide manufacturing industry is benefiting the market for industrial
lubes including hydraulic fluids and process oils. With economic health now aligning with environmental health, the lubricants
and greases market will witness a distinct focus among both, manufacturers and end-users on reducing the environmental
footprint of lubricant consumption.
Technology development in the industry in the medium-to-long term will be driven by the concept of “sustainability” to minimize
pollution and maximize resource utilization. In this regard, biolubricants with biodegradable properties will grow in demand and
popularity. Biolubricants has been gaining in significance supported by research studies that indicate their ability to reduce
emission of greenhouse gases by more than half, and also reduce two-thirds of energy consumption as compared to
petroleum-derived lubricants. Coupled with the fact that 30% of conventional lubes accumulate in the environment as residual
wastes, biolubricants are gradually replacing non-biodegradable fossil-based lubricants. Industrial applications of
biolubricants are still in nascent stage with tremendous scope for expansion. Growth in biolubricants will be driven by stricter
environmental regulations for conventional lubes, increased injection of funds into tapping the planet's natural assets for
sustainable development and increased R&D efforts in innovating new formulation methods.
Innovation is also important as companies will need to keep pace with technology developments in the equipment/machinery
industry. With efficiency and productivity being primary goals of the manufacturing and industrial sector, several industrial
processes and associated equipment are currently being manufactured to allow for faster processing and thus are designed
to operate at higher temperatures. This thereby requires lube manufacturers to manufacture more thermally, oxidatively
stable and less volatile fluids for use in these machines. Also, stringent test protocols for assessing environmental
acceptability of the fluids creates challenges for manufacturers to develop fluids that conform to legislated parameters
pertaining to toxicity, biodegradability, bioaccumulation, lower emissions and recyclelability. In the auto industry, launching
products targeting the new class of flexible fuel vehicles that run on ethanol and diesel, which features low sulphur content, 5-
10% of biodiesel in the blend, represents a new window of opportunity. Lubricant manufacturers are also developing
multifunctional lubricants, which are particularly preferred in the metalworking sector to suit various metals and working
Lubricant oils are heavily dependent upon end-use industries like automotive, construction, transportation, and industrial
machinery. While key end-use markets are recovering the world over from the 2007-2009 recession, the industries in Europe
are running into fresh set of challenges. EUs industrial sentiment currently remains torn between optimism and fear, given the
mixed signals emanating from the volatile manufacturing data in Spain and Italy and the encouraging industrial performance in
Germany. Bearish market sentiments indicate that an escalation in the euro crisis could precipitate a slowdown in the market.
Also the shift from fiscal government stimulus to anti-crisis austerity and spending cuts as a measure to tame the towering
public debt scenario could impact capital expenditure in manufacturing industries in debt affected economies by limiting
borrowing and reducing investments in capital goods. Reduced ability of the government to fund capital expenditure can
impact both domestic and foreign financed projects thus indirectly influencing spending on machinery solutions including
lubricants and greases.
However, despite the challenges and uncertainties, over the continued economic stability in Europe, most market indicators
for the immediate-term future feature a largely positive outlook for the manufacturing industry in the year 2012. Manufacturing
production which continued to recover from 2010 through 2011 is expected to continue into the year 2012. For instance, in
Germany industrial/manufacturing output is holding well as indicated by the country’s yet strong export market, a key reason
for the country’s superior handling of its debt crisis in comparison with Greece, Portugal, Spain and Italy. Also, capital goods
orders from developing countries have been standing up to the pressure providing a glimmer of hope for steady long-term
growth in the region. In the domestic automobile industry, immediate production cutbacks are not seen as likely, given the yet
patchy slowdown in auto sales. Production continues to hold up even in the face of weaker than expected growth and
optimism remains with no downgrade in the outlook for auto production. Against a backdrop of all of these factors, demand for
lubricating oils and greases is expected to hold up in the year 2012.
As stated by the new market research report on Lubricating Oils and Greases, Asia Pacific represents the largest market
worldwide. The region also represents the fastest growing trailing a projected CAGR of 3.8% over the analysis period. Growth
in this region is triggered by mass exodus of manufacturing, and production bases to low cost Asian countries, and
continuous industrialization in regional powerhouses such as China and India.
Major players in the marketplace include BP Lubricants USA Inc., Castrol BP Petco Ltd., Chevron Corporation, ConocoPhillips
Lubricants, Exxon Mobil Corporation, Esso S.A.F., Fuchs Petrolub AG, Idemitsu Kosan Co. Ltd., Indian Oil Corporation Ltd.,
LUKOIL Oil Company, JX Nippon Oil & Energy Corporation, Petróleos de Venezuela S.A., PT PERTAMINA (PERSERO), PT
Wiraswasta Gemilang, Repsol YPF SA, Shell, Sinopec Corporation, Total S.A., and Valvoline.
The research report titled “Lubricating Oils and Greases: A Global Strategic Business Report” announced by Global Industry
Analysts, Inc., provides a comprehensive review of market trends and issues, consumption patterns, and recent industry
activity. The study also provides market estimates & projections in volume sales for all major geographic regions such as
United States, Canada, Japan, Europe, Asia-Pacific, Middle East, and Latin America by the following product
groups/segments Automotive Lubricants (Engine Oils, and Transmission & Hydraulic Fluids); Industrial Lubricants (General
Industrial Oils, Industrial Engine Oils, Marine Lubricants, Metal Working Oils, and Process Oils); and Greases.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company
currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and
analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over
9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
GIA announces the release of a comprehensive global report on Lubricating Oils and Greases
markets. Global market for Lubricating Oils and Greases is projected to reach 10.9 billion gallons
by the year 2017. Growth will be primarily driven by recovery in GDP growth in economies
worldwide, increase in demand for commodities and subsequent rise in industrial production,
manufacturing activity, purchase of new industrial machinery and rising number of motor vehicle
ownership across the globe.
Global Market for Lubricating Oils and Greases to Reach 10.9 Billion Gallons by 2017,
According to New Report by Global Industry Analysts, Inc.