Shell regains top slot in global lubricants market

01 August 2007 16:57  [Source: ICIS news]

LONDON (ICIS news)--Shell has regained the top slot in the world lubricants market, according to a study by consultancy Kline & Company.

 

Shell reclaimed the number one position from ExxonMobil as a result of organic growth in its business in China, Russia, and parts of Asia and Europe, as well as through the company's acquisition of a 75% share in the Chinese oil company Beijing Tongyi.

 

“It's a mature, almost stagnant market when you look at it globally, and the only way you can grow is by acquiring market share from someone else,” said Geeta Agashe, director of Kline's Petroleum and Energy practice.

 

“Demand is growing in certain parts of the world, specifically in the Asia-Pacific region and South America, but Western Europe is declining and North America is stagnant.”

 

Kline's report published on 30 July, pegs the global market for finished lubricants at 38.5m tons, up by 1.5% from 2005 to 2006.

 

However, much of this increase is due to unfilled orders placed in 2005 that were not delivered due to the effects of natural disasters such as hurricanes Katrina and Rita and the tsunami that struck southern Asia in December 2005.

 

When adjusted for this, actual growth is less than 1.0%, the same annual growth rate predicted by Kline's study through until 2016.

 

Finished lubricant demand patterns have been echoed in the upstream base oils market.

 

In a paper presented at the 11th ICIS World Base Oils Conference in London this year, Alain Faure, director of base oils and waxes at Total Lubricants said global base oil demand would likely rise from 34m tonnes in 2005 to 36.2m tonnes in 2010.

 

Asia Pacific demand was set to rise almost 16% in the same period from 10.7m tonnes in 2005 to 12.4m tonnes in 2010. Meanwhile, demand in west Europe was forecast to decrease 5%.

 

Increased demand for higher specification lubricants has also seen a shift in global base oil production, with many older Group I plants in Europe and the US being shut, while new capacity in Asia is focused on higher specification Group II and III production.

By: Shelley Kerr
+44 20 8652 3214

< previous article(VIDEO – ICIS news Americas Lunchtime Bulletin 2 November 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly