Shell retains top global lube share

16 July 2008 18:48  [Source: ICIS news]

HOUSTON (ICIS news)--Shell secured the top spot as the global supplier of finished lubricants in 2007, holding a 13% market share, analysts at US consultancy Kline & Company said on Wednesday.

Volumetric data from Competitive Intelligence for the Global Lubricants Industry 2007-2017 shows Shell edging out its largest competitor, ExxonMobil, which accounted for an 11% market share in 2007. British Petroleum, Chevron, and PetroChina rounded out the top five lubricant marketers.

Kline’s report, to be released at the end of July, pegs the global market for finished lubricants at 39.3m tonnes in 2007, up 1.8% from 2006.

“It’s a mature market when you look at it globally, but the real opportunities are at the regional and country level,” said Geeta Agashe, vice president of Kline’s Energy research practice. “Volume-wise, Asia is going to be the growth engine of the future, and China and India in particular, with demand declining in Western Europe and North America being essentially flat.”

Together, China and India account for 17% of global lubricant consumption, according to Kline’s report. Markets in China, the second largest consumer of lubricants, and India, the fifth largest, are growing at rates of at least 6% annually, far exceeding the world average.

From a product segment standpoint, the anticipated growth of synthetic and semi-synthetic categories is huge.

“North America will enjoy significant growth opportunities as end users continue to shift from conventional products to synthetics to achieve extended drain intervals, longer equipment life and improved fuel economy,” Agashe said.

Other opportunities for lubricant suppliers include the development of environmentally friendly green lubricants to address the environmental and legislative measures that will continue to affect global vehicle and equipment manufacturers.

Competition across the entire lubricant supply chain will remain intense as the major suppliers try to differentiate themselves through supply-chain initiatives, branding, marketing and product portfolio analysis.

Acquisitions, divestitures, alliances, and shut-downs are likely to continue in 2008, according to Agashe.

Chemicals and Valvoline motor oil maker Ashland said on Friday it would acquire its peer Hercules in a $2.6bn cash-and-stock deal.

Lubes marketers can also expect continued competition from nationalised and independent oil companies like LUKOIL, Petronas, Petrobras, and Indian Oil as these suppliers look to grow their domestic market shares and expand outside their borders.

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By: Heather McGuire Doyle
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