View from the Bridge - Bulletin 159


Recent European weather has produced atmospheric pollution reminiscent of the smog of yesteryear (or similar conditions experienced daily in China today).  Ironically, in the UK, it was Saharan sand that caused much of the problem, rather than human-made particulates.

According to the WHO, black carbon is the universal indicator used to measure particulate pollution in the atmosphere and is linked to the burning of a wide range of carbon-based fuels as well as organic materials.

The main sources of carbon-based particles are diesel engines, wood and coal burning either for domestic use or for power stations (where burning heavy oil also becomes a factor as well as natural forest fires and agricultural waste disposal.

Currently, due to lack of data, the impact on health between ‘primary’ and ‘secondary’ particles has not been measured. However, whatever the cause, air quality matters as a key component of health. A recent report by the WHO European office on the health impact of air pollution suggest links between diesel particulates and impairment of both intelligence and cognitive functions in adults and children.

At the UNITI Conference this month, Dr Paul Greening – Director of Emissions and Fuels at ACEA - highlighted the key issues affecting emissions. He claimed that EU air policy is working, as the Pollution index has fallen by 60% since 1990.  However, the decline in PM2.5 is just 20% and he foresees an EU drive to enforce standards more rigorously across the whole of the EU.

In China, there are fewer diesel cars, but tremendous pollution being generated from coal-fired power stations. Even with its cities battling hard against the problem, as more people travel with increasing frequency both in Asia and in the Western nations, using diesel vehicles, the particulate issue has to be an enduring concern.

Without question, the political unacceptability of visibly hazardous pollution will continue to bring further regulatory interest. This, in turn, is certain to lead to ever-increasing demands on the lubricants industry to reduce emissions, whilst seeking ways to extend performance of both lubricant and equipment.

Meanwhile, the world continues to watch developments in Ukraine. The political crisis has, unsurprisingly, influenced the energy sector, with Russia doubling the price of its gas supply to Ukraine from its previously discounted rate.  Although, at present, this is a ‘local’ issue, Europe is questioning what might happen if the price rise extends beyond regional borders.  While, the US would be keen to take advantage and offload its current glut of shale gas, it cannot build LNG terminals fast enough – not least because the oil majors are currently cutting back on capital expenditure.

Equally, European sanctions on Russia could have an impact on the lubricants industry. Russia’s previously fast-growing car parc is stabilising - remaining a strong market for lubes producers. However, the nation’s overall economy has slowed and resource markets are softening.  While domestic lubes producers may currently be able to meet most of the nation's consumption demand, this may not be the case in the relatively near future, particularly for high performance lube products. If import sanctions are tightened, there could be choppy waters ahead for both consumers and producers.

As always, only time will tell.  In the meantime, to find out how OATS products and services are helping to have a positive influence on the lubricants industry, simply contact us by e-mail or follow our updates on social media via Twitter @Oats_LtdFacebook and LinkedIn.

Sebastian Crawshaw

Chairman, OATS