Forward to friend Subscribe contact OATS alt oats OATS Bulletin. Issue 94 – July 2008

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1 . Russian motorists drive demand for quality oils
2 . Chevron to amalgamate C&I lines in North America
3 . ExxonMobil quits Bayonne after more than a century
4 . Repsol sells off in Ecuador
5 . Neste joins up in Bahrain for VHVI
6 . Caterpillar to spend, expand, and quit − all before 2010
7 . Mack and Eaton publish expanded lubes approval lists
8 . New NMMA engine oils list published
9 . Canadian company offers SVHCs for REACH and the EPA’s ChAMP reaches further
10 . Breaking the 3,000 mile habit in California
11 . Alternative fuel tractor launched in USA
12 . New analysis of Indian lubes industry published
13 . ILMA’s 60th set for Arizona
14 . ASTM approves new biodiesel blends in America
15 . Guide to worldwide base oil refining published by Lubes’n’Greases
16 . Other news in brief



1. Russian motorists drive demand for quality oils

Reports from Russia suggest that the country’s motorists increasingly prefer quality imported foreign branded vehicles instead of those manufactured domestically. Commentators also say that there is a definite trend amongst such car owners to take greater care of their imported vehicles, and this is sending a significant message about quality to the country’s oil companies. Better incomes and more readily available credit mean that Russian motorists can now buy higher value cars that generally require higher quality engine oils. This is pushing up the demand for premium engine oils. Oil companies have had to respond by raising the quality of their products. Lukoil, for example, has recently reformulated its premier-tier engine oils, and relaunched them. Its best quality passenger car products now meet API-SL and SM standards, and it has produced heavy-duty diesel oils that comply with API CG-4 and CI-4 specifications.
More on Lukoil lubes: Lukoil lubes

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2. Chevron to amalgamate C&I lines in North America

Chevron has announced that, from 14 July, its currently dual-branded Chevron and Texaco Commercial and Industrial product lines (C&I) will become a single Chevron brand in the United States and Canada. The company stresses that the change will only affect its C&I lubricants portfolio there, and it remains committed to its consumer lines in the region. Texaco-branded C&I lines in Europe, Asia, and Latin America will not be affected.

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3. ExxonMobil quits Bayonne after more than a century

ExxonMobil has given 30 June as the date on which it will have shut its Bayonne lubricants plant in New Jersey, USA. The reason given to the Jersey Journal was that it is the company’s ‘practice to routinely evaluate the performance of all its assets’. The plant stored and distributed base oils, and manufactured finished lubes for commercial distribution and sale as motor oils. Although ExxonMobil announced its intention as far back as November 2007, there is disquiet in the town for the future of the 80-acre property. From a nostalgic point of view, it cuts the link with John D. Rockefeller’s Standard Oil Company that was established in 1870, and came to the town in 1882 to take advantage of New Jersey laws that allowed corporations to own stock in other corporations, and of which ExxonMobil is a direct descendant.

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4. Repsol sells off in Ecuador

Spain’s Madrid-based oil company, Repsol YPF, has sold its lubricants and aviation business in Ecuador to Primax S.A., a company to which Shell sold its retail business in Ecuador in 2005. Primax is 51% owned by Enap Refinerias S.S. − a subsidiary of Chile’s national oil company, Empresa Nacional del Petróleo − and the remaining 49% belongs to the trading division of the Romero Group in Peru, Romero Trading SA. Enap and Romero bought Shell’s fuels business in Peru in 2004, which established Primax as an important player in the Peruvian lubes market. The new sale is said to be in accordance with the Spanish company’s strategic plan for 2008-2012 in which it expects to sell ‘non-strategic assets’. The deal cost $47 million, and includes Repsol’s chain of 123 service stations.

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5. Neste joins up in Bahrain for VHVI

Finland’s Neste Oil Company is to establish a joint venture with Bahrain’s Oil & Gas Holding Company (OGHC) and the Bahrain Petroleum Company (Bapco). The venture is to be called Bahrain Base Oil Company, and its aim is to build a high-quality lubricant base oils plant in Bahrain. This plant, which has a projected cost of €250-300 million, will have an annual capacity of 400,000 tons of VHVI (Very High Viscosity Index) base oil for use in blending top-tier lubricants. Production is scheduled for the end of 2011, when it will be one of the world’s largest VHVI base oil plants.
More at: Neste Oil

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6. Caterpillar to spend, expand, and quit − all before 2010
Caterpillar Inc is to spend $1 billion between 2008 and 2010 on expanding its Illinois facilities at East Pretoria, Joliet, Decatur, Aurora, and Mossville. The company has also signed a memorandum of understanding with Navistar International Corporation to develop, manufacture and distribute commercial trucks in select regions outside North America. It is also planning to introduce a Caterpillar-branded heavy-duty truck for severe service applications in North America, but has also announced that, after 2009, it will quit the Class 8 on-highway commercial vehicle market, except for severe duty trucks and engines.

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7. Mack and Eaton publish expanded lubes approval lists

The latest Mack-approved EO-O Premium Plus Engine Oils Lists contains 105 approved engine oils marketed by 61 suppliers. This is an increase of more than 66% in the number of approved oils since the 2007 list, and an additional 41% of suppliers. EO-O Premium Plus engine oil is mandatory for the latest Mack-compliant MP7 and all MP8 engines. At the same time, Eaton has highlighted a number of ‘fuel efficient’ lubricants in its latest revised Road Ranger Products Approved Lubricants List. This publication includes transmission and drive axle lubricants approved by Eaton and Dana for use with Roadranger extended warranties.
More at: Mack Trucks

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8. New NMMA engine oils list published

The National Marine Manufacturers Association has published its latest list of approved, or certified, TC-W3® engine oils that are recommended for use by two-cycle engine manufacturers and are licensed around the world, and FC-W™ engine oils that are used in high-performance four-stroke engines. These marine oils are said to reduce emissions in accordance with EPA requirements, improve fuel economy, and prolong engine life. The lists can be accessed by registration number, oil name, and registered company. The complete TC-W3® list can be viewed at: TC-W3 list
And the complete FC-W™ list at: FC-W list

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9. Canadian company offers SVHCs for REACH and the EPA’s ChAMP reaches further

Commentators continue to note that US companies are largely unprepared for the potential effects of Europe’s REACH legislation on their business. Now, a Canada-based company, Intertek Ageus Solutions of Kanata, Ontario, has developed ‘a comprehensive testing service for Substances of Very High Concern (SVHCs)’. Intertek offers global testing, inspecting, and certificating services at a number of analytical laboratories. It says that its SVHC initiative is in response to demand from various industries, including those concerned with automotive and lubricants. The offering with regard to REACH is a two-phased approach to meeting the requirements of the European legislation. You can read all about it at Ageus Solutions

Meanwhile, the US Environmental Protection Agency recently announced their ChAMP initiative, which is said will ‘more efficiently identify problem chemicals than the EU’s REACH regulation’. Under the ChAMP programme, there will be a ‘prioritized review by 2012 of 6,750 chemicals produced at greater than 25,000 pounds per year’. This will be carried out in co-operation with Environment Canada. This is seen in some quarters as the EPA’s belief that ‘REACH is not needed in the USA’. More on EPA at EPA.gov
ILMA members can access information on REACH at: ILMA resources
Readers who are interested in receiving the latest news and information on REACH, and obtaining a free e-mail newsletter, should go to the UK Health & Safety Executive site at HSE.gov.uk

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10. Breaking the 3,000 mile habit in California

For most of this year, the California Environmental Protection Agency and its Integrated Waste Management Board have been promoting a 3,000 Mile Myth campaign. This aims to educate drivers who, since it became widely accepted in the 1980s that engine oil had to be changed every 3,000 miles, have since continued to do so despite advances in engine technology. California, ever the barometer for green matters, has realised that this practice wastes millions of gallons of oil each year, and causes considerable ecological disposal problems. The campaign sets out to re-educate Americans to the idea that modern cars can carry on for up to 10,000 miles without an oil change, depending on driving conditions. The campaign can be found at 3000 mile myth Unsurprisingly, the oil industry says that the State’s campaign is ‘misleading and potentially damaging to car engines’; owners of fast lubes outlets are also opposed to the notion, on the basis that the average age of an American car is ten years.

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11. Alternative fuel tractor launched in USA

The Sterling Truck Corporation of Redford, Michigan, has produced a new tractor fuelled by natural gas. The Sterling Set-Back 113 is powered by the Cummins Westport ISL G G 8.9-litre stoichiometric cooled-exhaust gas recirculation engine. Its makers say that this is a response to an increased interest in green transportation on the part of the utility companies and municipalities of North America, and the sort of deterioration in air quality that is occurring in such places as Los Angeles and Long Beach. They are targeting the Californian market, where there are tax incentives for using alternative fuels, and where natural gas availability is on the increase. Full details can be found at: Sterling trucks.com

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12. New analysis of Indian lubes industry published

Indian Lubricants Industry is a new analysis of the sector by Report Buyer, the independent online store supplying business information to industry. The report contains profiles of the major companies involved in the automotive and industrial lubricants sectors, detailing their activities, joint ventures and partnerships. It also gives an overview of the market, including market size and structure; historical development; regulatory environment; major players; foreign investment; and growth prospects. The report costs £245. Details of this, and all other Report Buyer motor industry-related reports can be found at: Report Buyer

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13. ILMA’s 60th set for Arizona

The Independent Lubricant Manufacturers Association’s 60th anniversary Annual Meeting is scheduled to take place 11-14 October, 2008, at the Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, Scottsdale, Arizona. ILMA has set up a dedicated website at Annual Meeting where you can find full details of the agenda and educational sessions, all the associated information you need, and forms on which to register (which must be done by 29 August).
ILMA has recently renewed its two-year-old official alliance with the US Department of Labor’s Occupational Safety and Health Administration. The aim of the alliance is to share health and safety information on lubricant products, and encourage employers to increase access to such information for all employees. More information on this can be found at osha.gov

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14. ASTM approves new biodiesel blends in America

In America, the National Biodiesel Board has confirmed that ASTM has approved new biodiesel blend specifications, after more than five years of research. These include changes to the B100 biodiesel specification and, more significantly, a new specification for blends between 6% and 20% biodiesel. You can read about the significance of this for engine makers, vehicle performance, and consumers at the retail pumps, at Biodiesel.org

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15. Guide to worldwide base oil refining published by Lubes’n’Greases

The leading industry journal Lubes’n’Greases has just published its 2008 Guide to Global Base Oil Refining, listing 165 of the world’s key mineral base oil plants, giving locations and capacities. The Guide includes more than a dozen refineries with hydro-treating or solvent refining processes and capacities of 800 b/d or greater, and gives a summary of upcoming capacity additions around the world. This publication is the first of three base stock guides planned for this year by LNG Publishing. Its Europe, Middle East and Africa Guide is expected this month, and, in September, it aims to publish a 2008 Global Guide to Nonconventional Base Stocks. According to the Guide, global mineral base oil capacity currently tops 949,000 barrels per day, up by 12,337 b/d on the previous year. Worldwide, API Group II and Group III capacity each rose by 10%; Group I capacity declined by 1.7%; and napthenic capacity added 1.5%. For more data on individual regions and matters affecting capacities there, and for information on ordering the new guide, go to: LNG Publishing

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16. Other news in brief

• Volkswagen. It was announced in mid-June that Germany’s Volkswagen has obtained European Union approval to buy Swedish truck and bus maker Scania (see Bulletin 92). The European Commission said that it did not consider that VW’s activities, as a minority shareholder in MAN, would sufficiently overlap with the core businesses in its involvement with Scania to give rise to competition concerns.
• CITGO, based in Houston, Texas, is to cease its Lake Charles Group I base oil production during the third quarter of 2008, and is seeking potential buyers for the facility. The site was in the news in February when a power failure caused flaring. CITGO is owned by PDV America Inc, a subsidiary of Petróleos de Venezuela.
• In Nigeria, Kaduna refining and Petrochemical Company, a subsidiary of the government-owned Nigerian national Petroleum Corp, is aiming to reopen a refinery that includes the country’s only base oil plant, two years after it closed. Commentators say this will have a beneficial effect on oil prices in a country that has since had to rely solely on base oil imports.
• India. There are reports that the Indian government has halved basic customs duty to 5% on all petroleum products, and Pakistan has dealt similarly with customs duty on base oil, now down to 10%. Pakistan thinks that its move will reduce smuggling of the product by 25%.

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