The latest Kline report keeps Shell at the top of the lubes producers table for the fifth year in a row.
The Global Lubricants 2010: Market Analysis and Assessment, which gains industry-wide recognition, puts Shell two percentage points ahead of nearest rival ExxonMobil with a 13% market share. Kline credits Shell's work in further developing emerging markets and increased depth of OEM relationships as the main reasons for the oil giant's retention of the number one position.
According to Kline, Shell has developed significant relationships with a number of automakers - including Hyundai, Renault Nissan and Chinese OEMs - which is likely to help it to retain share through the 'halo' effect of aftersales purchase. Kline states that ExxonMobil's focus on 'the value end of the market' has helped it retain its second place.
In terms of global lubes demand, Kline reports that continued economic uncertainty is stifling the North American and European markets, while Asia took around 43% of global demand in 2010. That being said, Vice President of Kline's Petroleum & Energy Practice, Geeta Agashe, warned that when it comes to Asia, "it’s also important to distinguish what parts of the market are ’accessible’ and what parts are ’quality’ because this is the opportunity for IOCs in the emerging world."
The drive for improved fuel consumption and tighter emissions standards is having a positive effect on lubes quality, particularly in the BRICS nations. According to the report, API Group III base oil consumption has doubled in China every two years, although Kline again cautions over the difficulty of access for non-domestic producers.
While India also represented a strong market in 2010, racing inflation has stifled car ownership and Japan continues to recover from the infrastructure and financial damage caused by the tsunami.