ExxonMobil has published its inaugural report on the global base oil industry, titled ‘ExxonMobil Basestocks 2018 Industry Pulse Report’, in partnership with KRC Research. Based on viewpoints from hundreds of decision makers in the industry, the report uncovers insights into the ever-evolving market. The report is designed to help pinpoint industry drivers, evaluate the base oil landscape and explore current trends.
“We found the insights from the ExxonMobil Basestocks 2018 Industry Pulse Report particularly informative and because of this, we decided to share this broadly, in an aim to help educate the industry for the changes the future may bring,” said Ted Walko, Global Basestocks and Specialties Marketing Manager at ExxonMobil.
Group II at the heart of the market
The report revealed that:
- Group II base oils are seen as the most important to the automotive (34%), marine (31%), industrial (37%) and commercial vehicle (41%) industries.
- While base oil decision makers in Europe, the Middle East and Africa (EMEA) are least likely to say that Group II base oils are the heart of the market (60%), more than half (52%) said they would likely transition away from Group I and/or Group III base oils if they had access to a Group II manufacturer.
Group I remains beneficial despite overall decline
One-third of base oil decision makers said that while demand for Group I base oils has decreased at the highest rate, when compared to other base oil groups, they still see its importance:
- 72% admit the decline in Group I demand has had a significant impact on the industry.
- Decision makers ranked Group I’s top three benefits with viscosity (54%) in the top spot, closely followed by its solvency (49%) and affordability (46%).
API standards are sufficient
According to the report, a majority believe the current API standards are sufficient for formulating and manufacturing engine oil:
- 61% of decision makers concurred, and 27% disagreed, calling for an adjustment now.
- 12% believe that the standards should be adjusted within the next 10 years.
Base oil industry can keep up with automotive changes
The survey found that while 77% are concerned about the increased implementation of fuel economy and emissions regulations, they feel confident that the base oil industry will keep up:
- 80% asserted their confidence in the base oil industry’s ability to keep up with evolving regulations.
Two-thirds believe that Group II or Group III base oils can best handle an increase in more stringent fuel economy and emissions regulations.
Read the article online at: https://www.hydrocarbonengineering.com/product-news/23052018/exxonmobil-publishes-base-stocks-report/