ExxonMobil has published its inaugural report on the global base oil industry, entitled “ExxonMobil Basestocks 2018 Industry Pulse Report,” in partnership with KRC Research, a global research consultancy. 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 ExxonMobil’s Global Basestocks and Specialties Marketing Manager Ted Walko.
The “ExxonMobil Basestocks 2018 Industry Pulse Report” revealed that nearly 75% of base oil decision makers view Group II base oils as the “heart” of the market. In addition, the report showed 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.
“We pride ourselves on having a strong lens into the industry and these results substantiate why we are committed to investing in expanded Group II supply through our three, strategically located refineries in Baytown, Texas; Jurong, Singapore; and Rotterdam, Netherlands,” Walko added.
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%), closely followed by its solvency (49%) and affordability (46%).
“We recognize that Group II is not a perfect fit for all applications and this report affirmed our confidence in Group I and the value it will continue to play in the base oil industry,” Walko said.
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 slightly more than one-quarter (27%) disagreed, calling for an adjustment now.
- Some believe (12%) that the standards should be adjusted within the next 10 years.
The survey also found that while more than three-fourths (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.
The “ExxonMobil Basestocks 2018 Industry Pulse Report” surveyed more than 300 base oil decision makers from the following industries: additive manufacturers, lubricant manufacturers, industry associations and equipment manufacturers. The survey required an even split of at least 100 respondents from Asia-Pacific, the Americas, and Europe, Middle East and Africa (EMEA) to ensure results encompassed a global perspective. The survey was also translated from English to Spanish, French, German and Simplified Mandarin, as required.
The full report is available at https://www.exxonmobil.com/en/basestocks/news-insights-and-resources/industry-insights/2018-industry-pulse-report.