UKLA President’s Report
The lubricants industry seems to follow its own “rhythm of the seasons”, with the global ICIS conference in London in February marking the start of spring. Certainly this year, as London basked in near 20 degree heat, it was a very pleasant climate in which to meet up with many industry contacts, if a little concerning as to whether this was another “data point” signalling significant climate change.
There were some excellent presentations and sessions again this year, including on Sustainability and the likely impact of electric vehicles. As we enjoyed the unusual February sunshine, I particularly noted the comments that diesel engines emit less CO2 than petrol engines, whilst “de-dieselisation” is effectively removing diesel cars from the future global car park.
The UKLA also hosted a session for delegates at ICIS on the subject of “Are you Ready for Brexit?”, and my thanks go to Andrew Goddard of Morris and our Director General, David Wright, as well
as the specialist trade expert, Paul Hodges from Ready for Brexit for their contributions. Andrew Goddard provided a very clear summary of the Brexit considerations for a UK blender, and David Wright comprehensively covered the
REACH implications. The UKLA has been determined to ensure that as far as possible, all members have the latest information, to be able to plan and prepare for whatever comes and when.
bd t i d
The Brexit saga continues to provide much uncertainty and potential complexity for companies trading into and out of the UK. I think we all look forward to the time when we can concentrate on the “day job” of leading and developing our businesses without all these Brexit uncertainties. It will probably take a few seasons more, though!
David Hopkinson, UKLA President
UEIL President’s Report
2019 is well underway, so now is as good a time as any to look back at how 2018 has been for the base oil and lubricant industry.
On the supply side, 2018 was the year of Group II. Europe saw its domestic Group II capacity more than double, following the completion of Exxon Mobil’s plant in Rotterdam. In the Middle East Luberef completed an expansion and upgrade of their Yanbu plant, adding 700,000 metric tons per year. Finally, three smaller projects in China added in total one million more metric tons per year of Group II capacity. All in all, this has led to a Group II capacity increase of over two and a half million tons per year.
When looking at the regional capacity split, Europe with its 1.6 million metric tons per year of Group II capacity remains well behind North America and Asia, with Group II capacities of 8.3 and 11.6 million metric tons per year.
It goes without saying that while 2018 was a good year for the lubricant industry – with growth in all
4 LUBE MAGAZINE NO.150 APRIL 2019
regions – the growth in oil demand was nowhere near the supply increase, confirming that 2018 was a buyer’s market as far as base oils were concerned.
Looking at 2019, the outlook for the lubricant industry remains positive, even if there are some signals – especially from China – indicating the risk of lower demand growth compared to 2018.
nals especially
If you want to hear more about what the short and long-term future has in store for the lubricant industry, don’t forget to register for the 2019 UEIL Annual Congress in Cannes, France, from 23rd to 25th of October 2019, which will focus on the positive disruptors and technical trends in the lubricant industry.
I look forward to seeing you in Cannes!
Valentina Serra-Holm, UEIL President
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