BP’s statistical review of world energy reports that China has surpassed the US in terms of share of global energy consumption, taking 20.3% of the global total. With global energy consumption seeing its strongest growth for 38 years, oil remains the world’s leading fuel with 33% of global energy consumption, although it continues to lose ground to other resources.
Even as a resident of the International Space Station, it’s unlikely you will have missed the fact that over the last 12 months crude oil prices have increased by nearly 60%. At the same time, the cost of solar panels has fallen by 17%. This has led to a much anticipated moment: “Grid parity”, the point at which the cost of solar energy has matched the “normal” market costs of generated energy.
Production of solar panels is due to expand by over 50% in 2011 and it is likely that prices will fall further. Sooner or later that may have an impact on the commodity-driven costs of energy.
Generally, it takes longer to recover from recessions caused by financially-induced credit bubbles than those caused by inflation. This definitely seems to be the case in the US and various parts of Europe. High crude prices and softness of demand is leading to period of concern as US recovery appears weaker than expected and Japan continues to suffer from the earthquake induced disruption.
While lubricants demand has bounced back, the likelihood must now be a flatter profile going forward, especially as oil companies seek to recover increased input costs with consistent price increases.
Meanwhile in the ‘virtual’, Russian internet usage has grown nearly 30% in 12 months, while in China internet usage dwarfs all other countries with 420 million internet users and 231 million blog users. In both countries social media has accelerated. The implication for lubricants marketing are clear. Engagement with lubricants consumers via web-based mechanisms, B2C recommendation sites and new tools to influence purchasing patterns will continue to accelerate as ever more users adopt social media and the new tools, i-Pads, tablets and other ‘smart’ mobile technology to build their brands.
This is the key reason why Bulgaria’s Prista oil, amongst other clients, asked OATS to build a social media application to reach their target consumers. You can read more about this in our new Case Studies section.
As always, if you’d like to find out more about how we can help in the real or ‘virtual’ world of lubricants data or you would like to offer comment or contributions to the OATS Bulletin, please contact us at bulletin@oats.co.uk.
Sebastian Crawshaw
Chairman