As we enjoy the FIFA soccer World Cup in Brazil, it is worth thinking back four years to the world in 2010.
Since Spain last won the coveted trophy, China’s economy has grown by more than 40%, the US has crept up 10% and the Eurozone had hardly moved, meaning that lubricants demand has moved South and East. Meanwhile, BP's 2010 shock of the Deepwater Horizon disaster, has subesquently resulted in significant reshaping of its assets.
The Arab Spring has come and gone and the oil price was at a $72 low against more than $105 today. Volatility has fallen markedly since 2010, despite unrest in Ukraine and the disruption in Iraq, while production struggles to keep up with demand.
The Euro crisis came but has not fully gone away, as slow growth and high debt continues to dog the peripheral countries, albeit the German economy has kept growing thoughout the period.
Lubricants specifications have advanced, with lower viscosities and improved additives being seen in products across the world. However, the pace of engine technology - particularly relating to hybrid engines - is causing problems for the lubes regulators, with further delays now slated for PC-11 and GF-6 specifications. Meanwhile, the rest of the world is catching up with the European emissions standards, in particular China, which is adopting the tougher western specifications in an effort to combat its choking urban pollution.
Emissions are more topical and a recognised challenge than ever. Recent figures showed, for example, that in the midst of a heatwave London’s central shopping street's air pollution was 10 times the European limit due to excessive use of diesel taxis and buses. By the time the next World Cup kicks-off in Russia in 2018, it is almost guaranteed that emissions regulations will have been tightened further, leading to even more pressure on lubes manufacturers and OEMs to meet ever-harder targets.
In the digital world, the next four years are also set to bring even greater transformation of internet activities - with lifestyle applications becoming ever more prominent. While this may take some time to have a direct impact on lubricants marketers and consumers, there is no doubt that failure to at least stay within touching distance of the latest trends will spell corporate disaster for products and brands.
OATS has been working hard with its clients to keep them 'ahead of the digital curve' and, as always, if you would like to know more about these digital developments, or wish to comment on anything you have read in this month's Bulletin, simply contact us by e-mail or follow our updates on social media via Twitter @Oats_Ltd, Facebook and LinkedIn.
Sebastian Crawshaw
Chairman, OATS