Lubes News

API's SN standard faces challenges; Dexos fees to change as Infineum is first in line; Ford joins the myth-busters; UAE sets the base oil pace in Middle East; and Gulf takes marine operation to the Americas.

After the delayed approval by API members of the ILSAC GF-5 passenger car oil specification last December, the accompanying SN and SN with Resource Conserving standards have also run into difficulties after challenges from the auto manufacturers.

As reported in January's OATS Bulletin, the API still faced considerable work in developing the SN standards, which will replace the SM specification to accompany the new GF-5.  According to Lube Report's George Gill, the initial draft was met with significant hostility by the car makers, who want to see closer alignment with the GF-5 specifications.  Particular areas causing concern include phosphorous content, deposit control, emulsion retention and elastomer compatibility.

With GF-5 products set to reach the shelves in October this year, the hope was to release the SN licences at the same time and a ballot of API Lubricants Committee on the SN standard was originally issued in January 2010.  This has apparently now been withdrawn with a full, but fast-tracked re-ballot issued at the end of March.  The outcome remains uncertain.

Another standard in the news is GM's Dexos, with the news that the car maker is set to change fee structures for Dexos-licenced products. Initially announced as a $1,000 per product annual fee combined with a 36 cent per gallon royalty on sales, it would appear that GM have responded to oil producers' requests for a nominally flat-fee structure.  The calculation formula makes for easier regional pricing and product roll-out and is more closely aligned to the API price structure although at an apparently higher cost.

Seemingly first out of the blocks with Dexos-approved products is Infineum, with the launch of their new P5711 synthetic additive.  P5711 meets both Dexos 1 and ILSAC GF-5 standards and will meet all of GM's first fill and service fill applications, well ahead of the scheduled 2011 deadline set by the auto manufacturer.

Meanwhile, Ford have entered the 3000 mile oil change debate with advice to car owners from Ford HQ not to waste money on "outdated advice".  The 'maintenance myth-busting' information appeared on the Ford website and as well as recommending oil changes between 5,000 and 7,500 miles, also states that modern car engines only need a few seconds to warm up and that premium fuels should not be viewed as a 'treat' for standard vehicle engines.

Unsurprisingly, the Automotive Oil Change Association (AOCA) and fleet management organisations were quick to respond, providing research and statistics showing that oil changes were required well before 5,000 miles particularly with heavy use.  Ford, are not the first motor manufacturer to enter the debate, with GM backing a Californian driver education campaign in 2008.

In the Middle East, media reports suggest that the United Arab Emirates is setting the pace in the region's base oil trade.  With base oil prices rising in the UAE and the launch of Argus Media's Argus cif UAE price benchmark, it would appear that the Emirate is becoming a base oil hub.  The ports of Jebel Ali and Sharjah receive the majority of the UAE's base imports before being distributed further afield.  Fujairah does the same for marine lubricants.

Also in the marine sector, Hong Kong-based Gulf Oil Marine announced the launch of Sealub Alliance Americas Inc, with four blending facilities, a distribution network and  operations in 80 US and Canadian sea ports. Additional supply operations have been set up in Panama and Hawaii which further boosts Sealub Alliance's global operations of more than 700 ports in 90+ countries.