The latest GF-5 specs are drafted; passenger car oils will lead the lubricants recovery according to Kline; Nigeria's base oil import ban is a cause for debate and Chevron pulls out of India.
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Image: The latest draft of the ILSAC GF-5 standard for Passenger Car Engine Oils was released after a meeting of the automotive panel comprising JAMA, Ford, Chrysler and General Motors.
The document, dated 1st October, shows evidence of a number of deletions to the specifications drafted last year, indicating a degree of relaxation in order to get the standards agreed.
There is still work to be done on testing certain elements, however there are indications that a rapid agreement between the oil producers and the auto manufacturers could see the new lubricants on the market by October 2010.
In fact, research house Kline and Co believes that passenger car oils are set to lead the lubricants industry out of recession. More details of their Competitive Intelligence for the Global Lubricant Industry 2008-2018 report emerged at a presentation by Kline's Geeta Agashe.
Although the report predicts a 9% market fall from 2007 to 2009, the continued growth of the Asian car market will bring these oils back to pre-recession levels within the next year to 18 months. Heavy duty motor oils are likely to follow, but at a slower rate in line with the overall global economic recovery as they are more dependent on the condition of localised trucking.
Agashe also reported on the large variance in lubricant quality worldwide. Scandinavia, Germany and South Korea were named among the high performance, low volume lubricant users, with China, Russia, India and Brazil reporting the lowest performance but highest volumes per capita.
One country determined to increase the quality of its lubricants is Nigeria. As OATS previously reported, the country's Petroleum Resources Ministry is determined to clamp down on the production and sale of sub-standard lubricants. From the beginning of October, new regulations mean only licensed blenders can now import base oil into the country and from 1 January 2010 bulk lubricant sales can only be made from designated retail outlets. The decision has not been without its critics, according to Lube Report's Olaolu Olusina, with concern that the blanket ban could not be effectively monitored and would thus fail.
Meanwhile in India, Chevron have announced it is withdrawing from lubricant sales throughout the country after a presence of 30 years. Subsidiary Chevron Global Lubricants will cease operations during October and will focus on LPG sales and licensing technology to local operators. The move apparently follows a "review of business conditions and prospects", although the future of the subsidiary company's assets remains unclear.