Mixed Reports

Oil and automotive reports are the focus this month, aswell as a couple of interesting opinion pieces from the lubricant sector.

The 2009Lubricating Oil and Wax Capacity Report by the NPRA showed a decline in USbase oil capacity of just over 8%. According to the report, based on 19 US base oil and wax plants, plusfive from Canada and two in Latin America, US API Group 1 capacity totalled62,700 barrels/day at the start of 2009, from 79,000 last year.

LubeReport's George Gill highlighted the report's comments that Marathon and Citgo's move out of the base oil market lastyear was one of the key factors in reduced production.

In the automotive sector, the BlockExemption debate continues to rumble on, but there are signs of a possibleconclusion from the European Union.  UEILhave published a report of the round table meeting between EU CompetitionCommissioner Neelie Kroes and representatives from the automotiveindustry.

CommissionerKroes indicated her support to find changes to the current Block Exemption Regulation 1400/2002, which is due to expirein 2010, which will assist independent operators including the lubricantsindustry. The controversial legislation concerns access to technicalinformation by non-OEM service providers including car dealerships, roadsideassistance organisations and independent repairers. 

UEIL alsoreported on the European Commission's decision notto have a harmonised EU approach to the current automotive industry crisis.As a result, the hardest hit European regions, led by France and including Germany,the UK and Spain, have formed an Automotive CrisisIntergroup to try and find solutions for themselves.