Sector Reports

A fascinating review of the European auto industry, BP's World Energy Review, Pike on biofuels and US nano policies are just a sample of the reports available this month.

Following the OATS White Paper, in which Fuchs' Apu Gosalia discussed GDP and its impact on lubricants demand, ACEA released it's first quarter Economic Report which linked GDP and automotive production.  As GDP continues to suffer, so does the automotive industry.  While there were very small signs of some overall business and industrial confidence and domestic consumption across Europe, a summary of the report headlines still shows little cheer for the automotive sector.  A 35% fall in European auto production was matched by a drop in vehicle demand, although the small car share reached a record 44.9% due to consumer's economic concerns.

British oil major BP released its Statistical Review of World Energy, covering oil, natural gas, coal, nuclear and hydro energy.  Data is gathered from government and other primary sources.

Headlines from the report include a steep rise in traded energy prices in 2008, with oil reaching a record $140/barrel in July last year and although falling back, average oil prices rose for the seventh consecutive year.   Global energy consumption grew by 1.4% with Asia-Pacific consumpiton accounting for 87% of world growth, although global oil consumption declined by 0.6% over the year.

Renewable use rose significantly, much of it with government backing, but BP noted that the findings of the report demonstrated that there are enough oil, gas and coal reserves to meet global demand for many decades.

In the world of nano technology, there appears to be a significant gap in perceptions between scientists and the public, particularly in the US.  According to a paper in the Journal of Nanoparticle Research scientists believe that regulations for nanotechnology (which is used in additives and lubricants amongst other things) protect the public, while the public sees regulation as a barrier to development.

Image: Pike Research

And finally, Pike Research's report on Biofuels Markets and Technologies predicts a market worth $247bn by 2020 from a predicted $76bn in 2010.  However, it won't be an easy ride, with Pike's MD describing the short-term as a "train wreck".  The industry faces a number of challenges including limited availability of inexpensive feed stocks, the food versus fuel debate, and over capacity of production as well as, of course, the global recession.