Energy and Chemicals Management Consulting Teams

Kline Appoints Two New Directors to its Energy and Chemicals Management Consulting Teams

Kline, a respected provider of world-class consulting services and high-quality market intelligence, today announced recent additions to the company’s executive team. Kline is proud to announce the appointments of Annie Jarquin as Director in the Energy Practice and Hardeep Parmar as Director in the Chemicals Practice of Kline’s Management Consulting business. Their respective experience will help to strengthen Kline’s abilities, reputation, and, most importantly, add value for our clients within the energy/lubricants and chemicals industries.Continue reading

Finished Lubricant Distributors

All Roads Lead to Synthetics on the Global Lubricants Market

Low viscosity SAE 0W-XX passenger car motor oil (PCMO) accounted for under 5% of the total global PCMO demand in 2014. This grade is forecast to increase to over 7% by 2023, according to the recently released LubesNet Database.

Moreover, 5W-XX and 0W-XX combined account for about 40% of the total global PCMO market in 2014, according to the latest Global Lubricants: Market Analysis and Assessment report. The continuing global migration to lower viscosity grade PCMO will result in higher penetration of synthetics, semi-synthetics, higher revenues, and, conversely, longer oil drain intervals and suppressed overall PCMO growth.

The increasing demand for lower viscosity PCMO is driven by its ability to improve fuel economy; and original equipment manufacturers (OEMs) recommending these oils to maximize performance and converting their factory and service fill requirements to these low viscosity grade products. In the past, 0Ws would only be found in high performance sports cars and ultra luxury vehicles. Today, a base model Toyota Corolla leaves the factory with 0W-20 in its crankcase. Additionally, the forward-thinking GF-6 product specification upgrade planned in the 2017/18 timeframe will create the technical demand for these lower viscosity grade products.Continue reading

Global Lubricant Basestocks: Market Analysis and Opportunities

Kline’s December Index of Base Stock Production and Re-refining Cash Margins Reflects Continuing Turmoil in Oil Markets

In January,  Kline & Company, a worldwide consulting and research firm serving needs of organizations in the lubricants and base stocks industry, introduced its monthly  Base Stock Margin Index, a characterization of recent cash margin contributions in the U.S. base oil market over the past 24 months.

The Index estimates cash margin contributions associated with U.S. Group II base stock production. It simulates EBITDA before the deduction of corporate SG&A expenses for typical VGO-based virgin base stock plants and RFO-based re-refineries. Continue reading

Global Rubber Process Oils

Regional Rubber Process Oil Markets are Converging, Forecasts Kline

Global rubber consumption, which has increased at a CAGR of over 2% in the last two years, is expected to accelerate in the next 5 to 10 years due to rising demand for tire and other rubber goods driving rubber process oil (RPO) demand. The global RPO market in 2013 is estimated close to 3 million tons according to the recently published Global Rubber Process Oils: Market Analysis and Opportunities by global consulting and research firm Kline & Company. “While the differences between regions in terms of growth rates and product consumption will persist in the future,” comments Kunal Mahajan, Energy/Petroleum Practice Project Manager, “with more countries adopting regulations for environmental RPOs and tire labeling, most markets are expected to converge into a global one in terms of types of products used. Additionally, growing tire demand and tire production facilities migrating to emerging economies, mainly in Asia, will result in RPO demand increasing more rapidly in emerging countries than developed countries.” Continue reading

Global Lubricant Basestocks: Market Analysis and Opportunities

Kline’s November Index of Base Stock Production and Re-refining Cash Margins Shows Improved Margins, as Feedstock Prices Fall Faster than Product Prices

In January, Kline & Company, a worldwide consulting and research firm serving the needs of organizations in the lubricants and base stocks industry, introduced its monthly Base Stock Margin Index, a characterization of recent cash margin contributions in the U.S. base oil market over the past 24 months.

The Index estimates cash margin contributions associated with U.S. Group II base stock production. It simulates EBITDA before the deduction of corporate SG&A expenses for typical VGO-based virgin base stock plants and RFO-based re-refineries. Continue reading

Panacea for the Heavy Oils Market

Partial Upgrading Technologies – Panacea for the Heavy Oils Market

Kline projects that global crude oil demand to be about 89 MMbbls/d (million barrels per day) by 2030. Of this, the share of heavy oil resources is expected to be about 15 MMbbls/d. Current global utilization of heavy crude oil stands at about 11.5 MMbbls/day. Considering the decline in production in the coming years, an additional 7 MMbbls/d of capacity will have to be added by 2030 to meet the global demand. Heavy oil, if effectively exploited with partial upgrading, could emerge as one of the major factors in meeting the world’s energy requirements.

Heavy oil has been traditionally processed at the refinery by full upgrading technologies. The major issue is transporting the heavy oil to the refinery. This is resolved by either utilizing capital intensive full upgrading technologies at the wellhead or using diluents to get the crude to pipeline specs; thereby, adding costs for diluent losses and shipping to the wellhead. Partial upgrading technologies tackle these problems by converting only a portion of the vacuum residue in heavy oil, thus enabling it to meet pipeline specifications, at reduced capital investment levels and ideally without the need for diluents. Partial upgrading technologies provide a cost-effective solution for transporting heavy oil from remote locations to refineries.Continue reading

Bio-Lubricants

While Regulations Place Bio-lubricants on the Growth Path, Product Performance at Competitive Pricing Will Drive the Market, Forecasts Kline

The increase of high-performing, cost competitive green base-oils, in the context of government regulations, supported by industry interest to develop innovative green formulations for various end users, is driving the bio-lubricants market growth. According to our recently published Opportunities in Bio-lubricants: Global Market Analysis study the outlook illustrates bio-lubricant growth will outpace that of finished lubricants. Bio-lubricants constitute a small percentage of the finished lubricants market globally. The United States is the largest consumer of bio-lubricants in the world, followed by Germany, Nordic countries, and Brazil close behind. China is the smallest, but also the fastest growing market researched in this study.

The reasons for the relatively limited uptake of bio-lubricants include lack of regulation and domestic labels, high-performing formulations that are up to par with conventional lubricants, high prices, and lack of suitable additives.

The most significant regulation passed to date is the Vessel General Permit, introduced by the U.S. Environmental Protection Agency. The VGP is expected to drive the demand for bio-lubricants, particularly in stern tube oils. Advancements in bio-lubricants industry are most prominent in environmentally-sensitive zones, led by federal procurement programs, tenders and self regulation by OEMs and trade associations, such as forestry and waterway associations.Continue reading

Global Lubricant Basestocks: Market Analysis and Opportunities

Kline’s October Index of Base Stock Production and Re-refining Cash Margins Shows Pullback for VGO Refiners and Improved Returns for Re-refiners

In January, Kline & Company, a worldwide consulting and research firm serving needs of organizations in the lubricants and base stocks industry, introduced its monthly Base Stock Margin Index, a characterization of recent cash margin contributions in the U.S. base oil market over the past 24 months. The Index estimates cash margin contributions associated with U.S. Group II base stock production. It simulates EBITDA before the deduction of corporate SG&A expenses for typical VGO-based virgin base stock plants and RFO-based re-refineries. A more detailed description of the Margin Index can be found in the January release. Continue reading