“The nature of different economies across Europe is very apparent,” Valentina Serra-Holm, president of the trade group, told ACI’s European Base Oils and Lubricants Interactive Summit held here Nov. 29. “As an industrial heartland, Germany is different in nature to a service-led economy such as the U.K., and lube production and consumption differ in these countries due to the very nature of their economies.”

Germany is the strongest performer in the region, according to the report. “After the financial crisis in 2009, the country’ lube market recovered fast and has stabilized at a high level, confirming Germany as the largest producer in the region,” Holm said. The key to that success has been the ability of German producers to focus on high quality specialty products to meet the increasingly challenging demand of the industry, she noted, especially in niche, high value added applications.

In 2016, German lubricant demand amounted to 960,000 tons. “The market is dominated by industrial lubes, with turbine oils, hydraulic oils and general machine lubricants having decreased [in volume] due to improved efficiency, while metalworking fluids have increased.”

The U.K.’s lubricant sales have not been affected by the economic uncertainty of the country’s planned exit from the European Union, and the country’s total lube sales increased marginally during 2016, the study found. In 2016 lube demand for the country stood at 570,000 tons. Engine oil sales had declined from 1995 to 2010, but the trend then reversed, Serra-Holm observed, due to an increase in initial factory fill oils spurred by the excellent performance of the U.K. automotive industry.

After an initial recovery post-crises, the French market suffered a decline. Volumes generally stabilized since 2014, though the market shrank slightly in 2016. Higher sales of industrial and automotive lubricants was not enough to offset a decrease for process oils In 2016 France consumed around 550,000 tons of finished lubricants.

UEIL found that Spain and Italy have shown similar recovery paths. Driven by the automotive sector, Spain’s lube market grew in 2016, while the Italian recovered both in the automotive and in industrial sectors. In 2016 Spain consumed 460,000 tons of finished lubes, while Italy consumed 440,000 tons.

UEIL is set to publish its first annual statistical lubricant demand report in full later this year.

Continue reading: Challenges, Opportunities Seen in Western Europe

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A recent report by Morgan Stanley stated: “The exploration and production (E&P) outlook is attractive.”

“Energy sentiment has improved from two months ago, as the oil supply and demand balance has tightened and revisions turn positive,” the report continued

“Expectations for U.S. oil production growth have also been tempered, as the U.S. E&P industry faces execution challenges from tighter services markets and also feels investor pressure for improved capital discipline.

“OPEC remains committed to production cuts, with steadily improving (and high) compliance. Simultaneously, global oil demand growth continues to surprise to the upside, and is on trend to continue to significantly exceed the historical average into 2018,” the report stated.

“Investor interest has increased, though many remain unconvinced about the sustainability of the current rally. We believe that fundamentals appear to be the strongest they have been since the start of the downturn and, in our view, capable of underpinning some increase in long-term oil price expectations,” the report stated.

Adding to the optimism is the monthly report of the Texas Petro Index, which shows another month of recovery.

Upstream oil and gas activity in Texas increased into the 10th straight month, according to the Texas Petro Index, which rose to 181.4, 21.4 percent higher than last year.

“Crude oil prices in Texas have been the essence of stability for more than a year,” said Karr Ingham, the economist who created the TPI and updates it monthly, noting that average monthly oil prices in Texas have increased slowly but steadily since dipping to a low of $27.08/bbl in February 2016. “Demand is beginning to show signs of recovery and foreign oil suppliers led by OPEC appear to be committed to maintaining announced production cuts.”

Read more: Oil and Gas Industry Future Looks Attractive 

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Giant, deployable, solar-powered wings on this satellite, and spacecraft like it, help propel these units after launch. To prevent wear, these units are treated with low-vapor pressure lubricants—substances traditionally made of oil or grease to reduce friction and wear in machines with moving parts.

Since spacecraft don’t have access to routine maintenance after launch, they must be able to persist and function, untouched, over as long as a decade or two. No matter how carefully selected, greases or oils will likely creep away from bearing surfaces. So spacecraft bearings are typically lubricated with materials like molybdenum disulfide, a solid, inorganic, dry lubricant that can tolerate prolonged exposure to the vacuum of space. Self-lubricating coatings composed of molybdenum disulfide and titanium nitride have been developed for similar applications. Some radiation-resistant, liquid, perfluorinated oils are similar to molybdenum disulfide in that they can endure hostile temperatures and vacuums and dramatically extend the life span of bearings.

Really though, there aren’t many practical lubricants for cosmos travel quite yet. And that’s why lubricant innovation now lies at the heart of space exploration. Only with advanced lubricants can spacecraft function over long periods in the face of low ambient pressures, low or no gravity, extreme temperatures, radiation, and atomic oxygen.

Solid Technology

In the 1960s, Robert Nelson, a Stanford University professor, introduced a methodology to create a dry-film lubricant, tungsten disulfide—a technology used in NASA’s Mariner space program. Applications for the product expanded into aerospace, defense contracting, robotics, and automotive industries. And by the mid-1980s, molybdenum disulfide—a cheaper dry lubricant—entered and eventually dominated the market.

Since then, graphite, molybdenum disulfide, talc, and poly(tetrafluoroethylene) have joined the solid-lubricant arsenal, finding use in cars and jets. When it comes to aerial transportation, though, chemical components must contend with a unique set of challenges to help stand up to evolving demands.

In 1983, researchers Carl E. Snyder Jr. and Lois J. Gschwender argued that fluoropolymers had an unrealized market potential in aerospace applications because of their excellent performance and stability in extreme environments (Ind. Eng. Chem. Prod. Res. Dev. 1983, DOI: 10.1021/i300011a001). At the time, only poly(tetrafluoroethylene) and fluorinated ethylene propylene were popular as additives used to thicken lubricant greases. Snyder and Gschwender, though, discussed the potential merits of fluoropolymers in hydraulic fluids for commercial aircraft—responsible for energy transmission, lubrication, heat transfer, and contamination control.

Perfluorinated lubricants now comprise a complete range of oils and greases and are used when lasting longevity and extreme resistance are necessary. Examples include automotive heating and cooling systems, or in aerospace, where temperatures exceed 121 °C or fall below –18 °C. They are the go-to materials when contact with oxygen, nitrous oxide, or concentrated ammonia is unavoidable (perfluorinated compounds are nonflammable). “Supersonic flight and space travel would probably not have been possible without the use of perfluorinated materials that can withstand such harsh operating environments,” wrote Durham University chemistry professor Graham Sandford in his 2000 report, “Organofluorine chemistry” (Philos. Trans. R. Soc., A, DOI: 10.1098/rsta.2000.0541).

Airlines are now able to realistically invest in a supersonic-focused future that could slice global travel time in half by the mid-2020s. Engineers at Boom Technology, a three-year-old aerospace company, are working to produce a 45- to 55-seat civilian supersonic aircraft capable of flying up to Mach 2.2 (which is 2,337 km per hour). While the retired British-French turbojet Concorde broke the sound barrier on its cross-ocean trips (flying at Mach 2.04), Boom will be able to do so with a commercial jet that’s economically feasible.

“Technological progress in aerodynamic simulation, carbon-fiber composites, and modern turbofan engines allow us to now design a supersonic jet 30% more efficient than Concorde,” says Erin Fisher, flight control engineer at Boom. “Our lubrication system utilizes state-of-the-art seals and high-thermal-stability oils.”

Read more: Helping Technology Move Smoothly – High-performance lubricants have been – and always be – key to advancing space exploration

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“For example, new vehicle sales and an evolving vehicle parc in markets such as India, Indonesia, and Thailand drive volumetric PCMO demand, while a continuing shift to synthetics in the United States and Canada suppress volumetric growth, but boost revenues and opportunities for suppliers,” comments George Morvey, Industry Manager in Kline’s Energy Practice. “These trends are filled with clues about where and how to place your products, marketing strategy, and sales efforts.”

“An evolving parc in India can mean a shift from 2-wheelers to passenger vehicles, more lower viscosity grade PCMOS, such as 5Ws and 0Ws, growth in the franchised workshop channel during the warranty period, and opportunities in the independent workshop channel post warranty. Even in the 2-wheeler parc, vehicle demand is growing in the scooter segment, with OEMs targeting female and elderly owners,” observes Morvey. “Does  your product portfolio and market message resonate with this class of customer? Could a fresh strategy and approach to scooter engine oil sales create a new sales channel for your brand? What impact will alternative-fueled vehicles have on demand for automotive lubricants?”

Smaller local brands and large multinationals alike must be watching for such clues in order to grow their business. In terms overall, global supplier rankings remain fairly stable in i2016. Having just successfully celebrated its first decade as the leading global supplier of finished automotive and industrial lubricants, Shell begins its journey once again in the #1 position in 2016, followed by ExxonMobil and BP.

Continue reading: Hidden Opportunities for All Players Behind Low Volumetric Demand for Finished Lubricants, Observes Kline

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