Motor OIl Re-Refining Gains an Important Advocate in Valvoline
June 30, 2011
Many Happy Returns | digital.olivesoftware.com
Tiny compared to virgin basestock production, re-refined oils are entering a very favorable scenario with both high product values and attractively low used oil acquisition costs. Historically, US retail consumer use of recycled oil has been limited due to the lack of major brands. Valvoline's entry into the market will be an excellent evaluation of customer's current value perceptions. Without internal basestock production, Ashland's Valvoline division is an ideal partner for Safety Kleen.
Chemtura Exits Bankruptcy with Potential for Improved Lubricant Profits
November 19, 2010
Chemtura Exits Bankruptcy | www.imakenews.com
Chemtura has a varied mix of profitable lubricant related businesses which will likely improve over recent mediocre results. Operating margins of 8-10% have been recently reported for their Industrial Performance Products Segment which consists mostly of lubricant related additive components, lubricant basestocks, and finished synthetic lubricants. These margins are considerably below those being generated by their competitors in similar businesses.
GM's Entry into Lubricant Licensing Leading to Complications
August 17, 2010
Shell Embraces, Valvoline Snubs Dexos | www.imakenews.com
Valvoline has taken an initial position that they are unwilling to pay the significant licensing fees GM is requiring for using their dexos specification. Instead they will fall back on the "free" statement that their oils meet the dexos technical requirements and warranting the performance to the consumer. Shell, the largest marketer of oil in the world, will pay the license fees.
Are Expanding Regional Lubricant Additive Suppliers a Competitive Threat?
July 28, 2010
Belarus Additives Eye New Markets | www.imakenews.com
LLK-NAFTAN a lubricant additive supplier in Belarus recently announced plans that it will expand its marketing area the Mid-East and parts of Asia. The company supplies individual additive components including detergents and anti-wear agents. More interestingly, it provides a selection of multi functional additive packages. These products are are blended with basestock to produce usable lubricants for gasoline and diesel engines.
Lubrizol and BASF Consider Cognis Purchase
April 15, 2010
Cognis sale heats up as Lubrizol joins fray | www.reuters.com
Cognis offers an attractive mix of chemical speciality products with potential synergies for both Lubrizol and BASF. Lubrizol, frustrated by its slow growing additive markets and flush with cash, is being drawn to Cognis's complementary products in ester lubricants, gear oils and metalworking. BASF is striving to improve margins. Cognis's extensive product line might be best split between the two companies.
Newly Aggressive Auto OEM's Prospect in the Oil Business
March 1, 2010
Here Soon: New Oil Standards | www.asashop.org
Seeking greater control over its global lubricant specifications, GM has announced that its 2011 cars will be required to use its new dexos licensed oils. GM will receive licensing and royalty fees from the oil companies while simultaneously improving consumer awareness of its engine technology. This is smart move by GM which will also benefit the lubricant additive supplies including Lubrizol and Newmarket.
Lubrizol Surprises as Analysts MIss a Changing Specialty Chemical Environment
October 23, 2009
Lubrizol forecasts 3Q profit above Street view | finance.yahoo.com
Lubrizol and Newmarket both recently announced drastically improved sequential profit margins in a difficult general business environment. The doubling in run rate operating margins in 2009 suggests a structural change in the supplier customer price negotiation process. What happened in the lubricant additives business could also happen in other specialty chemical areas. The key requirement is that suppliers mange their product profile to help improve their customers profitability.
Newmarket Expands Cautiously in Asia's Growing Lubricant Additive Market
July 29, 2009
Afton Invests in Asia Pacific | www.imakenews.com
Newmarket will expand in Asia via toll processing rather than the more typical approach of major plant construction. Their approach is strategically consistent with a relatively small initial market share and a desire to minimize capital investment. The lubricant additives industry continues to avoid overbuilding in a slowly growing global market
Holly's Tulsa Refinery Purchase Opens New Options for Margin Growth in Lubricants
April 22, 2009
Holly Buys Sunoco Tulsa for $65M | www.imakenews.com
Lubricant sales are a hidden gem in the Tulsa refinery purchase. Sunoco has built a good reputation marketing these high margin products. Holly Corp's planned investment in hydrotreatment for ultra low sulfur diesel fuel will offer potential upgrades to the lubricant slate as well. Lubricant base oil has the highest value upgrade over crude of any high volume refinery product. If managed well, Holly's strategic expansion has significant profit potential.
Stable Global Lubricant Demand Will Maintain Profitability of the Industry
March 4, 2009
Hot Lube Markets Will Weather Downturn | www.imakenews.com
Fuchs Petrolube is projecting only a slight decrease in global lubricant demand in 2009 with stable to growing volumes beyond this near term horizon. Stable volumes imply that the lubricant companies will see only minimal volume changes. Public additive suppliers such as Lubrizol and Newmarket should also see little change in their volumes and continued margin stability. The margins of the lubricant marketers such as Fuchs Petrolube, Ashland (owner of Valvoline) and the integrated oil companies should continue to reflect currently strong levels.
Shale gas abundance provides new options for energy companies
February 13, 2012
Chesapeake Energy bites the natural gas bullet
January 25, 2012
Flurry of newbuild drilling rig deliveries in 2012 may dampen rig rates
January 20, 2012
Talisman joins the ranks of cautious E&P companies
January 12, 2012
Early signs of caution begin to cloud frontier exploration and production
January 4, 2012