In the lubricants industry, she said, The main challenge is to develop a wide variety of viscosities, from very low to bright stock, and increase the number of tailor-made products, to offset the declining availability of API Group I base oils. In particular, she noted, the shift from Group I to Group II and III in the paraffinic base oil pool will likely lead to a shortage of heavy products, and it is essential for naphthenic producers to develop the heavy side of the product slate.

Moreover, if naphthenics are to be an alternative to Group I oils in industrial applications, Serra-Holm said, it is important for producers to develop products that require minimal reformulation. Blends of naphthenic and hydrocracked oils represent a valid alternative to Group I, she said, because they have very similar properties.

In the chemical industry, the main requirements will be to improve health, safety and environmental performance, as well as compatibility and purity. There is a trend toward increased demand for white oils; therefore, the main developments should be in this area, Serra-Holm said.

In the electrical industry, it will be essential to develop products to meet worldwide specifications both in the uninhibited and the growing inhibited transformer oil markets. Here, the challenge is to maintain a high level of research and development activity to offer products that meet the numerous local specifications on top of global ones to secure a high geographical penetration, said Serra-Holm.

Finally, in the tire industry, development should focus on increased polymer compatibility and increased worldwide availability. To be successful, naphthenic producers need to develop a large product portfolio, she concluded. Also, because the market is developing very fast, a key success factor is high volumes with global availability.”