At the same conference, Jaap Kalkman, head of Arthur D. Littles Global Energy & Utilities Practice, highlighted the effect the drop in crude prices is having on base oils and lubricants. Kalkman predicted that low crude prices will lead to increased car sales and driving, resulted in greater use of base oils, especially API Group II and III. In turn, he noted, these trends will positively benefit global lube oil demand.

Kalkman forecast a massive wealth transfer from oil exporting to oil importing nations, resulting in global economic growth. Global GDP growth will lead to increased industrial activity, so industrial and other lubes can also expect a slight additional increase in demand, he concluded.

Look for further reports from the ICIS Conference in upcoming issues.

Many of Kalkmans points were echoed in a recent white paper published by Kline & Co., in which the consultancy assessed the short-term dynamics of crude prices in the base oils and lubricants markets. The white paper also noted, As the price of oil has dropped since mid-2014, margins in the downstream finished lubricants market have improved, as marketers have been able to hang onto some proportion of their reduction in cost of goods sold.

Weve assembled an interesting issue for you this month. Managing Editor Dick Beercheck covers the energy saving potential of polymer greases; African Correspondent Emeka Umejei reviews the alternatives to Group I base oils in Africa; and Contributing Editor Boris Kamchev updates the status of REACH registrations and the Biocidal Products Regulation.