Need to Know
While the word is often overused, the lubricants industry has truly been through “unprecedented” challenges and changes over the past three years. It started with the outbreak of COVID-19 in 2020. The pandemic caused rapid and massive disruptions in lubricant supply chains and a historic drop in demand. It also set off a domino effect that resulted in skyrocketing costs and prices.
Although lubricant demand rebounded in 2021, supply chain issues deteriorated in 2021 and 2022 due to plant accidents, hurricanes, a historic freeze in the Gulf Coast region, a flood in the Midwest, and other unexpected disruptions. Taken together, these events resulted in extraordinarily tight supply of lubricant additives and a consequently constrained supply of lubricants that lasted well into 2022.