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quarter three 2010 volume 16 issue 3 international ford boosting downsizing and downspeeding time for an oil change biotribology helps improve human lives self-repairing systems from science fiction to the lab[close]
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editor s corner technology innovation creating more with less one of the things that i really look forward to every year is organizing our annual conference as last year the annual fuels lubes asia conference will be held back-to-back with the asia-pacific base oil conference so mark march 7-11 2011 on your calendar now our theme for next year is technology innovation creating more with less next year s theme picks up where we left off with this year s theme of fuel economy emissions exploring beyond today s limitations it underlines the issue of energy efficiency/savings on the agenda as we all face the challenge of resource limitation and serious concerns about the environment technology innovation are the keys to success as we move forward in the transition from the traditional mobile sources of energy to new and renewable forms of energy partnership and collaboration can help to deliver more efficient solutions thus we continue to seek partnerships to help establish a more structured form of collaboration among all key stakeholders including the oil industry the additive industry and original equipment manufacturers oems who are all represented in the sae steering committee for asia as well as government and non-governmental organizations like the clean air initiative for asia cai-asia in asia-pacific we are now calling for papers for the 17th annual fuels lubes asia conference and the 5th asia-pacific base oil conference which will be held in singapore to encourage papers from non-english speaking countries we plan to offer translations for speakers from these countries the deadline to propose an abstract is august 31 2010 you can send your proposed abstract by email to editor@fuelsandlubes.com more details are available on our website www.fuelsandlubes.com i would also like to encourage you to start networking with your industry colleagues now even before conference week by joining our new interactive online community to be launched soon network and meet valuable contacts by joining our new interactive online community to be launched soon vicky villena-denton editor-in-chief publisher fuels lubesintern at ionalquarterthree 2 010 3[close]
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contents photo co urtesyoffordmotor co m pa n y boosting downsizing and downspeeding proven technologies to help ford boost vehicle arsenal as a prelude to alternatives features 16 in search of a new equilibrium no country left behind advancing fuel economy in developing asia 16 time for an oil change advanced generation of pag shows promise for engine oil formulations 28 biotribology helps improve human lives 30 judgment day self-repairing systems from science fiction to the lab 35 8 4 fuels lubesintern at ionalquarterthree 2 010[close]
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fuels lubes international quarter three 2010 volume 16 issue 3 issn 0117-9470 copyright© 2010 f&l asia inc photo courtesy of ford motor company to move asia forward national governments need to take the lead by mandating a clear and firm road map for cleaner fuels and vehicles page page 28 14 columns in search of a new equilibrium a review of the global base oil market 8 greening trucks 10 road map to cleaner fuels and vehicles in asia 14 editor s corner 3 advertisers index 42 30 fuels lubesintern at ionalquarterthree 2 010 35 5[close]
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contributors hogan thornton britt punte looye fabian bathan hank hogan is an austin texas-based freelancer who writes about business energy technology and science like others in texas he s sold exploration rights to an independent but a gusher hasn t come in yet kelly thornton is a freelance writer based in san diego calif she was a staff writer for 18 years at the san diego union-tribune covering law enforcement and legal affairs phil britt is a veteran journalist who has spent more than 30 years covering various industries for magazines newsletters newspapers and online publications he is based in suburban chicago sophie punte is the executive director of the clean air initiative for asian cities cai-asia center in manila which aims to facilitate improving the air quality of asian cities by better integrating air quality management in government strategies policies and program jeroen looye spent seven years as a base oil trader for ap chemicals in belgium he is now an entrepreneur based in the netherlands and is director of the dutch company losiwo b.v that launched the base oil platform www.baseoilmarket com in 2008 bert fabian is the transport program manager of the clean air initiative for asian cities cai-asia center in manila which aims to promote better air quality and livable cities by translating knowledge to policy and action to reduce air pollution and greenhouse gas emissions glynda bathan is a lawyer who has worked with cai-asia since it was founded in 2001 as policy and partnership manager she assists eight country networks in asia china indonesia nepal pakistan philippines sri lanka vietnam and india in partnership building knowledge sharing project development and implementation 6 fuels lubesintern at ionalquarterthree 2 010[close]
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base oil column i l lu s t r at i o n by chilidogs 2009-2010 base oil sn500 prices mt $950 $900 $850 $800 $750 $700 $650 sep oct nov dec jan feb mar apr may jun fob europe fob asia fob middle east fob baltic 2009-2010 base oil sn150 prices mt $950 $900 $850 $800 $750 $700 $650 sep oct nov dec jan feb mar apr may jun fob europe fob asia fob middle east fob baltic 2009-2010 base oil bs150 prices mt $1100 $1050 $1000 $950 $900 $850 $800 sep oct nov dec jan feb mar apr may jun fob europe fob asia fob middle east 2009-2010 base oil sn500 prices mt $1000 $950 $900 $850 $800 $750 $700 sep oct nov dec jan feb mar apr may jun cfr ne asia cfr india 2009-2010 base oil sn150 prices mt $1000 $950 $900 $850 $800 $750 $700 sep oct nov dec jan feb mar apr may jun cfr ne asia cfr india 2009-2010 base oil bs150 prices mt $1200 $1100 $1000 $900 $800 $700 $600 sep oct nov dec jan feb mar apr may jun cfr ne asia cfr india source www.baseoilmarket.com equilibrium a review of the global base oil market by jeroen looye in search of a new i 8 n recent months the global base oil market has been very anxious high volatility in the crude oil market has made many producers and buyers cautious since the end of april the next phase of the global credit crisis seems to have started the focus of financial markets started to shift away from the economic recovery that started in the first quarter of 2009 markets are now focusing on the fact that no real solution for the credit crisis has been presented all we have seen so far is a transfer of debt from the private sector mostly financial institutions and households to governments the resulting explosive increase in government deficits has gone unpunished until then when greece s government bonds began to fall sharply and borrowing costs for the greek government more than tripled interest rates of other financially weak countries in the european union such as portugal ireland and spain also rose sharply the only way to restore normal borrowing costs is to significantly cut back on government spending and raise taxes large economies such as the u.s the u.k and japan have similar problems and they will at some point also have to spend less and save more since this will sharply reduce economic growth as government spending has become a more significant part of these countries gross domestic product gdp during the global financial crisis equity and commodity markets dropped sharply consequently the benchmark crude west texas intermediate wti dropped from us$86 per barrel to less than us$70 in three weeks after which it recovered to around us$74 per barrel the dynamics in the regional base oil markets are different however in europe and the u.s base oil prices continued their upward trend convincingly while asian markets were hesitant and lagged behind the west higher prices in the west were mainly driven by tight supply there were even trades from asia to the u.s which is unusual the u.s was exporting more base oils to china than vice versa in recent years in search of a new equilibrium continued on page 12 fuels lubesintern at ionalquarterthree 2 010[close]
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fuel additives refinery additives dyes markers kerolinetm your passion brand for fuel everything we do at basf we do with passion kerolinetm also bears this hallmark our new brand for the petroleum industry combines the unrivaled scope of the kero product range and stands for the highest quality and a first class service the keropur® product name which is part of the kerolinetm range represents an innovative selection of fuel additives which efficiently improve the quality of standard commercially available fuels in terms of performance corrosion protection and emissions as individually formulated multifunctional additive packages these products convert any fuel into high-grade brand-quality gasoline and diesel differentiate your fuel with kerolinetm feel relaxed that s what we call the kerolinetm effect www.basf.com/keroline tm trademark of basf se evo 0962e that s what we call the kerolinetm effect[close]
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guest column i l lu s t r at i o n by chilidogs guangzhou green trucks pilot project g greening by sophie punte yan peng and alvin mejia uangzhou the capital of guangdong province is the largest city in southern china and a key transportation hub a pilot project in guangzhou analyzed the truck sector through research and a survey developed and tested training materials for truck fuel efficiency and carried out a technology pilot as part of the technology pilot three companies tested tire and aerodynamics technologies fuel and emissions savings for garbage trucks equipped with low rolling resistance tires and a tire pressure monitoring system were about 18 this figure is much higher than the savings seen in the united states most likely because aside from reducing friction with the road the new tires also made the truck more stable thus reducing fuel use fuel savings of long distance trucks was about 6.6 this was less than expected because pilot trucks traveled at lower speeds than the 75 km/hour needed for trucks aerodynamics technologies to significantly reduce drag and fuel use still the savings are high enough for companies to be interested in these technologies a larger pilot project is now being planned for guangdong province covering hundreds of trucks the pilot project was funded by the world bank ausaid and energy sector management assistance program esmap and implemented by clean air initiative-asia cai-asia and the world bank in partnership with the u.s environmental protection agency epa cascade sierra solutions css and the guangzhou government freight is the cinderella of the transport sector worldwide especially in asia whether it is the introduction of cleaner fuels fuel economy standards tax incentives or investments in infrastructure to improve transport the freight sector comes last and is often ignored government policies concerning road transport tend to focus on private vehicles and public transport more than on trucks despite their huge potential to reduce fuel co2 emissions and air pollution trucks are not in the public eye they are not a priority for politicians people either drive cars or ride the bus but trucks transport goods within cities trucks are often allowed at night only along specific corridors as a way to reduce traffic congestion during the day the high fragmentation of the truck sector in china 52 of trucks surveyed in guangzhou are driver-owned makes trucks harder to manage trucks travel across provincial and even outside national borders for example more than 80 of trucks surveyed indicated that their destinations are outside guangdong province therefore it is not always possible for individual cities or even provinces to effectively deal with trucks new technologies are out of reach for most truck drivers-owners because banks often shy away from giving loans due to their poor credit ratings it is critical to make the freight sector more sustainable if we are serious about addressing fuel security climate change and air pollution in asia diesel consumption is much higher than gasoline across asia and the number of diesel vehicles especially trucks is expected to grow explosively in china while diesel vehicles largely trucks and buses represented only 12 of all vehicles in 2005 they were responsible for 29 of total vehicle kilometer traveled 72 of co2 and greening trucks continued on next page 10 fuels lubesintern at ionalquarterthree 2 010[close]
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in search of a new equilibrium cont from page 8 but during the second quarter tight supply in the u.s and a slowdown in demand in asia opened a small window for arbitrage from asia to the u.s in europe where export has a larger effect on prices than in other regions base oil prices increased significantly during the quarter particularly for sn150 and sn500 domestic prices in europe increased by us$170 and us$110 per metric ton for sn150 and sn500 respectively in march and april prices were pushed up by high crude oil prices and exports to asia after the decline in export volumes to asia prices continued to rise as demand from the u.s africa and turkey grew europe exported both sn500 and sn150 to the u.s during this period meanwhile strong demand for sn150 from turkey resulted in a steep price increase spot trades were concluded at us$940 per metric ton cfr gebze for russian sn150 on the production side tight supply partly as a result of numerous turnarounds in russia this quarter also pushed european base oil prices higher after strong demand for base oils in asia during the first quarter trading activity to asia has slowed down in recent months as a result base oil prices cfr north east asia for sn150/sn500 only increased between us$30 and us$40 per metric ton higher price levels were mainly driven by price hikes by asian refineries including petrochina and sinopec in china formosa petrochemical in taiwan and exxonmobil in singapore buyers however were reluctant to purchase base oils at these higher prices the finished lubricants market had difficulties absorbing the cost of higher raw material prices also the recent drop in crude oil prices could push base oil prices lower in the near term in this environment it is very hard for buyers and sellers to reach an agreement on a trade price thus trading in recent months has been thin this standoff is expected to continue at least until september in the meantime supply in the asian region remains tight exports from asia to other regions were seen from refineries in taiwan china and india base oil prices in the u.s continued to firm up due to an increase in domestic demand and as a result of the limited allocation of production to base oils this resulted in higher base oil prices in the u.s compared to other regions domestic prices rose to us$1,230 per metric ton for sn500 and us$1,240 for bs150 as the u.s market could not provide sufficient base oils for its current domestic demand base oil cargoes were imported from both europe and asia base oil markets are looking for a new equilibrium on one hand supply is tight in several regions and may very well stay tight partly because supply is artificially limited to support current prices on the other hand current price levels are difficult to pass on to finished products the sharp fall in crude oil prices suggest that base oil prices may well come under pressure in the near term participants in the base oil market have adopted a wait-and-see attitude if the near-term economic outlook does not improve significantly we expect that current price levels will not be sustainable and base oil prices will have to trend lower greening trucks continued from previous page 91 of particulate matter pm emissions fuel costs can be 60 of truck operating costs in asia making it an even more attractive area for cost reductions than in the u.s where driver wages are the largest cost component so what can be done to clean up trucks in asia first ample options exist for engines and fuels such as using lowsulfur diesel fuel lower viscosity as well as higher grade and higher quality lubricants and oil filtration diesel particulate filters and other emission control devices can reduce between 60 up to 90 of air pollutants of pm hydrocarbons and carbon monoxide truck performance can be improved through truck weight reduction improving aerodynamics to reduce drag reducing tire rolling resistance or installing technologies that allow the driver to reduce idling such as auxiliary power units a recent pilot project in guangzhou tested several of these technologies in the u.s the difference in fuel consumption between the best and the worst drivers was found to be as high as 35 ecodriving and better maintenance therefore are low-cost options that can result in significant savings old and polluting trucks can be replaced with newer trucks or electrichybrid trucks and are particularly attractive for large fleet operators improving freight logistics would involve integration of truck companies as well as logistics centers this is badly needed as overloaded trucks and empty hauls are a severe problem across asia for example about 40 of trips in guangdong province are empty freight could be better allocated across different modes including trucks rail ships and airplanes high commodity and perishable goods will continue to be transported by trucks and airplanes but rails and ships are very suitable for bulk and lower value commodity goods such as coal and other raw materials for industry to capitalize on the fuel and other cost savings potential of these various strategies a dedicated program for the freight sector is needed there is an opportunity to build on successful programs elsewhere such as the smartway program in the u.s and similar programs in europe and australia a program will only work if supported by shippers carriers government and other stakeholders and should cover technologies logistics financing policies and information the cai-asia center will be designing such a green freight program for china which could also serve as a model for other developing countries 12 fuels lubesintern at ionalquarterthree 2 010[close]
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liquid petroleum dyes united color manufacturing,inc p.o box 480 · newtown pa 18940 usa · phone 1.215.860.2165 · www.unitedcolor.com[close]
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automotive column i l lu s t r at i o n by chilidogs roadfuels map to cleaner and vehicles in asia by glynda bathan and bert fabian ehicle numbers are forecast to grow rapidly in china india and the asean region in the next 25 years by 2035 china and india s vehicle population would surpass that of oecd organization for economic cooperation and development countries vehicle emission and fuel quality standards play a critical role in limiting the emissions from each vehicle and together with other measures in reducing the impact of continued vehicle growth on asia s air quality in asia s cities the average concentration of pm10 particulate matter 10 microns or less in diameter in the air is 90g/m3 exceeding the world health organization air quality guideline of 20g/m3 by almost 400 as pm10 in the ambient air increases by 10g/m3 the risk of early deaths in asia goes up by 0.5 according to research by the health effects institute an independent research organization based in boston massachusetts motor vehicles are responsible for as much as 75 of ambient pm levels in these cities near roadside traffic emissions are also a major concern and health studies suggest that people living within a range of up to 300 to 500 meters to a highway or a major road are most highly affected by traffic emissions protecting public health and reducing the economic burden of treatment are compelling reasons to mandate vehicle emissions and fuel quality standards in asia clean air initiative-asia cai-asia helped draft the road map for cleaner fuels and vehicles in asia which strongly encourages asian countries to develop na v tional plans with clear timelines to introduce fuel and vehicle standards so that the oil and vehicle industries can sufficiently plan for the investments needed to comply with the new standards the timing for introducing vehicle emission standards is critical as it takes about 15 years to completely replace in-use vehicles with cleaner ones the sooner they are put in place the sooner the vehicle replacement process can start improved fuel quality however could immediately reduce emissions even from in-use vehicles albeit on a limited scale while the trend in asia is to progressively tighten vehicle emission standards the region has a long way to go towards harmonization india moved nationwide to euro 3 this year and china to euro 4 equivalent standards in 2008 major metropolitan areas in india have even adopted stricter standards e.g euro 4 equivalent vehicle emission standards in 13 cities but other south asian countries have yet to develop road maps beyond their current euro 1 and euro 2 standards in southeast asia some countries plan to move to euro 4 but seem to waver in their resolve to take this step soon plans to move to euro 4 in 2012 have been delayed to 2015 or later sulfur in fuels deserves special attention at high levels e.g above 50 parts per million or ppm sulfur can reduce the effectiveness of advanced threeway catalysts for gasoline vehicles and clog particulate filters in diesel vehicles the link between low sulfur and better air quality can be shown in the case of thailand which achieved lower roadside and ambient levels of pm10 carbon monoxide and nitrogen dioxide from its fuel sulfur reduction measures however progress in reducing sulfur levels in diesel fuel down to 50 ppm in other asian developing countries has been slow china and india are phasing down to 350 ppm nationwide starting 2010 even though 50 ppm has already been mandated for beijing 2008 shanghai 2009 and guangdong province 2010 sulfur levels in diesel fuel in most southeast and south asian countries except thailand remain at 500 ppm and higher to move asia forward national governments need to take the lead by mandating a clear and firm road map for cleaner fuels and vehicles in consultations by cai-asia with governments and other stakeholders the question on the financial and economic impacts of tighter vehicle emission standards always crops up experience from road map continued on page 38 14 fuels lubesintern at ionalquarterthree 2 010[close]
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