US Specialty Fuel Additives Market

US Specialty Fuel Additives Market

US demand to reach $1.2 billion in 2012

Demand for specialty fuel additives in the US is forecast to increase 2.2 percent annually to $1.2 billion in 2012, with volume demand exceeding 750 million pounds. Gasoline detergents have been one of the most dynamic segments of the industry over the past decade and will continue to offer opportunities, especially for better performing products. Diesel additives are expected to see the fastest growth in volume terms, albeit from a relatively small base, because of the expanding use of ultra low sulfur diesel as well as regulations requiring the use of biodiesel.


Deposit control agents comprise over half of specialty additives market

Deposit control agent demand -- the largest sector of the specialty additive market -- will continue to offer the best opportunities among major products. After declining in the mid 1990s, demand for gasoline detergents and dispersants rebounded sharply in recent years as several major auto companies implemented their own gasoline rating system. This system, called “Top Tier,” requires higher levels of detergent than do government standards. However, decreasing demand for premium grades of gasoline will limit gains to some degree. Increasing use of higher-value deposit control agents will continue to support value growth in these products. For example, the use of highly reactive polyisobutylene (HR-PIB) is growing relative to that of conventional polyisobutylene. HR-PIB commands a much higher price than conventional PIB, but it also offers superior performance.


Diesel fuel to be fastest growing additive market

Cold flow and lubricity improvers for diesel fuel are expected to show above average growth in volume through 2012. Federal requirements have reduced the levels of sulfur allowable in diesel fuel. As a result, increased loadings of lubricity improvers are necessary to make up for the naturally lubricating properties of sulfur. In addition, the federal Renewable Fuel Standards (which were expanded in 2007) and state renewable fuel requirements are leading to a rise in the use of biodiesel. Biodiesel, which has poorer cold flow properties than conventional diesel, will spur demand for these additives in the upper Midwest and Northeast in the winter months.


Study coverage

This new industry study, Fuel Additives, presents historical US demand data (1997, 2002, 2007) plus forecasts for 2012 and 2017 by type and application. The study also considers market environment factors, assesses the industry structure, evaluates market share data and profiles more than 30 industry players.

INTRODUCTION viii

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4
General 4
Macroeconomic Overview 4
Motor Vehicle Industry Overview 9
Historical Market Trends 12
Pricing Trends 16
Technology 17
Gasoline Engines 18
Diesel Engines 20
Fuels 22
International Activity 25

III. ENVIRONMENTAL & REGULATORY ISSUES 27
General 27
Gasoline Regulations 30
Oxygenated Gasoline Program 33
Reformulated Gasoline Program 33
Diesel Fuel Regulations 35
Renewable Fuels Legislation 36
CAFE Standards 38

IV. FUEL INDUSTRY OVERVIEW 40
Crude Oil & Refined Petroleum Products Outlook 40
Petroleum-Based Fuel Production 42
Gasoline 43
Gasoline Production by Grade 45
Gasoline Production by Formulation 48
Distillate Fuel 50
Diesel Fuel 51
Other Distillate Fuel 54
Jet Fuel 55
Residual Fuel 56
Alternative Fuels & Energy Threats 57
Ethanol 58
Natural Gas 58
Propane 59
Hydrogen 59
P-Series 60
Electricity 60
Other Energy Threats 61
Commodity Fuel Additive Outlook 62
Ethanol 64
Uses 65
Demand 65
Biodiesel 68
Product Characteristics 68
Factors Influencing Demand 69
Other Commodity Fuel Additives 71

V. SPECIALTY FUEL ADDITIVES BY TYPE 73
General 73
Deposit Control Additives 77
Detergents 80
Product Types 82
Suppliers 83
Other Deposit Control Additives 84
Cetane Improvers 86
Petroleum Dyes & Markers 88
Antioxidants 90
Lubricity Improvers 93
Corrosion Inhibitors 95
Cold Flow Improvers 97
Metal Deactivators 99
Other Specialty Fuel Additives 101
Octane Enhancers 103
Biocides 104
All Other 105


VI. SPECIALTY FUEL ADDITIVES BY APPLICATION & MARKET 107
General 107
Applications 108
Gasoline Additives 109
Regular & Midgrade Gasoline Additives 112
Premium Gasoline Additives 114
Diesel Fuel Additives 116
Other Fuel Markets 121
Markets 122
Blenders & Terminals 125
Refiner 127
Aftermarket 130

VII. INDUSTRY STRUCTURE 134
General 134
Market Share 137
Competitive Strategies 140
Manufacturing 142
Marketing & Distribution 143
Merger & Acquisition Activity 144
Cooperative Agreements 146
Company Profiles 148
Afton Chemical, see NewMarket
Albemarle Corporation 149
Archer-Daniels-Midland Company 150
Ashland Incorporated 151
Baker Hughes Incorporated 153
BASF SE 155
Buckman Laboratories Incorporated 157
Champion Technologies Incorporated 158
Chevron Corporation 159
Ciba Specialty Chemicals Holding Incorporated 161
Clorox Company 162
ConocoPhillips 163
Deer Park Refining, see Royal Dutch Shell
Dorf Ketal Chemicals I Pvt Limited 164
Dover Chemical, see ICC Industries
Dow Chemical Company 166
DuPont (EI) de Nemours 168
Equistar Chemicals, see LyondellBasell Industries
Ethyl, see NewMarket
EURENCO, see Groupe SNPE
Evonik Industries AG 170
Exchem plc 172
Exxon Mobil Corporation 173
Groupe SNPE 175
Huntsman Corporation 176
Illinois Tool Works Incorporated 178
Infineum International, see Exxon Mobil and Royal
Dutch Shell
Innospec Incorporated 180
Lubrizol Corporation 183
LyondellBasell Industries AF SCA 185
Lyondell Chemical, see LyondellBasell Industries
Motiva Enterprises, see Royal Dutch Shell
Nalco Holdings LLC 186
NewMarket Corporation 187
Octel, see Innospec
Parker-Hannifin Corporation 189
PD Glycol, see DuPont (EI) de Nemours and LyondellBasell
Racor, see Parker-Hannifin
Rohm and Haas Company 191
Royal Dutch Shell plc 193
Sabina Petrochemicals, see BASF and Royal Dutch Shell
Soltex Incorporated 196
SOPUS Products, see Royal Dutch Shell
Stepan Company 197
STP, see Clorox
Sunoco Incorporated 198
Texas Petrochemicals LP 199
Valvoline Oil, see Ashland
Warren Oil Incorporated 200
Wynn's Oil, see Illinois Tool Works

LIST OF TABLES

TABLE NUMBER PAGE


SECTION I -- EXECUTIVE SUMMARY
Summary Table 3

SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Outlook 9
2 Motor Vehicle Outlook 12
3 Specialty Fuel Additive Market, 1997-2007 15
4 Specialty Fuel Additive Pricing Trends 17

SECTION III -- ENVIRONMENTAL & REGULATORY
ISSUES
1 Renewable Fuel Use 38

SECTION IV -- FUEL INDUSTRY OVERVIEW
1 Petroleum Industry Outlook 42
2 Petroleum Fuel Supply & Demand 43
3 Gasoline Supply & Demand 45
4 Gasoline Production by Grade 48
5 Gasoline Production by Formulation 50
6 Distillate Fuel Supply & Demand 51
7 Diesel Fuel Demand by Sulfur Content, 2002-2007 54
8 Jet Fuel Supply & Demand 56
9 Residual Fuel Supply & Demand 57
10 Commodity Fuel Additive Demand 64

SECTION V -- SPECIALTY FUEL ADDITIVES BY TYPE
1 Specialty Fuel Additive Demand by Type 75
2 Deposit Control Additive Demand 80
3 Fuel Detergent Demand 82
4 Other Deposit Control Additive Demand 85
5 Cetane Improver Demand 88
6 Petroleum Dye & Marker Demand 90
7 Antioxidant Demand 93
8 Lubricity Improver Demand 95
9 Corrosion Inhibitor Demand 97
10 Cold Flow Improver Demand 99
11 Metal Deactivator Demand 101
12 Other Fuel Additive Demand 103

SECTION VI -- SPECIALTY FUEL ADDITIVES BY
APPLICATION & MARKET
1 Specialty Fuel Additive Demand by Application 109
2 Gasoline Additive Demand 111
3 Regular & Midgrade Gasoline Additive Demand 114
4 Premium Gasoline Additive Demand 116
5 Diesel Additive Demand 120
6 Other Fuels: Additive Demand 122
7 Specialty Fuel Additive Demand by Market 124
8 Blender & Terminal Demand for Specialty Fuel Additives 127
9 Refiner Demand for Specialty Fuel Additives 130
10 Aftermarket Demand for Specialty Fuel Additives 133

SECTION VII -- INDUSTRY STRUCTURE
1 Sales for Selected Fuel Additive Suppliers, 2007 135
2 Selected Acquisitions & Divestitures 146
3 Selected Cooperative Agreements 148

LIST OF CHARTS

CHART NUMBER PAGE


SECTION II -- MARKET ENVIRONMENT
1 Specialty Fuel Additive Market, 1997-2007 15

SECTION V -- SPECIALTY FUEL ADDITIVES BY TYPE
1 Specialty Fuel Additive Demand, 2007: Value Versus Volume 76

SECTION VI -- SPECIALTY FUEL ADDITIVES BY
APPLICATION & MARKET
1 Gasoline Additive Demand by Type, 2007 112
2 Diesel Additive Demand by Type, 2007 121
3 Fuel Distribution Flowchart 124

SECTION VII -- INDUSTRY STRUCTURE
1 Specialty Fuel Additive Market Share, 2007 140