Offshore Lubricants Market
Offshore Lubricants Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2020
Press Release :
Led by increasing oil and gas exploration and production activities, the offshore lubricants market is anticipated to retain its momentum in the next few years. Due to increasing demand for energy and depleting onshore reserves, oil and gas companies are investing significantly in offshore oil and gas reserves. This would boost drilling activities and generate demand for offshore rigs and FPSOs. This, in turn, is likely to increase demand for offshore lubricants globally. Growth in offshore drilling activities across the world is expected to boost the market for offshore lubricants in the next few years.
Lubricant is one of the indispensable elements required for the smooth and efficient functioning of machineries. Lubricants perform various functions such as reduce wear and tear, remove friction and act as coolant. Use of appropriate lubricant increases the lifespan of a machine. Moreover, lubricants help improve the efficiency of a process. Lubricants used in offshore rigs and FPSOs are expected to perform under extreme conditions. Lubricants reduce the maintenance time, thereby saving the cost of production. A variety of lubricants is available for different machines. These include engine oil, gear oil, grease, hydraulic oil, compressor oil and turbine oil. Each type of lubricant is used in various applications and in different parts. Engine oil is used to lubricate engines, while hydraulic oil provides lubrication as well as transfers power through the hydraulic system. Equipment that are part of offshore rigs and FPSOs include cranes, hydraulic lifts, diesel engines, compressors, traveling blocks, hydraulic boost pumps and propeller shafts.
Engine oil was the dominant application segment in the offshore lubricants market in 2013. Offshore rigs and FPSOs are located far from the land without any connectivity from the grid lines. These use diesel engines to generate electricity and power the machinery onboard. There are approximately four to six diesel engines on every offshore rig and FPSO. These engines operate continuously and consume engine oil. This increases demand for engine oil, thereby driving the growth of the market. Gear oil and hydraulic oil are the other offshore lubricants consumed in large volumes.
Strict environmental regulations promote the use of environmentally acceptable lubricants (EALs). The U.S. has mandated the use of EALs in its waters for machines functioning below the surface of water. The golden triangle constituting the Gulf of Mexico (GOM), Brazil and West Africa is one of the lucrative markets for offshore lubricants. It provides higher scope for drilling activities compared to other regions in the world. The golden triangle is rich in deep and ultra deepwater oil reserves, which have attracted high investments from large oil and gas MNCs. These investments would result in drilling of large number of wells during the forecast period. This would increase the demand for offshore lubricants in the region. Most FPSOs are expected to operate in the region.
Logistics is an important factor for the offshore oil and gas industry. A delay in the supply of lubricants can halt operations, resulting in financial and time loss. Key players in the offshore lubricants market include Total S.A., Royal Dutch Shell plc, BP plc, Chevron Corporation, ExxonMobil Corporation, Sinopec Limited, Gulf Oil Marine Limited and Lukoil Oil Company. These companies supply lubricants to various ports across the world for usage in offshore rigs and FPSOs. This ensures that the operations are not hampered.
Lubricants are essential for the proper functioning of machines. These are used to reduce friction and wear and tear in different operating parts of machines. Lubricants offer different properties such as high viscosity index, high boiling point, corrosion prevention, low freezing point, thermal stability and high resistance to oxidation. Lubricants also remove any residual deposition over mechanical parts, thereby increasing their operating lifespan. Lubricants enable smooth operation of mechanical parts and provide higher efficiency outputs. These are manufactured from base oils. Some additives are used in base oils to attain desired properties. Offshore lubricants are predominantly manufactured from mineral oils. Synthetic lubricants are being widely used as these are compatible with the environment and offer technical benefits over conventional mineral oil-based lubricants. These lubricant products offer high performance with outstanding engine protection, require less maintenance and have greater operating efficiency. Machines and components require a specific type of lubricant as per the operating need.
Several machineries or equipment in offshore rigs and FPSOs require lubrication for proper functioning. Heavy equipment used in these units include cranes, diesel engines and hydraulic lifts. Increasing demand for lubricants in these units can be attributed to rise in offshore drilling and production activities.
The offshore lubricants market research study analyzes the global demand for offshore lubricants along with estimates and forecasts for the market in terms of consumption. The report estimates revenue (USD Million) and volume (Kilo Tons) of offshore lubricants by various end-users. The market for offshore lubricants has been segmented based on end-users (offshore rigs and FPSOs) and applications (engine oil, hydraulic oil, gear oil, grease, and others. Market data for all segments has been provided on the regional level for the period from 2013 to 2020. The report also comprises a comprehensive competitive landscape that includes market share analysis of companies. Furthermore, the report analyzes major drivers and restraints for the offshore lubricants market and highlights potential opportunities. Drivers, restraints and opportunities for the market have been provided after in-depth analysis of the oil and gas industry.
Key end-user segments analyzed in the report include offshore rigs and FPSOs. Offshore lubricant applications estimated and forecasted in this study include hydraulic oil, engine oil, grease, and others (turbine oil, compressor oil, etc.). The data has been provided for North America, Europe, the Middle East, Asia Pacific and Rest of the World (RoW).
The study analyzes market competition using Porter’s five forces model and describes the impact of buyers, suppliers, threat of substitutes, threat of new entrants and market competition. Porter’s five forces model is designed based on market dynamics along with the micro and macro economic factors that affect offshore lubricant companies operating globally. The report also includes detailed value chain analysis of the offshore lubricants market. Market attractiveness analysis prepared for end-user (offshore rigs and FPSOs) segments helps in estimating the most profitable segment for investment. Key players in the offshore lubricants market include BP plc, Royal Dutch Shell, ExxonMobil, Total Lubmarine, and Chevron Corporation. The report provides an overview of these companies along with financial revenue (subject to availability), business strategies and recent developments.
Offshore Lubricants Market: End User Segment Analysis
- Offshore rigs
Offshore Lubricants Market: Application Segment Analysis
- Engine oil
- Hydraulic oil
- Gear oil
- Others (turbine oil, compressor oil, circulating oil, etc.)
Offshore Lubricants Market: Regional Analysis
- North America
- Middle East
- Asia Pacific
- RoW (Rest of the World)