The right chemistry

摘要

The marine industry is at a critical point in its history. Although market demand has never been greater (enjoying average annual growth rates between 2 and 4%) raw materials costs are soaring and refining capacity is at a premium. Gravity-defying diesel, gas and petrol prices means it is far more lucrative for refineries to concentrate on targeting these markets to the detriment of more costly Group 1 base oil manufacture - which rose in price some 65% in 2005. The situation has been further exacerbated by low inventory levels (due in part to last year's fire at Chevron's Oronite plant in Singapore and the impact of Hurricane Katrina on its New Orleans facility) double digit growth and demand from China, as well as power plant restarts/additional capacity coming on stream adding further competition for supply.