Well you can’t blame Shell for trying something new when it reorganized its lubricants business into four business silos nearly three years ago. But, it appears that the results of that new model may have been less than desirable. Jobbers World has learned that Shell is once again reorganizing its lubricants business and the great divide that formerly separated its transport and industrial lubricants business will be gone by the first quarter of 2006. In addition, Shell will likely implement a seamless and integrated global marketing organization.

For the most part, Shell marketers applauded the action and say the new organizational structure is a very positive step that helps to drive home the point that Shell really does listen to what its marketers have to say. Because what many of them have been saying over the past two years is that they didn’t like the organization of silos (transport, consumer, and industry). It required them to do business with too many sales representatives. In addition, they felt that the organization often encouraged unhealthy competition rather than collaboration between the various silos within the Shell lubricants business. Many said they made it clear that Shell could improve its competitive position by adopting a simpler structure with more aligned business objectives and goals.

Apparently Shell was listening to its marketers and proved it is willing to change. The Transport and Industrial Business silos will be joined under a single business organization.

Learn more about the new organization and what marketers think about it in the November print issue of Jobbers World

Although the retail prices for passenger car motor oil had appeared to be fairly immune to the last two rounds of price increases pushed through by the majors, this changed in October when the price for PCMO at the leading retail chains in Jobbers World’s monthly survey spiked up by close to $0.32 a gallon, or 4.6%.

Significant price movement was seen with all the major brands (click below for graph). In addition, the price for several of the store brands also moved up considerable.

Although less pronounced, price spikes were also seen at several of the auto parts stores in Jobbers Worlds monthly price survey.

Shell lubricants companies have launched a revitalized range of mineral and synthetic industrial gear oils for the US market. Shell Omala, Shell Omala HD and Shell Tivela S gear oils, have been specially formulated to help prolong gear life and reduce unscheduled downtime, which can help industrial companies reduce their overall operating costs

According to Darren Cross, Shell’s Industrial Lubricants Sector Marketing Manager, “Today’s industrial environment is more demanding than ever with trends towards smaller equipment and commercial pressures to raise throughput. The result is equipment needs to be able to run at higher operating temperatures, handle increased loads and cope with exposure to water and other contaminants. In these tough conditions, operators need a gear oil that is designed to tackle the problems that can affect operational efficiency. Shell has invested heavily in lubricants R&D to ensure that we can provide a revitalized range of gear oils for the US that meets these new challenges.”

AND... according to one Shell marketer, "these fluids truly are an enhancement to what they previously were from a base stock and additive perspective. And beyond being an enhancement they also represent a much appreciated expansion of the product line."

On October 31, 2005 ConocoPhillips, officially lunched 76 Super High Mileage Synthetic Blend motor oil. This product is a new, synthetic blend motor oil designed for engines with more than 75,000 miles. In line with ConocoPhillips synthetic blend strategy, 76 Super High Mileage Synthetic Blend motor oil has been formulated utilizing high quality and synthetic base oils. 76 Super High Mileage Synthetic Blend motor oil performance enhancements include improved viscosity and deposit control, improved oxidation resistance at high temperatures and better pumpability at low temperatures compared to conventional high mileage oils, according to Scott McQueen, ConocoPhillips director of automotive products.