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June 26, 2006

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In this Issue of Jobbers World Online News Briefs
  • Marketers rank ExxonMobil’s sales support to be #1 in the US
  • ExxonMobil Leads the Pack into the New World of API CJ-4
  • Shell also now ready for CJ-4!
  • POLARIS LABORATORIES STEPS UP TO ASSIST LUBRICANT MARKETERS GROW THEIR BUSINESS
  • New Study on Biodiesel
  • Chevron will bump the price of packaged lubricants

  • Marketers rank ExxonMobil’s sales support to be #1 in the US

    Based on a comprehensive market research report conducted by Petroleum Trends International, Inc. (PTI), lubricant marketers rate ExxonMobil number one in sales support.

    In general, marketers typically define sales support as having access to a qualified sales representative. According to the PTI study, The First Annual Industrial Report Card on Major Lubricant Supplier in the US Market, 2005, marketers frequently say qualities that distinguish good sales representatives from bad include, competency (knowledge of the products and marketers/end-use applications), experience in dealing with lubricant marketers, “connections” (the ability to work with the majors system in order to help its marketers), and the ability to assist marketers to grow their business, among others detailed in the study.

    The report also notes one important point about the quality of “good” sales support speaks to the issue of “sense of urgency.” The report says marketers tend to say this is a low cost – high- impact issue that carries a good deal of value. Many marketers report that their sales representatives are slow to respond when asked questions. In fact, some simply never even get back to them.

    The First Annual Industrial Report Card on Major Lubricant Supplier in the US Market, 2005 examines 48 key business issues and consolidates the thoughts of nearly 125 lubricant marketers. For more information on the study contact Petroleum Trends International at 732-494-0405.


    ExxonMobil Leads the Pack into the New World of API CJ-4

    ExxonMobil announced to its customers and marketers that it will be making significant changes to its Mobil Delvac HDEO product line. The changes, which will begin in mid-October, are designed to transform the Delvac product line into the new world of API CJ-4. According to what marketers are being told, the transformation will include the following changes:

    - Mobil Delvac 1300 Super 15W-40 will be reformulated to meet CJ-4. Word on the street is that the new Mobil Delvac 1300 Super 15W-40 has racked up more than 7 million miles of field testing and not only meets API CJ-4 requirements, but also exceeds the specification in soot-viscosity control, wear performance, oil consumption control, and deposit control. In addition, the new Delvac 1300 Super 15W-40 is said to be backwards compatible and will meet the requirements of API CI-4 and CI-4 PLUS.

    - ExxonMobil will introduce Mobil Delvac MX 15W-40 into its Mobil Delvac family of products. This new product is formulated to address the need for a strong API CI-4 Plus HDEO in applications where fuel sulfur will remain high over the next three years, particularly in off-highway applications. According to marketers, Mobil Delvac MX 15W-40 will be similar to Exxon XD-3 Extra 15W-40. But in addition to sporting the API CI-4 Plus label, Delvac MX 15W-40 will meet additional global specifications and offer the same performance as the current Mobil Delvac 1300 Super 15W-40 formulation.

    - Exxon XD-3 Extra 15W-40 will be discontinued. Marketers are being told the new Mobil Delvac MX 15W-40 is the recommended replacement product for XD-3 Extra


    Shell also now ready for CJ-4!

    Shell Lubricants announced the development of a new formulation of Shell ROTELLAŽ T motor oil. The new formulation meets all of the specification criteria for the new API CJ-4 service category for diesel motor oil, as well as the requirements of the low emissions engines of leading diesel engine original equipment manufacturers (OEMs). In addition, Shell RotellaŽ T motor oil has already met the specification requirements for Caterpillar ECF-3, Detroit Diesel 93K218. In addition Shell ROTELLAŽ T motor oil has gained Cummins CES 20081, Mack EO-O Premium Plus 2007 and Volvo VDS-4 approvals. The new API CJ-4 Shell ROTELLAŽT motor oil can also provide performance benefits when used in engines built prior to 2007.

    According to Shell, the API CJ-4 Shell ROTELLAŽT motor oil will initially be available in bulk and drums beginning July 1st and in quart, gallon and pail packages beginning October 15th. Shell plans to continue to have its API CI-4 Plus Shell ROTELLA T motor oils available in bulk and drums beyond the introduction of the new API CJ-4 motor oils to meet customer demand.

    Shell ROTELLAŽT motor oil, which meets or exceeds the API CJ-4 specification, will serve the diverse needs of fleets, owner/operators, industries and the light duty truck market, providing additional performance and benefits in wear reduction, soot handling and oxidation resistance. It also helps maximize the durability of Diesel Particulate Filters (DPFs),” says Dan Arcy, Technical Marketing Manager, for Shell Lubricants. “With the successful development of this new formulation, Shell maintains its position as an industry leader actively involved in the development of new performance categories and developing motor oils that meet or exceed the latest specifications.”

    As part of the Shell portfolio of heavy-duty diesel motor oils, a new brand, Shell RimulaŽ Super will soon be introduced to meet the new API CJ-4 specification, specifically targeting the needs of fleet operators. More details on this introduction will be forthcoming.


    POLARIS LABORATORIES STEPS UP TO ASSIST LUBRICANT MARKETERS GROW THEIR BUSINESS

    In an effort to bring our readers the highest value information possible Jobbers World is pleased to announce that Mark Minges, COO with POLARIS Laboratories will now be writing a monthly column for Jobbers World. Mark’s column will speak to ways in which lubricant marketers can use oil analysis to build new business and retain and better service existing accounts.

    According to Mark, “Oil analysis can turn the average marketer into a solutions provider – a provider interested in identifying and solving problems, maximizing efficiency and saving the customer money. It’s a competitive edge for the marketer who believes information and knowledge increases sales and it gives you a whole lot more to talk about than the price of today’s almighty gallon. And if a marketer knows how to use oil analysis, “they will be seen by their customers and prospects as a solutions provider instead of simply just another salesman peddling oil.” Mark’s column will specifically focus on assisting lubricant marketers to become solution providers.

    Mark has been involved in oil analysis for over 27 years. His experience ranges from owning and operating a small fleet of Class-A trucks to repairing and maintaining off-shore drilling platforms in the Gulf of Mexico. Minges began his career with POLARIS as Vice-president of Sales and Marketing, moving to Chief Operating Officer three years ago to capitalize on his strengths as a data analyst and technical consultant. Minges is a member of the Society of Tribologists and Lubrication Engineers (STLE), the American Society of Mechanical Engineers (ASME), as well as the Technology Maintenance Council (TMC) of the American Trucking Association. More information is available at www.polarislabs.com or contact Mark directly at mminges@polarislabs.com.


    New Study on Biodiesel

    Petroleum Trends International (PTI), a leading market research and consulting firm in the lubricant and fuels business, announced it has launched a new report on the U.S. biodiesel industry. The report, OPPORTUNITIES IN BIODIESEL, 2006 to 2010, is designed to provide high-value insights into current and future demand for biodiesel. In addition, it will provide detailed information and insights on trends, manufacturing economics, and business opportunities in biodiesel.

    According to PTI, although biodiesel is in the introductory stage of its life cycle, biodiesel is big news and quickly becoming big business. Why? Because, they say, following the introductory stage of a product’s life cycle it moves into the growth stage. And when that happens, there is money to be made. Well, according to PTI, we are there.

    Where once biodiesel was an industry characterized as a niche market served by many small regional plants, today it’s growing fast and quickly gaining the attention of big fleets and major oil companies. As an example, Chevron formed a biofuels business unit last month to “advance technology and pursue commercial opportunities related to the production and distribution of ethanol and biodiesel in the United States.” The business unit operates within Chevron Technology Ventures (CTV). Within weeks of forming the business unit CTV announced that it took an equity position in Galveston Bay Biodiesel LP (GBB). GBB is constructing a biodiesel production and distribution facility in Galveston, Texas. The plant is scheduled for completion by the end of 2006 and will initially produce 20 million gallons of biodiesel a year. According to Chevron, this will represent almost a 27 percent increase in the total U.S. biodiesel production of 75 million gallons in 2005. Chevron adds that the GBB plant has the capability to expand operations to produce 100 million gallons of fuel per year.

    One reason biodiesel is gaining the attention of the majors and others is because many believe biodiesel will enjoy strong growth over the next 5 years. This growth will be driven by EPA regulations that took effect in 2006. These regulations significantly reduce the allowable sulfur content in over-the-road diesel fuel and strongly favor biodiesel because it’s sulfur free. In addition, the Environmental Protection Act (EPACT) regulations also allow energy tax credits for fleet owners that use biodiesel. PTI says these tax incentives, along with current and pending regulations, are spurring unprecedented growth in biodiesel demand. Because of this, some forecasts suggest biodiesel demand will reach over 700 million gallons by 2010, up from an estimated 100 million gallons in 2006. This would represent an average annual compounded growth rate in demand of a stunning 63%, as shown in Figure 1. With growth like that there is little wonder why PTI is launching this very timely study.

    PTI says OPPORTUNITIES IN BIODIESEL, 2006 to 2010 provides investment grade market research specifically designed for use by venture capitalists and law firms; investment banks; soybean farmers and co-ops; biodiesel industry feedstock suppliers, manufacturers and chemical suppliers; biodiesel marketers and distributors; and petroleum refiners.


    Chevron will bump the price of packaged lubricants

    Chevron advised its marketers that it will increase the price of packaged PCMO, ATF and 2-cycle oils by $0.56 per gallon. This increase is set to take effect on August 9, 2006. As usually, Chevron says the increase is in response to the higher cost of crude, VGO, base oil, additive and packaging.


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