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Shell Announces Reorganization
PQIA Issues Consumer Alerts
Toyota Increases Prices
Sasol looking at Building GTL in the US



















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September 15, 2011      

JOBBERSWORLD...MARKET INTELLIGENCE FOR INTELLIGENT MARKETERS...  The First and Only Independent Newsletter to Focus on Lubricant Distributors.




Shell NA Lubes Announces Reorganization

Shell Lubricants North America announced a reorganization yesterday that will take effect the first of the year. Based on exit polls of the meeting taken by JobbersWorld, Shell marketers are cautiously optimistic that the changes made to the organization are for the better.


As shown below, Shell's North American Lubricants business is currently headed by Lisa Davis, President of North American Lubricants. Andrew Hepher, VP of sales reports directly to Davis and oversees the activities of both direct and distributor sales. Distributor sales include four District Managers (West, Central, East, and South East) reporting to Hepher. In addition, there is another branch in the organization engaged in direct Business-to-Business sales. Whereas the B2B part of the organization communicates and coordinates with the District Managers in distributor sales, they report directly to Hepher. Marketers have been told roughly 25% of Shell's B2B's activity should be allocated on working with the distributor side of the business.


Now for the changes.


According to the Shell marketers JobbersWorld spoke with, the first major change in the organization is Andrew Hepher's exit from the North America lubricants business. Although Hepher's next assignment with Shell was not disclosed, marketers say they suspect he may be returning to Shell across the pond.


The second major change is the consolidation of four districts into three. As shown below, the south east district in the current organization will go away. It's understood that most of the business activity in this region will be handled by the General Manager in the East.   


According to marketers, equally significant is that the B2B business activity will be managed by the General Manager in each of the three regions.  This means the regional GMs will have oversight and bottom line responsibility for both distributor and direct business. It was also noted that, although Shell did not announced who the GMs will be (those announcements are expected in mid-October), each regional GMs will have an area of expertise that Shell NA Lubes will turn to for guidance in that area. As an example, one may have the expertise with national accounts and provide Shell with guidance across all districts on certain national account related issues.





So why do most of the marketers JobbersWorld spoke with about the reorg feel the new organization may be a move in the right direction?


Whereas marketers are always, and rightfully so, guardedly optimistic when changes occur, those whom JobbersWorld spoke with say these changes tighten the organization and this should make it more intimate and responsive to marketer and customer needs. Further, having both distributor and B2B sales managed by, and accountable to, the regional GMs will help to improve cooperation and collaboration between these often times competing efforts, and help assure 25% of B2B/Direct's time is allocated to working with marketers to help grow the marketer's business.  


In addition, a number of marketers JobbersWorld spoke with say this reorganization will likely lean out some of Shell's overhead. 


Let us know what you think. Is this just another example of musical chairs in the world of major oil companies, or is there substance to it?


Click here to contact us, or call 732-494-0405. 


PQIA Issues Consumer Alerts on Six Motor Oils
The Petroleum Quality Institute of America (PQIA) reports that eight of the 12 passenger car motor oils PQIA purchased in July of this year at convenience stores along heavily traveled roads from Illinois to Pennsylvania have quality issues.  Six of the brands showed test results serious enough for PQIA to issue Consumers Alerts, which means that using these motor oils can cause damage to a car's engine.



Toyota Announces a Price Adjustment on Genuine Oil
Toyota advised its parts and service managers there will be a price adjustment on Genuine Toyota motor oil products (including ATF-T4 and Long Life Coolant), chemicals (including Super Long Life Coolant, ATFWS), tires, and Truestart and True2 batteries. The increase is effective October 1, 2011 and its impact on dealer BULK prices follows. Dealers say the discount on 0W-20 shown below is likely an effort on Toyota's part to encourage conversion from 5W-30 to 0W-20.


Sasol Announces Feasibility Study to Build First Gas-to-Liquids (GTL) plant in the US

 Real in South Africa...  

Is the US next? 

South African energy and chemicals group Sasol announced it has chosen the southwestern region of the State of Louisiana as the site for a planned gas-to-liquids (GTL) facility. The project is slated to be the first plant in the U.S. to produce GTL transportation fuels and other products.  

In a press conference with Louisiana Governor Bobby Jindal, Sasol Managing Director: New Business Development Ernst Oberholster said, "We believe Sasol's proprietary GTL technology can help unlock the potential of Louisiana's clean and abundant natural gas resources and contribute to an affordable, reliable and high quality fuel supply for the United States."


"GTL fuels are an important part of the energy mix because they can advance energy independence in a way that is both cost-efficient and environmentally friendly," said Oberholster.  In addition, unlike other proposed alternatives to conventional petroleum-based fuels, GTL fuel is used in existing vehicles and fuel delivery infrastructure without modifications.


Sasol will embark on a feasibility study to evaluate the viability of a GTL venture in Calcasieu Parish, Louisiana, over the next 18 months. The feasibility study will consider two options of a two million tons per annum and a four million tons per annum facility. The project could create up to 850 permanent positions and up to approximately 5,500 jobs during peak construction periods.


This is the second "first of a kind" announced by Sasol in the U.S. in less than a year: In December 2010, Sasol announced the world's first Ethylene Tetramerization Unit, also to be built in Calcasieu Parish.  

About GTL & Sasol


For over 60 years Sasol has used its proprietary technology to produce more than 1.6 billion barrels of liquid fuels and chemicals from coal and natural gas.


GTL transportation fuel is cleaner burning than conventional diesel with a comparable, and potentially lower, greenhouse gas profile. GTL fuels are virtually free of sulfur and aromatic compounds and reduce emissions of particulates, nitrogen oxides, carbon monoxide and other pollutants and will improve air quality. A 2005 PricewaterhouseCoopers study showed that GTL production offers substantial air quality benefits compared to an oil refinery due to its lower sulfur dioxide, nitrogen oxide and hydrocarbon emissions.


Sasol Limited: 

Sasol is a technology-driven alternative fuels and chemicals company; was formed in 1950 in Sasolburg and celebrated 60 years of operations in 2010.

Sasol converts gas and coal into liquid fuels, fuel components and chemicals through our proprietary Fischer-Tropsch processes. We mine coal in South Africa and produce gas in Mozambique and oil in Gabon, and have chemical manufacturing and marketing operations in South Africa, Europe, Asia and America.




Business Opportunities


Blue Mountain Professional features a complete line of vehicle maintenance products for the professional installer. We are seeking additional distributors to sell one of the fastest growing automotive lines in the industry. For information regarding this exciting opportunity please contact Chris Alexander at Old World Industries, LLC - 800-323-5440.   



Join United Petroleum Company's Rapidly Expanding Distributor Alliance Network


United Petroleum Company is currently establishing EXCLUSIVE distribution territories with select marketers to represent its Quantum and Infinity lubricant brands throughout the United States.  In addition to a diverse line of high-quality automotive and industrial lubricants, UPC offers its exclusive Distributor Alliance the most aggressive, innovative and growth-oriented marketing program in the industry.  To learn more, please contact us 877-700-2521 or via email   





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