Product sales estimates by Kline & Company indicate that Shell sold between 4,400 – 4,600 kilotonnes of finished lubricants in 2015 – 36% in consumer automotive, 34% in industrial and 30% in commercial automotive sectors.

John Abbott, Shell Downstream Director, said: “In an environment where competition continues to be tough, this is a tremendous achievement for the Shell Lubricants business. Our success has been underpinned by our customer-focused approach, continuous product and service innovation, technology leadership, brand investment and a strong team. We have also consistently invested in upgrading and growing our world-class supply chain, to align with global demand patterns. Our future focus will continue to build on close customer and industry collaborations. These will deliver innovative and integrated product and service solutions to meet changing customer needs and opportunities that the energy transition brings.”

The report further states that Shell Lubricants is the market leader in Philippines (30%), Malaysia (27%), United Kingdom/UK (18%) and United States/US (12%). Shell Lubricants is also the market leading international oil company in South Africa (20%), Thailand (18%), Canada (13%) and China (8%).

George Morvey, Industry Manager, Energy at Kline said: “Global lubricants reached 38.8 million tonnes in 2015, down from 39.4 million tonnes in 2014. Outside of India, the other BRICs[1] did not grow, which contributed to the global decline. Despite a generally flat market and growing competition from national oil companies, independents, and OEM genuine products, Shell has managed to defend its positions in all three market segments and retain its leading market share.” 

To cater to growing demand, Shell invested hundreds of millions of dollars in its lubricants supply chain, upgrading four lubricant blending plants, building four new lubricant blending plants, one grease manufacturing plant and two new base oil manufacturing plants[2]. 

Shell Lubricants was the market leader in the passenger vehicle sector in United States (22%), Philippines (32%), Malaysia (31%), Canada (19%) and China (14%). Pioneering Gas-To-Liquid (GTL) technology based premium passenger car oils, manufactured from natural gas at Pearl GTL in Qatar, have been one of the key drivers for success. Since the 2014 launch, the Shell Helix Ultra with PurePlus Technology[3] products have seen double-digit growth and are available in over 100 markets around the world. Additionally, premium penetration of Pennzoil Platinum since 2012 increased 155% in North America, boosted by Shell PurePlus Technology[4]. These products have also pushed the boundaries of performance on the extreme test bed of various motorsport racetracks around the world.

Shell is currently also the preferred passenger car oil brand in China, United States, Malaysia and Thailand; preferred motorcycle oil brand in Malaysia and Philippines; and preferred heavy duty oil for trucks brand in China, Egypt, Russia and United States[5].

Shell has also built successful commercial relationships with key global original equipment manufacturers (OEMs) including BMW AG, Fiat Chrysler Automobiles (FCA) Group, Hyundai, Renault-Nissan, Toyota, General Motors, Daimler AG, Suzuki, Ducati, MAN, ZF, General Electric, Aggreko, Siemens and various Chinese OEMs including Geely & FAW.

Additionally, Shell provides lubricant solutions for a variety of industrial machinery including wind turbines, heavy-duty mining equipment and manufacturing machinery. In the industrial lubricant sector, Shell is a market leader in Philippines (29%), Thailand (24%), Malaysia (20%) and UK (18%). In the commercial vehicle sector, Shell leads in Malaysia (31%), Canada (20%) and US (18%). Shell Lubricants has also documented over hundred million dollars in cost savings from the use of value-adding Shell technical services for a selection of industrial customers. These services help customers choose, use, maintain and monitor lubricant applications in their equipment. Shell’s latest service offer is Virtual Assistant, an artificial intelligence powered one-stop-shop for lubricants related questions.

Enquiries:

Shell Lubricants Global:

Mallika Joshi, +6564777466, Mallika.desai@shell.com
Mary B. Walsh, +32478402938, mary.walsh@shell.com

Notes to Editor:

  • We have over 200 scientists and engineers working in specialised technical centres for lubricants in China, Japan (JV), US and Germany. We opened our newest technology centre in Shanghai, China in 2014, dedicated to research and development into lubricants and oils.
  • Shell is also the first and only lubricant supplier to co-create an efficient city car. The Shell Concept Car is a collaboration between Shell, Geo Technology and Gordon Murray Design. It uses 34% less energy and produces 28% less CO2 compared to a typical city car. The bespoke engine oil alone contributed 5% fuel economy and therefore reduced CO2 emissions correspondingly by 5%. This car is not commercially available.
  • The Kline report confirmed that Shell is the world’s only large commercial volume producer of GTL base oils, the main ingredient in finished lubricants. Shell manufactures GTL base oils at Pearl GTL in Qatar, a partnership with Qatar Petroleum. Other than passenger car and Shell Advance Ultra with PurePlus Technology motorcycle oils, Shell has also manufactured industrial oils enabled by GTL technology. These include Shell Diala S4 ZX1 transformer oils, Shell Risella X process oils and Shell Turbo S4X and GX turbine oils.
  • Shell upgraded its lubricant blending plants in the United States (Houston, Newell) and China (Tianjin 2012 and Zhapu 2013) to support growing demand in these top demand-leading lubricant markets. New major Shell lubricant blending plants were opened in Russia (Torzhok, 2012), Indonesia (near Jakarta, 2015) and two in China (Zhapu 2010, Nangang 2015). Furthermore, Shell’s largest grease manufacturing plant opened in China (Zhuhai, 2013). Pearl GTL, the world’s largest producer of GTL products and a Shell partnership with Qatar Petroleum, began operations in 2011 which includes the production of Group III GTL base oils. Another Group II base oil capacity came online in Korea in 2012 (JV with Hyundai Oilbank).
  • Shell has had longstanding motorsport technical partnerships with Ferrari (F1), Team Penske (NASCAR and IndyCar), and Ducati (MotoGP) and most recently began collaborating with BMW Motorsport (DTM, USCC, 24-hour Nurburgring) and Hyundai Motorsport (World Rally Championship) within the past decade. Shell Helix Ultra with PurePlus Technology is the only motor oil that Ferrari F1, BMW Motorsport DTM and Hyundai i20 WRC cars use. Team Penske uses only ‘off-the-shelf’ Pennzoil Ultra Platinum full synthetic 0W-40 motor oil in all of its Indy cars and cutting edge PurePlus Technology under the hood of its NASCAR cars.
  • Shell offers a wide range of lubricant-related services to help maximise the impact of lubricants. Shell has helped save customers over $146 million[1] over the past 15 years with the help of these services. (See About Shell Lubricants for more information on services) In 2015, we launched Shell Virtual Assistant, an artificial intelligence-powered one-stop shop on the Shell website where customers and distributors can ask common lubricant questions, 24 hours a day, seven days a week. This tool is available across 10 markets - China, Russia, Germany, India, Singapore, Philippines, Malaysia, Australia, US and UK.

About Shell Lubricants

The term “Shell Lubricants” collectively refers to Shell Group companies engaged in the lubricants business. Shell sells a wide variety of lubricants to meet customer needs across a range of applications. These include consumer motoring, heavy-duty transport, mining, power generation and general engineering. Shell’s portfolio of lubricant brands includes Pennzoil, Quaker State, Shell Helix, Shell Rotella, Shell Tellus and Shell Rimula. We are active across the full lubricant supply chain. We manufacture base oils in seven plants; blend base oils with additives to make lubricants in over 40 plants; distribute, market and sell lubricants in over 100 countries. We also provide technical and business support to customers. We offer lubricant-related services in addition to our product range. These include: Shell LubeMatch –the market leading product on-line recommendation tool available in 123 countries in 26 languages, Shell LubeAdvisor - helps customers to select the right lubricant through highly trained Shell technical staff as well as online tools, and Shell LubeAnalyst - an early warning system that enables customers to monitor the condition of their equipment and lubricant, helping to save money on maintenance and avoid potential lost business through equipment failure. Shell’s world-class technology works to deliver value to our customers. Innovation, product application and technical collaboration are at the heart of Shell lubricants. We have leading lubricants research centres in China, Germany, Japan (in a joint venture with Showa Shell), and the USA. We invest significantly in technology and work closely with our customers to develop innovative lubricants. We have a patent portfolio with 150 + patent series for lubricants, base oils and greases; more than 200 scientists and lubricants engineers dedicated to lubricants research and development. Customer benefits include lower maintenance costs, longer equipment life and reduced energy consumption. One of the ways we push the boundaries of lubricant technology is by working closely with top motor racing teams such as Scuderia Ferrari and BMW Motorsport. These technical partnerships enable us to expand our knowledge of lubrication science and transfer cutting-edge technology from the racetrack to our commercial products.

Royal Dutch Shell plc

Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit www.shell.com

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this press release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this press release refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to “joint ventures” and “joint operations” respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This press release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this press release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2015 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this press release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this press release, 22 November 2016. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this press release.

We may have used certain terms, such as resources, in this press release that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

[1] Brazil Russia India China

[2] Refer to notes to editor for details.

[3] Available only outside of North America

[4] Pennzoil Platinum and Pennzoil Ultra Platinum with PurePlus Technology is available only in North America

[5] Millward Brown independent research Q2 2016

[6] Documented customer savings over the past 15 years. Note these are based on specific cases and situations and customer savings can differ case-by-case.