Lubricant Oil Manufacturing in the US
The Lubricant Oil Manufacturing industry primarily produces petroleum-based lubricant and grease products such as blended motor oils, brake fluids and lubricating grease, inseparably linking demand to the volatile prices of crude oil. Following the recession, oil prices increased; however, constrained exports of crude oil in the United States limited producers' ability to seek the highest available price for their output. Lubricant production slowed during the five-year period to 2018, and industry operators took on the financial burden. For most of the five-year period, revenue fell as lubricant production increased to account for falling oil prices. IBISWorld expects an increase in revenue despite still-volatile oil prices due to production increases and strong demand for industry products. As economic growth and industrial production continue to pick up and crude oil prices begin to normalize, demand for lubricants is forecast to show strong growth over the five years to 2023. Industry operators are also expected to expand production to cater to growing demand, particularly in nonvehicle markets.
Operators in this industry manufacture petroleum products (except for asphalt-paving, roofing and saturated materials), such as blended motor oils, brake fluids, lubricating grease and other oil-based additives. Key buyers include downstream automobile manufacturers, wholesalers and automotive retail chains.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.