Innovation Leads the Future: Synthetic Base Oil Drives Market Value Chain Transformation

Basic oil plays an important role in improving energy efficiency and promoting sustainable development, especially in renewable energy industries such as wind energy and electric vehicles. By enhancing equipment performance and extending service life, it supports industry development and energy transformation;

ExxonMobil has significantly improved the flexibility and reliability of its supply chain, shortened delivery times, and ensured timely response in the Chinese market by establishing new warehousing facilities in Dongguan, demonstrating the company's long-term commitment to the Chinese market;

Through collaboration with industry leaders such as Intel, ExxonMobil has jointly developed an innovative G-Tank immersion liquid cooling solution for data centers, demonstrating the extensive potential of synthetic base oils in emerging industries;

The technological innovation of synthetic base oils is driving the value chain transformation of the global lubricant market. With its high energy efficiency and low emissions, it is gradually replacing traditional mineral oils and becoming the mainstream choice in the market.

Against the backdrop of global energy transition and sustainable development, the lubricant industry is facing unprecedented opportunities and challenges. With the continuous upgrading of industry and the rapid development of green industries such as new energy vehicles and wind power, synthetic base oils have become one of the key driving forces in the lubricant industry. Through continuous innovation, synthetic base oils not only provide excellent solutions for improving energy efficiency, but also play a crucial role in driving the value chain transformation of the global lubrication market.

At the 2024 ExxonMobil Synthetic Base Oil Forum, Ms. Sarah Horne, Vice President of Synthetic Base Oil at ExxonMobil Product Solutions Business Unit, and Mr. Alexander Bolkhovsky, Global Technical Director of ExxonMobil High Performance Liquids, were interviewed by China Lubricants Information Network (www.sinolab. com). ExxonMobil's senior leaders and technical experts shared the company's latest technological breakthroughs in the field of synthetic base oils and their profound impact in the market.

Ms. Sarah Horne, Vice President of Synthetic Base Oils at ExxonMobil's Product Solutions Business Unit (center), and Mr. Alexander Bolkhovsky, Global Technical Director of ExxonMobil High Performance Liquids (left), were interviewed by reporters from China Lubricants Information Network

Key Technologies for Promoting Energy Efficiency and Sustainable Development through Synthetic Base Oil

In this interview, Ms. Sarah emphasized that the research and development of synthetic base oils is not only to meet existing needs, but also to reserve development space for future markets. She pointed out that with the advancement of global sustainable development goals, more and more industries require more efficient and durable lubrication solutions, and synthetic base oils play a crucial role in this regard.

Taking the wind energy industry as an example, synthetic base oils can provide long-term lubrication support for wind turbines, effectively extending the service life of equipment while reducing maintenance and replacement frequency. By utilizing high viscosity synthetic base oils, we assist formulators in formulating more energy-efficient lubricants. These lubricants are capable of working under more stringent operating conditions, providing longer oil change intervals, and exhibiting advanced lubrication performance. ExxonMobil is expanding its production capacity of high viscosity PAO (poly alpha olefin) to ensure that its products maintain efficient and low emission performance while meeting the growing demand in the wind energy industry. Sarah Horne revealed that the recent expansion of ExxonMobil's Beton plant in Texas has increased the company's annual production of high viscosity metallocene PAO to 60000 tons. This not only provides a solid supply guarantee for the global market, especially the Chinese market, but also demonstrates the company's long-term commitment to the green energy industry.

In the field of electric vehicles, ExxonMobil's SpectraSyn ™  MaX PAO and other synthetic base oil products provide excellent energy efficiency performance, offering the perfect solution for the electric vehicle market.

Localized layout, strengthening supply chain resilience

In the Chinese market, ExxonMobil is not only committed to technological innovation, but also continuously deepening its localization layout. The operation of the new warehouse facility in Dongguan is one of ExxonMobil's important measures to strengthen its supply chain resilience. Sarah pointed out that Dongguan's warehousing facilities not only shorten delivery times, but also ensure the stability of the supply chain through flexible transportation options. The establishment of this facility enables ExxonMobil to respond more promptly to the needs of the Chinese market, especially in response to sudden changes in the market, enabling quick adjustments and ensuring the normal operation of customers.

In addition, ExxonMobil provides localized technical support and market services to Chinese customers through its technology center located in Shanghai. Sarah emphasized that the company's local team in China is not only a supplier of products, but also a trusted partner for customers. Whether it is technical consulting or customized solutions, ExxonMobil's team is able to provide targeted solutions based on the specific needs of the Chinese market, thereby helping customers cope with complex market challenges. Through the combination of innovation and localization, ExxonMobil will continue to be a trusted partner for Chinese customers, creating value and supporting China's development, and helping to achieve its sustainable development goals.

Cross industry collaboration to create more value

In addition to its localization strategy, ExxonMobil also promotes further innovation and application of synthetic base oil technology through cross industry cooperation. During the interview, Alex specifically mentioned the company's collaboration with Intel in the data center field. With the continuous expansion of data centers, energy consumption and heat dissipation have become the focus of industry attention. The G-Tank immersion liquid cooling solution, jointly developed by ExxonMobil and other companies in the Intel industry, is an innovative product launched to address these challenges.

This liquid cooling solution combines ExxonMobil's high-performance coolant with Intel's advanced hardware design, effectively reducing energy consumption in data centers and improving equipment performance and lifespan. This cross industry cooperation model not only demonstrates the extensive application potential of synthetic base oils in emerging industries, but also provides a model for technological innovation in other industries. With the increasing demand for energy conservation and consumption reduction worldwide, the deep cooperation between synthetic base oils and various industries will undoubtedly create more value for the market.

The market value chain transformation brought about by synthetic base oils

The technological innovation of synthetic base oil is not only reflected in the improvement of product performance, but also promotes profound changes in the entire market value chain. With the increasingly strict environmental regulations worldwide, the demand for high-performance and low emission lubrication products from enterprises is gradually increasing. Synthetic base oils, with their excellent energy efficiency performance, are gradually replacing traditional mineral oils and becoming the mainstream choice in the market.

Alex mentioned in the interview that the company's synthetic base oil products have excellent low-temperature performance, antioxidant stability, and a wide range of viscosity choices, which enable their products to maintain stable performance in various extreme environments. For example, SpectraSyn Elite ™  The mPAO series products not only meet the high requirements of wind turbines and other equipment, but also help customers improve the performance of lubricants through optimized shear stability and mixing efficiency. And SpectraSyn ™  MaX low volatility PAO products have demonstrated excellent energy efficiency improvement and long-lasting stability in electric vehicles and other applications that require low viscosity lubricants.

At the same time, the widespread application of synthetic base oils has also brought significant cost savings to customers. Sarah Horne pointed out that synthetic base oils can significantly extend the oil change cycle of equipment and reduce maintenance costs compared to traditional mineral oils. In addition, ExxonMobil has optimized its supply chain and shortened delivery cycles, enabling customers to respond more flexibly to changes in demand in the increasingly competitive market.

This comprehensive innovation from product development to supply chain management not only enhances ExxonMobil's market competitiveness, but also promotes the comprehensive upgrading of the lubricant industry value chain. With the deepening application of synthetic base oils in more industries, the market transformation brought about by this technology will further accelerate, prompting more enterprises to achieve sustainable development goals through technological innovation.

Future outlook: Innovation driven, ushering in a new era in the industry

In the tide of global energy transition, the application of synthetic base oil technology undoubtedly opens up a new era of development for the lubricant industry. The widespread application of synthetic base oils, from wind energy to electric vehicles and data centers, is providing strong support for energy efficiency improvement and sustainable development in various industries.

In the future, as the demand for high-performance lubrication solutions continues to grow in the global market, the dominant position of synthetic base oils in the lubricant market will be further consolidated. As a leading enterprise in the industry, ExxonMobil will continue to promote the widespread application of synthetic base oils through technological innovation and cross industry cooperation, helping customers to tackle global challenges while seizing more market opportunities.

As Sarah said, innovation has always been ExxonMobil's core driving force. Through continuous technological research and market development, ExxonMobil will continue to inspire innovation among formulators and jointly develop lubrication solutions to address these emerging challenges. These efforts are expected to have a profound impact within the industry, not only driving further technological innovation, but also helping the industry transition towards low emission solutions.

The above content is excerpted from the Lubricant Information Network

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