Freedonia: US fuel additives market to reach $8.4 billion/year in 2008

By OGJ editors

HOUSTON, Dec. 1 -- The US market for gasoline and other fuel additives is expected to increase 2.3%/year for 5 years—to $8.4 billion in 2008 from $7.5 billion in 2003, said Freedonia Group Inc., Cleveland, Ohio.

Federal and state legislation continues to shape the long-term outlook for fuel additives, Freedonia said in a recently released report, "Gasoline & Other Fuel Additives." Also driving the fuel additives market are the fuel performance needs of increasingly complex combustion engines, the market researcher said.

Fuel-grade ethanol consumption is forecast to reach 4.1 billion gal in 2008. Methyl tertiary butyl ether (MTBE) increasingly is being replaced by ethanol, which is blended into gasoline at lower concentrations than MTBE, the report noted.

The ethanol market value is forecast to grow at 9.7%/year to $5.7 billion in 2008. The MTBE market will decline at 15.5%/year to $1.28 billion in 2008. The MTBE market value in 2003 was $2.98 billion.

Biodiesel, benefiting from the renewable fuels standard, is expected to become the fastest growing fuel additive, Freedonia said.

The biodiesel market is expected to grow at 32%/year to $240 million from $60 million in 2003. Meanwhile, the specialty fuel additives market is projected to climb more than 6%/year to $1.1 billion in 2008.

Gasoline is expected to continue to be the dominant market for fuel additives, accounting for more than 90% of additive value in 2008.

"However, diesel fuel will continue to be the fastest growing market, primarily due to the expanding use of biodiesel and favorable demand for additives that restore fuel characteristics lost in the refining of low sulfur diesel fuels," Freedonia said.

Related Articles

Lukoil lets contract for Uzbekistan gas processing plant

02/13/2015 Russia’s OAO Lukoil has let a contract to a consortium headed by South Korea’s Hyundai Engineering Co. Ltd., Seoul, for the construction of its lon...

Mangalore refinery reports steady operations following expansion

02/13/2015 Operations are proceeding smoothly at Mangalore Refinery & Petrochemicals Ltd.’s (MRPL) refinery in Mangalore, India, following the recent comp...

Omsk refinery hits target for Euro 5 diesel output

02/12/2015 JSC Gazprom Neft has switched to the exclusive production of Euro 5-standard diesel fuels at its 21.4 million-tonne/year Omsk refinery in Western S...

Contract let for Louisiana methanol complex

02/11/2015 Yuhuang Chemical Inc., a subsidiary of Shandong Yuhuang Chemical Co. Ltd., has let a contract to Air Liquide SA, Paris, to supply oxygen for its $1...

New study finds wide variations in gathering systems’ methane samples

02/11/2015 Samples of methane emissions from 114 natural gas gathering stations and 16 processing plants across 13 states found wide variations in amounts act...

Williams commissions, wraps Geismar olefins plant expansion

02/10/2015 Williams Partners LP, Tulsa, has now commissioned and started production of ethylene for sale from its newly rebuilt and expanded Geismar, La., ole...

MRPL increases ownership in aromatics complex

02/10/2015 Mangalore Refinery & Petrochemicals Ltd. (MRPL), a subsidiary of Oil & Natural Gas Corp. Ltd. (ONGC), has increased its ownership interest ...

USW union workers add two BP refineries to strike list

02/09/2015 Union workers at two BP PLC-owned refineries in Indiana and Ohio have joined the United Steelworkers union’s (USW) unfair labor practice (ULP) stri...

Chevron details scheduled maintenance for Cape Town refinery

02/09/2015 Chevron South Africa (Pty.) Ltd., a subsidiary of Chevron Corp., has reported it will begin one of the biggest routine maintenance and safety inspe...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


Cognitive Solutions for Upstream Oil and Gas

When Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected