Marketing and Sales
NexLube's sales and marketing efforts will include marketing directly to distributors, corporate fleets and federal government agencies. In the medium term, NexLube will develop its own brand, considering that it will produce high performance lubricants.

Demand
The United States demand for lubricants is forecasted to expand 1.3% annually to the 2.25 billion gallons by 2014, a total market valued at $22 billion. The demand for automotive oils is nearly 56% of the total worldwide base oil demand (Source: Lubricants Industry Factbook-2011). The United States lubricating oil production increased from 40 to 50 million barrels per year between 1950 and 2007 (Source: American Petroleum Institute).

While overall lube oil demands are forecasted to grow modestly, global Group II / II+ lube base oil demands are projected to grow as much as 20% compounded average growth rate. The demand for higher quality base oil (Group II / II+) is growing rapidly due to new industry standards including ILSAC GF-5 motor oils, API CJ-4 diesel engine oils and DEXRON-VI transmission fluids.

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US demand for higher quality Group II / II+ base stocks will increase their share of the market. Growing demand will be driven by a trend toward rising standards for motor vehicle engine oils.

Better quality base oils including Group II / II+ oils are necessary for lubricants to comply with the variety of new standards in the industry, including ILSAC GF-5 motor oils, API CJ-4 diesel engine oils and DEXRON-VI transmission fluids. Environmental concerns will also drive demand for re-refined base stocks.