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with Liquid Titanium. Liquid Titanium strongly bonds to
metal surfaces at a molecular level, adding an extra layer
of protection to further reduce wear on critical engine
parts and help extend engine life. Customer product
acceptance led to a six percent increase in branded diesel
engine oil sales and, in a market where demand has
fallen 8-9 percent, resulted in meaningful market share
growth for ConocoPhillips Lubricants. More recently,
Lubricants has expanded the proprietary Liquid Titanium
additive to the Kendall Motor Oil passenger car line,
thereby further leveraging the additive to grow market
share in the automotive segment.
Costs
Costs continue to be a challenge within Downstream
Refining and Marketing. The margin challenges we face
every day, and the uncertain economic environment,
demand that costs are always highlighted on our radar. I
challenge each employee to be disciplined with spending
and continuously look for efficiencies within the business
to drive costs down and productivity up. We have been
challenged in 2010 to bring our costs down and I have
the confidence that we can reach these targets without
impairing our other targets of safety, volume and
building strong customer relationships.
our marketing focus
Facing Challenges
Increased fiscal take, climate change policy uncertainty,
additional regulatory burden, fuel specific mandates, and
geopolitical risk are some of the major challenges in the
political environment facing our company around the
world. When I look at those challenges from a marketing
perspective, many of them have a serious effect on what
we do and what we will do in the coming years.
Climate Change Policies
Climate change policies and fuel specific mandates are
two challenges that will continue to have significant
impact on our business. Strategically responding to
meet renewable product blending obligations, required
in the United States’ Federal Renewable Fuel Standard
and Europe’s Renewable Energy Directive, will be critical
especially as obligations increase in the coming years.
Hurdles for meeting our obligations will continue to
arise, including State-level fuel mandates in the United
Sates that conflict with our ability to generate offsetting
credits. With this high level of external
uncertainty, we must be agile in our response. As we
explore opportunities to increase the percentage of
renewable products blended into motor fuels, there are a
myriad of issues involved in meeting blending
requirements, including product liability, production and
logistics constraints, as well as customer and consumer
acceptance.
Safety
Keeping our people safe and able to return to their
families is a challenge and focus that is constantly before
us. From Lubricants plants, to retail contractors, to office
employees, the goal is zero injuries. No matter how the
challenges and focus areas change, safety is always the
top priority.
Across all areas of Marketing and in all sectors of the
globe, we need to continuously raise the bar of
performance to remain competitive. If we
focus on doing the basic things right -
operating safely, being disciplined in
our cost structure, and delivering
customer service that enables
growth - we will be better able to
effectively and efficiently meet
the external challenges that we
face.
Another ‘bumper’
edition of In Touch
rolls off the press, packed
with what’s happening in
the world of Jet and
ConocoPhillips, which I hope you
find interesting and informative. I’m
always keen to know what you think of In
Touch, so please let me have your comments,
along with any news and stories we can publish next
time... and have a lovely summer!
Call me on 01926 404967
or email me at judy.green@conocophillips.com
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