ALPHA-OLEFINS - WORLD MARKETS, 2005-2015

COLIN A. HOUSTON & ASSOCIATES, INC. Colin A. Houston & Associates, Inc. announces a new multiclient study ALPHA-OLEFINS - WORLD MARKETS, 2005-2015...

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Colin A. Houston & Associates, Inc. announces a new multiclient study

ALPHA-OLEFINS - WORLD MARKETS, 2005-2015 Colin A. Houston & Associates, Inc. (CAHA) plans to undertake a new multiclient study of the global markets for alpha-olefins beginning in October 2006, with completion scheduled for April 2007. The results will be delivered electronically section by section on a monthly basis via an Internet database accessible via password. A printed version will be delivered following completion of the final sections. Since our last comprehensive global alpha-olefins study published in 2001, CAHA has carried out many projects involving alpha-olefins, including multiclient market studies for several LAO derivatives. In addition, CAHA follows alpha-olefin market developments on an ongoing basis for our monthly LAO newsletter. This will enable us to provide clients of the new study with access to a preliminary database of LAO consumption by end use by the end of October 2006. Thereafter, different chapters will be researched and updated sequentially, with new data posted each month. A final supply/demand balance and executive summary are scheduled for completion by the end of April 2007. Details of the new study and database service are explained on the following pages. Please contact either Marilyn Bradshaw, Vice President and Alpha-Olefins Project Leader or Joel Houston, President to discuss this valuable new program.

CONTENTS Page Purpose of the Study Electronic Version Project Plan by Section Tentative Print Version Table of Contents Sample Tables Qualifications & Personnel How to Subscribe

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PURPOSE OF THE STUDY The alpha-olefins market has faced an unusual number of challenges and interesting developments in recent years, including a global recession occurring just as large new plants came on stream in 2002; skyrocketing raw material and energy costs throughout 2003 and 2004; an unexpectedly strong recovery in demand, coupled with tight ethylene supplies, from late 2004 into 2005; hurricanes disrupting ethylene, alphaolefin and derivative production along the U.S. Gulf coast in the second half of 2005; and the permanent closure of Ineos’ Pasadena, TX alpha-olefins plant, representing close to 14 percent of global capacity, at the end of 2005. Demand has continued to grow in the first half of 2006, although somewhat more slowly than in 2005, but prospects for the full year and for 2007 are good. But for alpha-olefin producers, profitability depends on finding and winning the right mix of customers while optimizing alpha-olefin production and disposition by chain length. The purpose of CAHA’s new study is to provide LAO producers with comprehensive data and analysis that will support the development of successful alpha-olefin production, sales and marketing strategies. The study is also designed to give LAO customers a better understanding of the current and projected LAO market, especially the factors that affect LAO availability and pricing decisions. ALPHA-OLEFIN SUPPLY Three companies continue to dominate the global alpha-olefins market – CPChem, Ineos and Shell – producing a full range of alpha-olefins via ethylene oligomerization Three others, with smaller capacities, – Idemitsu, Mitsubishi, and Nizhnekamskneftekhim – utilize similar process technology. Sasol manufactures pentene-1, hexene-1 and octene-1 from coal-derived synthesis gas, and Q-Chem produces hexene-1 via ethylene trimerization. In addition, there are over 30 producers of butene-1 from refinery streams. In 2006 the market is adjusting to last December’s closure of Ineos’ 505,000 ton/year LAO plant in Pasadena, TX, and anticipating the start-up of SABIC’s new 150,000 ton/year plant in Saudi Arabia. Also this year, Dow may disclose further details of its plans for an octene-1 plant that will be based on a different process that utilizes butadiene feedstock. Looking further ahead, Sasol will double its octene-1 capacity with a 100,000 ton/year plant due on stream in 2007, and CPChem plans to start up a 350,000 ton/year full range LAO plant in 2008 as a joint venture with Qatar Petroleum. CAHA’s new study will analyze the impact of this new capacity, detailing potential production versus forecast demand by chain

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length annually through 2010, with a projection to 2015. Alpha-olefin technology is available for license from UOP, Axens and DuPont, and SABIC has not ruled out licensing its proprietary process once its own plant is operating successfully. New plants are on the drawing board in China, India and Iran. CAHA’s new study will discuss the advantages and disadvantages of each available technology, and assess the individual prospects for potential new alpha-olefin producers. ALPHA-OLEFIN DEMAND After booming from 1999-2001, alpha-olefin demand growth slowed considerably in 2002-2003 during the global economic downturn, but began to rebound in late 2004, and was especially strong in 2005. Polyolefin comomoners continue to account for well over 50 percent of alpha-olefin consumption, and global growth is expected to be quite strong through 2010, with HDPE averaging around 4-5 percent/year and LLDPE 6-7 percent/year. Demand has been strong enough to keep both hexene-1 and octene-1 tight in 2006. Since an unexpected surge in decene-1 demand in 2004, the polyalphaolefin market has been constrained by insufficient supplies of decene-1. PAO based on C12 alpha-olefin has been available for years, but is gaining new momentum, with new products being introduced, including a C12-C14 blend from Ineos. The lubricant market continues to embrace Group III base oils, but a potentially greater threat to PAO – GTL base oil – is on the horizon. For some of the C12 to C18 alpha-olefins, demand is being dampened by high prices needed to cover increased raw material costs. In the detergent alcohol market, oleo-based materials are growing more rapidly than ethylene-based alcohols. And a significant portion of alkyldimethylamine production has been switched from alpha-olefin feedstocks to oleo feedstocks. Demand for C16-18 alpha-olefins for alkenyl succinic anhydride and for oilfield drilling fluids has been strong, but these markets are not immune to rising costs either. CAHA’s new study will carefully examine each end use for alpha-olefins and all the current and future factors affecting them in order to provide comprehensive quantitative data and qualitative analysis. CAHA has extensive files, data, contacts, knowledge and expertise on alpha-olefins which provide a unique foundation for this study. New research will be accomplished through an initial literature search, taking advantage of online databases and resources, followed by telephone, e-mail and personal interviews with alpha-olefin producers and users in each region of the world. The next few pages describe the electronic version of the study, and its proposed delivery schedule. Following that is a traditional table of contents for the print version, and sample tables of the data that will be available in both formats.

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ELECTRONIC VERSION

CAHA will set up an electronic database organized by individual sectors of the alphaolefins market, as outlined below. The database will initially contain the most recent information that CAHA has available in-house. Over a seven-month period, CAHA will conduct research to obtain current data and insights for each of the sections, and will update the sections according to the schedule shown below. CAHA has up-to-date information on producers and capacities, and certain end uses as of July 2006. Information which is not up-to-date will require review prior to posting online. The entire preliminary database will be available to subscribers by the end of October 2006, provided that sufficient subscribers have been obtained by mid-October. From October 2006 through April 2007 CAHA will conduct research to update each section according to the schedule shown below. The study is scheduled to be completed and a final supply/demand balance and executive summary delivered by the end of April 2007. The electronic version of the study will be delivered through an Internet database accessible by password. Passwords will be assigned when the study commences. The first schedule below lists the sections of the study in the traditional order of a multiclient study showing the delivery dates for each section. The second schedule shows the sections that will be delivered chronologically by month. In the Project Plan by Section, specific dates listed for each section, e.g., December 2006, indicate when complete new information will be available to clients. There will be regular updates thereafter.

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PROJECT PLAN BY SECTION Chapter

Description

Com pletion Dates

I. PRODUCERS AND CAPACITIES CAPACITY DATABASE Plant locations and capacities by chain length for 2005 to 2010, with forecasts to 2015, based on announced new capacity

October 2006 Monthly updates

Regional and global capacity totals PRODUCER PROFILES In-depth profiles: corporate overview, process technology, products, product quality, integration, captive use, m erchant sales, strategic issues

March 2007

II. PRODUCTION Production by chain length for each producer for 2005 & 2006 April 2007 Regional and global production by chain length for 2005 through 2010, and 2015. III. CONSUM PTION SUM M ARY Consum ption by end use and by chain length and by region for 2005 through 2010 and 2015

April 2007

IV. POLYOLEFINS POLYOLEFIN PRODUCER DATABASE Plant locations, capacities, product and catalyst technology, products and com onom er types used by region for 2006 and announced new capacity through 2015

Novem ber 2006 Monthly updates

CONSUM PTION Com onom er consum ption by polyolefin type, by chain length and by region for 2005 through 2010 and 2015

March 2007

V. DETERGENT ALCOHOLS ALCOHOL PRODUCER DATABASE Plant locations, capacities, products, feedstocks, process technology, products by region for 2006 and announced new capacity through 2015

October 2006 Monthly updates

CONSUM PTION Alpha-olefin consum ption by product and by chain length and by region for 2005 through 2010 and 2015

October 2006

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Project Plan by Section (continued) Chapter

Description

Com pletion Dates

VII. LINEAR ALKYLBENZENE LAB PRODUCER DATABASE Plant locations, capacities, feedstocks, process technology by region for 2005 through 2010 and 2015

October 2006 Monthly updates

CONSUM PTION Alpha-olefin consum ption by chain length and by region for 2005 through 2010 and 2015

October 2006

VIII. ALKYLDIM ETHYLAM INE ADA PRODUCER DATABASE Producers, plant locations, capacities, feedstocks, captive/ m erchant use by region for 2005 through 2010 and 2015

January 2007 Monthly updates

CONSUM PTION Alpha-olefin consum ption by chain length and by region for 2005 through 2010 and 2015

January 2007

IX. ALPHA-OLEFIN SULFONATE AOS PRODUCER DATABASE Producers, plant locations, capacities by region for 2005 through 2010 and 2015

Novem ber 2006 Monthly updates

CONSUM PTION Alpha-olefin consum ption by chain length and by region for 2005 through 2010 and 2015

Novem ber 2006

X. PLASTICIZER ALCOHOLS PLASTICIZER ALCOHOL PRODUCER DATABASE Linear plasticizer alcohol producers, plant locations, capacities, product types by region for 2005 though 2010 and 2015

Decem ber 2006 Monthly updates

CONSUM PTION Alpha-olefin consum ption by chain length and by region for 2005 through 2010 and 2015

Decem ber 2006

XI. SYNTHETIC LUBRICANTS POLYALPHAOLEFIN PRODUCER DATABASE Polyalphaolefin producers, plant locations, capacities, integration by region for 2005 through 2010 and 2015 based on current announcem ents

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January 2007 Monthly updates

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Project Plan by Section (continued) Chapter

Description

Com pletion Dates

XI. SYNTHETIC LUBRICANTS (continued) CONSUM PTION Alpha-olefin consum ption by chain length and by region for 2005 through 2010 and 2015

January 2007

XII. SYNTHETIC ACIDS

SYNTHETIC ACID PRODUCER DATABASE Producers of synthetic acids, plant locations, capacities by region for 2005 through 2010 and 2015

END USE DATA Market trends and synthetic acid consum ption for polyol esters, bleach activators, other by region for 2005 through 2010 and 2015 CONSUM PTION Alpha-olefin consum ption by chain length and by region for 2005 through 2010 and 2015

Decem ber 2006 Monthly updates

Decem ber 2006

Decem ber 2006

XIII. PETROLEUM ADDITIVES PETROLEUM ADDITIVE PRODUCER DATABASE Producers of additive packages, plant locations, capacities by region for 2005 through 2010 and 2015

February 2007

END USE DATA Market trends and additive package consum ption by region for 2000 through 2005 and 2010

February 2007

CONSUM PTION Alpha-olefin consum ption by chain length and by region for 2000 through 2005 and 2010

February 2007

XIV. ALKENYL SUCCINIC ANHYDRIDE ALKENYL SUCCINIC ANHYDRIDE PRODUCER DATABASE Plant locations, capacities by region for 2005 through 2010 and 2015

January 2007 Monthly updates

END USE DATA Market trends, ASA consum ption by region for 2005 through 2010 and 2015

January 2007

CONSUM PTION Alpha-olefin consum ption by chain length and by region for 2005 through 2010 and 2015

January 2007

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Project Plan by Section (continued) Chapter

Description

Com pletion Dates

XV. OILFIELD CHEM ICALS OILFIELD CHEM ICALS PRODUCER DATABASE Producers, products and m arket position by region for 2005 through 2010 and 2015

February 2007

END USE DATA Market trends and growth by region for 2005 through 2010 and 2015

February 2007

CONSUM PTION Alpha-olefin consum ption by chain length and by region for 2005 through 2010 and 2015

February 2007

XVI. M ISCELLANEOUS END USES M etalw orking fluids Epoxides M ercaptans HM W alpha-olefin w axes Polybutene-1 Leather Amyl alcohol Other

March 2007

For each end use: Technology, Producers, Markets, AlphaOlefin Dem and XVII. SUPPLY/DEM AND BALANCE Tables showing capacity, production, and consum ption by chain length and by region for 2005 through 2010 and 2015 Global supply/dem and balance by chain length for 2005 through 2010 and 2015

April 2007

Discussion of key m arket issues, producers and strategies

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PROJECT PLAN BY MONTH 2006 October

Com plete Prelim inary Database Posted Alpha-olefin Capacity Database Detergent Alcohols Linear Alkylbenzene

November

Polyolefin Capacity Database Alpha-olefin Sulfonates

December

Synthetic Acids Plasticizer Alcohols 2007

January

Alkyldim ethylam ines Alkenyl Succinic Anhydride Synthetic Lubricants

February

Petroleum Additives Oilfield Chem icals

M arch

Polyolefin Com onom ers Miscellaneous End Uses Alpha-Olefin Producer Profiles

April

Alpha-olefin Supply/Dem and Balance Executive Sum m ary

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TENTATIVE PRINT VERSION TABLE OF CONTENTS

I.

REGIONAL ALPHA-OLEFIN MARKETS World Overview Capacity Production Consumption Regions: North America, Latin America, West Europe, Asia, Other For each region: Capacity Producers Production by chain length Consumption by chain length Pricing

II.

PRODUCERS Refinery Stream Butene-1 Producers, Plant Locations and Capacities Producers (C6+): Chevron Phillips, Godrej, Idemitsu, Ineos, Mitsubishi, Nizhnekamskneftekhim, SABIC, Sasol, Shell For each producer: Plant Locations and Capacities Recent and Future Expansions Production Technology and Economics Production by Chain Length Integration Feedstock Situation Captive vs Merchant Use Alpha-Olefin Technology Available for License Axens DuPont UOP Potential Producers Dow Reliance NPC (Iran) Others

III.

END USE MARKETS FOR ALPHA-OLEFINS World Summary By End Use By Chain Length

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IV.

POLYOLEFIN COMONOMERS Polyolefin Technology Process and Catalyst Summary Technologies available for license HDPE HMWHDPE UHMWHDPE LLDPE VLDPE/Plastomers Polyolefin Elastomers Polypropylene Multipolymers Polyolefin Producers and Capacities by Region Regions: North America, Latin America, West Europe, Asia, Other For each producer: Ownership, integration, plant/product details For each plant: Location Process/Catalyst Capacity and planned expansions Comonomer type(s) used Polyolefin Markets by Region Regions: North America, Latin America, West Europe, Asia, Other For each region: LLDPE Alpha-olefin Consumption by Type/Chain Length HDPE Alpha-olefin Consumption by Type/Chain Length VLDPE/Plastomers Alpha-olefin Consumption by Type/Chain Length Polyolefin Elastomers Alpha-olefin Consumption by Type/Chain Length Polypropylene Multipolymers Alpha-olefin Consumption by Type/Chain Length

V.

SURFACTANTS AND INTERMEDIATES Detergent Alcohols Sources and Technologies Markets Regions: North America, Latin America, West Europe, Asia, Other For each region: Producers and Capacities

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Production Alpha-Olefin Demand by Chain Length Linear Alkylbenzene Sources and Technologies Markets Regions: North America, Latin America, West Europe, Asia, Other For each region: Producers and Capacities Production Alpha-Olefin Demand by Chain Length Alkyldimethylamines Sources and Technologies Markets Regions: North America, Latin America, West Europe, Asia, Other For each region: Producers and Capacities Production Alpha-Olefin Demand by Chain Length Alpha-olefin Sulfonates Sources and Technologies Markets Regions: North America, Latin America, West Europe, Asia, Other For each region: Producers and Capacities Production Alpha-Olefin Demand VI.

PLASTICIZER ALCOHOLS Plasticizer Alcohols Technology Products 2-Ethylhexanol Iso Alcohols Linear Alcohols Plasticizers Environmental & Health Issues Linear Plasticizer Alcohol Markets Regions: North America, Latin America, West Europe, Asia, Other For each region: Producers and Capacities Production Alpha-Olefin Demand

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VII.

SYNTHETIC LUBRICANTS Technology Raw Materials Polyalphaolefins Unconventional/Group III Base Oils Neopolyol Esters Dibasic Acid Esters Other Finished Lubricants Automotive Lubricants Industrial Lubricants Aircraft Lubricants World Lubricant Market Producers Consumption by Market Segment and by Region Polyalphaolefin Markets by Region Regions: North America, Latin America, West Europe, Asia, Other Types: Low viscosity PAO and High viscosity PAO For each region: Review of Major Lubricant Markets Synthetic Lubricant Consumption by Type Polyalphaolefin Producers and Capacities by Type Polyalphaolefin Production and Consumption by Type Alpha-Olefin Demand by Chain Length for Polyalphaolefin Manufacture by Type

VIII.

SYNTHETIC ACIDS Technology End Uses Polyol Esters Bleach Activators Other Alpha-Olefin Derivatives (C5, C7, C9) vs. Fatty Acids from Other Sources Markets Regions: North America, Latin America, West Europe, Asia, Other For each region: Producers and Capacities Production Consumption Alpha-Olefin Demand by Chain Length

IX.

PETROLEUM ADDITIVES Technology Lube Oil Performance Additives

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Types and Function Markets Regions: North America, Latin America, West Europe, Asia, Other For each region: Petroleum Additive Producers/Products Alpha-Olefin Demand by Chain Length X.

ALKENYL SUCCINIC ANHYDRIDE Technology Markets Regions: North America, Latin America, West Europe, Asia, Other For each region: Producers Production Consumption Paper Other Alpha-Olefin Demand by Chain Length

XI.

OILFIELD CHEMICALS Introduction Oil Industry Oilfield Chemical Companies Technology Drilling Fluids Enhanced Oil Recovery Drag Reducers Markets Regions: North America, Latin America, West Europe, Asia, Other For each region: Producers Utilization Alpha-Olefin Demand by Chain Length

XII.

MISCELLANEOUS END USES End uses: Metalworking Fluids Epoxides Mercaptans High Molecular Weight Alpha-Olefin Waxes Polybutene-1 Leather Amyl Alcohol Miscellaneous Other For each end use: Technology

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Producers Markets Alpha-Olefin Demand by Chain Length XIII.

APPENDIX List of Abbreviations List of Contacts

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SAMPLE TABLES

Sam ple Table 1 W ORLD - ALPHA-OLEFIN PRODUCTION BY REGION, 2005-2015 (thousand tons)

Region

2005

2006

2007

2008

2009

2010

2015

AAGR % 2005-2015

North Am erica W est Europe Asia Other Regions TOTAL

Sam ple Table 2 W ORLD - ALPHA-OLEFIN PRODUCTION BY CHAIN LENGTH, 2005-2015 (thousand tons)

Chain Length

2005

2006

2007

2008

2009

2010

2015

AAGR % 2005-2015

C4 C6 C8 C 10 C 12 C 14 C 16 C 18 C 20+ TOTAL

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Sam ple Table 3 W ORLD - ALPHA-OLEFIN CONSUMPTION IN ALL APPLICATIONS, 2005-2015 (thousand tons)

2005

2006

2007

2008

2009

2010

2015

AAGR % 2005-2015

POLYOLEFIN COMONOMERS HDPE LLDPE VLDPE/Plastom ers Elastom ers Polypropylene Multipolym ers Subtotal SURFACTANTS AND INTERMEDIATES Detergent Alcohols Linear Alkylbenzene Alkyldim ethylam ines Alpha-olefin Sulfonates Subtotal Plasticizer Alcohols Synthetic Lubricants Synthetic Acids Petroleum Additives Alkenyl Succinic Anhydride Oilfield Chem icals Miscellaneous End Uses GRAND TOTAL

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Sam ple Table 4 NIZHNEKAMSKNEFTEKHIM - ALPHA-OLEFIN PRODUCTION BY CHAIN LENGTH, 2005 (thousand tons) Carbon Chain Length

Production

Percent of Total Production

C4 C6 C8 C 10 C 12 C 14 C 16 C 18 C 20+ TOTAL

Sam ple Table 5 SABIC - ALPHA-OLEFIN CAPACITY BY CHAIN LENGTH, 2006 (thousand tons) Carbon Chain Length

Capacity

Percent of Total Capacity

C4 C6 C8 C 10 C 12-18 C 20+ TOTAL

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Sam ple Table 6 W ORLD TOTAL - ALPHA-OLEFIN END USE CONSUMPTION BY CHAIN LENGTH, 2008 (thousand tons) End Use

C4

C6

C8

C 10

C 12

C 14

C 16

C 18

C 20+

TOTAL

POLYOLEFIN COMONOMERS HDPE LLDPE VLDPE/Plastom ers Elastom ers Polypropylene Multipolym ers Subtotal SURFACTANTS AND INTERMEDIATES Detergent Alcohols Linear Alkylbenzene Alkyldim ethylam ines Alpha-olefin Sulfonates Subtotal Plasticizer Alcohols Synthetic Lubricants Synthetic Acids Petroleum Additives Alkenyl Succinic Anhydride Oilfield Chem icals Miscellaneous End Uses GRAND TOTAL

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Sam ple Table 7 W ORLD - ALPHA-OLEFIN DEMAND FOR HDPE PRODUCTION BY REGION, 2005-2015 (thousand tons)

2005

2006

2007

2008

2009

2010

2015

AAGR % 2005-2015

North Am erica Latin Am erica W est Europe Asia Other Regions TOTAL

Sam ple Table 8 LATIN AMERICA - ALPHA-OLEFIN DEMAND FOR LLDPE PRODUCTION BY CHAIN LENGTH, 2005-2015 (thousand tons) Chain Length

2005

2006

2007

2008

2009

2010

2015

AAGR % 2005-2015

C4 C6 C8 TOTAL

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Sam ple Table 9 W ORLD - ALKYLDIMETHYLAMINE PRODUCTION BY SOURCE, 2005-2015 (thousand tons)

Process

2005

2006

2007

2008

2009

2010

AAGR % 2005-2015

2015

from olefin from alcohol from acid TOTAL

Sam ple Table 10 ASIA - AOS PRODUCTION BY CHAIN LENGTH, 2005-2015 (thousand tons) Chain Length

2005

2006

2007

2008

2009

2010

2015

AAGR % 2005-2015

C 14 C 16 C 18 TOTAL

Sam ple Table 11 W EST EUROPE - ALPHA-OLEFIN DEMAND FOR POLYALPHAOLEFIN PRODUCTION BY CHAIN LENGTH, 2005-2015 (thousand tons) Chain Length

2005

2006

2007

2008

2009

2010

2015

AAGR % 2005-2015

C8 C 10 C 12 TOTAL

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Sam ple Table 12 NORTH AMERICA - CONSUMPTION OF LINEAR C 5, C 7, AND C 9 ACID FROM ALL SOURCES BY END USE, 2005-2015 (thousand tons) End Use

2005

2006

2007

2008

2009

2010

2015

AAGR % 2005-2015

Synthetic Lubricants NOBS Production Other TOTAL

Sam ple Table 13 ASIA - ALPHA-OLEFIN DEMAND FOR PETROLEUM ADDITIVE PRODUCTION BY CHAIN LENGTH, 2005-2015 (thousand tons) Chain Length

2005

2006

2007

2008

2009

2010

2015

AAGR % 2005-2015

C 12 C 14 C 16 C 18 C 20+ TOTAL

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Sam ple Table 14 W EST EUROPE - PRODUCTION OF ALPHA-OLEFIN DERIVED ASA BY CHAIN LENGTH, 2005-2015 (thousand tons)

Chain Length

2005

2006

2007

2008

2009

2010

2015

AAGR % 2005-2015

C8 C 16 C 18 C 20+ TOTAL

Sam ple Table 15 NORTH AMERICA - INTERNAL AND ALPHA-OLEFIN DEMAND FOR OILFIELD USES BY CHAIN LENGTH, 2005-2015 (thousand tons)

Chain Length

2005

2006

2007

2008

2009

2010

2015

AAGR % 2005-2015

C6 C8 C 10 C 14 C 16 C 18 C 20+ TOTAL

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Sam ple Table 16 W ORLD - ALPHA-OLEFIN DEMAND FOR MISCELLANEOUS END USES, 2005-2015 (thousand tons)

End Use

2005

2006

2007

2008

2009

2010

2015

AAGR % 2005-2015

Metalworking Epoxides Mercaptans HMW W axes Polybutene-1 Leather Am yl Alcohol Misc. Other TOTAL

Sam ple Table 17 ASIA - ALPHA-OLEFIN DEMAND FOR METALW ORKING FLUIDS AND ADDITIVES BY CHAIN LENGTH, 2005-2015 (thousand tons)

Chain Length

2005

2006

2007

2008

2009

2010

2015

AAGR % 2005-2015

C 10 C 12 C 14 C 16 C 18 TOTAL

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QUALIFICATIONS AND PERSONNEL Colin A. Houston & Associates, Inc. was founded in 1971 to provide consulting services to the chemical industry worldwide. The primary area of expertise was and continues to be surfactants: raw materials, intermediates, major surfactants, and the surfactant-consuming industries. Other areas of activity include: a variety of industry studies on such topics as oilfield chemicals, detergent builders, ingredients for personal care products, and bleaching agents; engineering studies such as a worldwide study of glycerine evaporation plants with recommendations for improved efficiency; a world study of the state of the art in spraydrying detergents; contracts with the U.S. Government to develop industry effluent guidelines; and business strategy and acquisition studies. The reputation thus earned by CAHA for comprehensive, high quality techno-economic and market analyses has led to a variety of engineering, marketing, and strategic planning studies for individual clients in North America, Latin America, West Europe, Asia, the Middle East and Africa. CAHA has been studying alpha-olefin markets for most of its 35 year history. In 1980, CAHA was commissioned to undertake a major proprietary study of North American and West European alpha-olefin markets. In 1988, CAHA published its first world multiclient study on alpha-olefins. A second comprehensive study was completed in 1994, and a third multiclient study in 2001. CAHA also published a multiclient study of global markets for polyolefin comonomers in 1999. In addition, since 1989 CAHA has published a monthly alpha-olefin newsletter covering pricing and market developments for alpha-olefins and for polyolefins and other end uses for alpha-olefins. The project team approach utilized by CAHA includes a core of senior and technical professionals augmented by expert consultant associates. The following synopses present the staff and consultants who will carried out the study, Alpha-Olefins - World Markets, 2005-2015. Marilyn L. Bradshaw, Vice President, was the project leader for ALPHA-OLEFINS - WORLD MARKETS, 2000-2010 AND ALPHA-OLEFIN MARKET INTELLIGENCE DATABASE . She is also the author and editor of CAHA’s monthly alpha-olefin newsletter, and provides consultation to clients on alpha-olefins. Ms. Bradshaw was also the project leader for POLYOLEFIN COMONOMERS - WORLD MARKETS, 1995-2005 and ALPHA-OLEFINS - WORLD MARKETS, 1990-2002. Other recent multiclient studies she has directed include U.S. I&I CLEANING PRODUCTS - SURFACTANT SUPPLIERS AND CUSTOMERS, and INDUSTRIAL APPLICATIONS OF SURFACTANTS - NORTH AMERICAN FORECAST TO 2010. Since joining CAHA in 1980, she has also been the project leader for numerous proprietary projects. Ms. Bradshaw has a B.A. from Finch College and an economics and management certificate from Manhattanville College.

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Joel H. Houston, President, authored the Detergent Alcohols section of ALPHA-OLEFINS - WORLD MARKETS, 2000-2010 AND ALPHA-OLEFIN MARKET INTELLIGENCE DATABASE. In addition, Mr. Houston was the project leader for numerous multiclient studies including HIGHER ALCOHOLS - FORECAST TO 2020, SURFACTANTS FOR EMERGING MARKETS IN ASIA/PACIFIC, 1996-2010, OPPORTUNITIES IN PERFORMANCE SURFACTANTS IN THE U.S., SURFACTANTS FOR CONSUMER PRODUCTS - NORTH AMERICAN FORECAST TO 2008, and DETERGENT ALKYLATES - WORLD MARKETS, 19922005. He has guided CAHA's research in oleochemicals since 1980, and in detergents since 1987. Mr. Houston has extensive experience in projects for consumer products, has presented papers at CMRA, ECMRA and CSMA meetings, and is the editor of CAHA's global detergent newsletters, AGGLOMERATIONS, LAB MARKET REPORT and SURFACTANT DEVELOPMENT NEWSLETTER. He is a member of CDMA, AOCS and ASTM. H. James Bigalow, Senior Research Associate, authored several sections of ALPHA-OLEFINS - WORLD MARKETS, 2000-2010 AND ALPHA-OLEFIN MARKET INTELLIGENCE DATABASE. In addition he has contributed to numerous multiclient studies including HIGHER ALCOHOLS - FORECAST TO 2020, SURFACTANTS FOR CONSUMER PRODUCTS - NORTH AMERICAN FORECAST TO 2010, INDUSTRIAL APPLICATIONS OF SURFACTANTS - NORTH AMERICAN FORECAST TO 2010, SURFACTANTS FOR EMERGING MARKETS IN ASIA/PACIFIC, 1995-2010 and DETERGENT ALKYLATES - WORLD MARKETS, 1995-2010. Mr. Bigalow has also worked on proprietary detergent and surfactant studies. Mr. Bigalow has over 20 years experience as a senior marketing research executive in the chemical industry. He has conducted successful business analysis projects which have included financial evaluations of businesses and acquisition candidates, identifying current and future markets for new and existing products, and product development and usage. Additional experience has included economic and sales forecasting, strategic planning, proprietary market research projects, benchmarking, and product safety. He is a member of the CDMA, the Society of Competitive Intelligence Professionals (SCIP), ACS and the Chemical Marketing and Economics Division of the ACS. Mr. Bigalow holds an M.S. Industrial Administration, Krannert School of Management, Purdue University and a B.S. degree in Chemistry, Denison University.

Mack Hunt, Senior Research Consultant authored the Synthetic Lubricants, Petroleum Additives and Metalworking Fluids sections of ALPHA-OLEFINS - WORLD MARKETS, 2000-2010 AND ALPHA-OLEFIN MARKET INTELLIGENCE DATABASE . He has over 35 years of experience in the creation, synthesis, development, manufacture and management of fuel and lubricating oil additives. Mr. Hunt is an internationally know expert in motor oil detergents and has authored or co-authored 53 U.S. patents and many foreign patents. He authored U.S. GASOLINE DETERGENT ADDITIVES, 1997-2004 and the U.S. portion of GASOLINE DETERGENT ADDITIVES - UNITED STATES AND WEST EUROPE II, 1992-2002 as well as the Petroleum Additives section of ALPHAOLEFINS - WORLD MARKETS, 1990-2002. He also conducted a global polyisobutylene market study and proprietary studies of market prospects for gasoline detergent additives. He holds an A.B. Chemistry, Math and Biology,

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Nebraska Wesleyan University and an M.S. Organic Chemistry, University of Nebraska. Pete LaChappelle, Senior Research Associate has worked with CAHA on several proprietary reports. Mr. LaChappelle has had a long and distinguished career in the Lubricants, Metalworking Fluids and Lubricant Chemical industry. He has also directed sales efforts in the coatings and synthetic lubricant markets. He has a B.S. degree in Biology - Chemistry from Holy Cross College. John Rapko, Senior Research Associate authored the Higher Alcohols Technology section of HIGHER ALCOHOLS FORECAST TO 2020 report and has also assisted on numerous proprietary reports. Dr. Rapko has over 32 years of professional experience in various positions. In his professional career he has directed the work of professional chemists and chemical engineers at all degree levels in the areas of process development, chemistry, engineering and assessment of technologies related to the manufacture of detergent alkylate, detergent builders, zeolites, dehydrogenation catalysts, antimicrobials, amines, amino acids, chlorophenols, alkylphenols and alkylphenol ethoxylates, methyl ester sulfonates, phosphonates, bleaches and bleach ingredients, bleach acribators, polymeric sequestrants and deflocculants, phosphorus chemicals, synthesis of 14C labeled materials for environmental assessment, waste minimization and remediation including incineration and processes for sulfuric acid recovery, construction and operation of bench scale evaluation and pilot units, project economies and start-up of commercial scale units. He holds a Ph.D. and B.S. in Chemistry (ACS Certified) from St. Louis University. Joseph Polak, Research Associate authors portions of our bimonthly LAB Market Newsletter. He has also contributed to a proprietary study of the LAB markets in Asia and the Middle East. He holds a B.S.

degree in Chemistry from Fordham University.

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HOW TO SUBSCRIBE To subscribe to the study please complete and sign the detachable contract and mail to the address below. On receipt, we will countersign it and return a photocopy to you for your files along with our invoice for the first one-third payment.

Colin A. Houston & Associates, Inc. 20 Milltown Road, Suite 206 Brewster, NY 10509 USA Telephone No.: (845) 279-7891 Fax No.: (845) 279-7751 E-Mail: [email protected] http://www.colin-houston.com

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