Presenter: Des King

Company: Chevron Oronite

© 2014 Chevron Oronite Company LLC. All rights reserved. 1

Technology for our

Transportation Future

Engine/Fuel Choices Challenge Our Focus

Methanol

BioFuels

Hydrogen

Natural Gas/LPG

Electricity

Gasoline

Internal Combustion Engine Electric Hybrid

Fuel Types

Engine Types

animation

Internal combustion engines (ICE) are here to stay

for the foreseeable future

Diesel

© 2014 Chevron Oronite Company LLC. All rights reserved.

3

U.S. National Petroleum Council (NPC) Study

Objectives:

Examine opportunities to

accelerate future

transportation fuel prospects

Advice on potential actions

to reduce GHG emissions

by 50%

© 2014 Chevron Oronite Company LLC. All rights reserved.

4

U.S. National Petroleum Council (NPC) Study

Varied viewpoints from over 300 participants

Over 2 years to complete the study

Advise pathways for integrating new fuels and vehicles

© 2014 Chevron Oronite Company LLC. All rights reserved.

5

NPC Key Findings – Focus on ICE

ICE technologies to be the dominant propulsion

systems for decades

Fuel economy can be dramatically improved in

the light-duty and heavy-duty sectors

Economic commercialization of alternatives is

challenged by continuously improving ICE

Liquid fuel blends will continue to play a

significant, but reduced role.

Source: NPC Study

© 2014 Chevron Oronite Company LLC. All rights reserved.

6

Technology Hurdles

250 Hurdles Prioritized to Top 12

Priority Technologies Focus Area

1 Low cost lightweighting (up to 30% reduction) Light-Duty Engines

2 Hydrolysis Biofuels

3 Fermentation of C5 and C6 sugars Biofuels

4 Lignocellulose logistics and densification Biofuels

5 Production of higher-value pyrolysis oil Biofuels

6 Biotechnology to increase food and biomass Biofuels

7 Leverage liquid ICE fuel economy technology Light-Duty Natural Gas

8 Lithium-ion battery energy density Light-Duty Electric

9 Lithium-ion battery degradation/longevity Light-Duty Electric

10 Hydrogen compression and storage for dispensing Light-Duty Hydrogen

11 Fuel cell degradation and durability Light-Duty Hydrogen

12 Combustion optimization Medium/Heavy-Duty

Engines/Vehicles

Source: NPC Study

© 2014 Chevron Oronite Company LLC. All rights reserved.

7

Technology Hurdles 250 Hurdles Prioritized to Top 12

Priority Technologies Focus Area

1 Low cost lightweighting (up to 30% reduction) Light-Duty Engines

2 Hydrolysis Biofuels

3 Fermentation of C5 and C6 sugars Biofuels

4 Lignocellulose logistics and densification Biofuels

5 Production of higher-value pyrolysis oil Biofuels

6 Biotechnology to increase food and biomass Biofuels

7 Leverage liquid ICE fuel economy technology Light-Duty Natural Gas

8 Lithium-ion battery energy density Light-Duty Electric

9 Lithium-ion battery degradation/longevity Light-Duty Electric

10 Hydrogen compression and storage for dispensing Light-Duty Hydrogen

11 Fuel cell degradation and durability Light-Duty Hydrogen

12 Combustion optimization Medium/Heavy-Duty

Engines/Vehicles

Source: NPC Study

© 2014 Chevron Oronite Company LLC. All rights reserved.

8

Low Cost Lightweighting –

Light Duty Engines and Vehicles

Lightweighting can deliver up to 30% mass reduction

Higher cost of lightweight materials

can be offset by fuel economy

gains

A 10% reduction in vehicle weight

can result in a 6% to 8%

improvement in fuel economy

© 2014 Chevron Oronite Company LLC. All rights reserved.

9

Vehicle Lightweighting –

Engine downsizing is a major component

The OEM trend in most passenger car markets:

Smaller displacement, higher power density engines

Smaller engines = higher load factors

Changing performance demands on fuels, lubricants,

and additives

2L 4 cylinder Turbo

(200 HP)

3L V6

(200 HP)

© 2014 Chevron Oronite Company LLC. All rights reserved.

10

Leverage Liquid ICE Fuel Technology for

Light Duty Natural Gas (LDNG)

“Fracking” has led to substantial increases in natural gas production

Natural gas can be used in modified and purpose-built ICEs

Light duty natural gas vehicle sales projected to Increase 50% globally

Source: Pike Research*

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11

Combustion & After-Treatment Optimization

Optimize combustion by improving:

sensor technologies

electronic controls

fuel injection

charge mixing technologies

Improved after-treatment systems

result in:

reduced pollutants

better fuel economy

© 2014 Chevron Oronite Company LLC. All rights reserved.

12

Technology for Our Transportation Future

Oronite Point of View

ICEs and hydrocarbon fuels will remain dominant

Increasingly strict environmental regulations will

push emissions reduction and fuel economy

Advancements in additive and formulating

technologies will enable fuel economy

improvements

A cross-industry systems approach

will help meet the energy and

fuel economy challenges of the future

© 2014 Chevron Oronite Company LLC. All rights reserved.

13

Future Impacts on Additive Formulation

Supplemental Wear Inhibitors New Friction Modifiers New Deposit Control Additives

New Oxidation Inhibitors New Nitration Inhibitors TBN Retention Additives

Additives Impacted

Sustainability Extended Service/Durability Fuel Economy

Advanced Thermal

Management

Ultra Low Viscosity Oils

Benefits

Turbo-Downsizing

Surface Treatments for

Reduced Friction and Wear

Renewable Fuels

Reduced Maintenance

and Long Drains

Total Cost of Ownership (TCO)

© 2014 Chevron Oronite Company LLC. All rights reserved.

14

Summary

Focus R&D on the most impactful technology areas

Fuel economy can be dramatically improved in the

light-duty and heavy-duty sectors

The additives industry must enhance our products

to enable evolving technologies

Net fuel efficiency gains will result from numerous

contributions from hardware, fuels, lubricants, and additives

© 2014 Chevron Oronite Company LLC. All rights reserved.