February: Oleochemicals Companies Step Into Base Stocks Arena

WWW.LUBESNGREASES.
COM
2023
VOL. 29 ISSUE 2
HELPING YOU NAVIGATE THE LUBRICANTS INDUSTRY FEBRUARY

SPECIAL REPORT BASE STOCKS
Oleochemicals
Companies Step
into Base Stocks
Arena
BASE STOCKS
Trends in Base
Stock Trading
BASE STOCKS
Base Stock
Production
in Latin America
save the date!
2023 venue:
Kultur- und Kongresszentrum
Liederhalle, Stuttgart
4. – 5. Juli 2023
in Stuttgart
Simultanübersetzung Simultaneous translation
Informationen über:
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PUBLISHER’S LETTER
HOWARD BRISKIN is publisher

& president of Lubes’n’Greases.
Contact him at HBriskin@
LubesnGreases.com
Facts First
On the whole, the lubricants and base oils industry has done
an excellent job of rolling with the punches during the past
three years. As it has done numerous times before, it has
proven its unmatched ability to adapt to all different types of
disruptions—from economic recessions to advancements in
engine technology and changes in consumer needs.
B
ut just how well has the indus- both seasoned industry veterans and companies and individuals that have
try managed to bounce back newcomers to the industry looking contributed data for the latest edition
from the havoc wrought by the to form a basic understanding of of the Factbook. My thanks also go
COVID-19 pandemic, multiple instanc- lubricants and the marketplace, the out to editors Sydney Moore and Will
es of production-altering weather latest edition of the Factbook provides Beverina, designer Ricardo Lianez and
and geopolitical strife of the past few readers with some of the most im- other Lubes’n’Greases team members
years, and how much work does it still portant facts and figures about base who have created and organized this
have ahead of it? oil production in various regions of the collection of clearly presented data
The 2022-2023 Lubes’n’Greases world, demand for various finished and digestible summaries of what’s
Factbook—now in its third edition as lubricant products as well as import going on in the lubricants industry.
a digital, globally focused product—is and export volumes, among other Be sure to order your copy
now available to answer those ques- important topics. of the Factbook today at
tions and more. A valuable tool for As always, I am grateful to all of the www.LubesnGreases.com/factbook
Tim Sullivan George Gill David Stanworth Matt Rogers Stefanie Dunkerly
Executive Editor Apu Gosalia Commercial Director Director of Business Development, Ad Operations Manager
Simon Johns dstanworth@LubesnGreases.com North America Stef@LubesnGreases.com
Sydney Moore Boris Kamchev Phone: +44(0)1737 906390 MRogers@LubesnGreases.com
HELPING YOU NAVIGATE Managing Editor Sara Lefcourt Phone: +1 240-701-2931
THE LUBRICANTS INDUSTRY Steve Swedberg
Ricardo Lianez Gabriela Wheeler
Director of Creative Contributors
LNG Publishing Co., Inc.
7389 Lee Highway, Suite 300 Will Beverina
Falls Church, VA 22042 U.S.A Assistant Editor
Phone: +1 703-536-0800
Fax: +1 703-536-0803
www.LubesnGreases.com
FEBRUARY 2023 WWW.LUBESNGREASES.COM 3

FEBRUARY 2023
VOL. 29 ISSUE 2
N
W E
SPECIAL REPORT
Base Stocks 10 24
BASE STOCKS WORLD BASE STOCKS SOUTH AMERICA
Oleochemicals Companies Base Stock Production in

Step into Base Stocks Arena Latin America
Many oleochemical producers are looking to Might Latin America be on the cusp of increased
increase their presence in the lubricants industry. base oil production capacity, or will its output
How are factors such as policy, economics and dwindle in the coming years?
geography affecting their ability to do so?
18
BASE STOCKS WORLD
Trends in Base Stock Trading

Base oil marketing expert David Whitby answers
questions about the most significant base oil
trading patterns of the past three decades.
31
PACKAGING WORLD
FEATURES
Packaging of the Past,
Present and Future
Discover how lubricant packaging has evolved
through the years and how it might change to
meet future needs.
Lubes’n’Greases (ISSN1080-9449), an independent trade magazine, is published monthly Periodicals postage paid at Falls Church, VA and additional mailing offices.
by LNG Publishing Company, Inc. Copyright 2023, LNG Publishing Company, Inc. Printed POSTMASTER: Send address corrections to Lubes’n’Greases, LNG Publishing Company, Inc.,
in USA. 7389 Lee Hwy., Suite 300, Falls Church, VA 22042 USA.
Subscriptions are $249 per year for print and digital editions or $229 for digital only. To CANADA POST Agreement 40064709. Return undeliverable Canadian addresses to: IMS, P.O.
subscribe, visit www.LubesnGreases.com/subscribe. Subscription enquiries can be sent to Box 122, Niagara Falls, ON L2E 6S8
CS@LubesnGreases.com.
Periodical category: General
LubesnGreasesPublishing @LubesnGreases /company/lng-publishing-co-/
4 WWW.LUBESNGREASES.COM FEBRUARY 2023

33
33 Annual
Annual
rd
rd
General Meeting
General Meeting 29th April – 2nd May 2023
Marriott Hotel
29th April – 2Leidse
nd
May Plein
2023
Amsterdam
Marriott Hotel Netherlands
Leidse Plein
Amsterdam Netherlands
ELGI, Hemonylaan 26, 1074 BJ Amsterdam, Netherlands

Telephone: +31 20 67 16 162 I Email: carol@elgi.demon.nl I Online: www.elgi.org
26
9
3
36
Publisher’s Letter
DEPARTMENTS
7 29
BASE STOCKS NORTH AMERICA BUSINESS WORLD
Base Oil Report: Pricing Best Practices

Never a Dull Moment Learn from your Regrets
Just when the base oil market seemed to While no one likes having professional re-
be settling, the new year ushered in a round grets, they can offer significant opportunities
price decreases. for growth. Sara Lefcourt explains how.
9 36
SUSTAINABILITY WORLD
Places’n’Faces
Sustainability
“The Day We Decided to
Save Ourselves” 38
The Kunming-Montreal Global Biodiversity Advertiser Index
Framework was signed in Montreal, Canada,
on December 19, 2022, marking a huge step
forward in preserving the Earth’s natural
diversity.
26
AUTOMOTIVE LUBRICANTS NORTH AMERICA
Automotive
How Many Years Do Quick Lubes
Have Left?
Are quick lubes on their way out, or can they
manage to stay relevant for years to come?
Steve Swedberg weighs in.

BASE OIL REPORT
PRICING
BASE STOCKS NORTH AMERICA
Never a Dull Moment GABRIELA WHEELER

is base oil editor for
The base oils market may be a lot of things, but it is defi- Lubes’n’Greases. Contact
nitely not boring. There is always something going on. The her at Gabriela@
LubesnGreases.com
year-end holidays started with a powerful winter storm
sweeping through the United States, which forced several
Sources also noted that many
refineries, base oil plants and gas production sites to shut
buyers and sellers had likely reached
down temporarily. the end of the year in possession of
minimal inventories, and any supply
S
ome units at Motiva’s Port The unit was brought back up a few disruptions could potentially result
Arthur, Texas, refining complex days later and was running at 100% in product shortages. The similarly
were offline for at least two days at the time of writing. devestating Winter Storm Uri in Feb-
during Winter Storm Elliott because of A couple of other refineries were ruary 2021 had led to production out-
hydrogen supply issues. There was no also heard to have been affected by ages and a chaotic supply situation.
direct confirmation from the producer, “freeze-ins” and production set- Several plant events will be taking
as the company does not comment backs, but the storm may have had place during the first quarter, including
on the status of its operations, but a more limited impact on base oils an extended turnaround and catalyst
sources said that the shutdown was than expected. The weather-related change at a large API Group II facility
brief and that the refinery was up and disruptions had earlier led to specula- on the Gulf Coast that was anticipated
running shortly after the storm. tion that base oil supply might tighten to start in late January and last almost
The Cross Oil naphthenic base oil in the weeks following the storm. two months, with spot volumes likely
refinery in Smackover, Arkansas, shut This would have been particularly to be curtailed. A second Group II
down as a precautionary measure impactful if it were combined with the producer has also scheduled mainte-
ahead of the storm but suffered no plant turnarounds that are scheduled nance work in the first quarter. A third
significant damage from the freeze. during the first quarter of 2023. Group I and Group II producer was
VIDEO Watch Gabriela & Sydney discuss this month’s Base Oil Report
Base Oil Report 8

February 2023
7
Base oil prices are lowest U.S. postings
of the month for mid-vis grade before 6
Price (U.S. $/gallon)
applicable discounts. Crude prices are

5
monthly averages.
4
2
Historic and current base oil pricing
data are available for purchase at 1
www.BaseOilPrices.com
0
BASE OIL PRICING DATA JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN
22 23
Group I Group II Brent West Texas

Sources: Lubes’n’Greases research,
U.S. Energy Information Administration
Base Oil Base Oil Crude Intermediate Crude
LubesnGreases.com
considering a two-week turnaround at nicated decreases of 15, 25 and 40 barrel by early January. Diesel prices
the end of March. cents per gallon on its Group II+ and had spiked in late 2022 as well, offer-
The naphthenic base oils segment Group III base oils. A vast majority ing an incentive for refiners to divert
may also see tightening supplies of paraffinic suppliers and rerefiners more feedstocks into the distillates
along with an uptick in demand. also stepped out with decreases stream. But values softened toward
Naphthenic base oil producer San between 20 cents and 60 cents per the end of the year, and base oil mar-
Joaquin Refining will be installing gallon, depending on the product gins became more attractive.
a new vacuum distillation tower at and the supplier, which went into An improved additive supply
its refinery in Bakersfield, California, effect in early January. The posted situation was expected to lead to an
starting in late January, and expects price decreases followed producers’ uptick in base oil demand, although
the unit to be down for four weeks. granting of temporary value allow- prospects for lubricant consumption
Planned and unplanned production ances or adjustments that ranged were still somewhat clouded by lin-
outages during the second half of from 10 cents to 50 cents per gallon gering inflation and reduced consum-
2022, coupled with healthy demand, in November and December. er spending amid recession fears.
had already strained pale oil supply in Aside from a need to stimulate As is the case every year when
the weeks leading to December 31. orders because of a seasonal supply the industry moves into the spring
Naphthenic producers also communi- and demand imbalance, softer crude season, base oil buying activity is an-
cated 30-cents per gallon decreases, oil and feedstock prices were thought ticipated to pick up, lending support
effective January 16. to have driven the price decrease to prices. However, uncertainties
In terms of pricing, January 1 initiatives. West Texas Intermediate related to factors that are beyond
saw the implementation of the first futures were trading in the mid $80s market participants’ control may
posted price adjustment of the year per barrel in early November 2022 also precipitate many surprising and
as SK Lubricants Americas commu- and had fallen to the mid $70s per interesting challenges.
The expertise, support

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formulation challenges.
Get the technical expertise, specialty chemicals and
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Visit us at STLE 2022, Booth #519
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info.sealandchem.com/LNG-2022
440-871-7887

SUSTAINABILITY
SUSTAINABILITY WORLD
“The Day We Decided APU GOSALIA is a
to Save Ourselves”
sustainability expert.
He can be reached at
apurva.gosalia@web.de.
In the not-too-distant future, people may look back to Dec.
19, 2022, as the day on which humanity decided to save itself. land rights and traditional knowledge.
On that day, a global agreement was signed in Montreal to Women, youths and people with
preserve the Earth’s natural diversity for the first time. The disabilities are included. A separate
target calls on countries to ensure
agreement isn’t perfect, but it’s a chance to avert the planet’s
gender equality in the implementation
collapse. That it came about at all seems like a miracle. of the framework.
Pollution and pesticides. Signato-
F
or two weeks in December 2022, icant resources on funding nature ries are asked to reduce the negative
the 196 nation signatories to the promises. That includes a commit- impact of pollution from all sources
UN Convention on Biodiversity ment to raise U.S. $200 billion per to levels that aren’t harmful to nature
wrangled over the future of the planet year from all public, private and by 2030. That includes halving the
at the COP15 conference in Montreal, philanthropic sources, as well as cash “overall risk” from pesticides and
Canada. Due to the COVID-19 pan- flow of $30 billion a year from richer hazardous chemicals by the end of
demic, the conference was postponed countries to developing ones by 2030. the decade and working to eliminate
and moved from its original location Business accountability. Govern- plastic pollution.
in Kunming, China, in 2020, but China ments are expected to take mea- Consumption. Governments
retained presidency of the event. sures to ensure large businesses are expected to help people make
30 by 30. This new Kunming-Mon- and financial institutions monitor and sustainable consumption choic-
treal Global Biodiversity Framework disclose the impact of their activi- es through policy, regulation and
has six main commitments. The first ties on nature. Businesses are also education. By 2030, they’re asked to
is called “30 by 30” and requires expected to provide information to reduce the global footprint of con-
signatories to pledge to ensure 30% consumers to promote sustainable sumption in an equitable manner and
of the world’s land, water, coastal and consumption choices and comply cut global food waste in half.
marine areas are brought under some with regulations in place to reduce The Kunming-Montreal Global
kind of conservation measure by 2030. negative impacts on biodiversity. Biodiversity Framework is probably
Another target in the agreement stip- Equity. Countries are expected to the best nature conservation agree-
ulates that restoration efforts are un- ensure indigenous people and local ment the UN has ever produced.
derway for at least 30% of degraded communities are represented and From Montreal, the departure must
ecosystems by the end of the decade. included in decision making, and begin. However, a document alone
Financing. The next commitment given access to justice and informa- cannot change the world. It will take
calls upon countries to spend signif- tion, while respecting their cultures, millions of people who understand
that conserving nature ensures our
survival and make a difference. The
agreement is the lowest common
denominator, but it doesn’t prevent
any nation from exceeding the
conservation targets it sets. Perhaps
what nations have now envisioned
© Gorodenkoff
will come true: a human race that

exists in harmony with nature.
Stay SuSTAYnable!

By Simon Johns
Oleochemicals
Companies Step into
Base Stocks Arena
The commercial and social pressures that drive demand for
biobased esters can often be as complex as the oil and gas
markets. The market for esters is swayed by the availability
of raw materials, geography and environmental policy.
T
he global market for oleochem- Oleochemical synthetic esters’
icals—an array of products properties make them ideal base
made from plant and animal stocks and additives for various lubri-
oils—is worth upwards of U.S. $25 cant applications. Their high viscosity
billion and is expected to double index, low-temperature behavior and
by 2030. biodegradability are suited to envi-
Demand for oleochemicals took off ronmentally acceptable lubricants,
in the 1970s, triggered by conflicts or EALs; metalworking fluids that
and embargoes affecting fossil fuel pose a hazard to human health; and
markets. They have since replaced hydraulic fluids.
many petrochemicals, and their “A lot of oleo chemistry has
relatively low toxicity makes them very good solubility and a very
ideal for lotions, creams, soaps and low analine point, so it’s able to
detergents. They also tick boxes solubilize all the sludge and the
for lubricant companies concerned varnish and keep parts clean,” Mark
about their carbon footprint. Continued on Page 12

“Everybody is aware esters are more expensive. They’re

a premium compared to anything between Group I and
Group IV. But the argument we had in our industry for
years and years is always balancing not cost per kilogram
but cost performance. That is the key point here.”
— MATTHIAS HOF
EMERY
Continued from Page 10 competitive,” Miller said. “If you’re break down, they form acids, they
Miller, CEO of biobased estolide looking at Group III or PAOs, we’re corrode seals, they create sludge
company Biosynthetic Technologies, more expensive. But we have the and varnish. It’s really bad stuff.”
told Lubes’n’Greases. bio content, we have the biobased Biosynthetic Technologies fixes
performance, the sustainability story that shortcoming and says it can
Obstacles and the negative carbon footprint, offer oxidative stability equivalent to
Demand for synthetic and semi- which is huge for our customer “top-tier petroleum performance.”
synthetic base stocks accounts base.” But at a cost.
for about 4.4 million metric tons Biosynthetic Technologies produc- “Everybody is aware esters are
per year, of which roughly 8% are es estolides from castor and soy. more expensive. They’re a premi-
esters. API Group III mineral oils are Estolides are oligomeric long-chain um compared to anything between
by far the largest type of synthetic esters based on a fatty acid with an Group I and Group IV. But the argu-
base stock by volume, followed by additional functional group. ment we had in our industry for years
polyalphaolefins, which are petro- Esters are not without their weak- and years is always balancing not
chemicals. nesses. Miller explained that esters’ cost per kilogram but cost perfor-
Ester base stocks can be consider- oxidative and hydrolytic stability are mance. That is the key point here,”
ably expensive compared with other less than ideal. Matthias Hof of oleochemical pro-
base stocks. “Esters break down when you get ducer Emery told Lubes’n’Greases.
“Comparing us to a fully saturat- them wet and warm,” Miller said.
ed synthetic ester … we’re cost “They just fall apart. And when they Geography
Unlike their petrochemical equiv-
alents, oleochemicals face unique
market pressures. Geography plays
a large role in determining the level
of demand and the source of feed-
stock.
“Each marketplace seems to have
different drivers that will mandate
Ever wondered why Procter and Gamble and Emery, among other
or require the use of more sustain-
producers and consumers of oleochemicals, are all located in
able products, less petroleum-based
Cincinnati, Ohio? Cincinnati was a meatpacking hub and home to
products and more oleo-based prod-
stockyards that rendered animal fat. These companies use fat to
ucts,” Miller said.
make a range of products.
Asia’s growing thirst for oleo raw
materials—especially China, Japan
and India—is largely fed by fatty
acid production centers in Malaysia
and Indonesia, where palm kernels
are harvested, as well as coconut.
LubesnGreases.com
Continued on Page 14

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Continued from Page 12 Plant-based raw materials such as “Our facility is agnostic in that we
These plant sources contain C8 and canola and soy are also used. can source from soya, canola, rape
C10 hydrocarbon molecules ideal for Biosynthetic Technologies in the seed, mustard, coconut. So that
producing lubricant esters. U.S. uses a range of raw materials, puts us in the commodity plant oil
In North America, and the United including U.S. grown soy and Indian business,” William Downey, Novvi’s
States in particular, large quantities castor. Similarly, Novvi “mines” the senior vice president for business
of tallow, or animal fat, are produced specific molecules that it wants to development, told Lubes’n’Greases.
from the vast livestock industry. make base oils. Oleochemical producers in Europe
use rape seed and castor, among
others. Abundant sunflowers are
less useful for lubricant production,
containing heavier C16 and C18
chains, Hof explained. This pushes
Europeans to look to Asia for feed-
stock.
EXPANDING YOUR BIOBASED Policy

Another market force is govern-
LUBRICANT PRODUCT LINE? ment involvement. The current
Z&S Offers a Broad Range of Eco-Friendly, administration in the U.S. is pushing
Food-Safe, Fire Resistant and Bioderived for the greater use of biofuels. This
Lubricant Components. puts more pressure on raw materials
costs for ester base stock producers.
Discover more: zslubes.com “Some of the basic raw materials
for the oleochemical industries are
now heading toward the energy sec-
tor, being a basis for biofuels, some-
thing we have seen in Europe more
and more for quite some time,” Hof
said. “Here in Europe—and that has
led really to an extreme price hike in
tallow. Compared to a year ago, the
price of tallow doubled.”
In Europe, biofuels accounted for
almost two-thirds of imported palm
demand last year. European Union
lawmakers once championed palm
as a substitute for fossil fuels but
have since u-turned after it became
clear that deforestation to grow the
crop ran rampant. The EU said it will
phase out the use of palm in biodies-
el by 2030.
Elsewhere, governments are
driving the uptake of biobased
lubricants, such as oleo esters,
through schemes such as the EU
Eco Label; the U.S. Environmental
Protection Agency’s Vessel General
Permit, which mandates the use of
environmentally acceptable oils; the

U.S. Department of Agriculture’s Bio going to happen in the future.” “If you look back two years, there
Preferred Program, which mandates would have been two or three ester
affirmative purchasing for feder- Sustainability manufacturers at a conference. Now
al agencies to use bio-containing The growing appetite for sustain- it’s four, five, six,” Hof said.
materials; and the Securities and able, low-carbon raw materials and Does an oleochemical ester have
Exchange Commission, proposing reducing the industry’s reliance a smaller carbon footprint than its
and likely mandating companies put on fossil fuels could drive further petrochemical equivalent? Both are
their carbon footprint in all financial growth. collected, transported and pro-
documents, Miller explained.
Economics
The pressures on the market from
geography and government policy
are complicated by the effects of the
wider economy. With a global reces-
sion looming, the outlook for tallow
is uncertain, for example.
When times are hard, people cut
back on expensive foodstuffs such
as meat. Europeans tend to eat less
meat than Americans anyway, and
that may see tallow supply from
waste streams dwindling.
Hof explained that situations such
as the BSE cattle crisis in the U.K.
in the 1990s, as well as religious
dietary sensibilities toward animal
products have chipped away at the
market for tallow-based materials.
Even though tallow is still important
in Europe, producers and consumers
are less and less interested.
“The oleochemical industry has
made a really important move broad-
ly to things that are more plant de-
rived. Why? Because it’s scalable,”
Downey said.
Scalability is key. Before switching
to its current capability to choose
whatever plant-based material, Novvi
was fermenting sugar, which had
less scope for ramping up.
That said, supplies of locally
sourced triglycerides from plant-
based raw materials from Europe,
such as rapeseed and sunflower, are
currently under threat, too. Ukraine
and Russia were the main exporters
of both plants.
“I see big problems right now,” Hof
said. “Nobody is able to tell what is

”The oleochemical business is a bit different. There

have always been oleochemicals that have fed the lube
business, but lubricants are such a small piece of the
chemical pie.”
— WILLIAM DOWNEY
NOVVI
cessed, often a considerable distance over carbon footprint is supply chain fication in maybe two or three years.
from the source. Both are distributed stability. “Especially for manufacturing Unless, of course, the whole process
to buyers, have a use phase and then companies, of high importance is is even more sped up than before.”
are disposed of or regenerated. The security of supply,” Hof said. As an ester supplier, Emery is also
fact that plant-based esters are from We are still living through the feeling the push toward e-mobility
renewable sources doesn’t make economic slump of the COVID-19 from its customers. And there are
them sustainable, per se. pandemic. China, the world’s larg- opportunities for ester-based thermal
“From that perspective, sustainabil- est consumer of chemicals, was management fluid producers.
ity is not simply saying it’s renew- effectively closed for business, while “What type of technology they’re
able,” Hof said. “Everybody knows cargoes of raw materials couldn’t going to use in these fluids, which are
about the problems with palm plan- reach Europe. It’s also easy to forget going to be developed specifically for
tations. How the rainforest is being the chaos caused by the blockage of electric vehicles? Nobody knows yet,”
eroded just to plant more palm trees, the Suez Canal. The aftermath was Hof said. “You can see a lot of esters
and then you have to transport this felt well into 2022, Hof said. manufacturers are entering that mar-
stuff to Europe, further increasing the He added: “If you are controlling a ket and promoting their technology
carbon footprint of these materials.” bigger part of the value chain, or the for electric vehicle fluids.”
Hof posed the question: Is a fatty supply chain, it gives you a benefit While oleochemical manufacturers
acid imported by ship into Europe and might even give you an edge in are indeed tossing their hats into the
from Indonesia more sustainable than the market in the long run.” lubricants ring, Downey explained
a fatty acid produced in Europe from that the lubricants industry still
local crops? E-mobility requires relatively little from oleo-
“Now, more and more this question E-mobility’s effects on the lubri- chemical suppliers. “If you cut the pie
will come into play,” he said. cants industry are becoming more no- of lubricant base oil, you find that the
This may also tip the balance ticeable. Foremost, electric vehicles lubricant business is the big piece,
toward paying the premium for local don’t need engine oil because they and then there’s a whole bunch of
production if there are back-end don’t have engines. What motors they other smaller pieces. The oleochem-
benefits to securing sales based on do have also require less machining ical business is a bit different. There
sustainability performance. and therefore less metalworking have always been oleochemicals
Biosynthetic Technologies uses fluid—one of the mainstays for oleo- that have fed the lube business, but
castor from India, and Miller would chemical esters. lubricants are such a small piece of
argue that supporting the castor This double whammy could be dev- the chemical pie,” he said.
farmers and helping communities out astating for biobased ester lubricant
of poverty is a fair trade. companies.
“This is the groundswell of sustain- “It will be very difficult, but I’m not SIMON JOHNS is an
ability,” Miller said. “It’s all coming a lube manufacturer. I’m just the raw editor with Lubes’n’Greases.
Contact him at Simon@
together at this moment in time.” material supplier,” Hof said. “We’re
LubesnGreases.com.
To compound buyers’ concerns going to see the full impact of electri-
N
W E
S
By Sydney Moore
Trends in
Base Stock Trading
As technology, transportation and other factors have progressed and
become more widely accessible, the world has become significantly
more globalized. This increased globalization has, of course, led
to easier and increased trade of many commodities between the
nations, and the trade of base oils is certainly no exception.
But how exactly have base oil trading trends changed during the past
few decades, and what factors have forced these changes to occur?
David Whitby, chief executive of United Kingdom-based Pathmaster
Marketing Ltd., answers these questions and more.
Lubes’n’Greases: It oil manufacturing plants plants have occurred in ducing base oils (i.e. major
would seem that before has declined from 166 to Asia (up from 37 to 61), oil companies, state-run
one could understand how 147. At the same time, North America (down from businesses and indepen-
base oil trade has shifted the combined capacity of 32 to 18), Western Europe dent oil companies) shifted
in the past several years, these plants has increased (down from 29 to 17) and in the past 30 years? If so,
it would be vital to first un- from 47.13 million metric the Middle East (up from 7 what factors have prompt-
derstand how production tons per year to 60.26 mil- to 15). ed that shift?
capacity in the world’s var- lion metric tons per year. Whitby: During this peri-
ious regions has evolved. This is because a number Lubes’n’Greases: Simi- od, a significant number of
So how has base oil pro- of older, smaller and/or larly, it seems as if the type state oil companies have
duction capacity shifted less economically efficient of companies producing been privatized, leading
since the 1990s? What are plants have been closed, base oils would likely have to a growing number of
some of the main reasons while a number of much the potential to affect the independent and non-oil
for this shift? larger new plants have trade of their products in major manufacturers of
Whitby: Since 1993, been built. The biggest one way or another. Has base oils. The exceptions
the global number of base changes in the number of the type of company pro- Continued on Page 20

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Continued from Page 18
are the state oil compa-

nies in China and Russia, Global Base Oil Trading Patterns
which have built a number
of new base oil manufac-
turing plants. For example,
the manufacturing capaci-
1995
ties of the Chinese base oil
producers has increased
from 4.27 million metric
tons per year in 2005 to
7.41 million metric tons
per year in 2022. The oil
majors—notably Shell,
ExxonMobil and Chev-
ron—have maintained a
presence in manufactur-
ing base oils, while BP
and Total have exited this
business. Globally, the
manufacturing capacities
of independent base oil
producers have increased
from 14.21 million metric 2022
tons per year in 1993 to
35.59 million metric tons
per year in 2022.
These changes have oc-
curred mainly as a result of
the privatizations of former
state oil companies, partic-
ularly in Asia, South Amer-
ica and Central Europe, as
well as the growth of the
market for base oils and
lubricants in Asia. Shell,
ExxonMobil and Total con-
tinue to manufacture base
oils because this is import-
ant for their manufacturing
Source: Pathmaster Marketing
and marketing of finished LubesnGreases.com
lubricants. changed significantly from suppliers, either within their base oils used in various
1995, when Western Eu- region or from a different lubricant applications has
Lubes’n’Greases: What rope was a major exporter region. Freight rates and changed over the past
do regional and global base of base oils to all other ship availability have be- several years. For instance,
oil trading patterns look regions. Now, base oils are come additional factors in Group III base oils have
like right now? How do widely traded—both within the costs of procuring base become very popular in re-
they differ now from years regions and between them. oils, too. gions like the United States
previous? As a result, buyers of base and Europe for automotive
Whitby: Global trading oils are now able to obtain Lubes’n’Greases: It is applications. Is one type
patterns for base oils have them from several potential clear that the types of of base oil (Group I, II, III,

“No single type
of base oil is more to catch up now. Use of
widely traded than synthetic base oils in Africa
has only started recently.
the others.”
In recent years, more mar-
keters of lubricants based
— DAVID WHITBY in Group III base oils have
PATHMASTER been describing them as
MARKETING having “synthetic perfor-
mance.”
It is also worth noting
etc.) more highly traded that the world’s major
than the others? Does this manufacturers of lubricant
depend on the region? Are additives are based in ei-
synthetic base oils increas- ther Western Europe, North
ing in popularity around America or Singapore, so
the world, or just in certain these regions are the major
regions? exporters of these materi-
BASE AND
Whitby: No single type als to the rest of the world.
of base oil is more widely
traded than the others. Lubes’n’Greases: Of
PROCESS OILS
Group I base oils continue course, biobased base
to be exported from West- stocks are increasingly
ern Europe, while Group becoming a topic of con-
IN FOCUS
III base oils are exported versation in the lubricants
from the Middle East and industry as companies are
South Korea. Group II base placing a greater empha-
oils are exported from the sis on their sustainability
United States, Canada, efforts, but biobased base
Singapore and South Ko- stocks are still quite the
rea. Africa and Central and niche product. Why are
South America are signifi- base oils made from plant
cant importers of all types materials more scarce and
of base oils. All types of seldom traded than their
base oils are traded within mineral oil counterparts?
each region. Might this situation change
Synthetic base oils—such in the coming years?
Whitby: Base oils manu-
We supply oils for
as polyalphaolefins, esters
and polyalkylene glycols— factured from plant mate- your production
are being used increasingly rials are a small proportion
in all regions. Western of the global base oils Group I, II, III, IV (PAOs), V Tint
Europe started this trend in business because there are
the automotive lubricants insufficient sources of raw Process and Tint
market in the 1990s, and materials. Unless biobased Low Viscosity Oils
North America, Japan and materials are manufactured
Australia began to follow from waste agricultural Specialties Tint
suit about twenty years materials, they need to
ago. Asia, Central and
Eastern Europe, the Middle
compete with foodstuffs
for raw materials. Al-
www.mogoil.com
East, and Central and though more attention is
South America have begun being paid to the use of

Main Base Oil Exporting Countries, 2022 Main Base Oil Importing Countries, 2022
Region Country Main Base Oil Groups Region Country Main Base Oil Groups
France I Belgium II, III
Germany I Germany II, III

Western Europe
Italy I Netherlands III
Western Europe
Netherlands II UK II, III
Spain I, III Central & Eastern

All countries I, II, III
Europe
Sweden V
Canada II, III
Central & Eastern North America
Russia I, II, III
Europe United States III
Canada II, III
North America South America All countries I, II, III
United States I, II, II+, V
China III
Bahrain III
India I, II, III
Middle East Qatar III Asia
Singapore III
Saudi Arabia I, II
Other countries I, II, III
Singapore I, II
Africa All countries I, II, III
Asia South Korea II, III
Oceania All countries I, II, III
Malaysia II, III
waste agricultural materials terns of base oil trading are events—such as the Europe each year. Russia
as feedstocks for biobased unlikely to change much COVID-19 pandemic is now desperately seek-
lubricants, a growing global over the next few years, ex- or Russia’s invasion of ing alternative markets
human population is likely cept for the export of base Ukraine—affect these in Asia, Africa and South
to put greater pressure on oils from Russia. Base oils patterns for base oils in America, but it will face
the supply of foodstuffs are likely to continue to be particular? much higher transportation
and the land upon which to traded widely, both within Whitby: As a con- costs now. As a conse-
grow them. and between regions. This sequence of Russia’s quence, it will have to
is because the properties invasion of Ukraine and incur significant discounts
Lubes’n’Greases: The and performances of each the sanctions applied by to base oil prices in order
base oil and lubricants in- of the main types of base Western Europe, the Unit- to compete with more
dustry has never been stat- oils are well understood, ed States, Japan, Australia local suppliers in and to
ic and likely never will be so having several potential and Canada, Russia is now these regions. This could
because it must evolve to suppliers has proven to be unable to export base oils continue for several years,
keep up or even get ahead advantageous for buyers’ to the countries that have if not permanently.
of new technology. Similar- supply chain flexibility and applied sanctions. Russia Other geopolitical events
ly, it seems like the trade of stability. used to export around one could disrupt base oil
base oils would also need million metric tons of base trading patterns in the
to evolve to keep up with Lubes’n’Greases: oils to Western and Central future.
changes in the world econ- Trading patterns are more
omy, etc. Based on current often than not affected
patterns, how might base by geopolitical events, SYDNEY MOORE is managing editor of Lubes’n’Greases
oil trading patterns evolve such as wars and elec- magazine. Contact her at Sydney@LubesnGreases.com
in the coming years? tions of political leaders.
Whitby: The current pat- How might geopolitical

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By Sydney Moore
Base Stock Production

in Latin America
It’s no secret that base oil production capabilities in
Latin America lag far behind those of powerhouse regions Is that demand being filled domes-
like North America and Asia. But market dynamics are tically, or are other regions helping to
meet the country’s base oil needs?
constantly shifting, and there is no surefire way to know in
According to Chatterjee, about half
which direction the winds of change may blow. Might Latin of Brazil’s base oil comes from other
America be on the cusp of increased production capacity, or regions, while nearly 35% is pro-
will its base oil output dwindle, forcing the region to import duced domestically and 15% comes
from rerefiners. The country’s vol-
larger volumes of base stocks from other locations?
ume of imported base oil rang in at
about 550,000 cubic meters in 2021.
F
irst, it’s important to examine cidentally caused demand for base Brazil has capacity to produce 12,950
what market demand for base oil to dip, and refineries around the barrels per day of Group I base
oils currently looks like across world—Latin America included— stocks, 1,550 b/d of Group II and
Latin America. Industry experts— were forced to taper off their produc- 1,290 b/d of naphthenic base stocks,
Brad Chatterjee of Superbasicos, tion volumes for a time. according to Lubes’n’Greases 2022
Angelo Cozzolino of Acelen and Luis Is demand in the region now on Global Base Stock Plant Guide.
Gamez of Gheco Trading—agreed the road to recovery? Most signs So what does the future of base
during a panel discussion at the point to yes. But the region suffered oil production look like in the re-
ICIS Pan-American Base Oils and a bit of a setback when Russia gion? While it is impossible to know
Lubricants conference in Jersey City, invaded Ukraine in February 2022, for sure, Chatterjee predicted that
New Jersey, last December that the beginning a war that is ongoing even factors such as global and domestic
region has a strong appetite for base a year later. Sanctions placed on base oil pricing, logistical compli-
oil, mostly due to high demand for Russian goods by European coun- cations and higher freight rates will
automotive lubricants in countries tries as well as the United States hold production steady with current
like Brazil and Mexico. In fact, Brazil managed to put a wrench in oil and levels and that the region will contin-
was the fifth largest consumer of fin- gas trading dynamics, and no one ue to import large volumes of base
ished lubricants in the world in 2021. region has been completely immune oil to fulfill its needs.
However, like every other region, to the supply issues.
Latin America was hit hard by the Despite these roadblocks, though, SYDNEY MOORE
COVID-19 pandemic in 2020, which Chatterjee said that demand for is managing editor of
caused a sudden and sharp drop base oil in Brazil—one of the region’s Lubes’n’Greases magazine.
in personal driving as well as the key markets—has grown in recent Contact her at Sydney@
transportation of goods. This coin- months. LubesnGreases.com

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AUTOMOTIVE
AUTOMOTIVE LUBRICANTS NORTH AMERICA
How Many Years Do

Quick Lubes Have Left?
Recently, I received a note from a reader. He is a quick lube
owner who asked me what I thought the quick lube market
would look like in the next 10-20 years. Well, a question like
that is like feeding red meat to a hungry lion! I have been
active in the industry for nearly 60 years, and in that time
I don’t think there have been any changes that even ap-
proach what the oil sales and service business is facing
right now. It would be an understatement to say that he
asked a very good question.
S
ince life is never simple, ger cars and light trucks. The average
obviously, there is more than age of this fleet is around 12 years.
one opinion. There are the This means that there will be lots of
passionate environmentalists who opportunities for quick lubes to sell
believe that internal combustion oil changes and other services.
engines (ICEs) should be immediate- Although the fleet will continue to
ly banned. On the other hand, there grow in size, ICEs will begin to be
are some who believe (or hope) that replaced by EVs. I think the speed
this is a passing fancy and sanity will at which this will occur depends on report Published December 8 last
return along with better ICE technol- the cost differential between the two year. In that report, the ATRI noted
ogy. I think the reality is somewhere technologies. Currently, the aver- that electrifying long-haul truck runs
in the middle, so here’s my take as a age EV costs about $20,000 more alone on today’s roadways would
“middle of the roader.” than a comparable ICE, and that will require about a tenth of the nation’s
The most recent marketing studies continue to be the case for a while. power generation. What’s more, in-
suggest that ICEs will continue to be However, legislation at the state and stalling charging equipment at truck
the dominant engine/vehicle com- federal level will tilt the playing field parking stops across the U.S. could
bination of choice, but there will be toward EVs. cost upwards of $35 billion, which is
more inroads from electric vehicles Shifting all vehicles to battery elec- based on a per-unit cost of $112,000.
until the mid- to late 2030s. In North tric vehicles would demand more In another report, the cost of lith-
America, the vehicles currently in than 40% of the country’s electricity ium batteries has risen due to infla-
operation (referred to as VIO) number production, the American Transpor- tion and scarcity to $151 per kilowatt
somewhere over 300 million passen- tation Research Institute noted in a hour. Most engineering reports indi-
cate that $100-$110/kWh is required
STEVE SWEDBERG is an industry consultant with over 40 years experience in to be cost competitive with ICE
lubricants, most notably with Pennzoil and Chevron Oronite. He is a longtime member vehicles. Right now, most EVs will
© APHITHANA
of the American Chemical Society, ASTM International and SAE International, where require batteries delivering 95 kW/hr.
he was chairman of Technical Committee 1 on automotive engine oils. He can be If you do some back of the envelope
reached at steveswedberg@cox.net. calculation, you can see that battery

hydrogen and biofuels as alternatives test should replace the Sequence VI.
to gasoline and diesel fuels. The Sequence IX is being consid-
Since ICEs in the U.S. will rule for ered for revision to include a sea-
the next 15 years at least, oils will soned oil to test for its impact on
continue to evolve to meet improved low-speed pre-ignition.
engine design demands. You may In addition, the Sequence VIII is
not be aware of the fact that the next being evaluated for continuing use. It
generation of diesel and gasoline en- is a single cylinder, research engine
gine oils are underway now. API GF-7 that measures copper and lead
is currently under development, with bearing corrosion as well as viscosity
a targeted introduction date of 2027. loss due to viscosity index polymer
Likewise, PC-12 heavy-duty engine shearing. The test is very old, (World
oil standards are slated for about the War II era) and there should be some
same timeframe. other test—either an engine test or
The last time this happened was a laboratory procedure—that can
when GF-6 and what became API analyze the oils.
CK-4 both were developed for intro- Heavy-duty engine oil is being up-
duction around 2017. However, due graded as well. The proposed catego-
to the complexity of GF-6, it didn’t ry currently known as PC-12 is getting
make its introduction until 2020. new oxidation and deposit tests.
There were a lot of hard lessons When I started in the business, the
learned, and the hope is that the tim- primary viscosity recommendation
ing will be better this time around. was SAE 30 or SAE 10W-40. My
Almost without question, changes most recent vehicle is a 2020 Honda
to these oil categories are driven by Pilot with a 3.5-liter V-6 engine. The
outside forces—the most notable of oil viscosity recommendation year-
packs are pretty expensive.
which is increased and more restric- round is SAE 0W-20. That is really
There will also be some applications
tive government regulations. Both significant when you know that I live
that may never be converted to solely
new categories bring some visible in the Phoenix, Arizona, area.
electric power. These applications will
and invisible changes. For GF-7 Fuel economy is the major driv-
require oil changes, which will be-
(gasoline-fueled engine oils), there ing force for that recommendation.
come highly specialized. Surprisingly,
is the continuing push for better fuel Apparently, it works, because I’m
electromotive vehicles will continue
economy. averaging over 25 miles per gallon
to use ICEs to generate electricity
In the past, the fuel economy test over about 25,000 miles. In that vein,
to power electric motors, such as
(all iterations of the Sequence VI) has GF-7 will include SAE 0W-8 and SAE
those found in large scale mining
been run using an engine that is run 0W-12 to go along with SAE 0W-16.
equipment, railroad locomotives and
through a specific cycle—first with a On the heavy-duty side, SAE 0W-20
marine applications. Other applica-
reference oil, then with the test oil. will be included. This grade has been
tions include emergency generators
The difference in fuel economy is in use for several years in Europe
to provide electricity in critical applica-
measured and reported as a percent and has been met with success.
tions, such as hospitals and to charge
improvement. The Japanese have Oil change intervals are holding
first responders’ EVs.
developed a test that measures the steady at about 6,000-7,000 miles.
Of course, you may be asking, what
consumption of fuel in a fired en- I’m sure you’ve seen the extremes
will fuel these applications? That still
gine. There is a discussion underway on this one. People tend to push the
remains to be seen, but there is a lot
as to whether or not the Japanese interval. I have spoken to operators
of work going on to use natural gas,

AUTOMOTIVE
who have literally mined gelled oil Base oil selection will drive all en- some of the larger players are acquir-
out of engines! I am also aware of gine oil formulations toward increased ing smaller businesses. This concen-
those cautious individuals who still use of synthetics to capture the im- trates the quick lube segment of the
accept the 3,000-mile or three-month proved viscometrics as well as other auto parts service marketplace.
rule of thumb and say that it is cheap less visible properties. Highly refined The bottom line is that things look
insurance. But with the cost of oil Group III and III+ will become more pretty good for the next several
and all the expenses tied to quick common in passenger car motor oil. years. The number of VIOs in service
lubes, it isn’t very cheap anymore. As you can see, the future will will still grow, but ICEs will begin
While the oil change intervals are be very challenging for engine oil to be replaced by EVs. The smart
about the same, the oxidation limits production. Beyond the technical vehicle owners will begin to look for
are changing to reflect more stable engineering, I think that we will see products and services for EVs. Some
oils, which will positively affect fuel significant changes in marketing. enterprising organizations will de-
economy. Oil chemistry—including Business 101 tells us that as the velop heavy-duty versions to service
finished oil ash content and benign marketplace becomes more mature, those ICE applications that don’t lend
elemental chemistry (exhaust catalyst cost will have a greater and great- themselves to EV operations. So if I
protection)—will be included. On the er influence on sales. Technology, were a betting man, I’d say that quick
flip side, there may be restrictions on while very appealing, will give way to lubes and other oil service organiza-
composition in order to make it easier good products at reasonable costs. tions will continue to be profitable
to dispose of used oil. In addition, The marketplace will be captured and necessary for at least the next
there may be growth in used oil by large organizations that can be 20 years, so go out and capture what
rerefining to capture as much of the profitable and eliminate smaller orga- you can and be innovative in your
useable used engine oil as possible. nizations. I have noted recently that business practices. Good luck!
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BEST PRACTICES
BUSINESS WORLD
Learn from your Regrets

I came across Daniel Pink’s most recent book, “The Power ties that could have opened the door
of Regret: How Looking Backward Moves Us Forward.” You to more success or fulfillment. Later,
you wonder, “What if I had taken that
may recall that he is also the author of “Drive: The Surprising
overseas job? What if I had started
Truth About What Motivates Us,” which I have recommend- that new business? What if I had put
ed in a previous article. Pink’s most recent book draws on my name in the ring for that project
research he has done on the topic of regret, and he identifies leadership job?”
four core categories of human regret: foundation regrets, Moral regrets are decisions in
which one has taken the low road
boldness regrets, moral regrets and connection regrets. rather than the high road. Business
examples might be taking more
L
et’s take a look at what he it would have given me a better credit than was due for some busi-
means by each of these and understanding of business and ness success, allowing personal bias
how you might use this insight prepared me more deeply for man- to influence a personnel decision,
in your work life. agement jobs.” Another example or presenting data in a one-sided
Foundation regrets have to do could be if you have moved quickly way in order to secure funding for a
with not putting in the work neces- from job to job in your career with- project you support.
sary to learn something, thus laying out learning sufficiently from those Connection regrets are situations
the foundation in your life on which experiences and then finding later in which one has ignored or subju-
to build more difficult or higher-lev- that you could have plumbed these gated personal relationships. Work
el pursuits. An example would be if experiences more fully. examples may be situations where
you say to yourself, “I should have Boldness regrets are related to not you have failed to create positive
gone for an MBA after college; having taken chances on opportuni- team dynamics through inattention,
where you have relied heavily on
© Alberto Andrei Rosu
SARA LEFCOURT of Lefcourt Consulting LLC specializes in helping companies to email and avoided calls or one-on-
improve profits, reduce risk and step up their operations. Her experience includes one meetings due to limited time, or
many years in marketing, sales and procurement, first for Exxon and then at Infineum, where you have avoided the at-
where she was vice president, supply. Contact her at saralefcourt@gmail.com or tempts of others to reach out to you
(908) 400-5210. to strengthen your relationship.

BEST PRACTICES
In my experience at work, I felt that I saw a lot of

examples of people making decisions that might
later result in boldness regrets.

What is the point of thinking about about what the opportunity could of- you feel a foundation regret related
these different types of regrets? The fer, as opposed to negative thinking to the college you chose to attend,
key point is to think more carefully about the barriers and deficiencies. the course of study you followed,
when you are faced with a signifi- With regard to moral regrets, I or your choice of job or career path.
cant decision in order to avoid those think you will agree that these are In some cases, it may be too late
feelings of regret later. It is also useful the type most likely to haunt you to correct; however, I suggest that
to look back at those decisions you and are never worth it. The key here you may be overstating the impact
made some time ago that have re- is simply doing the right thing. Of of this perceived deficiency. In my
sulted in regrets. What can you learn course, there may be situations experience, performance on the job
from those decisions? How can those where “the right thing” is not entirely was always counted more heavily
learnings inform future decisions? clear. In such cases, I suggest you than where you went to school or
In my experience at work, I felt that seek advice, perhaps from your hu- the particular degree you may have
I saw a lot of examples of people man resources department or from a gotten or didn’t get.
making decisions that might later trusted colleague or friend. If, however, there is a real deficien-
result in boldness regrets. We had I feel like I have some connection cy in your resume (such as you didn’t
a job posting system in some of the regrets; I perhaps could have worked finish your college degree, or your
places that I worked, and I was often harder over my career to create more degree wasn’t sufficiently technical,
frustrated to see openings get post- trusting and durable connections at etc.) it may be prudent to consid-
ed for which no one applied. I would work, especially with colleagues in er your options. Could you take a
sometimes go to certain colleagues other departments. Company culture career break and fill in the gap? Or
and encourage them to post, as I does play a part in the way it encour- could you talk to some people in
thought the opening would be a ages or discourages collegial con- your company to understand realis-
good career move for them. Often nections; however, I believe people tically what career paths are open to
I would get explanations such as, “I can stand above negative aspects you with the credentials you have?
don’t have all the experience or skills of company culture. Not only does Perhaps the key point with respect
that the posting is requesting,” or it feel good to establish strong and to a foundation regret is to deal with
“I am afraid I wouldn’t get the job.” positive work connections, it can be it early, rather than many years later
I once encouraged an employee to helpful in your career as well. Par- when your ability to change course is
post for a supervisory job, and she ticipation in mentoring programs is very limited or non-existent.
told me she had a poor opinion of also a good way to establish positive It doesn’t seem possible to get
management in general and didn’t and fulfilling work connections, as through life or work without some
want to become that type of person. is getting to know people outside of regrets; however, with reflection on
I encourage readers of this article to work through social activities. the nature of regrets, perhaps you can
evaluate opportunities with a more Foundation regrets are hard to make decisions that will result in fewer
open mind and think more positively see from the outside, but perhaps regrets or ones with lower impact.

PACKAGING WORLD
PACKAGING OF THE
PAST
PRESENT
AND FUTURE
There is a never-ending effort to improve

motor oils. Companies and organizations
year-round work to identify the benchmarks
needed to meet the demands of the modern
engine, then formulate a product that meets
or exceeds those specifications. Scores of
© ifriday; dpullman; Mr.Ilkin; dicutservice; Dmytro; Andrey
groups are also working on the materials that

contain those lubricants. The design needs of
lubricant packaging ranges from ergonomics
to sustainability to cost-saving measures.
By Will Beverina

H
ow far have board can requires an oil it’s too fragile, it’s too
we come, spout to open the contain- heavy. It’s hard to deal
where are er, and possibly a funnel with,” he continued. “Alu-
we now, and to pour it into the crank- minum is too fragile. Steel
where are case, the article explained. probably would work, but
we going Meanwhile, plastic bottles it’s expensive, most eco-
with lubricant packaging? have screw-top lids and nomical in a round contain-
Packaged engine oil can a long neck for an easier er—which isn’t very user
be traced back to the early pour. friendly—and you have to
20th century, when it was Specifically, modern lu- have some other device
contained in cylindrical bricant packaging is most- that allows you to help you
tin cans. By the mid-20th ly made of high-density pour it.”
century, oil cans came polyethylene, or HDPE, Beyond its end use as a
in all shapes and sizes. which is also used in milk motor oil bottle or bottle
Cardboard cans were intro- jugs and water bottles. of detergent, HDPE has
duced, the first iterations Steve Ruble, principal a relatively low melting
of which had a cardboard packaging engineer at Val- point, is easily processed
body with a metal top voline, joined the company and is highly recyclable. “If
and bottom. Later, these as it developed the second recyclers handle it proper-
types of containers were iteration of its plastic bot- ly, it has an extremely long
fully made of cardboard. tle design in 1995. He has life cycle,” Ruble said.
Aluminum was also used. been part of six different Another area where
At this point, companies iterations since then, and HDPE shines is coloring.
were selling their products all have used HDPE. The motor oil aisle at your
in cylindrical, square and Why HDPE? Simply put, local auto parts dealer will
rectangular containers, HDPE provides several be the most colorful in the
which could range from advantages over other store. Castrol and Quaker
half a gallon up to five-gal- materials. State’s products can be
lon volumes. “It is a lightweight prod- found in highly recogniz-
The first plastic con- uct. It’s unbreakable. It able green bottles, Penn-
tainers would come soon keeps the product out of zoil’s in yellow, and most
after. A Los Angeles Times the environment and the sellers will have mainline
article from 1985 docu- environment out of the and specialty brands that
mented Quaker State’s product. It really is the can come in black, white,
transition from cardboard perfect solution for gold, silver, red or blue.
cans to plastic containers. motor oil,” Ruble told Despite its utility, the use
Adding motor oil to an Lubes’n’Greases. of plastic has come under
engine from a tin or card- “Glass is too expensive, fire in recent years as
“We have experimented with a greater [recycled] content.

And we can make a pretty good bottle up to about 70%.
With all that said, there are some downfalls with going
too high with post-consumer resin. But the biggest one
really is cost.”
— STEVE RUBLE
VALVOLINE

®
sustainability efforts in all emptying of the bottles,

industries has ramped up.
“People who want to get
which it also says are
100% recyclable. These Argus Global Base
rid of plastics completely
don’t understand the val-
kinds of design features
are constantly studied by Oils Conference
ue,” Ruble said. packaging divisions.
The only downside to Making lubricant packag- 20-22 February 2023
HDPE that Ruble men- ing more sustainable is far InterContinental London, Park Lane,
tioned is that it does have from easy. Sustainability Central London, UK
a certain level of absorp- has become the key topic
tion, meaning the oil can of the lubricants industry
absorb into the walls of during the past few years,
the packaging, discoloring but it already affected
Bringing together the global base oils
it and making it harder to packaging design well industry for exclusive insights and first
process. However, this before that. California laws class networking in Central London!
process takes years. require that plastic contain-
In terms of ergonomics, ers are made of at least
Address key issues impacting the base oils market
when Ruble started in one-quarter recycled con-
including geopolitical shocks, global supply
1995 the bottle was more tent, meaning a blender is and demand, re-refined base oils, sustainability
angular and used a little more well-served making concerns, macroeconomics and more.
bit more plastic to make all their containers compli-
up the corners and edges ant rather than marking out
of the oil bottles. Now, specific bottles to be sold Visit the
bottles use softer transi- in California. website to view
tions in the constant effort Now, the average the agenda and
to make bottles lighter bottle can contain about expert speaker
weight, even by two or one-quarter to one-third of list!
three grams at a time. Go- recycled materials, but it is
ing even further back, the not as simple as increasing
industry realized an oblong that ratio.
bottle provided better pal- “We have experimented
ette utilization compared with a greater [recycled]
to circular packaging that content. And we can
left so much open space make a pretty good bottle
between the circles in the up to about 70%,” Ruble
palette. said. “With all that said,
Other practical design there are some downfalls
factors come into play, with going too high with
too. Independent blender post-consumer resin. But
Fuchs Group announced a the biggest one really is
new kind of small pack- cost.”
aging for engine oils in More states and coun-
late 2021, touting that the tries are adopting similar Host sponsor: Platinum sponsor:
bottles are “more gentle measures as California,
on resources” and that the making recycled material
shape of the bottle makes scarcer and driving up the
it possible to pour out price. While state legisla-
“even the smallest remain- tors are doing a good job www.argusmedia.com/global-base-oils-conference
ing volume of lubricant.” of passing these kinds of
According to the company, laws, they are not ade-
this allows for complete quately funding or support-

“The main challenges to using 100% PCR plastic is in
obtaining suitable quality and quantity of PCR. HDPE,
which is easily recyclable and used in PCR, is not
collected as consistently as polyethylene terephthalate, the company introduced
which is currently used in many plastic bottles.” 100% recycled plastic
bottles in India, which has
strict regulations requir-
— JACKIE POOLE ing companies to ensure
BP environmentally sound
management of products
ing the recycling industry coalition, and Ruble is its first pilot project last through the end of the
to process materials in an on one of the coalition’s August—a one-year study product’s life, including its
economical manner, Ruble working groups. The other covering over 40 locations packaging.
said. founding members are in Atlanta, Georgia, includ- The bottles are made
Instead, advancements Castrol, Pennzoil-Quaker ing retail stores, auto care solely from post-consumer
for sustainability in packag- State and packaging com- centers and quick lube plastic resins, while the
ing will more likely come panies Graham Packaging stations. The pilot aims to caps are still made from
from recycling the plastic and Plastipak Packaging. figure out and measure virgin plastic.
containers. However, it’s The biggest challenge is the economic and market “The main challenges to
a complicated process to that used lubricant bottles drivers for post-consumer using 100% PCR plastic
do so. contain residual oil that recovery and recycling, as is in obtaining suitable
The National Lubricant can affect the recycling well as to better under- quality and quantity of
Container Recycling Coa- process and make empty stand consumer waste PCR,” Jackie Poole, BP
lition is looking at ways to containers less valuable. disposal behaviors. media relations manager,
make that process easier. Most bottles end up in Castrol has made a cou- told Lubes’n’Greases in No-
Valvoline is one of a few landfills. ple of gains on the sustain- vember. “HDPE, which is
founding members of the The coalition launched ability front. In October, easily recyclable and used
in PCR, is not collected as
consistently as polyeth-
ylene terephthalate, which
is currently used in many
plastic bottles.
“Another challenge with
PCR is its odor—which we
have worked to avoid—
and that use of PCR can
influence the bottle’s
color and strength. All the
factors are dependent
on source and supplier
capabilities, both PCR and
blow-molding suppliers,
as well as the core bottle
design’s strength.”
The company said
© Parikh Mahendra N / Shutterstock.com
customers won’t incur any

additional costs to use
the bottles, though it did
decline to say if the recy-
cled resins cost more than
virgin plastic.
Additionally, Castrol
Mumbai, Maharashtra, India. Plastic recycle units in Asia’s largest slum. Last year, India passed legislation
prohibiting businesses from using single-use plastics to combat its plastic waste problem. announced a partnership
with packaging company

PPC SPRING MEETING
Pulpex in May 2021 to Will these kinds of efforts
March 5th-7th, 2023
design paper containers bear fruit, leading the way
The DeSoto
for use with Castrol’s for change in the industry?
lubricants. Pulpex has de- “It always changes;
veloped a technology that things always evolve,”
forms bottles from wood
pulp using 100% renew-
Ruble said. “Frankly, we’re
looking at other alterna- Savannah, GA
able feedstocks, and it tives, even if they’re only
claims that the paper bot- part of the market. And
tle offers a lower carbon I think everybody else is
footprint that is up to 30% going to follow suit to a
less than that of PET. certain extent. We still all
“We’re very excited to be must make money; we
working with Pulpex to ex- have to stay in business.
plore how their technology What we try to do is make
can be developed for lu- our companies profitable.
bricants as a replacement But with that said, with the
for our existing HDPE value proposition of HDPE,
bottles,” A.S. Ramchander, I think it will always be
Castrol’s chief marketing used in some form.”
officer, said in a news
release.
He continued: “This
is why I’ve been really KEYNOTE
SPEAKER:
According to Pulpex’s active in and was a huge
website, the bottles are advocate of starting the
formed by pressurizing [NLCRC]. I know that the
pulp in molds using highly current packaging is the
advanced technology. The best for our industry. As an
pulp containers are then industry, we must figure Jim “The Rookie” Morris
cured in microwave ovens it out, because we can’t Motivational Speaker and Author
before being sprayed count on a municipality or
internally with specialized somebody outside of the Technical Sessions:
coatings designed to be industry understanding • Flame Jetting and ASTM
F3429
compatible with the prod- what value we can bring. • Soft Skills/Quiet
ucts they are holding. The So we need to create that Quitting/Employee
Retention
company said it doesn’t system to be able to col- • Trucking Challenges
use perfluoroalkyl and lect it, to recycle it, to re- • Print Technologies 101
Panel
polyfluoralkyl chemicals in use it and get it back into • Regulations & Legislation
its packaging. our consumers’ hands, so
PPC College
The bottles may be recy- that we are all satisfied Networking Opportunities
cled the way paper prod- that we can provide a Meet with current
cur and potential
customers
ucts are typically recycled, good product to our cus-
the company said, and tomers and we know that
are designed to naturally that we can be good stew-
degrade if they are not ards of our environment
recycled or disposed of and meet any challenges
properly. thrown at us.”
WILL BEVERINA is assistant editor for Lubes’n’Greases.

Contact him at Will@LubesnGreases.com www.PPCouncil.org
949-369-7102

Places’n’Faces
Petrobras Group II The company said the develop- streaming by December 2022, but the
Plant Plans Progress ment of the GasLub base oils and facility completion was pushed back
Petrobras chose a concept on Dec. fuel plant is part of Petrobras’ strate- to an unspecified date in 2023.
22 for the base oil and fuel produc- gy to expand and upgrade its refining “This would be one of the largest
tion units of its GasLub hub in Itabo- facilities to delivery higher-value-add- Group II and Group III base oil plants
rai, Brazil, and gave the go-ahead for ed and higher-quality products to [in Russia],” Anatoly Skoromets,
detailed engineering studies of those serve the market. general director of Gazpromneft-Lu-
aspects of the facility. Petobras said the new plant will bricants, told the Russian media
The drawn-out project is located in also make it possible for it to appro- Nov. 24. “It will allow us to add about
an area of Rio de Janeiro. The select- priately and profitably use a large 220,000 tons of contemporary syn-
ed concept calls for an API Group II proportion of the facilities and units thetic base [stocks] for production of
base oil plant with capacity to make of the former Comperj (Complexo highly technological oils.”
12,000 barrels per day plus a 75,000 Petroquimico do Rio de Janeiro), He said that the plant is now
b/d diesel unit and facilities that can thereby enabling the processing of scheduled to start streaming in 2023.
make up to 20,000 b/y of very low intermediate streams originating from The move will help the company,
sulfur kerosene aviation fuel. a refinery at Duque de Caxias, Brazil. a major Russian lubricant marketer,
The base oil plant would include to completely replace imported base
catalytic hydrocracking, hydrotreat- Gazprom Group II and III oils in its manufacturing of finished
ing and hydrogen isomerization Plant Nearly Complete lubricants.
© Donatas Dabravolskas / Shutterstock.com
dewaxing units. Gazpromneft-Lubricants’ new

The company now moves into 220,000 metric tons per year API Canada Proposes
development phases, starting with Group II and III base oil plant is Tall EV Mandates
basic engineering studies needed for almost completed, with assembly Canada’s Environment Ministry
project planning. According to Petro- works about to wrap up and prepa- proposed an ambitious schedule of
bras’ project approval governance, the rations being made for prelaunch mandates for car makers to quickly
conclusion of the planning phase will testing, the company said recently. increase the portion of their sales
lead to the final investment decision The $424 million base oil plant, lo- that are electric vehicles.
and the contracting process for the cated at Gazprom Neft’s refining com- Contending that Canadians want
start of work on the project. plex in Omsk, was scheduled to start clean vehicles and clean air, Environ-

ment Minister Steven Guilbeault pro- beault said regulations with teeth are in Pittsburgh, but it has subsidiaries
posed that plug-in hybrids and pure necessary to accelerate the uptake of in Canada, Europe and China.
battery-powered models be required EVs. His proposal would require every In a Dec. 14 news release, Fuchs
to account for at least 20% of sales by carmaker selling vehicles in Canada said its goal for the partnership is to
2026 and 100% of new cars by 2035. to ensure that BEVs and PHEVs ac- increase its sales to the rail industry
Meeting those targets would require count for at least a minimum percent- in North America and to expand sup-
a rapid ramp-up by automakers, and age of nationwide sales. After 20% ply of such products internationally.
the proposal would for the first time in 2026, the threshold would rise to “Through this partnership, custom-
attach penalties at the national level 60% in 2030, and all new cars would ers in the rail industry can now pur-
for companies that do not meet them. need to be electric by 2040. chase all their lubrication solutions
A big increase in the country’s EV and services from a single source,”
population would reduce Canada’s Fuchs Aligns with Fuchs Lubricants Co. CEO and Pres-
lubricant demand, since electric mo- Foster for Rail Industry ident Keith Brewer said in the news
tors do not use engine oil, the larg- Fuchs Petrolub and L.B. Foster Co. release.
est lubricant product category. EVs have announced a strategic partner- Officials said Fuchs brings to the
do use new types of products, such ship to supply lubricants and friction partnership its expertise in lubricant
as battery coolants and lubricants management services to the rail in- manufacturing, along with a portfolio
that tolerate high electrical charges. dustry in North America and abroad. of greases and fluid lubes used by
Canada has had policies encourag- The partnership will be run through train operators. L.B. Foster contrib-
ing purchases of EVs but no national Fuchs’ United States subsidiary, utes offerings of services and equip-
mandates, although some provinces Fuchs Lubricants Co., which is based ment such as systems that apply
do mandate certain sales levels. Guil- in Harvey, Illinois. L.B. Foster is based grease to the top and face of rails.
h e wear protection
e t e-drive lubricants
av !
s te re-refining
da nguage resource conservation

life-cycle analysis
l a
ce bio-lubricants
en
f er
c on
International Conference
on Tribology and Sustainable Lubrication
Organized by
18. – 19. April 2023

Maritim Hotel Düsseldorf
www.nextlub.com Contact: René Löser · T +49 30 755 414 400 · loeser@uniti.de

ADVERTISER INDEX
Argus Media … 33 Briefly Noted

BAPCO … 15 China’s largest petrochemical refin- companies and associations have
ery, the Shenghong refinery, is now complained that the transaction would
Chevron Lummus fully operating, and maleic anhydride hurt competition.
Global … 19 and methyl methacrylates are among
the materials it is producing. Maleic Newly formed Deutschesol will
Elco Corporation … 28 anhydride is used to make lubricant distribute German blender Rowe’s
additives, and MMAs are used as sustainably manufactured lubricants
ELGI … 5 viscosity modifiers in lubricants. in the United Kingdom. Products will
be for the automotive and motorcy-
ICIS … 23 Swiss lubricants company Pan- cle, commercial vehicle, off-highway,
olin announced a name change to marine, industrial and agricultural
Laemmle Chemicals AG and that it sectors, and also for motorsports.
Lubes’n’Greases … 25
will change its oil brand name early
next year. These changes follow the Geljege Miras, a polymer products
Lubes’n’Greases transfer of its bio-lubricants division maker, has begun producing lubri-
Factbook … INSIDE BACK with the trademark rights to Shell in cants for cars and trucks at a blend-
COVER November. ing plant in Turkmenistan, a local
news organization reported recently.
MOGoil … 21 Last year’s purchase of the Lubnor The plant is located in the Ak Bug-
refinery by Grepar Participacoes will day district near Ashgabat, in Ahal
nextlub … 37 be reviewed by a Brazilian court after province, and will make a variety of
a judicial official advised that the deal products ranging from crankcase oils
Petroleum Packaging warrants scrutiny for its impacts on for internal combustion engines to
Council … 35 the country’s asphalt industry. Several hydraulic fluids.
Petronas … 13
S-Oil … 17
Faces in the News
Safety Kleen … BACK COVER
Pilot Chemical Co. announced the ly executive vice president of technol-
Sea-Land Chemical … 8 hire of Christian MacIver as pres- ogy, will succeed Matt Puz—who is
ident and chief operating officer, retiring—as president and CEO.
SK Enmove … 11 effective January 3.
Liqui Moly Australia Pty Ltd named
UNITI … INSIDE FRONT COVER Vincent Prinzing managing director,
succeeding Mark Johnson.
Zschimmer & Schwarz
Inc. … 14 French chemical company AFYREN
appointed Ursula Feulner as director
Christian MacIver
for industrial project management,
Léa Bassegoda as human resources
Daubert Chemical Co. Inc. an- director, and Christophe Dardel as
nounced that Mike Duncan, previous- strategic partnerships director.

NEW FACTBOOK 2022-2023 AVAILABLE
Get all the facts and

figures at your fingertips
The new 14th edition of the Lubes’n’Greases Factbook gives you Easy-to-read, useful
access to data and information reflecting the recent challenges to digital reference
the global lubricants industry, all in one digital guide. Up-to-date, transparent
information
Get the latest on the havoc caused by COVID-19, base oil production,
Saves you valuable
the additive shortage, record-high energy prices and much more. See time and resources
how the industry has shown remarkable resilience with information
that spans over decades on the markets that matter to you.
Quality Quality
Finished Mergers & Electric Assurance Finished Mergers & Electric Assurance Finished Mergers & Electric
nts Lubes 101 Base Oils Additives Lubes Acquisitions Engine Oil ATF Vehicles Grease Programs Contents Lubes 101 Base Oils Additives Lubes Acquisitions Engine Oil ATF Vehicles Grease Programs Contents Lubes 101 Base Oils Additives Lubes Acquisitions Engine Oil ATF Vehicles Grease
ectric Vehicles Contents Base Oils: Capacity

ese graphs from Lubes’n’Greases Electric Vehicles Insite, we see that EVs will Policy and Incentive Check Box
Asian base oil capacity has soared in the past decade. This growth can be partly Shifts in Global Base Oil Capacity
tually dampen demand growth for passenger car motor oil. PCMO volumes will
attributed to China’s share of global base oil capacity more than doubling in the
Canada China EU India Japan U.S.
inue to rise, though not as much as if internal combustion engines retained their Lubes 101 Base Oils Additives Finished Lubes past 10 years.
By Region
* *
inance in the car parc. Understand the basics of the Get a picture of global base oil U.S. market volumes for Worldwide and regional
Vehicle Regulations
lubricants industry, from base production capacity, regional additives as well as average snapshots of sales volumes Following a long-standing trend, there was a further shift away from API Group I
oil groups to principal additive trade flows and pricing. calcium and magnesium and profits for finished capacity to API Group II this year. The shift began in North America more than
chemistries. levels in modern engine oils. lubricants.
ernment policies and incentives are a major driver in the uptake of EVs. But even Vehicle Incentives 20 years ago, with Group II capacity more than doubling since 2000 and Group I
favorable incentives in place, common issues such as lack of charging infrastruc-
4 8 19 22 shrinking by more than 50%. 2012 2022
Total (b/d): Total (b/d):
and consumer attitudes still hinder growth. It remains to be seen if governmental Vehicle Targets *
can break down those barriers. North American Base Oil Capacity Shifts
Industrial Policies
ecast Impact of Non-ICE Vehicles on Passenger

Mergers & Acquisitions Engine Oil ATF Electric Vehicles
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
r Motor Oil Demand Charger Regulations Consolidation is an ongoing Key performance parameters, Learn about the complicated The rise of electric vehicles
* * * trend in the lubricants industry, viscosity trends and market automatic transmission fluid has been called a threat to
and a year’s worth of activity segmentation for passenger market in the United States. the lubricants industry, but By API Group
Potential demand lost to Charger Incentives * proves it. car and heavy-duty motor oils. how much of a disruption
non-ICE vehicles
28 31 38 will EVs be? 39
Global Passenger Car Motor Oil Demand
(millions of metric tons per year)
Charger Targets
United States * At state level in some states

Japan Source: International Energy
r Agency
rgy 2012 2022
Total (b/d): Total (b/d):
India
Europe
Quality Assurance
Grease Programs
China
Forecasted PCMO demand
PCMO baseline Explore lubricating grease Quality is top priority for lube
production by region and manufacturers. Use this guide
000 Barrels/Day
thickener type. to prove your product makes Total Total
Group I Group II Group III Naphthenics
2011 2020 2030 2040 2050 2060 the grade.
ive estimate of penetration by non-ICE vehicles, assuming implementation of all pro-EV regulations announced to date.
40 41
umes 7% vehicle scrap rate.
: PCMO Baseline: 2018 Kline data/Oronite analysis, with India & China growth adjusted lower for outer years.
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©2022 Safety-Kleen Systems, Inc., A Clean Harbors Company. All rights reserved.

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