Finished lubricants are pre-formulated fluids designed for direct application in engines, machinery and various industrial systems. These products are engineered to deliver specific performance attributes and other functional properties depending on the application, such as in close proximity with food or in the sea.
They are made from a wide variety of components, but essentially consist of a base stock combined with an additive package tailored to the end use.
- Base Oils: Constituting the majority of the formulation – typically between 60% and 98% – base oils are a lubricant’s foundation. These are categorized under the American Petroleum Institute’s classification system, each with distinct chemical and physical properties such as viscosity, sulfur content and saturation levels.
- Additives: The remainder of the formulation includes performance-enhancing chemicals, called additives. Common examples include:
- AntioxidantsAnti-wear agentsDetergents and dispersantsFriction modifiersCorrosion inhibitors
Application Areas
Finished lubricants are formulated for a broad range of equipment and operational demands:
- Engine oils: Help reduce friction, manage engine wear, combat corrosion and mitigate thermal breakdown in combustion engines in motorcycles, passenger cars and heavy-duty diesel engines.
- Hydraulic fluids: Transmit force and operate systems under pressure, commonly found in construction and industrial machinery.
- Gear oils: Protect gear systems operating under heavy loads or extreme torque.
- Compressor and turbine oils: Engineered to maintain viscosity and resist oxidation under high temperatures, especially in power generation settings.
- Metalworking fluids
- Specialty lubricants: Developed for specific sectors such as marine engines and food-grade applications.
Comparison with Greases
Though both lubricants and greases reduce wear and friction, their characteristics differ. Greases are semi-solid substances composed of base oil, additives and a thickening agent, called a soap. They typically have a lower additive concentration (0%-10%) but are designed for applications requiring better retention under pressure or in environments where liquid lubricants may leak or drip.
Base Oil Types and Performance
The choice of base oil influences the lubricant’s behavior in while in operation.
- Mineral oils (Groups I–III) are commonly used for general-use applications and remain cost-effective.
- Synthetic base stocks (Groups IV and V) include polyalphaolefins (PAOs) and esters, which deliver improved oxidation resistance, thermal stability and performance in extreme temperatures, but at a cost!
- Blended oils: Combine mineral and synthetic components to balance cost with enhanced performance.
Global Production and Supply Landscape
Lubricant manufacturing is generally carried out at blending plants situated near base oil facilities. Global producers include major oil companies and myriad independent blenders. For example, Shell operates more than 30 blending facilities for fluid lubricants, 10 grease-focused plants, and four base oil refineries globally.*
Major production and consumption zones include North America, Europe and the Asia-Pacific region, with China, India and Japan leading demand.
Market Trends
The lubricant industry is undergoing structural changes driven by both technological and regulatory developments:
- EV shift: Markets mostly in Europe and South Asia are seeing a gradual decline in demand for passenger car motor oils due to the rise of electric vehicles.
- Industrial growth: Demand for lubricants in manufacturing, metalworking and hydraulic systems remains strong, especially in regions like Japan, which saw record sales in 2022.
- Synthetic adoption: Synthetic formulations are increasingly favored in power generation and transportation for their longevity and energy efficiency.
- Sustainability: Suppliers are investing in renewable and circular economy practices, such as biodegradable formulations and the use of rerefined base stocks.
*According to Lubes’n’Greases reporting.