North America is a major global base oil–producing region, with total installed capacity estimated at 14.95 million metric tons per year, accounting for around 23% of global base oil capacity. The region has largely transitioned away from API Group I base oils and is now dominated by Group II, with significant and growing Group III production.
The United States accounts for the majority of regional capacity, estimated at approximately 13.26 million t/y. U.S. production is heavily weighted toward Group II base oils, with additional Group III output. Major US base oil producers include ExxonMobil, Chevron, Motiva, HF Sinclair (HollyFrontier), Phillips 66 and Calumet Specialty Products. Production is integrated into large-scale refinery systems, particularly along the U.S. Gulf Coast, supporting both domestic consumption and export markets.
Canada has base oil capacity of approximately 927,000 t/y, primarily Group II, led by PetroCanada and Safety-Kleen. Canadian production mainly serves domestic lubricant demand, with limited exports to the U.S.
Mexico operates base oil facilities with capacity of approximately 313,000 t/y, largely Group I, led by Pemex. Mexican production is focused on domestic consumption, resulting in growing reliance on imported Group II and Group III base oils.
Exports
North America is a significant net exporter of base oils, particularly Group II, reflecting surplus production capacity and strong refinery integration. The U.S. is the region’s largest exporter, shipping substantial volumes to Europe, Latin America and Asia-Pacific. Key exporters include ExxonMobil, Chevron and Motiva, supported by well-developed logistics and export infrastructure along the Gulf Coast.
Imports
Despite substantial domestic production, North America imports limited volumes of Group III and specialty base oils to meet specific lubricant formulation requirements. The U.S. imports Group III base oils primarily from South Korea, the Middle East and Europe. Mexico is a major importer of Group II and Group III base oils due to limited domestic upgrading capacity, while Canada imports select specialty grades to supplement local supply.
Growth Drivers
Base oil demand growth in North America is shaped by a mature automotive market, declining total lubricant volumes and a continued structural shift toward higher-performance lubricants. Demand for Group II and Group III base oils is supported by tighter emissions regulations, extended oil drain intervals and evolving OEM specifications. Industrial lubricant demand from manufacturing, logistics and the energy sector provides additional support, partially offsetting declines in traditional applications.
U.S. Base Oil Trends
Base oil production volumes in the United States appeared to have recovered from 2020’s pandemic-induced slump by 2021. Production in 2021 outpaced production in 2019. Now four years later, they’re climbing out of another trough.
However, U.S. base oil production in 2022 fell off sharply from 2021 levels. In fact, production in 2022 was more than 3 million barrels less than it was in the year immediately preceding the pandemic. This was likely the result of several factors, including severe weather in key regions, the onset of the Russia-Ukraine war as well as other major supply chain disruptions in the additives and finished lubricants segments.
Many industry experts believe that U.S. base oil production reached its zenith in 2018.
U.S. Base Oil Imports and Exports
Over the past 20 years, U.S. base oil exports have been on a generally upward trajectory, except for a dip around the global pandemic of 2020-21.
Export volumes climbed by about 11% from 2023, as the market continues its post-COVID recovery and Russia’s exclusion from allied markets since 2022 have taken an effect.
Belgium, India and Nigeria took less product last year, by 23%, 34% and 28%, respectively. Ecuador, Mexico and Singapore are gobbling up the difference, with increases of 33%, 32% and an eye-popping 290%, respectively.wpDataChart with provided ID not found!
Imports are an inverse story to exports. Saudi Arabia and Argentina have jumped up as import sources. The U.S. tapped Aramco for 135,000 barrel last year, up 280% on 2023. Argentina’s YPF sent 138% more base oil north to America
The Netherlands sent 80% less base oil and Indonesia 40% less than the year before.