North America is a major global base oil–producing region, with total installed capacity estimated at approximately 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.