Volume 4 Issue 31

U.S. Base Oil Output Jumped in May

Base oil production in the United States jumped to 5.6 million barrels in May, according to the latest data from the U.S. Energy Information Agency, showing its strongest signs yet of recovery from the COVID-19 pandemic. May’s output was the highest for any month in nearly two years. It was also 2% higher than the average production for the five Mays between 2015 and 2019 – before the coronavirus crisis began.

HollyFrontier Acquires Sinclair Oil

HollyFrontier announced plans yesterday to acquire Sinclair Oil Corp. and Sinclair Transportation Co. in a transaction valued at $1.8 billion, creating an integrated downstream petroleum and renewable fuels company to be named HF Sinclair Corp. Holly Frontier produces base stocks and finished lubricants, while Sinclair does not.

Pilot To Make More Sulfonates

Pilot Chemical Co. will expand production of sulfonates, including a range of products that can be used in lubricants as corrosion inhibitors, emulsifiers and demulsifiers, the company announced last week. The project is a multi-phase expansion of its proprietary “ice-cold sulfonation” technology, Pilot Chemical said in a press release.

Profits Rebound at Afton, Quaker Chem

Afton Chemical, Quaker Chemical, and HollyFrontier’s lubricants and specialty products segment all reported increased profits for the second quarter, while revenues were strong for Heritage-Crystal Clean’s oil business segment. Companies noted strong improvements compared to the same quarter last year, when the COVID-19 pandemic had significant impact.

From Other Editions of Lube Report

Poland’s Lotos to Add Group II, III

South African Container Maker Sold

Mixed June for South Korean Base Oils

Briefly Noted

News Corp. announced Monday it would acquire price reporting agency Oil Price Information Service and related assets from S&P Global and IHS Markit for $1.15 billion. The OPIS acquisition is subject to closing conditions, including regulatory approvals and consummation of the S&P Global and IHS Markit merger, expected in the fourth quarter.  The Woodlands, Texas-based Shrieve Chemical Co. LLC, a marketer of industrial chemicals and specialty lubricants, appointed George Fuller as CEO.  Valvoline Inc. signed an agreement with its franchisee Phoenix 27 LLC to acquire six franchise-owned Valvoline Instant Oil Change quick-lube service centers in Kentucky.