According to the report, U.S. API Group I capacity in 2009 totaled 62,700 b/d, compared to 79,000 b/d in 2008. Group II and III capacity remained unchanged at 102,300 b/d. Napthenics amounted to 37,400 b/d. The countrys finished and unfinished wax capacity now stands at 18,500 b/d.

The report provides a look forward at planned capacity changes, and another look back at the base oil scene over the past year. Examples include expansion at Ergons naphthenics plant in Vicksburg, Miss., and a downward tweak in Valeros pale oil capacity at Three Rivers, Texas, which went from 2,600 to 2,400 b/d.

Marathon in April last year notified customers of its plans to exit the base oil, wax and aromatic extracts markets, and to shut down its base oil plant in Catlettsburg, Ky., by the end of 2008. The base oil plant had 6,800 barrels per day of API Group I capacity. At the time, company officials noted that drastic changes in finished products specifications and commodity markets had made it difficult to compete and address such changes without additional large capital investments.

Citgo initiated plans last June to cease production at its Lake Charles, La., lubricants and waxes refinery during the second and third quarters of 2008, and begin looking into selling it. The base oil plant had 9,500 b/d of Group I capacity. The company said it made the decision in response to continuing, downward market conditions for its products and an effort to remain industry-competitive.

However, some companies appear to have under-reported their current capabilities, based on news reports and company announcements.

Ergon Vice President James Mike Burnett Jr. said his company expected to increase capacity at its Vicksburg, Miss., naphthenics plant to about 16,500 b/d by the end of the second quarter this year. And then in the fourth quarter at the end of the year it will be up to about 19,500 – thats the naphthenic bright stock portion. So weve got two units. The NPRA report notes Ergons planned capacity changes in its footnotes.

The NPRA report lists the Ergon plants current capacity at 11,300 b/d. Burnett said the updated current capacity is about 12,500 b/d.

Calumet Specialty Products’ expansion at its Shreveport, La., refinery started up last May. Kevin Farley, director of business planning, said Calumets current Shreveport base oil capacities are 4,800 b/d API Group I and 7,000 b/d Group II. The NPRA report lists the numbers as 3,500 b/d Group I and 3,500 Group II.

Safety-Kleen, which produces rerefined base oils, added 2,000 b/d of Group II capacity to its East Chicago, Ind., refinery while lowering its Group I capacity there from 3,500 b/d to 2,600 b/d. The rerefiner also added 800 b/d of Group II capacity to its Breslau, Canada, rerefinery, while adjusting the Group I capacity there down from 1,500 b/d to 1,000 b/d.

Dale MacIntyre, Safety-Kleens vice president of Canadian refining operations, explained that the presence of Group II in the companys latest capacity numbers reflects a restatement of Safety-Kleens existing base oil production rather than expansions.

We make several different base oil grades at our two different refineries, MacIntyre told Lube Report. Depending on which grade it is, some of those grades meet Group II characteristics, and some of those are characterized as Group I. The reason for that is we see a continual improvement in the quality of feedstocks coming back to our rerefining locations, and that naturally has an impact on the quality of our production.

The largest addition on the horizon is Chevrons planned 25,000 b/d Group II base oil facility at its Pascagoula, Miss., refinery. Last August, Chevron submitted an environmental permit application to the Mississippi Department of Environmental Quality for construction of the plant and said it planned to begin construction in early 2009, pending permit approvals and a final investment decision.

Brent Lok, Chevrons base oil marketing and new business development manager, said the companys on-site people are starting to gear up, get land prepared and make other preparations in Pascagoula. Effectively, all the pre-construction work is actually going on right now, Lok told Lube Report. Theyre doing mostly design work and fabrication work. Everything is full steam ahead. Were still talking late 2011, early 2012 for completion.

The 13-page 2009 Lubricating Oil and Wax Capacities Report is free to NPRA member companies, and costs $25 for nonmembers. For ordering information, go to http://www.npra.org/publications/statistics/