Volume 11 Issue 24

Rerefining, Ready for Prime Time

New U.S. base oil rerefiners are popping up all over. Improved rerefining technologies, rising virgin base oil and finished lubricant prices, and Valvolines new rerefined motor oil are cited as reasons why. Announced U.S. rerefined base oil projects, all API Group II quality, include: Heritage-Crystal Clean plans to build a 2,000 barrels per day rerefinery in Indianapolis near its existing operations. Production will begin in mid 2012. Avista Oil AG acquired a 50 percent stake in Universal ...

12th RoC: Formaldehyde Causes Cancer

On Friday the U.S. Dept. of Health and Human Services listed formaldehyde – a key ingredient in a popular family of metalworking fluid biocides – as a known human carcinogen. Formaldehyde is listed as a known human carcinogen in the 12th Report on Carcinogens, or 12th RoC, a Congressionally mandated report prepared for HHS by the National Toxicology Program. There is now sufficient evidence from studies in humans to show that individuals with higher measures of exposure to formaldeh...

Base Oils on the Brink

API Group I base oils now are less than 60 percent of global base oil manufacturing capacity – and by year’s end they’ll sink to a 55 percent share, shows Lubes’n’Greases‘ new 2011 Guide to Global Base Oil Refining. Thanks to refinery upgrades and new construction, plus closures of older plants, the world’s total capacity for making base oil hardly budged from a year ago, the newly published Guide indicates. But upheavals can be clearly seen in plant ow...

3000-mile Rule Retires

Yesterday Jiffy Lube, the largest U.S. fast-lube chain, officially abandoned the 3,000-mile oil change interval, advising instead that consumers follow their automakers recommended service intervals. The new recommendations are already in use in more than 70 percent of all Jiffy Lube stores, the company said, and 100 percent system participation is expected by year-end. Customers visiting Jiffy Lube will be offered a choice of service intervals: following the vehicle manufacturers recommendat...

Free Oil Changes Bring Buyers

GM Korea offered a generous customer service program, including free oil changes for three years, when it introduced the Chevrolet brand to Korea earlier this year, and its working. GM Koreas Chevy Care 3-5-7 program offers three years of free maintenance, including free engine oil changes, a five-year warranty, and seven years of free roadside assistance to all domestic consumers who purchase a Chevrolet vehicle through the end of this year. Since the launch of Chevrolet, our sales have grown...

Can This Marriage Be Saved?

Last week a bankrupt Jiffy Lube franchisee went public with its complaints against Shells Jiffy Lube International and SOPUS Products (Pennzoil), claiming the high price of Pennzoil motor oils was a large contributing factor in its bankruptcy. Tri-Cities Fast Lubes, owner of 16 Jiffy Lube franchises in Washington and Oregon, entered Chapter 11 bankruptcy proceedings in January and is currently attempting to restructure its obligations. Last week the company issued a press release announcing tha...

Natchez Gets the Nod

Elevance Renewable Sciences has acquired the Delta BioFuels facility in Natchez, Miss., and will invest $225 million over five years to convert the facility to a biorefinery and derivatives operation. Elevance will manufacture products for the lubricants industry in Natchez, Andy Shafer, executive vice president of sales and market development, told Lube Report, including decene, which is used in the manufacture of polyalphaolefins. The Elevance decene will be produced from renewable feed stoc...

SSY Base Oil Shipping Report

Rates are falling on many U.S. routes due to overcapacity. European coastal routes are steady, but deep-sea trade lanes are sliding. Asia looks a little more active, but only from July. U.S. Gulf of Mexico The lack of new cargo requirements and the ever-present overhang of spare tonnage in the region have finally caused freight rates to buckle. The sole exception has been U.S. Gulf-to-Far East trade where a burst of activity has seen mixed xylenes, styrene, ethylene dichloride and even some sma...