Recent news has been littered with headlines about the political unrest in various Latin American countries, and lubricant companies are rightfully concerned about the effects this turmoil is having on their bottom lines in the region.
The prognosis for future growth in Venezuela, for example, looks grim. As a result of wild inflation, a fight for the presidency and United States sanctions against the government, the countrys state-owned oil company Petroleos de Venezuela S.A. has taken some major hits. John Price, managing director of Americas Market Intelligence, said in a presentation at the 2019 ICIS Pan American Base Oils & Lubricants conference in Jersey City, New Jersey, that the country has been unable to keep up with base oil production, to finance that production, to get the right [feedstock] blends to make it work. PdVSAs two API Group I base oil plants could produce up to 6,050 barrels per day, according the LubesnGreases 2019 Guide to Global Base Oil Refining.