Lubricants Industry Insights
Lubricants Industry Insights
COM
2023
VOL. 29 ISSUE 1
FINISHED LUBRICANTS
Novel Methods
Offer Energy
Savings
BASE STOCKS
the global lubricants industry, all in one digital guide. Up-to-date, transparent
information
Get the latest on the havoc caused by COVID-19, base oil production,
Saves you valuable
the additive shortage, record-high energy prices and much more. See time and resources
how the industry has shown remarkable resilience with information
that spans over decades on the markets that matter to you.
Quality Quality
Finished Mergers & Electric Assurance Finished Mergers & Electric Assurance Finished Mergers & Electric
Lubes 101 Base Oils Additives Lubes Acquisitions Engine Oil ATF Vehicles Grease Programs Contents Lubes 101 Base Oils Additives Lubes Acquisitions Engine Oil ATF Vehicles Grease Programs Contents Lubes 101 Base Oils Additives Lubes Acquisitions Engine Oil ATF Vehicles Grease
to rise, though not as much as if internal combustion engines retained their Lubes 101 Base Oils Additives Finished Lubes past 10 years.
By Region
* *
ce in the car parc. Understand the basics of the Get a picture of global base oil U.S. market volumes for Worldwide and regional
Vehicle Regulations
lubricants industry, from base production capacity, regional additives as well as average snapshots of sales volumes Following a long-standing trend, there was a further shift away from API Group I
oil groups to principal additive trade flows and pricing. calcium and magnesium and profits for finished capacity to API Group II this year. The shift began in North America more than
chemistries. levels in modern engine oils. lubricants.
ent policies and incentives are a major driver in the uptake of EVs. But even Vehicle Incentives 20 years ago, with Group II capacity more than doubling since 2000 and Group I
rable incentives in place, common issues such as lack of charging infrastruc-
4 8 19 22 shrinking by more than 50%. 2012 2022
Total (b/d): Total (b/d):
consumer attitudes still hinder growth. It remains to be seen if governmental Vehicle Targets *
break down those barriers. North American Base Oil Capacity Shifts
Industrial Policies
mate of penetration by non-ICE vehicles, assuming implementation of all pro-EV regulations announced to date.
40 41
% vehicle scrap rate.
Baseline: 2018 Kline data/Oronite analysis, with India & China growth adjusted lower for outer years.
F
irst, the Base Oil Report: Trends And if you’re missing the sage path to sustainability. Check it out on
column has gone away. If you words of Ray Masson, hop on over Page 11.
were a fan of this column, don’t to LubesnGreases.com to read his For now, the changes end there.
worry. Its content is still available, weekly base oil columns in Lube You can still read Gabriela Wheeler’s
albeit in a slightly different form. Report EMEA. Base Oil Report: Pricing column
Read about the latest trends in base What else is new? each month as well as columns from
oils in feature articles from month to We have added a monthly column Sara Lefcourt (Best Practices), Jack
Quality
Assurance month. For instance, in this month’s on sustainability to the mix. Written Goodhue (Your Business), Steve
Programs
issue, you can flip to Page 18 to by renowned sustainability expert Swedberg (Automotive) and Tom
learn about the future of bright stock Apu Gosalia, this new column will Glenn (Need to Know) every other
Africa
Americas
amidst a quickly dwindling Group I cover the most relevant information month.
supply. regarding the lubricants industry’s
Asia & Pacific
Europe
Middle East
Group I
Group II
Group III
Naphthenic
Tim Sullivan Trevor Gauntlett David Stanworth Matt Rogers Stefanie Dunkerly
Executive Editor George Gill Commercial Director Director of Business Development, Ad Operations Manager
Thomas Glenn dstanworth@LubesnGreases.com North America Stef@LubesnGreases.com
Sydney Moore Jack Goodhue Phone: +44(0)1737 906390 MRogers@LubesnGreases.com
HELPING YOU NAVIGATE Managing Editor Apu Gosalia Phone: +1 240-701-2931
THE LUBRICANTS INDUSTRY Mary Moon
Ricardo Lianez Gabriela Wheeler
Director of Creative Contributors
LNG Publishing Co., Inc.
7389 Lee Highway, Suite 300 Will Beverina
Falls Church, VA 22042 U.S.A Assistant Editor
Phone: +1 703-536-0800
Fax: +1 703-536-0803
www.LubesnGreases.com
NLG i
18
OUTLOOK for gre
L WG E L
FG
Grease
Specifications
Food-Grade
22
14
Biobased
G
S
W
G
14 22
FINISHED LUBRICANTS WORLD GREASE WORLD
18
BASE STOCKS WORLD
Lubes’n’Greases (ISSN1080-9449), an independent trade magazine, is published monthly Periodicals postage paid at Falls Church, VA and additional mailing offices.
by LNG Publishing Company, Inc. Copyright 2023, LNG Publishing Company, Inc. Printed POSTMASTER: Send address corrections to Lubes’n’Greases, LNG Publishing Company, Inc.,
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Periodical category: General
11
3
27
Publisher’s Letter
DEPARTMENTS
8 12
BASE STOCKS WORLD FINISHED LUBRICANTS NORTH AMERICA
11 13
SUSTAINABILITY WORLD
Advertiser Index
Sustainability
“It’s Not Possible—No, It’s
Necessary” 27
While sustainability may be a daunting task Places’n’Faces
for the lubricants industry, it is vital that it do
its part to contribute to the future health of
the planet.
30
BUSINESS WORLD
Your Business
Your Business Is Business
In most situations, it is wise for companies
to avoid taking public social and political
stances. Jack Goodhue explains why.
The
The leading
leading globalglobal
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in June
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we will be
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ICIS
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BASE OIL REPORT
PRICING
A
t the start of 2022, there was a ports in early March and sent crude needs for 2023, as market trends had
sense of optimism as daily life values to 13-year highs. During the not been consistent with those from
seemed to regain a semblance first week of March, West Texas Inter- previous years. While base oil supply
of normalcy following two years of mediate skyrocketed to above $120 typically outstrips demand in the last
unforeseen conditions brought by the per barrel. Crude futures remained three months of the year, the situation
COVID-19 pandemic. But in late Feb- volatile for most of the year, and con- in late 2022 was exacerbated by per-
ruary, Russia launched a war against cerns about a global recession, rising sistent additive supply issues, which
Ukraine, triggering a series of desta- inflation and reduced crude demand led to reduced base stock demand
bilizing effects, including volatility in in China plunged WTI prices to the from finished products segments. Ad-
crude oil and feedstock prices—a low $70s/bbl by early December. ditionally, rising inflation and econom-
condition that impacted base oil The U.S. also faced a potential ic uncertainties dampened consumer
values for the rest of the year. national rail strike that month, which confidence along with fuels and
Russia’s attacks on Ukraine prompt- would have paralyzed the transpor- lubricants consumption.
ed a United States ban on Russian tation of innumerable products and By the end of 2022, additive supply
oil, liquified natural gas and coal im- crippled economic activity. Continued on Page 10
VIDEO Watch Gabriela & Sydney discuss this month’s Base Oil Report
2
Historic and current base oil pricing
data are available for purchase at 1
www.BaseOilPrices.com
0
BASE OIL PRICING DATA DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
22
BASE AND
suppliers tried to encour- to start a two-week turn-
age orders, particularly around in late March.
domestically, since export Buying interest remained
PROCESS OILS
opportunities had dwindled healthy for naphthenics,
due to muted buying inter- particularly from the trans-
est and high freight rates. former oil, tire and rubber
IN FOCUS
While plentiful availability manufacturing segments.
of API Group I and Group A planned turnaround at
II base oils exerted down- Calumet’s naphthenic plant
ward pressure on pricing, in October and unexpect-
values for Group III grades ed production issues at
were relatively stable on another facility earlier in the
healthy demand, although year contributed to a tight
supply of 6-cSt and 8-cSt supply and demand ratio. A
grades began to lengthen. planned turnaround at San
Despite strong demand Joaquin Refining’s unit in
for diesel, margins weak- late January may prolong
ened in early December snug conditions, offering
We supply oils for compared to base oils, and support to the prevailing
there was less incentive price structure despite the
your production for refiners to trim base slump in crude and feed-
stock production rates or stock values.
Group I, II, III, IV (PAOs), V Tint to use light grades for fuel What can the base oils
blending. Many suppliers market expect in 2023?
Process and Tint also released extra inven- While many factors are
Low Viscosity Oils tories kept in case of hur- difficult to predict, there
ricane-related production will be increased efforts
Specialties Tint disruptions. to work on sustainability
There were no posted and emission targets as
www.mogoil.com base oil price revisions,
but reports emerged of
well as to maintain steady
production rates, healthy
U.S. suppliers granting consumption levels and
temporary voluntary allow- stable pricing.
APU GOSALIA is a
sustainability expert.
SUSTAINABILITY WORLD He can be reached at
apurva.gosalia@web.de.
W
elcome to my first of what and social awareness of global warm- Presently, we still have time to steer
will be regular columns in ing. More recently, Interstellar depicts course in a better direction.
Lubes’n’Greases magazine. a dust bowl Earth that can no longer The second study of the IPCC’s
Climate change has become a popu- support agriculture. In some parts of Sixth Assessment Report released in
lar theme in Hollywood, so much so the world today, this is a reality. 2022 concluded there is still time to
that besides sci-fi, the genre “cli-fi” Today’s environmental crisis—from limit global warming to 1.5 degrees
has been coined, delivering cinema- the mindless contamination of the Celsius by drastic cuts to greenhouse
goers warnings about what could Earth’s atmosphere, oceans and gas emissions, but this opportunity
happen if destructive human activi- soils with life-threatening chemicals for action will only last for the rest of
ties go unchecked. to the imminent danger posed by this decade. After then, it’s too late.
Although some still refuse to climate change to most living beings We are unwilling to change and
accept climate change as a reality, on Earth—can be traced back to the to take environmental degradation
cinema clearly doesn’t. Cli-fi films mindset that fueled Interstellar‘s plot. seriously because, in the back of our
have tackled melted icecaps in Wa- Interstellar is about Earth’s last minds, we still hope against hope
terworld (1995) or weather disasters chance to find a habitable planet that there could be a miraculous
in The Day After Tomorrow (2004) , before a lack of resources causes the solution to the devastation we have
among many other disaster movies, human race to go extinct. The film’s wrought on Earth. We fantasize about
psychological thrillers, comedies, protagonist is tasked with leading a starting afresh on another pristine,
animations and alien films. mission through a wormhole to find Earth-like planet that we can proceed
The success of Al Gore’s 2006 docu- a habitable planet in another galaxy. to exploit with as much gusto as we
mentary An Inconvenient Truth, which There are two plans in Interstellar’s used to destroy our homeland. But
was considered fringe at first, may plot. Plan A is to build a space station contrary to the plot of Interstellar, we
have spurred a heightened political for some of those still left on Earth. have no Plan B and no Planet B.
In one Interstellar scene, the
protagonist tries to save the partly de-
stroyed spaceship carrying the seeds
of humanity’s future. The computer
tells him, “It’s not possible,” to which
he replies, ”No, it’s necessary.”
Perhaps evocative films like Inter-
© Gorodenkoff
A
t the start of the millennium, 2021 demand dropped from nearly demand for PCMO in the U.S. could
PCMO accounted for almost 800 million gallons to just under 535 see a loss of nearly 40 million gallons
33% of all lubricants con- million. This represents a compound- layered atop the aforementioned 76
sumed in the U.S., while in the year ed annual growth rate of -2.8% and a million. This would put PCMO de-
prior to the pandemic it represented loss of 265 million gallons. However, mand at roughly 410 million gallons,
24%. The decrease in demand was this period includes the unprece- or about 25% below where it was just
primarily brought about by extended dented decline in demand in 2020 prior to the pandemic.
drain intervals. OEMS used to rec- and 2021 due to COVID. Excluding This forecast is far from certain,
ommend changing oil at 3,000 miles, this anomaly by looking at the period though, due to the complexity and
but the majority now recommend from 2001 to 2019, demand shows uncertainties around such variables
7,500-10,000 miles. a CAGR of -2.2%. Looking at the as how long older cars stay on the
With the trend of longer drain in- past 10 years but excluding COVID, road, oil drain intervals, govern-
tervals continuing to inch up and the demand declined at a CAGR of 1.5%. ment incentives to purchase EVs,
penetration of electric vehicles rapid- Assuming the latter rate of decline is expansion of the EV charging in-
ly gaining traction, the question isn’t most representative and continues frastructure, increasingly stringent
if demand for PCMO will continue to over the next 10 years, and PCMO de- emissions standards, the price of ICE
decline—instead it’s how far and fast mand in 2022 followed the trajectory and EV vehicles, and other factors.
it will fall. it was on from 2011 to 2019, demand But even if EV sales sputter, few will
To get a sense of what might be on for PCMO in 2031 would reach only argue that demand for PCMO in the
the horizon, it’s helpful to first exam- 459 million gallons—a loss of nearly U.S. will decline.
ine the rate of PCMO demand erosion 76 million gallons from 2021 to 2031. Another important trend impacting
over the past 20 years. From 2001 to The trendline includes only the start PCMO is the continuing migration to
© Yaraslau Mikheyeu
500
A=450
400 B=410
C=360
300 Passenger Car Motor Oil Argus … 24
200
100 Elco Corporation … 25
0
2001 2006 2011 2016 2021 2026 2031
ICIS 15th Asian Base
Source: Petroleum Trends International, Inc. Oils and Lubricants
Conference … 5
and Toyota recommend this viscos- oils. In addition, OEMs are increas-
ity grade. Today 0W-20, represents ingly recommending higher perform- ICIS 27th World Base
close to 30% of PCMO sales in the ing products requiring better base Oils and Lubricants
U.S. By 2030, SAE 0W-20 is expect- stocks to meet the requirements of Conference … 7
ed to be the leading viscosity grade, their engines. One example is seen
and monogrades and light-duty en- in GM’s dexos1 Gen2 specification Lubes’n’Greases …
gine oils that are 10W-30 and above introduced in 2016, which calls for
BACK COVER
will be nearly extinct by 2031. a product requiring a lower volatility
Changes in base stocks brought base stock. The move to higher-qual-
the key innovations that enabled ity products will cause erosion of Lubes’n’Greases
these lower-viscosity grades to PCMO demand, since better base Base Oil Pricing
become standard OEM recommen- stocks offer the opportunity to fur- Data … 28
dations. Group I base stocks did not ther extend oil drain intervals.
allow for low viscosities with reason- There will always be debate around Lubes’n’Greases Factbook …
able limits on oil volatility. Group III any forecast, but all arrows point to INSIDE FRONT COVER
enabled SAE 0W-XX oils as well as a marked decline in PCMO demand
more premium SAE 5W-XX products as we move into the next decade
to meet lower viscometrics, low-tem- and beyond. While demand declines, MOGoil … 10
perature requires and increasingly the cost to make PCMO will increase
stringent volatility requirements. due to the need for higher-cost base nextlub … INSIDE
Further, Group III oils are evolving oils and new additive formulations BACK COVER
at higher viscosity indices, which will required to meet increasingly de-
enable even lighter oils with lower manding performance specifications. SK Lubricants … 9
volatility than can be achieved today. With that, one of the leading chal-
SAE 0W-16 oils are already in the lenges blenders and marketers face
market, and PCMOs as light as 0W-8 is how to price and promote PCMO Zschimmer & Schwarz
are being used in some small en- in a market where the intensity of Inc. … 21
gines, typically hybrids. These lighter competion will increase due to fall-
grades will likely represent niche ing demand and costs will increase
products over the next 10 years. due to more demanding perfor-
Importantly, the move to light- mance specifications.
er-viscosity PCMO is also driving up
demand for synthetic PCMOs. The
reason for this is that such viscosity Our columnists are temporarily writing every
other month. Look for the next Need to Know
grades as SAE 0W-20 and 0W-16
column in the March issue.
require the use of higher-quality base
By Trevor Gauntlett
H
NOVEL
eat is the largest consumer of energy at any lubricant or
grease plant and is used to reduce the viscosity of base oils
and additives for pumping, improving mixing or facilitating
OFFER
blending and grease manufacturing, energy for heating is
essentially fixed by the batch size, the product being blended
and the heating technology.
© maximmmmum; lianez
ENERGY
SAVINGS
14 WWW.LUBESNGREASES.COM JANUARY 2023
The cost differences between Schematic of the ultrasound blending arrangement.
current heating technologies—such Image courtesy of Blendtek Solutions
as hot oil, steam or electrical trace
heating—are often small compared to
the cost per ton of product. The costs
of change are high, though, since it
includes significant capital expendi-
ture, writing off equipment that may
have many years of useful life remain-
ing, or both. Savings on energy are
marginal and difficult to accomplish
without compromising product quali-
ty. Or so it has always seemed.
The past two years have seen the
commercialization of two technol-
ogies that offer potential to change
this by altering the means of transmit-
ting energy into the fluid. Ultrasonic
mixing of lubricants and microwave
heating of greases during manufac-
ture offer enormous energy savings, a
safer working environment and other componentry and the vessel for mid- sumption has been reduced by just
benefits. It cuts down on energy sized batch blends. over 90%.”
costs by transferring energy directly In the same manner as ultrasonic
into the fluid, rather than indirectly cleaners used in laboratories and Riding the Wave
heating a vessel or pipes that then sold for domestic tasks like jewellery A fire at Environmental Lubricants
transmit heat to the fluid. cleaning, the ultrasonic energy gen- Manufacturing in 2007 provoked
erates bubbles in the fluid that cause a significant rethink of how the
Making Noise mixing as they travel through the flu- company would manufacture its
Warrington, United Kingdom-based id. Ball stressed that the shearing is biobased greases. “During the post-
Blendtek Solutions has brought ultra- excellent for mixing while still leaving fire research, it became evident that
sonic mixing to market as a scalable, polymers unharmed. heat transfer oil fires were prevalent
energy-efficient mixing process. The power requirements of the worldwide, but the focus was on
With three years of development and equipment are so low, it can be con- prevention via proper maintenance
testing and nearly two years on the nected to a domestic power socket and more effective fire suppression
market, Blendtek Solutions’ system is or a small photovoltaic array. Blend techniques,” Lou Honary, president
remarkably simple. The key compo- times are very short—often less than of Iowa-based ELM told
nent is an ultrasonic cavity contained an hour for blends that take three or Lubes’n’Greases. “The concept of
(in the smallest case) in a 5-foot tube more hours (and have been heated using the built-in magnetic energy of
with an external diameter of 8 inches. to 40°C or higher) in a conventional molecules to excite them with the
The footprint of the complete unit blending tank. magnetic fields of radio waves to
(cavity and control unit) is around 10 “This process enables the abso- create frictional heat seemed most
square feet, and the unit is about 5 lute minimum use of energy as the logical when looking for an alterna-
feet tall. foundation of production, as op- tive.”
However, it is the environmental posed to current efforts that mere- High-temperature heat transfer oil
footprint of the ultrasonic mixing that ly try to offset the environmental was a factor in the June 2021 fire at
grabs attention, as the energy con- impact of lubricant manufacturing,” Chemtool, which destroyed the larg-
sumption during blending is very low. Mick Kenyon, operations and tech- est grease manufacturing plant in the
Alex Ball, sales manager at Blendtek nical director at Witham Group, told United States.
Solutions, explained that “the ener- Lubes’n’Greases. “We have saved A decade after commissioning
gy requirements of our equipment over 26,000 tons of carbon emis- the first vessel, ELM’s subsidiary,
are low: 1.5-3 kilowatts of electricity sions since using the process and WAVEtek Process Technology has
depending on the unit size.” This saved energy that could have heated now granted the worldwide marketing
compares with megawatts that could the equivalent of over 144 homes rights for grease processing technol-
be consumed when heating the in the U.K. for a year. Our gas con- ogy using microwaves to Patterson
JANUARY 2023 WWW.LUBESNGREASES.COM 15
during sample analysis. If a correc-
tion is required, the vessel may have
to be heated again, and there will be
a set time for agitation. Using Blend-
tek Solutions’ ultrasound equipment,
the blend is at ambient temperature,
so no re-heating is needed and the
time to circulate the fluid through the
mixer is shorter.
But what of viscous additives and
base oils?
Ultrasound controller and cavity on a trolley at Witham Group’s blending plant. “The technology can be operated
Photo courtesy of Witham Group at ambient temperature, especially
for base oils,” Kenyon said. “Some
additives, depending on viscosity
can require heating but only to make
Industries (Canada)—a division of blended in the same packaging that them pumpable.” Viscosity modifiers
All-Weld Company Limited [Patterson], is delivered to the customer. Blendtek are generally introduced as liquid
located in Toronto, Ontario, Canada. Solutions’ website hosts a video concentrates. Blendtek Solutions’
ELM is also expanding its production demonstration of a 600-kg blend of customers have applied the tech-
and demonstration plant. “We are an ISO 46 fluid in a plastic intermedi- nology to viscosity grades from SAE
building the first grease plant incorpo- ate bulk container. The base oils are 0W/ISO 32 up to ISO 680, meaning
rating over one megawatt microwaves charged to the IBC, then circulated that the whole portfolio of many
to produce over 6,000 metric tons of through the ultrasound cavity with blenders can be handled by this
grease annually,” Honary said. the additives, which are pre-weighed equipment.
into a decanting bucket. With almost ELM’s microwave grease manufac-
Productivity Benefits no waste in the blending process turing process also claims reduced
Both processes claim much shorter and relatively high precision on batch cycle times, reduced waste and a
residence times in the vessels, thus sizes, both supplier and customer higher yield per unit thickener mass,
improving the utilization of equipment can reduce costs and minimize as the thickener is more uniformly
and possibly staff, while further reduc- waste, burnishing the sustainability dispersed through the grease.
ing utility costs. Blendtek Solutions credentials of both. One of the most striking video
equipment is mobile, with a small These processes are not just for sequences of the ELM process is a
rinsing requirement (around 100 kilo- smaller blenders. A small “blend to near-empty reactor with clean walls
grams), so it can be moved between order” quantity is difficult for larg- after grease has been pumped out.
tanks that are dedicated to individual er blenders used to working with The grease is not oxidized by resting
blends without risk of cross-contam- batches of 50 tons or running their on hot surfaces and does not adhere
ination. Base oils and additives are crankcase lubricants through inline to the vessel walls. This increases
charged to the tanks as usual, but the blenders or other high-throughput the chemical yield—the amount of
mixing takes place by circulating the equipment. The 600-kg specialist usable product relative to that of
blend through the ultrasonic cavity. fluid can be a key requirement of the reactants. Greases produced by
At Witham Group, a routine blend some customers. But faced with microwave heating tend to be paler
takes 20-40 minutes. “This has been such order quantities, companies than their counterparts, as they hav-
the single most fundamental change either must have small tanks, which en’t been degraded by overheating.
to the way we manufacture lubricants increase capital expenditure; blend
in my 40 years and possibly ever,” to stock, increasing their working Overcoming Obstacles
Kenyon told Lubes’n’Greases. “Whilst capital; pay for a toller, resulting in It is received wisdom that you
the environmental impact of our busi- reduced margins; rebrand from a shouldn’t place a metal container in
ness is at the heart of all we do, the competitor, resulting in lost margin; a microwave oven, but it’s not true in
speed and flexibility that this method or choose not to blend such a prod- every case, as shown here. However,
allows has increased our production uct, putting the company at risk of “arcing may occur if there are gaps
capacity four-fold without the need losing a customer. between metal components where
for extra blending vessels and other Correcting blends is also a low- the waves could resonate,” Honary
infrastructure.” er-energy process. Usually, the blend said.
A very small batch can now be begins to cool prior to filling and Mixing paddles are needed when
manufacturing higher-viscosity greas- fully incorporated into a Patterson we believe will be grease industry-
es. These are carefully designed to kettle that has been under testing for altering technology,” Scott
avoid any gaps that could induce arc- almost a year. Dunsmoor, president and general
ing. The shaft of the mixing arm could manager of Patterson Industries
act as an antenna, allowing the micro- User Benefits (Canada,) told Lubes’n’Greases. “The
waves to escape via the shaft ends. Witham Group has been using adaptation of ELM’s vast experience
The solution is to use microwave Blendtek Solutions’ equipment for in the use of microwave technology
chokes. The grid or screen in the glass nearly two years. Simple blends in biobased greases to the devel-
window of a domestic microwave take less than an hour to blend (a opment of our new mineral-based
oven is a choke, where the size of the 75+% reduction), with productivity grease kettles using microwave tech-
holes and the thickness of the grid are and customer responsiveness times nology will offer the grease industry
appropriate to choke the waves that improving. “Our overall inventory has significant options of which way they
try to exit through the holes. reduced, given we can make exactly chose to invest in future expansions
Early vessels at ELM featured what we need as our customers need or new installations.”
waveguides that brought the micro- it,” Kenyon said. “The speed at which Nigel Bottom, group managing
waves in to the top and circulation we can now manufacture has, by na- director of Witham Group, is also
pumps or mixing arms to bring cool ture, allowed us to make more of our very enthusiastic. “This exciting
product from the bottom of the tank. range ‘make to order’ than ever before breakthrough is all about changing
More recently, ELM has developed a without compromise to either quality the environmental impact of lubricant
microwave window that allows the or service.” manufacturing in the first place,” he
microwaves to enter the bottom of the ELM estimates that most grease told Lubes’n’Greases. “So many envi-
vessel and still handle the pressure batches take 50%-66% less time and ronmental schemes and businesses
and vacuum of the vessel. consume nearly 40% less energy than look to offset their impact by using
Microwave heating is ideally suited producing the same batches using carbon sinks and other environmental
to biobased products, as the ester conventional oil heating. In addition, and climate protection projects. We
group of a fat or an acid group of a the batches have higher yields per unit have instead come up with a way
fatty acid presents a large dipole that mass of thickener, less oxidation dam- that prevents…high energy use in
interacts strongly with oscillating elec- age to the product and less scraping the first place.”
tronic and magnetic fields of the mi- to clean.
crowaves. This transfers energy to the
molecule, which is converted to heat Commercialization TREVOR GAUNTLETT
due to friction between that molecule Blendtek Solutions is making the has more than 25 years’
and its neighbors. Mineral oils don’t rounds at industry meetings, while experience in blue chip
chemicals and oil companies,
have a significant dipole but can be ELM and Patterson presented a
including 18 years as the
heated by use of susceptors—either grease kettle that utilizes microwaves technical expert on Shell’s
chemicals in the mix (such as the fatty for heating mineral oil-based greases Lubricants Additives
acids to form the grease thickener) or at the annual NLGI meeting in June procurement team. He can
surface coatings on the vessel. 2022. “We are very excited to team up be contacted at trevor@
Windows and susceptors have been with Dr. Lou Honary and ELM in what gauntlettconsulting.co.uk
A
ccording to emissions limits and fuel economy other ways, too. For instance, some
Lubes’n’Greas- requirements tighten, it is expected companies use a refining process
es Base Stock that Group I capacity will continue to that is more similar to that used to
Plant Data, the decrease in coming years. produce Group II base stocks. This
overwhelming While the outlook for Group I base process employs hydrotreating and
majority of base oils appears to be a bit grim, there catalytic dewaxing of naphthenic
oil production may be one bright spot on the hori- crude oil.
capacity taken zon. Differing from its solvent neutral
offline in the past several years has counterparts in a few key ways, bright Which Products Require
been API Group I. In the past six stock has managed to remain an Bright Stock?
years, Shell, ExxonMobil, Avista Oil, important component in a variety of According to an article written
Imperial Oil, Galp, Eneos and other finished lubricant formulations. This by Kline’s Kumar, bright stock is
major producers have closed some has allowed demand for bright stock generally used to formulate mid- to
of their Group I units, resulting in a to stay relatively strong. In fact, Kline high-viscosity lubricants. These
loss of more than 32,000 barrels per stated that bright stock demand has include industrial gear oils, marine
day of Group I base oil capacity. (See declined at a markedly slower rate cylinder oils, process oils, greases
Figure 1.) than other Group I base oils, decreas- and monograde engine oils.
In an article written for TLT Market ing by just 9% since 2010. Bright stock has more or less been
Trends, Anuj Kumar of global con- phased out of automotive engine oil
sultancy Kline & Co. estimated that What Is Bright Stock, and How Is formulations, however. The viscos-
global demand for Group I base oils it Refined? ity of modern passenger car motor
decreased by about 20% between Bright stock is a high-viscosity base oils has been pushed as low as
2010 and 2020. oil—generally classified as an API SAE 0W-8 in the past several years,
Why is Group I being phased out Group I base stock. It is refined by making heavy-viscosity bright stock a
so quickly, and is this trend expected running feedstock through a vacuum poor option for use in these types of
to continue? distillation process, which is followed finished formulations.
Simply stated, current lubricant by solvent extraction and solvent Similarly, today’s automatic trans-
standards are quite stringent. In dewaxing. The oil is then run through mission fluids also boast low viscosi-
order for finished lubricants to meet a hydrofinishing process. This step ty and therefore do not require bright
increasingly demanding performance subjects the oil to higher tempera- stock.
requirements, they must be formu- tures as well as higher pressure of
lated with higher-quality base stocks. hydrogen gas in order to break the Demand Is Steady
This has pushed base stock refiners double molecular bonds and force Demand for bright stock has
to shift their attention and resources out free radicals. The whole bright remained “pretty steady” during
to the production of API Group II and stock refining process results in a the past couple of decades, Laura
Group III base oils. base stock with higher quantities of Pottorf, global marketing manager,
Because lubricant specifications purer hydrocarbon molecules. base stocks and waxes for Exxon-
will only become more rigid as Bright stock can be produced in Mobil Product Solutions Co., told
IS THE 32,000
Barrels per day of
FUTURE
Group I taken offline
since 2016
BRIGHT 9%
FOR
Decline in demand for
bright stock since 2010
BRIGHT
© Photo 197299381 © Hanohiki | Dreamstime.com
20%
STOCK?
Decline in demand for
Group I base stocks
from 2010 to 2020
Biobased
T
understanding of technologies and fa- Metalworking fluids, engine oils and
he National Lubricating cilitate exchange of information about hydraulic fluids are sprayed, splashed
Grease Institute, a not- grease. Each working group consists or circulated through engines, pumps
for-profit trade organiza- of professionals from member com- and nozzles. Lubricating greases are
tion, contributes to the panies who collaborate on projects semisolid materials that are loaded
growth of the grease that interest the industry. The groups into bearings and other mechanisms
industry by supporting meet at NLGI and/or ELGI meetings to where they provide long-term service.
the development of better lubricat- plan and carry out projects at member A grease formulation is basically a
ing greases and the improvement of laboratories. These projects are at liquid lube plus a thickening agent.
grease lubrication engineering. Its the leading edge of developments of The thickener adjusts the consistency,
activities include technical meetings, broad commercial interest. stringiness, adhesion, cohesion and
grease product certifications, edu- “The working groups provide other unique performance properties.
cational courses, publications and companies with a ‘seat at the table’ Formulations of current grease prod-
professional certifications. The Euro- regarding pertinent industry issues,” ucts are the results of many innova-
pean Lubricating Grease Institute has said Crystal O’Halloran, NLGI ex- tions over the course of almost four
a similar role and activities centered in ecutive director. “These meetings millennia. Estimates of the value of
G
G G PW
S
W
G
the 2021 global grease market range bity Registration AB and Perry Peters about food safety.
from $ 4.2 billion to $ 5.45 billion. of Matrix Specialty Lubricants BV lead A position paper on FGLs includes
the FGLWG on behalf of ELGI. definitions of technical terms and an-
Food-Grade Lubricants The FGLWG serves as a platform for swers to frequently asked questions
Food-grade lubricants are niche roundtable discussions about FGLs as about the use of lubricants in food
products formulated and manufac- well as standards and regulations for processing and related industries. It is
tured specifically for applications their use in different countries. Sup- available on the ELGI website.
with particularly rigorous safety pliers must understand the various The paper clarifies that the casual
requirements. According to the NLGI classifications, compositions and best terminology “food-grade lubricant”
Grease Glossary, the term food-grade practices for manufacturing FGLs. is only acceptable in reference to H1
is used casually to refer to lubricants They benefit by appreciating the value lubricants that are registered by NSF
certified by NSF International for use of FGLs to end users and the con- International or the International Num-
primarily for processing food and cerns of end users regarding safety. bering System for Food Additives.
beverages, personal care products Another benefit is the opportunity to In formal or technically correct
and pharmaceuticals (e.g., assembly learn about trends such as shifts in terminology, H1-registered lubricants
lines for mixing, cooking, preparing consumption patterns. are those that meet requirements for
and packaging). Thus, FGLs are critical According to Ludwig, the FGLWG incidental contact with food or other
components of the food chain. educates and updates participants products and contain only compo-
Larry Ludwig of Schaeffer Oil chairs and the grease industry on issues nents (termed HX-1) defined by the
the Food-grade Lubricants Working and regulations related to FGLs. This United States Food and Drug Adminis-
Group for NLGI. Andreas Adam of includes developing a shared vocabu- tration. Incidental contact means that
FRAGOL GmBH, Sofia Oberg of 2Pro- lary for communicating with end users an H1 lubricant is not expected to but
Bringing together the global base oils industry for exclusive Visit the
website to view
insights and first class networking in Central London!
the agenda and
Address key issues impacting the base oils market including geopolitical
expert speaker
shocks, global supply and demand, re-refined base oils, sustainability list!
concerns, macroeconomics and more.
Matt Smeeth of PCS Instruments D2266 4-Ball Wear D4289 Elastomer Compatibility
chairs the ELGI Railway Lubricants D2596 4-Ball EP D4693 Low Temperature Torque
Working Group. The RLWG supports Source: Lubrizol
capacity to process 75,000 metric rich and will continue supplying con- goal of gaining higher visibility and
tons per year of used motor oil. It ventional and food-grade lubricants wider reach for the Panolin brand.
will be capable of making Group III in Switzerland and Liechtenstein. Shell said it expects to fully inte-
and Group III+ base stocks, as well The biobased lubes supplied by grate the business into its global
as other products such as solvents, the business that was sold are con- lubricants business within two years
officials said, adding that yields will sidered environmentally considerate after completion of the sale, which
range from 60%-75% of throughput, because they rapidly biodegrade, it expects to close early this year.
Cepsa JV Mulls hols, oleic acid and stearic acid. a 50:50 joint venture between Sin-
Palm Chemicals Expansion The project still requires a final in- gaporean palm oil company Golden
The Sinarmas Cepsa Pte joint vestment decision, the joint venture Agri-Resources and the chemicals
venture will expand production of said in its Nov. 8 announcement, and business of Cepsa. The joint venture
biobased chemicals at its fatty al- the amount of additional production and the partner companies signed a
cohol plant in Indonesia. The com- capacity was not disclosed. memorandum of understanding to
pany’s vegetable-derived products Established in 2014 and headquar- expand the Sinarmas Cepsa site in Lu-
used in lubricants include fatty alco- tered in Singapore, Sinarmas Cepsa is buk Gaung. The existing facility, which
began production in 2017, is fully
utilized, according to the joint venture.
Sinarmas Cepsa said it has a
strong ambition to grow along the
fatty alcohols value chain, with sus-
tainable development at the heart of
its strategy and operations. Among
the factors driving global demand for
Shell Expands
Indonesia Plant
Shell completed an expansion that
more than doubles the size of its lu-
bricant blending plant on Indonesia’s
Java island, raising capacity to 300
million liters (270,000 metric tons)
per year and making it one of the
company’s largest such facilities.
The British company said it un-
dertook the project in response to
the country’s growing demand for
premium lubricants.
The plant’s capacity before the
project was 136 million liters/year.
The facility opened in November
2015, and Shell announced the
expansion in March 2020 but never
BASE OIL PRICING LEARN MORE AT disclosed its price tag. The project
DATA www.BaseOilPrices.com included installation of 40 tanks
with a combined capacity of 19,000
metric tons, an increase in mixing
JACK GOODHUE,
management coach,
BUSINESS WORLD can be reached at
goodhue@aol.com
E
very business should be run le- for more. It is difficult to break this politicians to reverse their stance
gally, ethically, morally and with cycle once it gets started. and call for more funding instead.
concern for the well-being of its Concentrate on the primary objec- When asked about their previous
shareholders, employees, custom- tives of your business. Keep your statements on this subject, those
ers, suppliers and the communities company neutral on social issues. same individuals now seem to be
in which it operates. That is a given; Avoid making statements or taking suffering from amnesia.
that’s why you are there. actions that put your company on Major League Baseball, Delta
But one of your additional respon- one side or the other of the latest Airlines and Coca-Cola’s public
sibilities is to keep the organization social controversy. endorsement of activists’ complaints
running smoothly without becoming Every company has a few activist in Georgia hurt some small business
involved in unnecessary crises of its employees (sometimes on both owners, many of whom those com-
own making. For that reason, cor- sides of an issue) who want to tell panies thought they were helping.
porate statements on social issues you how to run your business. They Something similar happened to
should be avoided; they are huge press you to make public statements Disney in Florida, where there will be
publicity hazards. that will result in media headlines. long-range tax repercussions.
Endorsing or paying lip service to Don’t do it. Publicity for their current Your company will lose customers
the latest social fad is unproductive movement is most important to by getting unnecessarily involved
and, in the long run, unprofitable. them, and they may have little to no in issues like these. It will not make
That may make some of your activist concern for what will eventually hap- many friends, and it will surely make
employees feel good, but that glow pen to your company as a result. some enemies.
will soon wear off. It’s worth noting that last year’s It has been said that it costs ten
You will have antagonized more social fad may not be on the front times as much to acquire new cus-
people than you have pleased. Those burner this year, and this year’s fad tomers as it does to keep existing
whom you pleased will forget what may be the opposite of last year’s. ones. Keeping every single customer
you did for them and return to ask For example, the campaign to is important.
Being socially active as a company
and announcing a strong position
on controversial issues will turn off
some of your customers. They will
walk silently away, and they will nev-
er tell you why—but they will certain-
ly talk about it to their friends.
Resist company involvement in
social issues and concentrate on
running your business. That’s what
you’ve been hired to do.
© Orapun
International Conference
on Tribology and Sustainable Lubrication