WWW.LUBESNGREASES.

COM

2023
VOL. 29 ISSUE 5

HELPING YOU NAVIGATE THE LUBRICANTS INDUSTRY MAY

BASE STOCKS

U.S. Base Oil

Production
Plummeted
in 2022
REGULATIONS,
SPECIFICATIONS & TESTING
What to Do
When a Test Fails
BUSINESS
How to Attract
and Retain Talent

26%
22%
 ALLEGHENY PETROLEUM

Delivering Sup
Delive Super iorr
erio
GF- 6 Per
GF-6 form
Perfor ance
mance

Going Beyond the

Expected.
Allegheny Petroleum not
only meets the requirements
of the new API SP/ILSAC
specification but out performs
in 8 out of 10 quality
assessments to ensure:
• Fuel Economy
• LSPI Mitigation
• Engine Wear
Protection
• Oxidation Stability
 PUBLISHER’S LETTER

HOWARD BRISKIN is publisher

& president of Lubes’n’Greases.
Contact him at HBriskin@
LubesnGreases.com

Calling All Contributions

Lubes’n’Greases has provided you with coverage of the
lubricants and base oils industry for almost 30 years. We
work diligently, pursuing every angle to bring you the stories
that you want to hear. You could help us extend that coverage
even further.

T
here is no shortage of top- constantly evolving to meet the latest lubesngreases.com) with the
ics to discuss in the world developments and challenges of your stories you think are worth telling,
of lubricants. This is why no field. Even the most obscure corners or to discuss contributing an article
two editions of Lubes’n’Greases are of this industry can be rich in detail. of your own. All ideas are welcome,
alike in our tireless efforts to cover We want to know about it all. and no topic is too small for our
it all through feature articles, special You can get in touch with attention.
reports, monthly columns, videos and Lubes’n’Greases Managing Editor We look forward to hearing from
podcasts. Sydney Moore (sydney@lubesngreas- you.
You have unique expertise and es.com), Executive Editor Tim Sul-
perspective. The shifting landscape of livan (tim@lubesngreases.com),
our world has had a profound effect Lube Report Senior Editor George
not just on our personal lives but also Gill (george@lubesngreases.com)
our professional lives. Your work is or Editor Simon Johns (simon@

Tim Sullivan George Gill David Stanworth Matt Rogers Stefanie Dunkerly
Executive Editor Thomas Glenn Commercial Director Director of Business Development, Ad Operations Manager
Jack Goodhue dstanworth@LubesnGreases.com North America Stef@LubesnGreases.com
Sydney Moore Apu Gosalia Phone: +44(0)1737 906390 MRogers@LubesnGreases.com
HELPING YOU NAVIGATE Managing Editor Boris Kamchev Phone: +1 240-701-2931
THE LUBRICANTS INDUSTRY Gabriela Wheeler
Ricardo Lianez Contributors
Director of Creative
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

MAY 2023 WWW.LUBESNGREASES.COM 3

 MAY 2023
VOL. 29 ISSUE 5

21

30
16
16 25
BASE STOCKS NORTH AMERICA BUSINESS WORLD

U.S. Base Oil Production How to Attract and

FEATURES Plummeted in 2022 Retain Talent
What factors caused base oil production in ABN Resource shares its four-point plan
the United States to drop off last year? for attracting quality employees and
encouraging them to stick around for
the long term.
21
DISTRIBUTING WORLD

Sustainability and MWF 30

REGULATIONS, SPECIFICATIONS & TESTING NORTH AMERICA
Distribution Go Hand
in Hand What to Do When
Discover how a leading global distributor of a Test Fails
metalworking fluids is working to increase How do regulatory bodies ensure the
its sustainability profile as well as those of its continuity of licensing when an engine
customers.  or bench test fails?

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.,
in USA. 7389 Lee Hwy., Suite 300, Falls Church, VA 22042 USA.

Subscriptions are $249 per year for print and digital editions or $229 for digital only. To CANADA POST Agreement 40064709. Return undeliverable Canadian addresses to: IMS, P.O.
subscribe, visit www.LubesnGreases.com/subscribe. Subscription enquiries can be sent to Box 122, Niagara Falls, ON L2E 6S8
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Periodical category: General

LubesnGreasesPublishing @LubesnGreases /company/lng-publishing-co-/

4 WWW.LUBESNGREASES.COM MAY 2023

 14

12
3
36
Publisher’s Letter

DEPARTMENTS
8 36
BASE STOCKS NORTH AMERICA
Places’n’Faces
Base Oil Report: Pricing
Trying to Explain the Unexplained
Activity in the base oil market continues to be 39
lethargic. Might a change be in store despite Advertiser Index
recent posted price decreases?

41
12 Product News
SUSTAINABILITY WORLD

Sustainability
Serendipity Supporting 42
Sustainability BUSINESS WORLD
In today’s rapidly changing world, there’s no
Your Business
single strategic path to a sustainable future.
Apu Gosalia explains how serendipity could A Day of Reckoning Coming for
lead to achieving the ultimate goal. Quiet Quitters
Quiet quitting seems to be plaguing the
workforce right now. How can managers
14 encourage employees to contribute more
than the bare minimum?
FINISHED LUBRICANTS NORTH AMERICA

Need to Know
A Phase Change in Consolidation
Lubricant distributors have been through
several phases of consolidation during the
past few decades. Is the industry in the midst
of yet another phase?

6 WWW.LUBESNGREASES.COM MAY 2023

 A better, cleaner way forward.
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It’s what’s next in environmental protection.

Lubrizol’s products do more than help power the biggest machines.

They help power them in a way that protects the environment.
Lubrizol’s new EcoAssurant portfolio of finished fluids,
additive packages and components elevates the environmentally
protective quality of environmentally acceptable lubricants (EAL)
in industrial applications worldwide.
The EcoAssurant portfolio delivers a competitive edge and enables
your business to speed EAL offerings to market with more
confidence and less complexity.

Learn more at
Go.lubrizol.com/EcoAssurantLnG

© 2023 The Lubrizol Corporation. All rights reserved.

 BASE OIL REPORT
PRICING

BASE STOCKS NORTH AMERICA

Trying to Explain
the Unexplained GABRIELA WHEELER
is base oil editor for
In contrast to last year—or even the year before—base Lubes’n’Greases. Contact
oil demand remained fairly muted in March and early her at Gabriela@
LubesnGreases.com
April ahead of the spring production cycle when blenders
typically prepare lubricant inventories to meet heightened
SK decreased the posted price of its
motor oil consumption during the summer driving season. Group III 4-cSt grade by 15 cents and
its Group III 6-cSt and 8-cSt cuts by 20

S
ome attributed this year’s cated posted price decreases in late cents per gallon, effective April 1. The
languid market conditions to March, with the initiatives going into price of the company’s Group II+ 70N
macroeconomic factors, while effect on March 28 and April 1, re- was unchanged. SK previously low-
others speculated that buyers were spectively. The moves were thought to ered Group III postings on March 1.
waiting for base oil price decreases have been driven by sluggish demand As these decreases went into effect,
before securing additional volumes. and a need to stimulate orders as well crude prices jumped by almost 6%
Many consumers were nervous about as by softer crude oil values and grow- after OPEC+’s announcement of a cut
acquiring high-priced base stocks ing inventories of paraffinic oils. in oil production of over one million
when prices might tumble later, as Chevron lowered its API Group II barrels per day, or 1% of global pro-
such uncertainties as volatile crude 100R by 30 cents per gallon and its duction. The steeper crude oil prices
oil and feedstock prices abounded. 220R and 600R grades by 40 cents slowed the price adjustments on the
Chevron and SK enmove communi- per gallon. base oils side. Nevertheless, two addi-

Base Oil Report VIDEO Watch Gabriela & Sydney discuss this month’s Base Oil Report
May 2023
8
Base oil prices are lowest U.S. postings
of the month for mid-vis grade before 7
applicable discounts. Crude prices are
monthly averages. 6
Price (U.S. $/gallon)

2
Historic and current base oil pricing
data are available for purchase at 1
www.BaseOilPrices.com
0
APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR
BASE OIL PRICING DATA 23

Sources: Lubes’n’Greases research, Group I Group II Brent West Texas

U.S. Energy Information Administration Base Oil Base Oil Crude Intermediate Crude
LubesnGreases.com
8 WWW.LUBESNGREASES.COM MAY 2023
tional producers announced I refinery completed a
decreases in early April. turnaround in March, which
Motiva communicated a likely contributed to the
decrease of 30 cents per tightening of supplies.
gallon on its API Group II Within the Group II
105-vis base oil, and 40 segment, there was talk
cents/gal on its 220-vis of TVAs of 30-85 cents per
and 600-vis grades. The gallon being granted to
company also lowered its several accounts. The TVAs
Group II+ and III base oils were slightly unexpected in
by 25 cents/gal. All of the this segment, since Group
decreases went into effect II supply had been anticipat-
retroactively on April 3. ed to tighten on the back of
Avista Refining and Trad- an extended turnaround at
ing announced a 30 cents/ the Excel Paralubes facility
gal posted price decrease in Lake Charles, Louisiana.

OUR OILS,
on its Group II+ and III The plant had been sched-
base oils, effective April 11. uled to resume production
It seemed that rather at the end of March, but

YOUR
than cut posted prices, there were reports that the
many suppliers resorted to shutdown had been extend-

SOLUTION
temporary value allowanc- ed by two weeks due to
es or adjustments to en- technical issues.
courage domestic orders, Chevron was also heard
and lower spot prices to to have scheduled a turn-
attract export business. around at its Group II plant
The Group I segment was in Pascagoula, Mississippi,
described as balanced- in the second quarter and
to-tight, with limited spot had been building invento-
availability and steady- ries to cover requirements
to-soft prices. A Group during the outage.

Group I Base Oil Brent Crude

We supply process and base
oils for your production
5.56U.S.$/GAL
1.87
U.S.$/GAL
Group I, II, III, IV (PAOs) 

Technical White Oils and 

Low Viscosity Oils
West Texas
Group II Base Oil Intermediate Crude Rubber Processing Oils 
and Slack Waxes

5.14U.S.$/GAL
1.74
U.S.$/GAL www.mogoil.com

MAY 2023 WWW.LUBESNGREASES.COM 9

 BASE OIL REPORT

A Group II+/Group III rerefiner also ticipants said that once both plants refiners might redirect feedstocks to
completed a one-week shutdown in resumed production at full rates, a produce distillates instead of base
mid-March. larger amount of Group II base oils oils. This situation might affect the
Despite the turnarounds, Group II would be coming into the market, base oils supply/demand balance
supplies had been sufficient to meet placing additional pressure on pricing. and prompt buyers to secure prod-
demand amid lackluster domestic Refiners were also keeping an eye uct to avoid potential shortages later.
requirements and limited buying inter- on diesel prices. Should values shoot The Group III segment also experi-
est from other regions. Market par- up with higher crude oil values, enced some lengthening. Increased
domestic Group III production was
adding to the surplus availability of
imports. As a result, some suppliers
granted TVAs of 20-40 cents per
gallon, but several of them abstained
from adjusting prices, as they
predicted that this segment would
tighten, with demand likely to pick
up and plant turnarounds in Asia and
ARE YOUR CUSTOMERS Europe limiting global supplies over
the next few months.
INTERESTED IN EAL? In the naphthenic camp, the down-
ward pressure on prices was mitigat-
Z&S Synthetic Esters and ed by steeper crude oil and feedstock
Lubricant Additives Deliver values in early April. While supply and
Friction Reduction and High VI for demand of most pale oils was de-
Natural Lubricating Efficiency. scribed as fairly balanced, participants
Discover more: zslubes.com conceded that the lighter grades were
exceeding requirements. Interest from
Latin America and Europe relieved
some of the inventory pressure.
Both paraffinic and naphthenic U.S.
suppliers pursued export opportu-
nities, and many lowered their spot
offers to promote business, with buy-
ing appetite noted in Mexico, Brazil
and other Latin American countries.
At the time of writing, there
were few signs the tide would be
turning and base oil orders would
start to pour in. Economic factors
like inflation, recession fears, and
higher labor and transportation costs
might impact base oil and lubricants
consumption in coming months. The
start of the hurricane season in the
Atlantic basin in June may prompt
buyers to start padding inventories
to cover potential supply disruptions,
which could reinvigorate demand,
reversing a trend that has been a
source of significant concern over
the past several months.

10 WWW.LUBESNGREASES.COM MAY 2023

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 SUSTAINABILITY

APU GOSALIA is a
sustainability expert.
SUSTAINABILITY WORLD He can be reached at
apurva.gosalia@web.de

Serendipity Supporting Either the process is A: formal and

Sustainability predictive—focused on an event or re-
sult—or it’s B: dynamic and adaptive.
In this rapidly changing world, there’s no single strategic Entrepreneurs with a formal
path to a sustainable future. The ability for entrepreneurs to approach anticipate the desired out-
create opportunities from value-adding coincidence allows come and use a clear business plan
to make decisions. But entrepreneurs
them to build on serendipity for sustainability.
with a more dynamic approach adapt
their actions and desired outcomes

S
erendipity is considered one There are many well-known ex- depending on context. They may have
of the most beautiful English amples of serendipity in history, art, a concrete problem to solve, but their
words but also one of the most science and business: Columbus’ path toward the goal is flexible, and
difficult to translate to other languag- discovery of the New World; Picas- they may embrace new goals on the
es. It comes from Serendip, the old so’s Blue Period; Fleming’s discovery way due to that flexibility.
name for Sri Lanka, and was invent- of penicillin; the evolution of the world These latter entrepreneurs teach us
ed in the 18th Century on the inspi- wide web; the invention of the Post- that the future is uncertain, but we
ration of the fairy tale “The Three it; and most recently the BioNTech can still create business models with
Princes of Serendip,” whose heroes COVID-19 vaccine. positive sustainable impact. Their
often made discoveries by chance. But how can we create space for experience reminds me of the game
Serendipity means a positive serendipity to support sustainability? Tetris. It’s often impossible to predict
development from random chance, According to a 2015 study, serendipity how things will look in the end. But
but it stands for much more than just is based primarily on two factors— if you’re good, you make the most of
simple happy coincidences. The art of preparedness and noticing—i.e., be- the falling pieces to make the most
serendipity is to gain and use import- ing ready for the wave of chance and points.
ant insights from chance encounters. recognizing it at the right moment. In the game of sustainable develop-
Those with skill can draw their own Today businesses are asked to ment, there isn’t just one pathway or
conclusions and derive concrete reinvent their companies for positive binary choice between A or B. En-
actions. sustainable impact, but it’s hard to trepreneurs need both planning and
As Goethe so beautifully said: “I know exactly which path will lead to flexibility to handle uncertainty while
walked in the forest without perspec- a sustainable future, as there are at staying focused. Indeed, there may
tive, and nothing to seek—that was least two ways to create a sustainable not even be a clear pathway to start
my objective.” business model, according to theory. with, but rather small tracks that even-
tually lead us in the right sustainable
direction. We can’t expect to solve all
the new global challenges by operat-
ing only within the same systems that
created them.
John Lennon said, “Life is what
happens when you had other plans.”
This may be true, but I prefer to give
© Natalya Maskaeva

chance a chance and rather go with

Seneca, who said, “Luck is what
happens when preparation meets
possibility.”
STAY SERENDIPitable!

12 WWW.LUBESNGREASES.COM MAY 2023

YEAR ROUND PROTECTION
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levels of performance, even in the
most extreme climate conditions.

ROWE ANTIFREEZE
No matter if it’s hot or cold – ROWE Coolants provide all year
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Here you can find

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www.rowe-oil.com
 NEED TO KNOW

FINISHED LUBRICANTS NORTH AMERICA

A Phase Change
in Consolidation cession of 2007-2009. Lubricant
distribution was highly fragmented,
and with relatively flat demand the
There are four phases of industry consolidation, and economic downturn put significant
successfully navigating through them requires an financial pressure on small distribu-
understanding of where we are in the process as well tors. Many found they had to either
as planning and acting accordingly as phases change. close or sell their businesses to
competing distributors. While most
This is particularly important for lubricant distributors
of the deals during this period were
to consider due to the current transition. relatively small, the fragmentation of
the industry and business dynamics

U
nderstanding what phase the models based on volume metrics, attracted private equity (PE) invest-
industry is in and where it’s brand commitments, sub-jobber ments. With that, PE entered the
heading starts with a look arrangements and other methods. space with such notable early builds
back at where it’s been. The writing was on the wall and as RelaDyne, Windward Petroleum,
The first phase of distributor con- distributors were getting the mes- PetroChoice and Maxum Petroleum.
solidation started with merger and sage that they had to either align Mergers among the majors, togeth-
acquisition activity of the major oil and commit to grow business with er with the casualties of the Great Re-
companies in the 1990s and early a given major or risk contract can- cession, sharply reduced the number
2000s. The first was British Petro- cellation. Understandably, this drove of dedicated lubricant distributors in
leum’s acquisition of Amoco Corp., consolidation and gave rise to new the U.S. from nearly 10,000 in the ear-
then Pennzoil’s acquisition of Quaker enterprises in lubricant distribution. ly 1990s to roughly 7,500 in 2002. This
State in 1998. This was followed by One of the first was PetroLiance, set the stage for the second phase
Exxon’s purchase of Mobil in 1999, which was initially formed in 2006 of consolidation: a period when large
then Chevron’s deal to acquire Tex- by the merger of four ExxonMobil distributors worked aggressively to
aco in 2001. In 2002, Royal Dutch/ distributors (Boncosky Oil, Commer- build scale through acquisitions. One
Shell Group acquired Pennzoil- cial Ullman Lubricants, Young Oil and example is RelaDyne. As a PE-owned
Quaker State Co. Lubricant Technologies). Another enterprise, RelaDyne acquired close
Prior to their M&A activity, majors three distributors were later bolted to 40 distributors from 2010 to 2023,
maintained networks of 300-500 dis- on before PetroLiance was acquired and many of these deals were big,
tributors. Later, merged majors had by PetroChoice in 2014. including the acquisitions of Holling-
to rationalize the combined number Within a few years of the majors’ sworth, Hill Oil, Seaboard Neuman,
they were doing business with to merging, they reduced their distrib- Paulson Oil, PPC, Grupo Lucalza, and
minimize channel conflicts, improve utor rosters close to what they had Allied Oil. Another is PE-backed Pet-
efficiency and reduce costs. With prior to the M&A activity. roChoice, which acquired 15 lubricant
that, Chevron, ExxonMobil and Shell Further fueling the first stage of distributors and amassed nearly 65
Image credit By jozefmicic

culled their distributors by alignment consolidation was the Great Re- million gallons in annual sales before
being acquired by Moove in 2022.
TOM GLENN is president of the consulting firm Petro­leum Trends International, Candence Petroleum, a leading dis-
the Petroleum Quality Institute of America, and Jobbers World newsletter. tributor in the Southeast and Mid-At-
Phone: (732) 494-0405. Email: tom_glenn@petroleumtrends.com lantic market, was also acquired by
a PE firm. Cadence’s acquisitions

14 WWW.LUBESNGREASES.COM MAY 2023

Distributor Consolidation
300
Phillip SPECIALTY
s 66
250
ADDITIVES WITH
THE RIGHT
200 Citco BALANCE FOR
Number of Distributors

FOAM CONTROL
150
Castrol

100 Valvoline
Chevron -69.5%
Shell -74.3%
50
ExxonMobil -81.6%

0
2004 2007 2010 2013 2016 2019 2022

Source: Petroleum Trends International, Inc.

Note: Rate of change is illustrated as a linear trendline based on data for 2004-2008, 2016 and 2023.
Trendline does not represent actual year-to-year changes.
NEXT GENERATION
FOAM BAN®
PRODUCT RANGE and
include Apollo Oil, Brewer-Hendley, approaching 70 million gallons. TANK-SIDE DEFOAMERS
Davison Fuel & Oil, Frost Oil, Halco While there is no clear line of delin-
Lubricants, Mid-South Sales, Pugh eation separating one phase of con-
Lubricants, Stockman Oil, Veteran’s solidation from another, the size and
Oil and Yoder Oil. nature of today’s deals point to the
In addition to PE, some of the rol- industry moving into the third phase
lups were strategic. The most notable of consolidation. This is when the
are seen with Brenntag and Pilot collaborative race among the majors
Flying J (now Pilot Thomas Logistics). and their distributors to dominate the
Brenntag, a global market leader in industry intensifies. While the pace HIGH PERFORMANCE,
chemical and ingredients distribution, of acquisitions declines in this phase, FAST ACTING and HIGH
expanded into the U.S. lubricants the scale of acquisitions will be stag- VALUE ANTIFOAMS
business by acquiring Lubrication gering, including mergers of “equals.”
Services, LLC, J.A.M. Distributing Co., They will bring in more strategic buy-
G.H. Berlin-Windward, the lubricants ers, like we have seen with Brenntag,
business of NOCO, Mayes County Pilot Thomas Logistics and Moove.
Petroleum Products, the Lubricants Further, understanding there are
Division of Reeder Distributors, and comparatively few left to cut from
B&M Oil Co. Pilot Flying J made a big the ranks of distributors among the
splash in the lubricant distribution big three majors, it is important to
business when it acquired Maxum consider that an estimated 40% of ANTIFOAMS FOR NON-
Petroleum, which at the time was distributors dedicated to the lubri- AQUEOUS LUBRICANTS
Designed for better surface foam
distributing over 1.3 billion gallons of cants business sell less than 2 million control & air release
refined petroleum products. gallons annually. Although there are
Today there are roughly 900 distrib- still other brands they can and do
utors with a core business in lubri- represent, many are expected to face
cants. Another notable and expected some tough financial challenges and
product of consolidation is how it decisions, especially considering the
has reshaped the size of distributors. cost advantages that come with scale
While in the mid-2000s a large distrib- and the intensity of competition in the
utor was selling 5-12 million gallons third phase of consolidation.
of lubricants a year, a large distributor
www.munzing.com
today is moving 12-40 million gallons. info@munzing.us
Furthermore, it is estimated that near- Our columnist are temporaily writng evry
other month. Look for the next Need to Know
ly 10 distributors have sales exceed-
column in the July isue.
ing 40 million gallons and several are

MAY 2023 WWW.LUBESNGREASES.COM 15

 BASE STOCKS NORTH AMERICA

U.S. BASE OIL

PRODUCTION
PLUMMETED
© svetazi lianez; PX Media

IN 2022 By Sydney Moore

16 WWW.LUBESNGREASES.COM MAY 2023

What are the major factors that forced United
Oil Editor Gabriela Wheeler explained
States base oil production to plummet in 2022, that “given international sanctions
and how have last year’s unique market dynamics on exports of crude oil and refined
products from Russia—and Russia is
affected import and export volumes? one of the world’s largest exporters

R
of diesel—the price of diesel really
inging in at more than 61 highest-producing month of 2022 surged last year. This meant that
million barrels, base oil yielded more than 2% less base oil. many refiners favored the produc-
production in the United Paraffinic production fell 7% to 48.3 tion of diesel in detriment to base oil
States seemed to be million barrels, down from 51.8 million output. Feedstocks were streamed to
rebounding in 2021 from barrels in 2021. Meanwhile, naph- diesel production instead of base oils,
the devastating and cascading effects thenic production dipped by a more causing a drop in base oil production.”
of the COVID-19 pandemic. However, modest 2% to 9.2 million barrels from Because many refiners opted to al-
as has been the general theme of the 9.4 million barrels the year previous. locate feedstock to diesel production
past several years, anything can—and over base oils, supply of many grades
often will—happen, and last year cer- The War in Ukraine became tight for much of the year.
tainly saw its fair share of tumultuous Perhaps one of the most market-al- Naturally, this affected pricing. In fact,
and market-altering events. tering events last year kicked off in base oil prices stayed on an uphill tra-
How did these various events affect late February when Russia invaded jectory for most of the year, with sev-
the U.S. base oil market in 2022? Ukraine, prompting a large portion of eral rounds of increases announced
At just 57.5 million barrels, the the world’s developed nations—in- between February and September.
country’s total base oil production cluding the United States, Canada, Of course, the historic high prices
dropped off significantly last year—a Japan, United Kingdom, Australia and for base oil in 2022 cannot be entirely
6% decrease from the year previous. members of the European Union—to blamed on the aftermath of Russia’s
August saw the lowest production vol- impose strict sanctions on Russian oil invasion of Ukraine. According to
ume at just over 4 million barrels, 26% and gas products in protest of Rus- Wheeler, “base oil prices moved up
less than the same month in 2021 but sia’s unprovoked attack. during the first three quarters of 2022
nearly 20% more than 2021’s lowest How did these tight sanctions trickle because of a tight supply-demand
producing month (February). down to affect the base oil market in situation and turnarounds in different
May saw the highest production the U.S.? regions, which made it more difficult
volume of the year. Compared to The answer is quite nuanced but to source product in other regions to
the same month the year previous, can be boiled down to a few main meet demand shortages at home.”
production in May 2022 fell short by a points.
mere 0.6%, or 35,000 barrels. How- First, the sanctions on Russia result- Additives in Short Supply
ever, compared to June 2021— that ed in a significant increase in the cost In late July, severe flooding in the
year’s highest-producing month—the of diesel fuel. Lubes’n’Greases Base Midwest region of the United States

U.S. Monthly Production of Base Oils

2021 2022
6
5
Millions of Barrels

4
3
2
1
0
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Source: U.S. Energy Information Administration
LubesnGreases.com

MAY 2023 WWW.LUBESNGREASES.COM 17

 Long-term U.S. Production of Base Oils
80
Millions of Barrels

70

60

50
98

99

00

01

02

03

04

05

06

07

08

09

10

11

12

13
14

15
16
17

18

19
20

21
22
20

Source: U.S. Energy Information Administration

LubesnGreases.com

forced Afton Chemical Corp., one several additive plants cut production 46.4 million barrels, the district still
of the Big Four additive suppliers, to or temporarily shuttered their opera- fell short of its total production (48.2
temporarily close its production facili- tions. million barrels) in 2021, representing
ty in Sauget, Illinois, and declare force How do interruptions to additives nearly a 4% decrease.
majeure. Among the products affect- production affect base oils? The Texas Inland portion of PADD 3
ed by the declaration were engine oil Simply stated, additives are a key produced just 153,000 barrels of the
additive packages and some off-road component in finished lubricants, so district’s total, while the Texas and
products. when additive supply is scarce, the Louisiana Gulf Coast segments pro-
The global additives market has supply of finished lubricants follows duced the lion’s share at 36.1 million
been plagued by supply issues since a suit. Further, when finished lubricant barrels. The PADD’s production was
fire broke out at the Lubrizol additives production slows, smaller volumes of rounded out by those refiners located
plant in Rouen, France, in September base oils are needed. in the northern Louisiana and Arkan-
2019. The blaze caused extensive Afton lifted the force majeure just sas regions, which together produced
damage to the company’s facilities over a month later on September 8. 10.1 million barrels last year.
and took large volumes of additives The next highest producing region
out of the supply system for some Production in the PADDs was PADD 1, which covers base oil
time. The situation was exacerbated Not surprisingly, PADD 3—which plants located on the U.S. East Coast.
by the COVID-19 pandemic as compa- covers the U.S. Gulf Coast region— Unlike each of the four other PADDs,
nies worldwide implemented restric- was by far the top producing Petro- PADD 1 actually produced nearly 10%
tions and many employees were leum Administration for Defense more base oil in 2022 (4.5 million
unable to go to work. As a result, District in 2022. Outputting more than barrels) than it did in 2021 (4.1 million
barrels).
At 2.5 million barrels, PADD 2—
U.S. Refinery Production Volumes, Paraffinic and which is made up wholly of HollyFron-
Naphthenic Base Oils tier’s 9,500 b/d Group I facility in Tulsa,
Paraffinic Naphthenic Oklahoma— saw a minimal decrease
(0.08%) from 2021 volumes.
80
The West Coast refiners in PADD
70 65.4 65.0 67.2 60.9 61.2
57.5 59.8 60.5 60.5 5 experienced a much steeper drop
55.6 57.5
Millions of Barrels

60 from 6.4 million barrels to 4.1 million

50 barrels—marking a 36% decrease.
40 PADD 4, which encompasses the
30 Intermountain region of the U.S., did
20 not produce any base oil in 2022.
10
0 Exports Ease Off
12

13

14

15

16

17

18

19

20

21

22

The United States exported signifi-

20

20

20

20

20

20

20

20

20

20

20

Source: U.S. Energy Information Administration cantly fewer barrels of base oil in 2022
LubesnGreases.com
than it did the year previous. Down

18 WWW.LUBESNGREASES.COM MAY 2023

 Top U.S. Base Oil Trading Partners, 2022

Exports (34.1 million barrels) Imports (17.9 million barrels)

South Korea 24% Rest of the

Mexico 24% World 14%
Rest of the
World 31%

Indonesia 7%
Columbia 9% Qatar 23%
Chile 3%
U.A.E. 13%
Canada 11%
Brazil 10%
Belgium 12% Canada 19%
Source: U.S. Energy Information Administration
LubesnGreases.com

6%, the country’s exports clocked in ed States’ most consistent base oil last year, while shipments to Belgium
at just 34.1 million barrels. trading partners—swelled 7% to 3.7 and Brazil fell 23% to 4 million barrels
While the countries receiving sig- million barrels. Meanwhile, exports and 9% to 3.4 million barrels, respec-
nificant volumes of U.S.-made base to Nigeria jumped 390% to 960,000 tively. Similarly, U.S. exports to India
oils more or less stayed consistent barrels. The U.S. sent very little base dropped 38% to just 879,000 barrels.
with previous years, exports to Latin oil to France in 2021—just 39,000 In December, the U.S. exported just
American countries like Colombia (2.9 barrels—but that amount jumped to 1.8 million barrels of base oil, the low-
million barrels) and Chile (1 million 762,000 barrels in 2022. est amount for any month last year.
barrels) saw a stark increase in 2022. In contrast, exports to Mexico Volumes sent to most countries de-
Exports to Canada—one of the Unit- dropped 34% to 8.3 million barrels creased that month: 47% to 510,000

MAY 2023 WWW.LUBESNGREASES.COM 19

 barrels for Mexico; 83% to 77,000 in 2021, but South Korea passed both down at least partly because of the
barrels for Belgium; 18% to 237,000 last year when its shipments to the unusually high amount of base oils
barrels for Canada; 8% to 208,000 U.S. rose 22% to 4.3 million barrels. imported the previous month.
barrels for Brazil; 99% to 1,000 barrels Canada’s exports to its southern The October import volume was 2.2
for Nigeria; and 95% to 13,000 barrels neighbor declined 9% to 3.5 million million barrels, the highest monthly
for India. barrels, while Qatar’s swelled 11% to amount in more than a year and sig-
4.1 million barrels. nificantly higher than any other month
Imports Increase Imports from the United Arab Emir- that year. July and August had the
Base oil imports in the U.S. in- ates and Indonesia increased 43% to next-highest amounts, clocking in at
creased by about 6% in 2022, reach- 2.2 million barrels and 6% to 1.2 mil- 1.7 million barrels each.
ing 17.9 million barrels. Comparatively, lion barrels, respectively, while those Most of the base oils imported to
the country imported about 16.8 from the Netherlands and Bahrain fell the United States are Group III grades,
million barrels the year previous. 26% to 815,000 barrels and 25% to as the country has little capacity to
While the U.S. continued to buy 678,000 barrels. produce that category domestically.
base oil from tried-and-true countries The United States imported 967,000
in 2022, the portions from its top barrels of base oil in November, down Tim Sullivan and George Gill contributed
to this article.
sources—South Korea, Qatar, Canada, from 1.6 million barrels the same
United Arab Emirates and Indonesia— month of 2021. November was the SYDNEY MOORE
did fluctuate a bit. (See pie charts on first month to fall below 1 million is managing editor of
Page 19.) barrels since July 2021 and the lowest Lubes’n’Greases magazine.
Canada and Qatar had been the first- total since 702,000 barrels that same Contact her at Sydney@
and second-largest countries of origin month. November may have been LubesnGreases.com

Extreme pressure additives

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Acceptable Lubricants

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lubricants@seqens.com WWW.SEQENS.COM

20 WWW.LUBESNGREASES.COM MAY 2023

 DISTRIBUTING WORLD

By Sydney Moore

Sustainability &
MWF Distribution
© Phuchit | Dreamstime.com

Go Hand in Hand
T
he lubricants industry has been tasked with not just developing
and working toward robust sustainability goals but also with actu-
ally meeting or exceeding those targets in a timely manner. What’s
more, increasingly stringent regulatory requirements as well as shifting
consumer expectations and other factors have spurred companies oper-
ating in the lubricants sector to ramp up their efforts even more.
While the job at hand may seem quite daunting, lubricant players of all
kinds and in all regions of the world are rising to the challenge. One such
company is Downers Grove, Illinois-based Univar Solutions, a chemicals
and ingredients distributor with operations around the globe.

MAY 2023 WWW.LUBESNGREASES.COM 21

 Having begun its sustainability or natural-based products. Within dustry, we’ve seen a lot of evolution.
journey in 2008, Univar Solutions is that, there are different elements as Everything ranging from biobased
no stranger to the challenges asso- well—everything ranging from nat- emulsifiers used to help increase the
ciated with increasing the efficien- ural and biobased materials, carbon service life of fluids to eco-friendly
cy of its fleet and site operations. footprinting, circular materials, (i.e. extreme pressure and anti-wear addi-
Lubes’n’Greases met with Federico recycling and reusing), safer substi- tives being used to reduce tool wear
Montaner, global vice president of tutes and products that have differ- and improve the finishing quality of
lubricants and metalworking fluids ent accreditations, whether they be some of these materials.
for Univar Solutions, to discuss the social or environmental. This whole On the metalworking fluid side,
company’s sustainability goals and bucket around sustainability, natu- it’s really around helping the plants
how they are being applied to the ral-based products and sustainable extend the life of the tools and the
lubricants and metalworking fluids formulations is really important and fluids as well as increasing the level
segment. has helped us to have very produc- of performance of the materials be-
Lubes’n’Greases: What are some tive conversations with customers ing used to reduce energy usage and
of Univar Solutions’ major sustain- and suppliers. lower waste.
ability goals? Complementing what we do day Lubes’n’Greases: How has con-
Montaner: At Univar Solutions, in and day out within our metalwork- sumer demand for more sustainable
because we sit in the middle of the ing and lubricant business, we also products affected how Univar does
value chain as a leading global chem- as a company provide services that business?
ical distributor, sustainability is at our are aligned with sustainability, such Montaner: I’m not suggesting
core, and it has been that way for as our ChemCare business, which that this is specific to metalworking
years and years. We’ve been publish- provides critical waste management fluids—it’s very relevant to lubri-
ing a formal sustainability report for solutions. cants and greases as well—but the
more than a decade. The other thing I would add is that pull from the consumer side is very
For us, it starts with a broad ESG the way we collaborate with our cus- much influencing our lubricant and
(environmental, social and gover- tomers is really important to support- metalworking fluid customers (for-
nance) strategy. On the environ- ing their innovation and formulation mulators). Really, they’re demanding
mental side, we have goals against interests. If you look at current lubri- that more sustainable and naturally
everything ranging from climate cant and metalworking fluid formula- derived products be used in the
action and resource usage to re- tors, many of them want to engage products that they consume.
duction and prevention of releases. in discussions around sustainability Our portfolio lends itself nicely
Under the social pillar, we take a lot goals, as it’s an emerging and rapidly to that. We have renewable oleo-
of pride in our safety record. In 2022 evolving field. That said, we have to chemicals and complex esters that
we achieved an all-time record low keep in mind that these manufactur- help with lubricity. We have fatty
number of reportable incidents. We ing and formulating businesses are acids and soaps that help emulsify
also have active initiatives around different than distribution; we are oils and bio-derived surfactants that
diversity, equity and inclusion, and intimately linked through the value extend the life of fluids. It wouldn’t
community engagement. In terms of chain, but they are different business be a complete story if we didn’t
governance, we focus on sustainable models and their sustainability agen- look down the value chain and talk
sourcing, corporate governance and da should reflect that. about the kinds of demands that we
risk management. Lastly, sustainable We collaborate with customers as consumers have of our industry
solutions cut across the entire strat- primarily in three different areas. and how that’s driving some of that
egy and are really how we work with We support product development change.
our customers and suppliers. through our technical resources and Lubes’n’Greases: How has Univar
Lubes’n’Greases: How have met- our formulating labs. We collaborate adapted its transportation and lo-
alworking fluid formulations changed in terms of the regulatory environ- gistics to align with its sustainability
in recent years to become more ment, as that’s a rapidly changing goals?
environmentally friendly and/or sus- space. And finally, we work jointly Montaner: A very big trend in
tainable? How do these formulations with them to ensure we define an our industry is electrification. It’s
contribute to the sustainability goals optimal supply chain and logistics very well documented, and Univar
of end users? solutions for the raw materials we Solutions is taking actions that are
Montaner: Within sustainability, are supplying them with, as that can very aligned with that. We began
we think of that as being part of reduce carbon footprint. with investments in electric trucks
three solution buckets, if you will. Specifically in metalworking fluid and have a pilot program in the U.S.
The first is all about sustainable formulations, like the rest of the in- to evaluate that capability. We’re very

22 WWW.LUBESNGREASES.COM MAY 2023

 Gulf Coast. We subsequently collab-
oratively transitioned to taking rail
from the supplier, packaging the
“We always look to discuss with customers how to material locally and shipping on a
consolidate demand of different products, maximize just-in-time basis to the customers,
thus optimizing that supply chain.
loads and reduce complexity.”
These efforts resulted in more than
an 80% reduction in carbon foot-
— FEDERICO MONTANER print. That’s just one example of
UNIVAR SOLUTIONS one product/customer combination.
When you look at a business that
much aligned with making sure that are well known in the industry but has thousands of customers and
we take a leadership position in that perhaps haven’t been looked at as thousands of those opportunities to
process at all levels. deeply as they are now. For example, work with them to find better ways
On the flip side, our current private you could take a look at a supply to decarbonize the supply chain, it
fleet is very robust and a continued chain that is highly dependent on represents a very significant opportu-
area of investment. The kinds of trucks and perhaps consider being nity for us and for them.
conversations we’re having with able to consolidate into rail cars. We Lubes’n’Greases: What are some
customers are really quite interesting always look to discuss with custom- of the major challenges associated
because as they take a look at their ers how to consolidate demand of with improving the sustainability of
carbon footprint, it’s driving discus- different products, maximize loads metalworking fluids?
sions around what opportunities and reduce complexity. Montaner: For decades now, the
exist to optimize and subsequently We had one example where our overall lubricant and metalworking
decarbonize the supply chain. supplier was delivering product to a fluid industry has moved its offerings
All of these are solutions that customer in the Midwest from the in alignment with sustainability, as

Specialized additives to keep the world moving.

Italmatch Chemicals continues to develop new technologies
based on renewable sources for a brighter and stronger future.
Want to know more? We thought so. LubePerformanceAdditives.com
©2023 Italmatch Chemicals

MAY 2023 WWW.LUBESNGREASES.COM 23

 product performance has improved It does pose challenges for the to our supplier partners. We are
considerably. If you look at the formulators, for sure. But as a dis- absolutely committed to maintaining
history of the industry, you see this tributor, the way we go about en- a leadership position in helping our
constant and very thoughtful evolu- suring that we’re bringing the most customers move their sustainability
tion, some of it regulatory driven and innovative products to help address agendas forward. We’re excited about
some of it is industry driven. We’ve those challenges is by triangulating how we’re positioned in this space
seen higher performing, higher the new innovations that suppliers because we have the unique advan-
quality materials that are extending are introducing with the needs of our tage of having decades of experience
the intervals of fluid changes. If you customers. We’re ensuring that those in driving initiative around this topic.
look at that, that is a large part of the conversations are taking place.
sustainability message. Our labs and our technical resourc-
More recently, you’re absolutely see- es are at the center of being able to SYDNEY MOORE
ing smaller sumps, tighter tolerances provide that connection. What are is managing editor of
and higher pressure. All that poses a we hearing from our customers that Lubes’n’Greases magazine.
significant number of challenges in they’re needing? How do we support Contact her at Sydney@
LubesnGreases.com
the way that the industry is formulat- them in that development with people
ing to meet those needs. and lab capabilities? What are we
At the end of the day, that’s really pulling in from the suppliers that help FEDERICO MONTANER
where the challenge is: ensuring that us to deliver those requirements? is global vice president of
the level of performance is maintained Sustainability is a central theme in lubricants and metalworking
fluids for Univar Solutions.
as we try to reduce the amount of our industry. It’s a topic that is rapidly
energy required to operate and as we evolving in terms of what it means
incorporate more biobased materials. to our customers and what it means

Creating
stronger
relationships
all around
the world.
ergonspecialtyoils.com

24 WWW.LUBESNGREASES.COM MAY 2023

 BUSINESS WORLD

How to
Attract
and Retain
Talent By James
Moorhouse &
Ewa Ozga

The lubricants industry is navigating its fair share of

obstacles right now. One of the most surmountable—
but perhaps less talked about—challenges is talent
attraction and personnel retention.
© A Stefanovska

MAY 2023 WWW.LUBESNGREASES.COM 25

 T
he lubricants, additives and also to thrive? tice positive self-talk are in a perfect
base oils industry is facing This article will outline an mindset to make a positive impact
a number of challenges easy-to-implement four-point plan on themselves and the future. Those
that will affect the course (mindset; mission, vision and values; that aren’t will likely struggle to deliv-
of the industry now and into the leadership; and widening the talent er. Because of this, it pays to invest
future, including meeting sustain- pool). These four points will allow time and effort in getting into the
ability targets, turning profit in an companies to obtain a high-per- right mindset.
ever-changing business environment formance culture that attracts and
and operating within the confines of retains quality personnel. Mission, Vision and Values
stringent regulatory requirements. We at ABN Resource recently
Furthermore, the industry certainly Mindset conducted a talent survey to our
has not been immune from the dev- Understandably, people can feel global network of lubricants indus-
astating and long-lasting effects of overwhelmed, stressed and anxious try contacts (numbering upwards
the COVID-19 pandemic and the war during or after experiencing a tough of 22,000). The report established
in Ukraine as well as rising energy time. In these situations, mindset is some key trends for talent attraction
costs, inflation and interest rates. critical. and retention and gave some valu-
Fortunately, there is an answer to Mindset impacts how you inter- able insight into what is important to
help the industry solve these chal- pret, act and react to situations. It is existing personnel in the lubricants
lenges: people. a key contributing factor to success sector. A strong company culture
People can turn challenges into or failure in work and in life. Whatev- with a compelling company mission
opportunities, as high-performing er your role and responsibility level, and vision was a significant factor in
teams deliver the growth and stra- you can control and influence how both attracting and retaining skilled
tegic goals companies set out to you react to and deal with challenges talent.
accomplish. by having the right mindset. Figure Mission, vision and values can
So how can the lubricants industry 1 outlines some of the things that be the glue that binds your team
retain and develop the great talents affect your overall mindset that you together across any location and
it already has? And how can it attract can control. role function. It gives everyone a
new talent to the sector, enabling People that adopt a growth mind- common purpose. When work feels
businesses not just to survive but set, focus on abundance and prac- meaningful and staff have something
important to strive for, they are much
more likely not just to join your com-
Figure 1. Control Your Mindset pany but to stick around.
Value alignment should not be un-

Things You Can Control derestimated. It creates a workplace

environment in which people are
treated how they like to be treated.
• Your beliefs • How you express your feelings
This leads to a happy and high-per-
• Your attitude • Whether you ask for help
forming group of people that opt to
• Your effort or not
stay for longer-term employment.
• Your thoughts • How often you practice We advise consulting your work-
• Your perspective gratitude force regularly to revisit and reaffirm
• How honest you are • How many times you smile your mission, vision and values.
• What books and study you • How much time you spend What’s more, it is vital to deliver
complete worrying on your value set each day through
employer and employee actions. By
• How often you exercise
doing this, you have a very powerful
• The type of food you eat attraction and retention tool.
• The risks you take
• How you interpret situations Leadership Traits
• How kind you are to others Another key finding in the ABN
• How kind you are to yourself Resource Talent report was the
importance of having the right lead-
• How often you say “thank you”
ers to retain and attract talent. Get
leadership right, and you will have an
Source: ABN Resource engaged workforce and the ability to
LubesnGreases.com

26 WWW.LUBESNGREASES.COM MAY 2023

attract people. Get leadership wrong,
and it is much more likely that valu-
able staff will leave. Additionally, in-
adequate leadership may also result
in talent not joining your company, as TOUGH QUESTIONS,
they may see a high turnover of staff
or other red flags.
The top leadership traits personnel SPECIAL APPLICATIONS,
said they wanted to see from leaders
in the lubricant industry are the
following:
TIGHT DEADLINES?
1. Empathy
2. Inclusiveness
3. Clarity
CALL RENKERT OIL.
4. Giving space to deliver
5. U pskilling staff to enable career
progression.

How to Attract Talent

Attracting talent starts with lead-
ership prioritizing it as a key part
of their job and making time and
effort to work on it. Without the right
people, you can seriously jeopardize
your company’s overall well-being.
Every company has the ability to
offer a unique value proposition. You
don’t need to please all people; that
likely isn’t even possible. You just
need to please the type of people
you want to attract. So don’t be
afraid to embrace what is unique and Count on expert consulting, creative solutions and quality oils
great about your company, and be offered at competitive prices. Plus, our multiple terminals translate
sure to showcase those qualities. If to quick delivery.
it speaks well to the type of person
you want to employ, you will get the Why choose oils from Renkert?
right engagement and attract the ✓ Clear, water white process oils with viscosities from 30 to 600
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In addition to showcasing your
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innovation, problem-solving, and
the sector’s role in environmental Contact us today for an expert assessment of your oil application.
improvement are all great messages
1 (800) 423-6457 www.RenkertOil.com
to publicize. It will also appeal to a
wider audience, broadening the size
of your talent pool and attracting Authorized distributor for Chevron Process Oils
new people into the sector.

MAY 2023 WWW.LUBESNGREASES.COM 27

 A free and easy way proven to channels showing what you want for roles to change based on the
raise awareness is through LinkedIn. people to see? achievement of key tasks.
Company LinkedIn pages as well as Another proven way to build a After that, 18% look for a chal-
your own personal LinkedIn account quickly available talent pipeline lenging role in a supportive and
are great ways to showcase what you and attract the right people is by progressive environment. Mentoring
do in your job and the impact that networking. Don’t just interview or and training were another key area
your company makes with its prod- engage with people when you are for retention. Experienced personnel
ucts in the markets you serve. You hiring. Make a point of doing it when enjoy the opportunity to develop and
can showcase career development, you have no open roles, too. The learn through either formal training
your mission, vision and values, benefit of this is that when you have or mentorship. An additional benefit
while showing your commitment to a surprise resignation or another rea- of mentorship, learning and develop-
corporate social responsibility, which son to hire fast, you will de-risk your ment is upskilling your workforce.
is essential to attracting younger hiring process by being able to pull Finally, people are looking for more
generations. In fact, according to the from a trusted network of people flexibility in the workplace, with more
Cone Communications Millennial you know and hire them because than one in five respondents report-
Employee Study, 64% of Millennials you have an existing relationship in ing that work-life balance is critical to
would not take a job if their employer place to leverage. their job satisfaction. This includes
doesn’t have a strong corporate social flexibility in place of work and hours
responsibility policy in place. Talent Retention of work.
You can also use LinkedIn to adver- Retention is impacted by four Also, employees are increasingly
tize career opportunities to your net- key factors. According to the ABN looking for jobs that come with flexi-
work that could fill your open jobs. Resource Lubricants Talent Report, bility to have creative freedom to use
After people get outreach from you, 20% of respondents listed career critical thinking and bring new ideas.
one of the most likely next steps progression as a key reason to stay. These ideas can deliver big benefits
they take is to look at your website Employees want a clear pathway to how your company operates and
and social feeds. Are these digital for development and time scales grows, too.

Widening the Talent Pool

ABN Resource continues to be a
strong advocate for diversity and
inclusion. According to research
gathered in the ABN Resource Diver-
sity & Inclusion report, companies
DIELECTRIC benefit from improved talent attrac-

SYNTHETIC ESTER tion, a wider pool of talent, better

engaged workforces, higher creativ-
BASE FLUIDS ity, increased innovation, and better
FOR DIRECT COOLING IN ELECTRIC VEHICLES problem-solving or decision-making
MAXIMIZE EQUIPMENT LIFETIME capabilities. All of these things lead
AND ENERGY EFFICIENCY to higher profitability for companies
in the lubricants sector.
EXCELLENT HEAT TRANSFER With all of these benefits, we
PROPERTIES
would encourage readers to im-
SUPERIOR LUBRICITY plement diversity and inclusion
initiatives in their companies. There
ADDED FIRE SAFETY are still companies without clear
policies, and they are missing a great
opportunity to improve their culture
as well as their bottom line.
Engineering performance, Implementing these benefits
together.
requires leadership buy-in, advoca-
cy and an awareness of bias (both
unconscious and conscious). Com-
www.nyco-group.com
panies should give individuals of
all backgrounds, life experiences,

28 WWW.LUBESNGREASES.COM MAY 2023

preferences and beliefs a workplace plement and deliver on your agreed Will you act on it, or will you file it
in which they are respected as indi- mission and vision, while operating away to look at “some other time?”
viduals and valued for the different within a set of agreed upon values You cannot expect the issue to
perspectives they bring. Additionally, that create a culture to bind people disappear if you do nothing. Just
companies should allow all people together. Attraction and retention do a little bit of time and continuous
an equal opportunity to contribute not happen without continued action applied effort in these four key areas
and be their true selves, regardless and effort. You can build a great will make a big difference to your
of their background. pipeline of qualified talent when you company’s success. Go on and give
As the future of work will be made need to hire by utilizing tools like them a try!
up of a more multi-generational LinkedIn and more traditional net-
workforce, investing time in these working methods. You also need to
fundamentals—particularly focusing raise awareness and communicate
JAMES MOORHOUSE is
on treating people how they like to to the world what is great about your
founder and director of ABN
be treated—is a factor that speaks company and the lubricants industry Resource, a global executive
to all people. It binds them togeth- as a whole. search firm hiring executives,
er and creates a high-performance Leaders play a key role in setting commercial and technical
team that stays intact and makes the culture as well as in retaining and personnel for the lubricants,
your company more appealing to attracting staff. Leaders are also very additive and base oil industries.
new employees. influential in delivering diversity and
inclusion, which is proven to improve
EWA OZGA is marketing
The Bottom Line profits and make your business cul-
manager of ABN Resource,
This concludes ABN’s 4-point plan ture and performance skyrocket. responsible for communicating
to help you with talent attraction and The problem of finding and retain- about the lubricants industry to
retention. It all starts with having ing quality employees will not go a wider audience and helping
the right mindset. You then need to away without action. Fortunately, you the downstream oil sector to
retain and attract top talent.
work with your staff to create, im- now have a blueprint for success.

The source for pure bio-based

casTor oil and casTor derivaTives
Supplying the lubricants and greases industry
for over 50 years
 organic products available
 Environmentally
friendly
 Extensive product list

Alnor oil Co. inC.

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MAY 2023 WWW.LUBESNGREASES.COM 29

 REGULATIONS, SPECIFICATIONS & TESTING NORTH AMERICA

By Will Beverina

WHAT TO DO
WHEN A
TEST FAILS

30 WWW.LUBESNGREASES.COM MAY 2023

 O
Specification development is tricky. Developing
n February 27 this year,
even one benchmark requires years of testing the American Petroleum
Institute announced
and countless hours of collaboration, all in
that the ASTM D6709
the name of ensuring each bottle of motor oil Sequence VIII test was being put
on hold. It is used to prove that a
that hits the shelves meets the requirements of formulation can meet standards for
modern-day engines. But tests themselves can ILSAC GF-6A and API SP, SN, SM, SL
or SJ.
fail, and what follows is rarely an easy process. “ASTM D02.B0.01 Sequence VIII
Surveillance Panel has reported that
the [test] is currently out of control
and not available at independent
laboratories,” explained Jeffrey
Harmening, senior manager for the
Engine Oil Licensing and Certifica-
tion System, Diesel Exhaust Fluid
Certification and Motor Oil Matters
programs with the American Petro-
leum Institute.
This means that any lubricant
blender seeking licensing for a new
formulation is currently unable to
run the test. When that happens,
API invokes provisional licensing,
allowing a formulation to be tempo-
rarily approved for market even if it
cannot pass the test because the
test is unavailable.
“The test is designed to deter-
mine weight loss in bearings due to
corrosion,” said Pat Lang, manager
of crankcase lubricant testing at San
Antonio-based Southwest Research
Institute. “As a result of oil degra-
dation, the acidity of that oil can
increase. So if it does increase, then
you can have chemical etching of
that bearing that may compromise
the ability to maintain proper bearing
function.”

MAY 2023 WWW.LUBESNGREASES.COM 31

 The Southwest Research Institute you might as well keep it.” testing must cause no more than a
is one of two labs that run bench- Updating the test is not simple, 26-mg bearing weight loss after the
mark tests for lubricant formulations. though. Test development is expen- 40-hour test. Typical candidate tests
To determine if an oil can pass the sive and takes years. The test has are much lower than 26 mg of loss,
test, the lab weighs the bearings and been slated to be replaced before, but as long as it’s lower than 26 the
then runs the oil through a 40-hour but it remains, since there is no via- candidate oil will pass. It is a test
test. After that test, they weigh the ble alternative in place. with one of the highest pass rates of
bearings again to determine weight Original equipment manufacturers all the tests required for the current
loss. “are focused on the newer hardware category.
If there is an extreme change in but recognize the older hardware How was the 26-mg threshold
weight, it would suggest that the oil still needs protection,” Lang said. decided? While inferences can be
being tested is of a corrosive nature. “They’ve got their new technology made, no one quite knows.
“That’s kind of a red flag,” said Lang, engines out there that they need to “This test has been around for
who is also the chairman of the Se- protect. This bearing weight loss is 50-plus years in different flavors, if
quence VIII Surveillance Panel. “The a concern, but we’ve got a tool that you will,” Lang explained. “So in the
problem with that is that as your gauges it.” early days of this, the threshold of
bearings corrode in an engine, you The industry is beginning to talk passing/failing was likely correlated
end up with material being removed, about the introduction of ILSAC GF- to a problem that was being
and you can end up with more 7, which could potentially mean a observed in the field.”
clearance, which is critical in terms new test, but nothing is set in stone A reference oil, which is a formu-
of maintaining the oil film between yet. Lang thinks that an update for lation of known performance that
those two components.” GF-8 is more likely. “I think that the the laboratories use to calibrate the
As the clearance increases, there Sequence VIII is going to remain in test, is periodically used to ensure
is a drop in oil pressure, which GF-7, but I think for GF-8 it’s going to the test is running correctly. But it
can lead to mechanical interaction be replaced probably with a bench has stricter acceptable limits. In this
between the bearing and the crank- test—not an engine test, but a case, the reference oil testing for
shaft journal. bench test.” ASTM D6709 Sequence VIII, called
The Sequence VIII is an old test. 1006-2, must cause a bearing weight
Modern bearings are typically made Acceptable Limits loss of no less than 9.2 mg, and no
with aluminum. But older configura- ASTM D6709 Sequence VIII mea- more than 25.7 mg. This oil is of an
tions use copper and lead, which still sures weight loss in milligrams. Any “older vintage,” Lang said, since
need protection in the field. formulation—or a candidate oil— the test is older, meaning it is not
As Lang put it: “It just works, so that a lubricant blender submits for entirely representative of oils that

A Generic Sample Chart for Engine Test Results

Test results for two different reference oils. The
Tracking Severity and Bias Deviation from Target

3.0
reference oil represented by white squares must
2.5
perform within the two dotted lines and the 2.0
reference oil represented by black squares must 1.5
perform within the two solid lines to ensure the 1.0
0.5
engine test stand is calibrated correctly.
0.0
-0.5
Yi
-1.0
Zi -1.5
Lower Control Limit for Yi -2.0
-2.5
Upper Control Limit for Yi
-3.0
Lower Control Limit for Zi 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Upper Control Limit for Zi Completion Date Order

Source: Test Monitoring Center
LubesnGreases.com

32 WWW.LUBESNGREASES.COM MAY 2023

 “We’re very confident that we can get this test back online lem and were not successful,” Lang
soon. We’ll figure it out. We always do.” said. At that point, the decision was
made to advise API that the test was
unavailable. As a result, API invoked
— PAT LANG provisional licensing.
SOUTHWEST RESEARCH INSTITUTE One potential cause of the failure
may have been that the current
batch of bearings had degraded.
Bearings can age and give an unusu-
exist in the field today. causing a bearing weight loss over al test result. But a batch of newer
The current issue is that the ref- the allowable upper limit of 25.7 bearings were tried and gave the
erence oil is testing higher than the mg for this oil. (Actual weight loss same severe results, ruling that out
acceptable limit. ranged from 28 mg to 35 mg.) as the problem.
A reference oil not running cor- Failed results can fall under the Another common item used
rectly can happen without a test category of mild or severe. These between the labs is fuel. This is
becoming unavailable. Sometimes results are considered severe. not fuel you would pump into your
the issue can be solved before such car at the gas station, but rather
a measure must be taken. What’s Causing the Test Failure? it is from a supplier where special
With this test, however, both The labs are working together to provisions are taken to provide a
Southwest Research Institute and solve the issue, running tests at consistent fuel from batch to batch
Intertek, the only two labs that run their own cost. “We tried to screen to help minimize variations that
it at this time, were seeing similar out a few items that we thought could potentially affect test results.
failed results: the reference oil was might be the reason for the prob- The labs tested whether the current

CONFERENCE CALENDAR SEPTEMBER

26th-28th Lubricant Expo
Messe Essen, Germany
paul.hooker@event-partners.org
MAY JUNE https://lubricantexpo.com/visit
3rd-5th ICIS World Base Oils and 4th-7th NLGI 90th Annual Meeting
Lubricants Conference San Diego, California OCTOBER
Windsor, United Kingdom nlgi@nlgi.org 7th-10th ILMA Annual Meeting
events.registration@icis.com https://www.nlgi.org/ Palm Desert, California
https://events.icis.com/website/ 2023-annual-meeting ilma@ilma.org
9160/home www.ILMAAnnualMeeting.org
JULY
21st-25th STLE Annual Meeting 4th-6th UNITI NOVEMBER
& Exhibition Stuttgart, Germany 12th-15th STLE Tribology & Lubrication
Long Beach, California lube@ukla.org.uk for E-Mobility Conference
Information@stle.org www.uniti.de Cleveland, Ohio
https://www.stle.org/annualmeeting Information@stle.org
AUGUST https://www.stle.org/evconference
31st-June 2nd UEIL 27th-29th PPC Fall Meeting
Manchester, United Kingdom Indianapolis, Indiana 30th-Dec 1st ICIS Pan American Base
info@ueilcongress.org PPC@ATDmanagement.com Oils and Lubricants Conference
https://www.ueil.org/ www.ppcouncil.org/ Jersey City, New Jersey
?post_type=events&p=6848 upcoming-meetings.php events.registration@icis.com
https://events.icis.com/website/8891/
home/

MAY 2023 WWW.LUBESNGREASES.COM 33

 between 250 to 300 tests in a year
within multiple labs. However, these
numbers can vary for every test from
year to year.

Provisional Licensing
API invoked provisional licensing
so formulations yet to undergo the
test can still temporarily qualify as
compliant. New lubricants can still
be licensed without this test for as
long as it is unavailable. To get a pro-
visional license, companies “must
Continued from Page 32 be able to provide data that support
the performance of the candidate
formulation in the Sequence VIII
test,” API stated. A company would
be required to provide some manner
of engine test data for their formula-
tion that assures that their product
would pass the test.
A Sequence VIII test stand at Southwest Research Institute.
“Without meeting this technical
hurdle, API will not approve the pro-
visional license,” Harmening said.
batch of fuel was causing the issue find the smoking gun, right? Or I can Once provisional licensing ends,
by going back to an older batch and definitively put my finger on it. It’s any formulation under that designa-
running the tests. They still saw fail- obvious, right? But too many times tion must complete the test within
ing results. Other parts of the engine we look for something obvious and six months to pass Sequence VIII
were checked to ensure they were we overlook some subtlety. As a re- and gain approval from API.
in order. sult, we are circling back and making If a provisionally licensed formu-
Each lab has two test cells, and sure we didn’t miss anything.” lation does not pass the test, the
there can be biases between each licensee must inform API and take
test cell, even if they run the exact Calibration Frequency any corrective action API deems
same procedure. If the problem were to be found necessary, including product recall.
“Stand A versus Stand B might today, the test could be calibrated in ASTM D6709 Sequence VIII
have a bias one way or another,” a couple of weeks, since it is only a became unavailable once before.
Lang explained. “So now, two test 40-hour test. In 2016, API halted the test and
cells at two different laboratories are When ASTM D6709 Sequence issued provisional licensing due to a
giving us the same severe results. VIII is running as intended, a test shortage in connecting rod bearings.
So statistically that tells us a lot, stand-engine combination is calibrat- In that instance, provisional licens-
right? So not only does it take out ed after conducting 15 candidate ing was invoked from mid-April to
the laboratory, but it takes out the tests or every six months, whichever mid-August, Harmening said.
test stand.” That also eliminates the comes first. In a slower year, a stand “We’re very confident that we
engine as the problem, since each will typically be calibrated twice, but can get this test back online soon,”
© Southwest Research Institute

test stand uses a different engine. a particularly busy year may result in Lang said. “We’ll figure it out. We
“We’re actually circling back now three or four calibrations. Southwest always do.”
and looking a little bit deeper at all Research Institute will typically run
those, because we haven’t been able about 100 tests per year.
to nail it down,” Lang said. “But one Compared to other tests, the WILL BEVERINA
of the things that we learn over and Sequence VIII test is run less often. is assistant editor for
Lubes’n’Greases. Contact him
over in standardized lubricant testing Some tests require more routine
at Will@LubesnGreases.com
is that as an engineer you hope to calibration because they can run

34 WWW.LUBESNGREASES.COM MAY 2023

Data to power your
business decisions
Base stock markets are facing historic disruption due to the pandemic. Faced
with severe global shortages, steep price increases and new plant closures,
lubricant blenders globally are struggling to meet their procurement needs.
Do you need access to data and knowledge of the market’s supply base?

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HELPING YOU NAVIGATE THE LUBRICANTS INDUSTRY

 Places’n’Faces

Idemitsu Lubricants America Corp. signed a lease with real estate developer America Place to increase
current operations by 118,000 square feet at a regional office park in southern Indiana.

Conten

Idemitsu Expands in the U.S. commercial real estate company The lubricant distribution market in
Idemitsu Lubricants America Corp. America Place. the United States has undergone a Ele

is adding a building to the ware- “We will utilize the America’s Place great deal of consolidation the past
In the
event
conti
domi

house space it leases in southern In- facility as our main distribution hub two decades, but few of the acquisi- Gove

diana near its United States blending and fulfillment center for our direct dis- tions and mergers have crossed the
with f
ture a
help c

plant, part of a plan to increase its tribution of lubricants across the U.S.” nation’s borders. Fore
Car

direct lubricant sales in the country. The new warehouse includes The companies did not disclose
The company signed a lease to speed bays, LED lighting and dock the price of the transaction but said it
move into a new 118,000 industrial access required for growth, accord- makes RelaDyne the world’s largest
warehouse, which will be in addition ing to America Place, and it offers distributor of Chevron finished lubes. Aggressiv
Also assu

to 50,000 square feet of industrial multiple ingress and egress options Officials said the merger gives
Sources:

warehouse space it has leased since for trucks and Idemitsu’s workforce. RelaDyne greater scale that should
2021 in the River Ridge Commerce improve profitability.
Center. RelaDyne Expands
© Photo courtesy of America Place

“This 168,000 square foot facility into Latin America Political Pressure Mounts
will afford us the capacity and flexi- American lubricant distributor Re- Against Lubnor Sale
bility to better service our customers laDyne has expanded its yearslong While Petrobras and Grepar Par-
and to continue the growth of our buying spree beyond its home ticipacoes await the conclusion of a
business,” Tim Nice, Idemitsu’s dis- borders, announcing March 8 that it second regulator review of Grepar’s
tribution and transportation manager acquired Grupo Lucalza, which car- bid to buy the Lubnor refinery in For-
said of the newly leased additional ries lubes and fuels in several Latin taleza, Brazil, an expanding chorus of
space in a press release issued by American countries. Continued on Page 38

36 WWW.LUBESNGREASES.COM MAY 2023

 NEW FACTBOOK 2022-2023 AVAILABLE

Get all the facts and

figures at your fingertips
The new 14th edition of the Lubes’n’Greases Factbook gives you Easy-to-read, useful
access to data and information reflecting the recent challenges to digital reference

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Quality Quality
Finished Mergers & Electric Assurance Finished Mergers & Electric Assurance Finished Mergers & Electric
nts 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

ectric Vehicles Contents Base Oils: Capacity

ese graphs from Lubes’n’Greases Electric Vehicles Insite, we see that EVs will Policy and Incentive Check Box
Asian base oil capacity has soared in the past decade. This growth can be partly Shifts in Global Base Oil Capacity
tually dampen demand growth for passenger car motor oil. PCMO volumes will
attributed to China’s share of global base oil capacity more than doubling in the
Canada China EU India Japan U.S.

inue 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
* *
inance 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.
ernment 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
favorable 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):
and consumer attitudes still hinder growth. It remains to be seen if governmental Vehicle Targets *

can break down those barriers. North American Base Oil Capacity Shifts
Industrial Policies

ecast Impact of Non-ICE Vehicles on Passenger

Mergers & Acquisitions Engine Oil ATF Electric Vehicles
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
Motor Oil Demand Charger Regulations Consolidation is an ongoing Key performance parameters, Learn about the complicated The rise of electric vehicles
* * * trend in the lubricants industry, viscosity trends and market automatic transmission fluid has been called a threat to
and a year’s worth of activity segmentation for passenger market in the United States. the lubricants industry, but By API Group
Potential demand lost to Charger Incentives * proves it. car and heavy-duty motor oils. how much of a disruption
non-ICE vehicles
28 31 38 will EVs be? 39
Global Passenger Car Motor Oil Demand
(millions of metric tons per year)

Charger Targets

United States * At state level in some states

Japan Source: International Energy
r Agency
rgy 2012 2022
Total (b/d): Total (b/d):
India
Europe
Quality Assurance
Grease Programs
China
Forecasted PCMO demand
PCMO baseline Explore lubricating grease Quality is top priority for lube
production by region and manufacturers. Use this guide
000 Barrels/Day
thickener type. to prove your product makes Total Total
Group I Group II Group III Naphthenics
2011 2020 2030 2040 2050 2060 the grade.

ve estimate of penetration by non-ICE vehicles, assuming implementation of all pro-EV regulations announced to date.
40 41
umes 7% vehicle scrap rate.
PCMO Baseline: 2018 Kline data/Oronite analysis, with India & China growth adjusted lower for outer years.

Order today at LubesnGreases.com/factbook

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 PLACES’N’FACES

Continued from Page 36

the national government is calling for not completed, suggesting that a ments were already reached.
the deal to be cancelled. political resolution will halt them. In Before that, a government ministry
President Luiz Inacio Lula da Silva an interview with news organization called for the deal to be tabled for
made his strongest statement yet for Brazil 247, the president suggested 90 days, so that it may be reviewed
stopping several Petrobras divest- that there may not be legal grounds in light of new energy policies set by
ments that have been agreed to but for stopping those deals since agree- Lula. Meanwhile, a union of refinery
workers called a strike to protest
Petrobras’ stated intention to follow
through on the sales.
Grepar’s purchase of the Lubnor
refinery, which includes a naphthenic
base oil plant with capacity of 1,290
barrels per day, cleared what seemed
to be a final hurdle late last year when

Get the latest the Court of the Administrative Coun-

cil for Economic Defense signed off

base oil pricing data on it. But objections were raised by

companies in the asphalt and lubri-
cant industries, and a counselor to the
With a subscription to Base Oil Pricing Data, you will competition court said in January that
receive reliable global base oil pricing data every week. the case should be reviewed again.

Subscribe today for access to pricing data that will help Groupe Berkem Acquires
power your decisions now and in the future. Oilseed Miller
French biobased chemistry compa-
Historic base oil pricing data is also available. ny Groupe Berkem announced com-
pletion of its acquisition of Biopress,
a French producer of vegetable
oils—which are used in lubricants
and surfactants applications—and
proteins. Terms were not disclosed.
Located in Lot-et-Garonne since its
creation in 1987 and headquartered
in Tonneins since 1991, Biopress
is an organic oil mill specializing in
production of a range of vegetable
oils extracted from organic oil seeds
from local farms. With properties
similar to petroleum derivatives, the
vegetable oils can be used in a wide
variety of applications, including
lubricants and surfactants.
The group said the acquisition will
add to its value chain the sourcing
of a raw material essential to its
BASE OIL PRICING LEARN MORE AT activities in integrating plant-based
DATA www.BaseOilPrices.com chemistry. Biopress is located near
Groupe Berkem’s plant in Gardonne,
in the southwest of France, and will

38 WWW.LUBESNGREASES.COM MAY 2023

BOPD22-HPIsland-latest.indd 1 1/24/22 3:54 PM

 ADVERTISER INDEX

Allegheny Petroleum Products … INSIDE

FRONT COVER
Alnor Oil Company … 29
Elco Corporation … 23
Ergon … 24
Kemipex FZE … BACK COVER
KLK Oleo … 19
Lubes’n’Greases
Base Stock Plant Data … 35
A view of French oil major TotalEnergies’ former lubricant blending plant in
Kaluga, Russia, around the time of its opening in Oct. 2018. TotalEnergies
Lubes’n’Greases Factbook … 37
handed over management of its Russia lubricants business to a Russian
entity, and the transactions included the blending plant in Kaluga. Lubes’n’Greases … INSIDE BACK COVER
Lubes’n’Greases Base Oil Pricing Data … 38
also provide significant agency Tass reported.
new storage space for Terms and conditions of Lubrizol … 7
future growth. Groupe the transaction were not
MOGoil … 9
Berkem said that as a disclosed.
result of the acquisition it “TotalEnergies handed Munzing … 15
will be able to expand its the production business
production capacity and over to the management NYCO … 28
ensure processing of more of the local subsidiary,
than 8,000 tons of plants TotalEnergies Marketing Petronas … 11
per year. Russia, which was running
the plant [this past year]”,
Renkert … 27
TotalEnergies Egor Popov, the compa- Rowe Mineraloelwerk GmbH … 13
Relinquishes ny’s head of commerce
Russia Plant and marketing said in the SEQENS’ … 20
French oil major To- Tass report. “On March 2 a
SK Enmove … 5
© Photos courtesy of TotalEnergies

talEnergies handed over new ownership has been

management of its Russia registered, and the compa-
lubricant business to a ny is now renamed to Top Zschimmer & Schwarz Inc. … 10
Russian entity, and the Lubricants.”
transaction includes its Popov added that local
40,000 metric tons per management is now work-
year lubricant blending ing to restart the plant’s
plant in Kaluga, state news operation, and at the

MAY 2023 WWW.LUBESNGREASES.COM 39

 PLACES’N’FACES

earliest will resume a “normal cycle of

operation” March 15.
The planned transformation of the
plant includes rebranding and pro-
duction of different types of motor,
hydraulic and industrial oils under
the new brand Lemarc.

Aussie Lithium Hydroxide

Plant Expands GEA is equipping two more production lines of the American energy storage and specialty chemicals
Germany’s GEA announced that it group Albemarle for the production of lithium hydroxide at its plant in Kemerton in Australia.
will supply equipment toward expan-
sion of Albemarle’s lithium hydroxide
processing plant in Western Aus-
tralia. The expansion is the second Briefly Noted
phase of plant construction, which
began in 2019, and is due to be com- Shell has decided not to build an ing, service partnership programs, fa-
pleted in 2025. API Group II base oil plant at its Sin- cilities, online and offline marketing,
Construction of Albemarle’s plant gapore fuels and chemicals complex, and global sponsorship assets.
in Kemerton, Western Australia, according to a Reuters report. The
started in 2019. The first two produc- company first disclosed that it was KLK Oleo acquired a controlling
tion trains—which have combined considering the project in an earn- stake in Italian oleochemical pro-
capacity to produce 50,000 t/y of ings report published in February ducer Temix Oleo, the companies
lithium stearate—were completed in 2022. A final investment decision announced. The move expands KLK
2022, and preparation is underway was never made, and the company Oleo’s capabilities for manufacturing
for full operation later this year. never specified what capacity the esters for base oils and lubricants.
A final investment decision is project might have.
expected in the second quarter of Shell Lubricants Egypt signed two
this year for an expansion involving Saudi Total Petroleum Prod- partnership contracts with General
processing strands 3 and 4, which ucts—a lubricant manufacturing and Motors and Al Mansour Automo-
would increase production capacity distributing joint venture between tive to be the exclusive lubricants,
to 100,000 t/y. The plant will process Total Energies and Zahid Group in greases and fluids supplier for both
spodumene ore transported from the Saudi Arabia—announced formal companies.
Talison mine in Greenbushes to pro- start of construction of a 250-kilo-
duce lithium hydroxide and a sodium watt-peak solar rooftop project at
sulfate byproduct. its lubricants blending plant in King
GEA has agreed to provide filtration Abdullah Economic City. The pho- Faces in
and sedimentation centrifuges for tovoltaic system will produce over
the expansion. The German technol- 390 megawatt hours of renewable the News
ogy group will supply four different energy annually, covering about half
types of centrifuges—screen screw, of the plant’s energy needs. Chevron Oronite announced that
© Photo courtesy of Albemarle

decanter, peeler and pusher—for the Colleen Cervantes, president of

processing lines of each refinery. The BP’s Castrol unveiled a refreshed Chevron Chemicals, retired on April
centrifuges are an important com- brand identity, including an updated 3, after nearly 40 years of service to
ponent in overall process flow at the logo that will roll out in stages across Chevron. Cervantes was replaced by
plant, especially for the mechanical Castrol’s European operations this Mitra Basiri Kashanchi, vice presi-
separation of sedimentation, the year and into 2024, ultimately be- dent, manufacturing and supply, Chev-
company explained. coming visible on its product packag- ron Chemicals, effective April 3.

40 WWW.LUBESNGREASES.COM MAY 2023

Product News
Lubrication Management
LubePM, a lubrication manage-
ment system, has been integrated
with IBM Maximo. The new and
improved LubePM provides vari-
ous tools for lubrication program
management, including scheduling,
tracking, reporting and analytics.
According to maker Noria, organiza-
tions can use LubePM to easily man-
age their lubrication tasks, monitor
equipment health and performance,
and make data-driven decisions to
create accountability and improve
maintenance practices. Other new
features include the ability to cre-
ate custom procedures, access to
machine pictures in the mobile app,
auto-assignment of routes as well as
Dropper Tip Oilers updated task estimate times.
Fluoramics’ new dropper tip style of oilers replace the company’s previous www.noria.com
pocket oiler packaging. Dropper tip oilers dispense products precisely with
drop-by-drop control through a plastic tip directly onto the area to be oiled.
Tufoil Lubit-8, Tufoil Gun-Coat, Rust-Stopping Lubricating Oil and the new A Grease Refresh
Compu-Lube are all available in this new 16.5-milliliter packaging. Another new Chevron announced refreshed
product, HinderRUST Bike Lube, is available in a similar but larger 118-milliliter branding for its line of grease
dropper tip bottle. The dropper tip bottle provides an easy application method products, featuring new naming and
for small areas, and requires little storage space, so it fits well on a garage packaging. This product optimization
shelf or in a pocket, toolbox or glove compartment. The child-safe leak-proof aims to “future proof” its product
cap tightly seals the bottle and prevents leaks even if the bottle is tipped over. line to serve today’s equipment
www.fluoramics.com needs and meet the needs of tomor-
row, Chevron says. Chevron grease
products will feature new package
Carbon Negative Polyols designs with a simplified naming
Perstorp has launched new grades for two base polyols. The new base structure that categorizes products
stocks are now available with 100% renewable, mass-balanced carbon con- by thickening agents. The new
tent, Perstorp says. When including the biogenic carbon dioxide uptake from packaging also provides key prod-
the renewable raw materials, the new products will have a negative carbon uct details and a QR code for easy
footprint at the Perstorp gate. The new polyols are based on a traceable access to more information, helping
mass-balance concept. Neeture N100 (neopentyl glycol) and Evyron T100 customers easily identify the right
(trimethylolacarbon) footprint throughout the value chain and to support the product based on their needs. The
sustainable sourcing of renewable and recycled raw materials. Neeture and suite will also include new greases:
Evyron, along with all Perstorp’s Pro-Environment products are certified accord- a calcium sulfonate complex catego-
ing to the sustainability certification system ISCC PLUS (International Sustain- ry marked by the Rykon brand name.
ability & Carbon Certification). www.perstorp.com www.chevron.com

MAY 2023 WWW.LUBESNGREASES.COM 41

 YOUR BUSINESS

JACK GOODHUE,
BUSINESS WORLD management coach,
can be reached at

A Day of Reckoning
goodhue@aol.com

Coming for Quiet Quitters in vogue. Company belt-tightening is

becoming common, and employee
A new term, “Quiet Quitting” is being used these days to layoffs are a quick way to improve
describe an age-old employee problem that has gained profitability.
momentum since the COVID-19 pandemic and the Quiet Quitters are that way for dif-
ferent reasons, and the performance
increased acceptance of remote work. of some of these individuals might
be upgraded with a little company

Q
effort. Working only the official hours,
uiet Quitters are those em- hires and existing employees to fill
and no more, could be important for
ployees who do only what empty positions.
family caretakers or those with more
is absolutely necessary, and But it appears that this situation
than one job. Some may be unhappy
no more. They lack enthusiasm, are is about to change. The economy is
with their position or their immediate
not engaged or involved, and have slowing down, there is the threat of a
supervisor for legitimate reasons. A
no interest in doing anything beyond recession, and layoffs are becoming
few may be burned out from long
the bare minimum requirements of more common. Uneasiness started
hours or unreasonable management
their jobs. A June 2022 Gallup survey with the tech companies, but it has
requests. Some younger workers
concluded that as high as 50% of spread to other industries and the
may be obsessed with “quality of life”
current U.S. employees are Quiet banking system.
dreams that may never give them
Quitters and that this outlook is most Some companies have used a bell
happiness. At the bottom, a few
common in the 18-35 age group. curve to identify top, average and
simply don’t care, and others aren’t
Until now, those workers have poor performers. Quiet Quitters are
actually capable of doing the work.
remained on the payroll because of a most often in the poor performance
Now would be a good time for man-
severe labor shortage resulting from category and therefore more likely to
agement personnel to meet privately
unrealistic expectations of a dramatic be let go. Other companies simply
with those Quiet Quitters who might
surge in business after COVID-19. eliminate entire departments or sub-
be vulnerable to a layoff. Make the
In addition, an unusual number of sidiaries to remain profitable. In any
effort to find redeeming qualities or
individuals have simply dropped out event, the days of workers being able
opportunities for improvement. Are
of the workforce, and employers have to write their own employment tickets
they missing a sense of purpose in
been forced to accept lower stan- are drawing to a close, and worker
their jobs? Do they lack a feeling of
dards and more tolerance for new capability and performance are back
belonging to the organization be-
cause they are working remotely? Do
younger workers know what is truly
expected of them? What would give
them the feeling that they are doing
something important? Is there a way
in which they could be given more of
a vested interest in the company’s
success?
Saving even a few Quiet Quitters
would be a good company invest-
ment in the long run. Try it.
© Bro Vector

Our columnist are temporaily writng evry

other month. Look for the next Your Busine
column in the July isue.

42 WWW.LUBESNGREASES.COM MAY 2023

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Energy, according to SNE Research. Many have
joint ventures and operations outside of China.

The country also has the most publicly available

chargers, including 85% of the world’s fast
chargers and 55% of the slow chargers.
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