Volume 16 Issue 12

SSY Base Oil Shipping Report

The American Fuel & Petrochemical Manufacturers conference in Dallas, Texas, drew participants from all over, meaning that even non-U.S. markets were slower than normal. With Easter immediately afterwards, it looks as things will be quiet a little longer. U.S. Gulf The route to the Far East is still the most significant of all U.S. routes, in spite of the artificial slowdown imposed on it by the AFPM conference. Space is exceptionally scarce in March and well into April, and the only real wa...

Motiva Split to Give Port Arthur to Aramco

Saudi Arabian Oil Co. and Shell plan to separate the assets of Motiva, with its API Group II base oil plant in Texas becoming solely owned by Saudi Arabian Oil. Industry observers expect little impact on the base oil side. Saudi Arabian Oil Co. and Royal Dutch Shell announced last week that their affiliates had signed a non-binding letter of agreement to divide the assets of Motiva Enterprises LLC. The joint venture was formed in 1998 and has operated as a 50-50 refining and marketing joint vent...

ILMA: Oil Ban Has Unintended Consequences

On Jan. 1, a law went into effect in California prohibiting engine oils deemed obsolete by the American Petroleum Institute. Less than three months later, the Independent Lubricant Manufacturers Association plans to ask the state to allow exceptions. Association officials say pre-passage review of the regulation failed to consider that oils not fit for modern passenger cars may still find legitimate use in applications such as lawn mowers and antique cars. Proponents of the law, which was Califo...

Fast Lubes Top $16 Billion in Sales

Sales revenues at U.S. fast lube facilities went up 18 percent from a year ago, according to National Oil & Lube News 2016 Tops in the Industry Rankings. NOLN published its annual lists of the largest fast lube chains and other oil change providers in its March 2016 issue. Estimated industry sales for the largest fast lube chains amounted to $16.2 billion, up $2.5 billion from last years survey. The survey includes fast lube chains as well as oil-change plus facilities that provide oil chan...

Metalube Expands Manufacturing Output

Specialty lubricants manufacturer Metalube recently completed an expansion to its factory in Manchester, United Kingdom, which will increase its capacity to make metalworking fluids. The expansion includes 2,500 square meters of factory, warehouse, office space and a research laboratory. Two blending tanks were installed to keep up with growing demand, said the company in a press release. Photo: Metalube Rising demand for metalworking fluids drove the expansion of Metalube’s manufacturing...

Fuchs Posts Revenue Increase

Fuchs Petrolube SE reported 236 million (U.S. $265 million) in profit after tax for 2015, up 7 percent from 220 million in 2014. Sales revenue for the Mannheim, Germany-based independent lubricants blender during 2015 reached 2.1 billion, up 11 percent compared to 1.9 billion in 2014. Fuchs noted that all three of its global regions saw growth in revenue – up 10 percent to 1.2 billion in Europe, 13 percent to 583 million in Asia-Pacific and Africa, and 12 percent to 353 million for North a...

Briefly Noted

In its 2015 Financial and Operating Review released yesterday,ExxonMobil pegged its base oil capacity at Baytown, Texas, at 28,000 barrels a day, 6,000 b/d more than previously published. The energy giant started up the new capacity in early 2015, but until now had declined to reveal the size of the upgrade. Nexeo Solutions, which distributes industrial lubricants and metalworking fluids as well as other chemicals and plastics, was purchased for $1.6 billion by WL Ross Holding Corp. from TPG, which expects to retain a 35 percent stake in the new company.

Correction

Early editions of last weeks article, API Pulls Plug on Energy Conserving, included incorrect information about engines used in tests for current and upcoming API engine oil specifications. The Sequence VID test uses a 2009 Cadillac V6 engine, and the Sequence VIE test under development as a replacement for Sequence VID uses a 2012 Cadillac engine.