Volume 17 Issue 10

SSY Base Oil Shipping Report

Owners whose ships will be open in the U.S. Gulf this month could do a lot worse, since there are cargo possibilities in most directions. In Europe, the coastal markets are a little quieter, but deep-sea is still active, and that description also sums up Asia. U.S. Gulf There has not been a substantial amount of spot cargo fixed to the Far East this month, which some interpret as the market quietening down. Perhaps another way to look at it would be to realize that there is not that much bookabl...

API Invokes Provisional Licensing Again

The American Petroleum Institute last week invoked provisional licensing for the ILSAC GF-5 and API SN with Resource Conserving passenger car engine oil categories. It marked the second time in less than a year that the industry took the action because it could not conduct a key test, in this case the Sequence VID test for fuel economy. APIs Lubricants Group is developing a replacement test, but it could be several months before the new test is ready. The timing of the potential replacement depe...

OMV Sells Turkish Retail Business

Vitol Group acquired OMV Petrol Ofisis lubricants and fuels distribution business in Turkey, including a finished lubes blending plant, for 1.4 billion (U.S. $1.5 billion), the companies said March 3. The purchase is expected to be finalized in September, subject to conditions and relevant regulatory approvals. OMV Petrol Ofisi, a subsidiary of Austrian energy giant OMV, is the leading domestic lubricant marketer in Turkey with 114,000 tons of lubricants sold in 2016, the company told a reporter...

U.S. Fast Lube Population Grows

The top 50 largest fast lube chains in the United States operated 9 percent more facilities than a year ago, according to National Oil & Lube News 2017 Tops in the Industry Rankings, reflecting changes from acquisitions in the fast lube and oil change-plus segments. NOLN published its annual lists of the largest fast lube chains and other oil change providers in its March 2017 issue. The survey includes fast lube chains as well as oil change-plus facilities that provide oil changes and some ...

Lubrizol Exits Oilfield Solutions Business

Berkshire Hathaway said it is scuttling the Oilfield Solutions Business of subsidiary Lubrizol and that it had declared a pre-tax loss of $365 million on the underperforming business. That business originated from Weatherford Internationals Houston-based Engineered Chemistry oilfield chemicals business and its Kingsville, Texas-based Integrity Industries drilling fluids business, both of which Lubrizol acquired in 2015 for an undisclosed amount. Berkshire Hathaway noted the pre-tax loss in its 2...

Brexit Will Have Wide-Ranging Effects

LONDON – A messy Brexit will be damaging to all. Thats the cautionary message an economic consultant delivered to a recent industry conference. Stephen Le Roux, head of economics at the U.K. Chemical Industries Association, told delegates at the ICIS World Base Oils and Lubricants Conference last month, The present negotiation strategy means that an ideal outcome is unlikely to be on the table at this stage. In analyzing the possible scenarios, he posited the following timeline: March 201...

Q4 Earnings Wrap-up

Heritage-Crystal Cleans oil business segment posted higher sales revenue, and Quaker Chemical reported higher net income in the fourth quarter, compared to the year-earlier period. Heritage-Crystal Clean Heritage-Crystal Clean reported $38.5 million in revenue for its oil business segment in the fourth quarter ending Dec. 31, up 20.3 percent from $32 million in the year-earlier period. The companys oil business segment experienced a minor decrease in revenue during fiscal 2016, slipping to $123....

Milestone Reached on Separation of Motiva

Royal Dutch Shell plc announced yesterday the signing of binding definitive agreements between its U.S. downstream subsidiary SOPC Holdings East LLC and Saudi Refining Inc. on the separation of assets, liabilities and businesses of Motiva Enterprises LLC, which was formed in 1998 and has operated as a 50-50 refining and marketing joint venture since 2002. A year ago the companies signed a non-binding letter of agreement to divide the assets of Motiva, with its API Group II base oil plant in Texas becoming solely owned by Saudi Aramco affiliate Saudi Arabian Oil. Yesterday they confirmed Saudi Arabian Oil will pay $2.2 billion in cash and assumed debt, and will assume full ownership of the Motiva Enterprises name, along with the Port Arthur refinery and 24 distribution terminals. Subject to approvals, the transaction is expected to close in the second quarter.