MARCH 2015Group I Fade-out Continues SAE J300: Fuel Economy Enigma VOL. 21 ISSUE 3 PUBLISHER’S LETTER A Lift for Lubes? I t’s mid-February, crude oil costs half of what it did last summer, and most drivers can pass a service station without flinching. Even our London cabbie is pretty mellow; with petrol hovering about GBP 1.09 a liter, there’s none of the usual eyerolling when he learns we’re headed for an oil industry event. At the ICIS World Base Oils & Lubricants Conference, Lubes’n’Greases hears Jaap Kalkmann, a partner at Arthur D. Little, predict, “Crude prices are unlikely to go much above $50 a barrel for several months, and at times may be even lower.” With supply heavily outweighing demand, he expects crude to average around $70/bbl in 2016 and hover there for another two or three years beyond. On a global scale, who benefits most from low-priced crude? First in line are oilbuying countries, who are getting an enormous “transfer of wealth” in the form of money that stays in their pockets rather than flow to oil-rich nations. The wealth transfer due to oil’s price decline could amount to $1 trillion a year, Kalkmann said. “The International Monetary Fund predicted a 1 percent bonus in GDP growth for China because of lower crude oil prices,” he added, “and if countries like India and China can manage to pump that money LUBES ’N’ GREASES ® “The Magazine of Industry in Motion” LNG Publishing Company, Inc. 7389 Lee Hwy. Suite 300 Falls Church, VA 22042 USA Phone: (703) 536-0800 Fax: (703) 536-0803 Website: www.LubesnGreases.com E-mail:
[email protected] into their economies, it will have a big impact.” Lubricants should see some lift in demand, as spending rises in consumer automotive, aviation, commercial transportation and other sectors. International car sales will be tugged higher, and aftermarket lube demand could pick up everywhere. “For every 10 percent drop in oil prices, you get about a 2 percent rise in vehicle miles driven — and we’ve been seeing oil drops of 20 to 30 percent,” Kalkmann reminded. Finally, base oil demand will firm, with more API Group II and III needed for the new vehicles sold. “We’re also going to see some increased use of Group I as more kilometers are driven in developing countries, because Group I is still more affordable for those markets,” he said. While too late for some (see page 22), “a bump in demand for Group I may delay the closing of other Group I plants.” Of course, things still could go pearshaped. Citing an industry adage, Kalkmann admitted that “Forecasting global oil prices makes astrology look respectable.” Howard Briskin Howard Briskin
[email protected] Nancy J. DeMarco Publisher Emerita Howard Briskin Publisher Lisa Tocci Managing Editor Greg Whitlow Art Director Sheryl Unangst Director, Audience Development Robert Green Circulation Assistant Manager Richard Beercheck, Joe Beeton, Jeongmae Choi, George Gill, Tom Glenn, Jack Goodhue, Boris Kamchev, Sara Lefcourt, Raquel Sands, Tim Sullivan, Steve Swedberg, Wang Fangqing, Gabriela Wheeler Contributors Gloria Steinberg Briskin Managing Director/Vice President, Advertising Phone: (703) 536-7676, (800) 474-8654
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[email protected] Advertising Production: Laura Hughes Supervisor Bronte Beale Assistant Lubes’n’Greases (ISSN1080-9449), an independent trade magazine, is published monthly by LNG Publishing Company, Inc. Copyright 2015, LNG Publishing Company, Inc. Printed in USA. Subscriptions to the print edition are free to qualified subscribers in the United States and Canada who are active in the lubricants industry as manufacturers, marketers, volume buyers and users, or as suppliers who maintain close ties to the lubricants industry. Qualification is sub- ject to publisher’s approval. Subscriptions to the print edition outside the United States and Canada: $120 for 12 issues; $225 for 24 issues. Subscriptions to the digital edition are free to qualified subscribers worldwide. Periodicals postage paid at Falls Church, VA and additional mailing offices. POSTMASTER: Send address corrections to Lubes’n’Greases, LNG Publishing Company, Inc., 7389 Lee Hwy., Suite 300, Falls Church, VA 22042 USA. CANADA POST Agreement 40064709. Return undeliverable Canadian addresses to: IMS, P.O. Box 122, Niagara Falls, ON L2E 6S8 Lubes ’n’ Greases® is a registered trademark of LNG Publishing Company, Inc. LUBES’N’GREASES 3 MARCH 2015 VOL. 21 ISSUE 3 TABLE OF CONTENTS F E AT U R E S : 22 28 Page 6 34 40 Colas Joins Group I Exodus. Colas Group will stop making base oil at its refinery in France by the end of this month — the latest in a parade of Europeans leaving the Group I arena. Is Fuel Economy Hiding in SAE J300? As written, the current standard for defining engine oil viscosity grades may actually be hindering efforts to find fuel savings, contends Don Smolenski. Weighing the Flexitank Option. Industrial packaging’s rising star is a 6,000-gallon plastic bag, fitted into a standard shipping container. Is it right for your base oils and lubes? Gathering Clouds. Brazil appears to be falling behind on its targets for gathering used oil, missing some 14.7 million liters in first-half 2014 alone. That could trigger government action. Page 22 D E PA R T M E N T S : 3 6 14 18 46 Publisher’s Letter Automotive Need to Know Best Practices Product News Page 28 Cover: © kamonrat - Fotolia 4 MARCH 2015 52 58 60 62 Places’n’Faces Advertiser Index Base Oil Report Your Business AUTOMOTIVE Who’s Driving This Vehicle!? T o great fanfare, the 15th Annual Consumer Electronics Show recently wrapped up in Las Vegas. Overall, say the gurus of the tech world, this show was less revolutionary than usual with one exception: A crew of journalists arrived at the show in an Audi A7 which had no driver. It was “autonomous” — that is, driven and controlled by its own brain. What’s more, there wasn’t a pilot in some remote location steering the vehicle via camera, as with the guided drones being used in combat in the Middle East. It’s not as though this is totally new. Automated guided vehicles (AGV) are currently used in many applications where precise guidance is needed, such as crowded environments. Some are camera-guided, some rely on robots that respond to embedded sensors in their path. Forked AGVs are basically forklifts that can be driven either remotely or with an operator on board. Navigation sys- Look Ma, no hands! This Audi A7 piloted itself 560 miles from Silicon Valley to Las Vegas in January. 6 MARCH 2015 BY STEVE SWEDBERG tems include inertial guided AGVs, laser guided systems, optical guidance systems and even outriggers (sort of like curb feelers). The system Audi showed off in Las Vegas would be called a smart vehicle system which determines its own traffic control and routing. An onboard computer system controls speed and directional control while watching for other vehicles impinging on its space. This brings to mind all sorts of conjecture as to what the future holds for this idea and how it may affect the oil industry. One image evokes the Jetsons of TV fame. My mind almost immediately conjured up a vision of the vehicles in Woody Allen’s classic movie “Sleeper.” Audi’s demonstration was to gather data which they can use when — not if — they introduce a production version. Part of this test was to prove the viability of a self-driving vehicle in traffic and road conditions. The route was confined to California and Nevada, both of which have given permission to Continued on page 8 . but the only thing that would be more startling than a vehicle without a driver passing me is one with a dog behind the wheel. Fields was a keynote speaker at the 2015 Consumer Electronics Show in Las Vegas. “Unlike our luxury competitors.” This emphasis on affordability is not new to Ford. probably within the next five years. some vehicles could start appearing that allow hands-free driving in traffic jams or during highway cruising. here being tested at Ford’s research center in Palo Alto. Who will be responsible for the operation of such a vehicle? For now. giant TV screens. It was the first volume manuContinued on page 10 . but we’re moving into new territory here. By around 2020. They are pushing ahead with plans driver’s hands on the steering wheel. when we do come out with an autonomous vehicle. not simply on being the first vehicle maker to have one at all. Automakers also worry MARCH 2015 that self-driving vehicles will be ready before government safety rules are in place to sanction them. German brands Mercedes-Benz and Audi have indicated that they plan to offer hands-free driving systems in roughly the same time frame. However. and before questions are resolved as to who is responsible when an automated vehicle crashes. Calif. the Web-connected eyewear Google Glass. stands to reason that they would. saying. brake and steer automatically and maintain a safe distance behind another vehicle. Chief Executive Officer Mark Fields said he is focused on being the first automaker to produce a mass-market autonomous vehicle. It to deploy automated driving features step by step. auto industry executives say they expect more highly automated vehicles will go on sale that can largely pilot themselves in most situations. balloon-powered Internet service. automakers are insisting that drivers are.) Audi isn’t alone in this arena. By next year. the search-engine giant’s secretive “skunk works” lab that is conceiving contact lenses that measure blood-glucose levels.8 AUTOMOTIVE Continued from page 6 several automakers to testdrive autonomous vehicles on public roads. Executives at established auto companies and their technology suppliers are more cautious. Although it doesn’t make cars. Ford has a slightly different take on this situation. General Motors says it will offer what it calls “super cruise” in a 2016 Cadillac sedan. no one has introduced a vehicle that can operate for an extended period of time without the Autonomous cars depend on thousands of sensors and complex algorithms for driver functions such as traffic sign recognition. we want to make sure it is accessible and affordable to everyone. (I don’t know about you. The industry consensus is that it will take until 2025 to perfect the technology for fully self-driving vehicles. and more. as they build their internet empire in whatever ways they can. “We believe in the industry that there will be a fully autonomous vehicle. We’re all aware of the vehicles available today that have systems to keep the vehicle centered in a marked lane. Google has gotten into the game. A self-driving vehicle project is at the center of Google X. The algorithm in most current systems rely only on crankshaft revolutions and oil temperature. we want to run a better business.elcocorp. viscosity grade and API category. “We are going to learn a lot about a lot of business models. require much more expensive radar-like technology and stronger computer processors. gets the oil change. “We talked a lot about using innovation to drive mobility and solve some of the most pressing transportation and congestion issues around the world.AUTOMOTIVE Continued from page 8 facturer to offer safety technology like lane-departure warning systems and collision-warning systems on its mainline Ford brand. Not only do we want to make a better world. however.” And how will lubricant companies respond to this world? My thoughts took flight as several scenarios came to mind. which can be done now on a macro scale in blending plants and oil analysis labs. If there is a computer that is so smart that it can drive the vehicle without human assistance.” he said. the computer-generated voice saying to a very surprised service manager that it wants the oil changed and to use a specific brand. does that mean that car dealers will see driverless vehicles showing up to have their oil changed? I can hear it now. vehicle-swapping and vehicle-sharing schemes. Autonomous vehicles. driving habits would become very predictable and uniform.com or www. So much more could be added such as viscosity measurements. Fields said Ford is exploring new ideas. and so oil drain intervals could be stretched out even more. and mapping services to be used on unpaved roads. Another issue: With the computer driven vehicle. Or maybe the auto dealership has also gone autonomous and the vehicle simply arrives at midnight at the preappointed service bay. (What a strange vision that presents!) Could something similar happen at quick oil change locations? It could. and announced 25 distinct KEEP YOUR EQUIPMENT “ ON TRACK ” Elco 313A Elco 313A The specialtty additive co ompany ! The Elco Corporation | 216-749-2605 | sales@elcocorp. Why not a micro unit that checks viscosity all . and returns home in time for your morning commute.com 10 MARCH 2015 “experiments” including mobilephone based parking space detection services. the addition of the onboard computer in the late 1980s revolutionized engine operations..” he COMMIT M Customer support remains our priority priority. the onboard computer would undoubtedly guide itself to wherever the nearest charging station is located. There have been demonstrations of autonomous trucks caravanning with a human-operated truck. Thinking in automotive terms. It allowed us to escape vacuum operated carburetors and move to fuel. The autonomous truck follows and does everything that the driven truck does. The American Psychological Association tackled this issue in its monthly magazine.. If the vehicle is a fuel burner. If the vehicle happens to be electric (a Tesla for instance). Oil monitoring for the masses could be next! Then there’s the question of refueling. Everything I’ve said about automobiles and light-duty trucks holds for heavy-duty trucks as well. it might be easier to convert HD fleets to autonomous control than individual vehicles. Some of those preformance characteristics are being measured now in high-end European models. and some have crash avoidance systems which take over braking when a collision is believed to be imminent. according to on-board sensors. $ $IWHUQHDUO\\HDUVWKH3DXOVERUR5HÀQHU\UHPDLQVDFRQVLVWHQW IWHUQHDUO\\HDUVWKH3DXOVERUR5HÀQHU\UHPDLQVDFRQVLVWHQW UUHOLDEOHVXSSOLHURI*URXS. As author Kirsten Wier noted. smart phones and Google Maps supply that information currently. In fact. How will autonomous do with a human in the other vehicle? While the autonomous vehicle will behave in a very predictable way.EDVHRLOV:LWKRXURXWVWDQGLQJUHSXWDWLRQ IIRUVHFXULW\RIVXSSO\ZHDUHÀUVWLQWKHH\HVRIRXUFXVWRPHUVIRU RUVHFXULW\RIVXSSO\ZHDUHÀUVWLQWKHH\HVRIRXUFXVWRPHUVIRU EHLQJUHVSRQVLYHWRWKHLUQHHGV EHLQJUHVSRQVLYHWRWKHLUQHHGV . “I suspect [vehicle automation] will be as transformational as the internet was.and emissions-efficient h have Chang s e ed im . as it were.I\RX·UHORRNLQJIRU WLPHOHVV. finding a station would be a snap since global positioning systems. The Monitor. it was non-existent in daily life. C US ER VICE W T e l i fuel injection. Lane diver- TOMER S IT Y L LIABI T RE EN the time? Volatility could be measured as well as remaining oxidation life.says. University of Utah psychologist David Strayer says the changes may very well be revolutionary. the human-driven vehicle will not. (Let’s hope this will mean no more slowdowns in traffic because one truck is passing another up ahead at about 5 to 10 mph below the speed limit.. It also became the brains behind today’s oil life monitoring systems as well as cruise control. and people do illogical and irrational things behind the wheels of their vehicles.EDVHRLOV:LWKRXURXWVWDQGLQJUHSXWDWLRQ HOLDEOHVXSSOLHURI*URXS. our moods and personal circumstances affect our driving.) There is a fly in the ointment. That’s pretty big when you think about how dependent we have become on the internet — 30 years ago. over the course of two to three miles. More recently some vehicles come with an autonomous parallel parking feature. I\RX·UHORRNLQJIRU WLPHOHVV.TXDOLWLHV . pbfenergy.pbfenergy.com LUBES’N’GREASES 11 .com www.TXDOLWLHV LQDVXSSOLHUSOHDVHFRQWDFW LQDVXSSOLHUSOHDVHFRQWDFW <YRQQH6FKDSSHOO#SEIHQHUJ\FRP < YRQQH6FKDSSHOO#SEIHQHUJ\FRP 856-224-4538 www. Most “Zonies” assert there is about a 10 mph “cushion” allowed by law enforcement as long as you are not reckless.12 AUTOMOTIVE gence alarms may go off if you stray from your lane. Human error caused more than 90 percent of those crashes. seat sliding mechanisms and hinges. So long as vehicles use a MARCH 2015 liquid or gaseous fuel. and so a vehicle that is programed to drive safely and with optimum fuel economy and emissions might be so boring that drivers will figure ways as though speed-limit signs are mere suggestions. 32. He is a longtime member of the American Chemical Society and SAE International. This could be for some time to come: The U. (Being a bit more cautious I stay within 5 mph of the limit. will admit that speed limits seem to beg to be tested. Of course.3 million were injured. does it? ❚ Industry consultant Steve Swedberg has over 40 years experience in lubricants. . an. One example is speed. He can be reached at steveswedberg@cox. A backup alarm system now warns me when my minivan gets too close to another object — be it curb. where he was chairman of Technical Committee 1 on automotive engine oils. Can autonomous vehicles remove that threat? Some psychologists worry that we humans like to have a degree of risk in our driving. there isn’t a lot about lubricants per se in this column.719 people were killed in vehicle crashes in the United States. with very few vehicles or trucks on the road. many people drive Mercedes-Benz unveiled the autonomous F 015 concept car at January’s Consumer Electronics Show in Las Vegas and North American International Auto Show in Detroit. Autonomy could have its greatest impact on how vehicles are serviced. there may be no more lubricant required except greases and transformer oil.S. It has saved my rear bumper more than once. most notably with Pennzoil and Chevron Oronite. Just doesn’t seem like the good old days. and where. vehicle or pedestri- to push the programming. Here in Arizona. the speed limit seems very slow indeed. lubricants must follow. says NHTSA. if all-electric vehicles become the order of the day.) Admittedly. Most of us. And wherever the auto industry goes.net. I can foresee a continuing need for engine oils and probably transmission fluids. Energy Information Administration predicts gas. I can testify that when driving to California across the desert. if we’re honest with ourselves. In 2013. Beyond the powertrain. according to the most recent figures from the National Highway Traffic Safety Administration. and how frequently. and an estimated 2.and diesel-powered cars will still claim 95 percent of global markets in 2040. grease will continue to be used in constant velocity joints and wheel bearings as well as such seemingly insignificant applications as door locks. something has to go. If it’s a slow mover. and © PVMil . especially when bananas are the hottest-selling products at Walmart and oxygen sensors lead in sales at most auto parts stores. there is no room on the shelves for types. That makes for a lot of SKUs and leaves little room on retail shelves and in distributors’ warehouses for motor oil grades that don’t sell. they have it in bulk and drums. it’s unreasonable to expect a retailer to allocate that much space to motor oils.NEED TO KNOW Something Has to Go G ive or take some obscure products formulated for use in nitromethane burning funny cars and dragsters. retailers need more than 80 feet of shelf space — close to four gondolas to stock just one facing of each. Lined up shoulder-toshoulder. it’s available only in cases. And if it doesn’t move. They include five straight grades and a wide range of multiviscosity motor oils running the gamut from SAE 0W-5 up to 20W-60. one facing of quart bottles in each grade of motor oil currently in the market would account for nine feet of linear shelf space. brands and types of PCMO they carry. winnowing out the chaff. and demand shrinks for some types. Making room for the jugs adds another 155 feet of shelf space. To fully showcase four brands and three product tiers (conventional. which isn’t much. To present four facings of each. there are currently 24 viscosity grades of motor oils in the market.Fotolia BY THOMAS F. brands and grades that don’t. As the array of offerings increases. If a product sells. Needless to say. or 64 running feet of floor space for passenger car motor oil — and that doesn’t take into account duplicating the same in 5-quart jugs. Shrewd retailers and lubricant distributors regularly comb through the mix of viscosities. So what’s selling and what’s not. that number bumps up to 16 gondolas. synthetic). There will be even when SAE 0W-16 and 5W16 enter the market. start with a look at retail shelf space. Although motor oils move. trailed someday by the budding XW-8 and XW-12 grades. it’s probably best to Google the viscosity grade and buy it online from a specialty lubricant marketer. But what? Continued on page 16 14 MARCH 2015 . high-mileage. GLENN what types and grades of motor oils might be sent out to pasture? For answers. Lubricant marketers face the same realities. maximize component life and reduce downtime for problem-free operation and lower operating costs over the life of the vehicle. When commercial vehicles leave a smaller footprint on the environment. Compounded Lubricants from BASF provide measurable fuel savings. it’s because at BASF. Increasingly heavy loads and longer maintenance intervals require exceptional lubricants.EVO 1509 We create chemistry that makes commercial vehicles love a smaller carbon footprint. reduce CO2 emissions. we create chemistry. For more information contact us at:
[email protected] www.com/lubes 150 years . let alone bulk and drums. Phone: (732) 4940405. is that SAE 5W-30 will continue to enjoy space on retail shelves and in distributors’ warehouses. it’s a grade they provide on an as-needed basis. Many view demand for this grade as too soft to inventory. But in addition to the evolution that brings in the new and rings out the old in viscosity grades. What about the old heavyweight champions? Chances are SAE 10W-30 will soon drain out of bulk tanks and slide on down to drums. ❚ Tom Glenn is president of the consulting firm Petroleum Trends International. The writing on the wall says the days of 10W-30 are numbered. many question if any space is needed for 5W-16.BERICAP Technology for lubricants and automotive liquids Committed to serving the producers of lubricants and automotive liquids • For containers ranging from 100 ml to 30 l • For plastic bottles. How they answer these questions will be a defining moment for major brands. This is the leading grade in the U. where 10W-40 is already very hard to find in bulk. since it currently holds an estimated 23 percent of the total. While there is forwardlooking demand for 0W-16. and Jobbers World newsletter. So who is going to go? That’s anyone’s guess. Next consider the up-and-coming lightweights: the SAE 5W-16s and 0W-16s looking for space and a place in the market. SAE 10W-40 is on the chopping block. high-mileage motor oils and others. cases and eventually out the door. you can be sure that retailers and marketers are questioning the very brands and tiers they carry. pails.com . a growing number say they are not giving price concessions on 10W-30. Although marketers will buy and sell 10W-40 if requested. private-label. metal cans and drums • For UN approved packages • Various TE systems available • Sealing options include EPE and IHS liners or bore-and wedge-seal • Anti-glug features • In-house R&D and mould making facilities www. today it accounts for only about 12 percent of the total and demand for it continues to slide. if not already out the door. It’s also becoming harder to find on retail shelves. at least in the near term. the Petroleum Quality Institute of America. it too will soon be off the gondolas and on to the online specialist. Although some original equipment manufacturers have been vocal about wanting 0W-16. the market splinters into 20W-50 and various other grades that account for the balance of demand. But beyond these two. Instead. accounting for an estimated 52 percent of total PCMO demand. there are questions about the future of other grades due to their relatively limited demand. and mostly will be marketed online and by special order. E-mail: tom_glenn@petroleum trends. market. it’s no longer a viscosity grade that many will carry in cases.S. So what’s going to go? According to some leading lubricant marketers. No wonder some suspect 5W16 may be kicked to the curb before it even makes a dent in the market.com 16 MARCH 2015 Continued from page 14 One sure thing. It’s followed by 0W-20 (growing) and 10W-40 at roughly 4 percent each. as yet there is no viscosity grade read-across from 0W-16 to 5W-16 to assist blenders. and from there. retailers and lubricant distributors sell what sells. Instead. Because at the end of the day. it will soon be hard to buy in drums and cases. they are encouraging buyers to migrate to 5W30 in an effort to reduce both the marketer’s and the customer’s costs. synthetic blends. And although you can still find a bottle or two of 20W-50 on retail shelves. Further. Next in line is SAE 10W-30. at close to 12 percent of demand and shrinking.be r i cap . Adding to this. Another safe bet is that 5W-20 will stick around for a while. And now for the real eye openers. barely a whisper is heard about the need for 5W-16. conventional. Although most retailers and distributors still sell it. Whereas it seems like only yesterday that SAE 10W-30 was the PCMO workhorse. and questions remain about who will write the big checks to run programs for it. the more it should reverberate with the drop in oil prices. lower gasoline prices do provide some stimulation to demand. market. You should give special consideration to your utilities contracts. While all rates have likely decreased. Typically. It is worth thinking about what the impact of lower gasoline prices will be on demand and miles driven. You may want to engage with your suppliers in a deeper discussion of how crude oil costs affect their products. and any BY SARA LEFCOURT processing contracts where energy may be a very significant factor. however consider that the International Energy Agency forecast is calling for oil to average $58 per barrel this year and $75 per barrel in 2016. and as the spring approaches it may be wise to consider your company’s capability to ramp Continued on page 20 18 MARCH 2015 . However you may also want to think about whether the change leads to any more fundamental changes in the relative value of certain feedstocks versus others. they may not have decreased commensurately. and decisions you have made in the past on transportation may need to be tested. Of course we know by now that it is impossible to predict the price of oil.BEST PRACTICES The Impact of Lower Oil Prices T lia Foto ea eshid fr © he recent collapse in crude oil prices makes me think about all the impacts this could have on businesses. It may also be a good time to consider your transportation needs. The higher the petroleum and energy content of your feedstock.S. It would be wise to test your project economics to a wider range of energy prices than perhaps you did when approving them in the first place. It is time to take another look at the economics of these projects as the incentives will be significantly lower and the returns not as robust. especially in the U. Have you given sufficient thought to this? Here are some areas you may want to think about. Of course the reduction in oil prices leads to reductions in prices of some of your raw materials. Perhaps you have allocated some of your investment portfolio to energysavings projects. What about your marketing plans for the next few years? It may be that consumers are less enthused about fuel-economy claims. Exper Experienced. ienced. ay. How this impacts your global marketing strategy may be worth consideration.BEST PRACTICES Continued from page 18 up production if needed. ollow-through. rives.com . esponsive. Also be aware that there may come available in the labor market some good project or engineering resources for your company to consider hiring. having saved money on fuel costs. R Responsive. Oil-producing nations like Russia and Venezuela are being seriously jarred by the drop in prices while oil consumers such as China and Japan will benefit. EEverything verything w we e do adds up tto o rrock-solid ock-solid ffollo follow-through. tXXX3FOLFSU0JMDPN tXXX3FOLFSU0JMDPN Authorized Base Oil distributor for Chevron Group II/II+ 20 MARCH 2015 Authorized Base Oil distributor for Neste Oil Group III UPDATE YOUR MAILING ADDRESS TODAY www. You may want to consider differentiating your products in other ways. It is inevitable that the slumping crude oil prices will lead to reductions in capital investments by the oil industry over the next five years.. If you are a player in the global market it is clear that lower oil prices and the geopolitical situation in today’s world will lead to relative winners and losers. w we’re e’re with yyou ou all the w way.LubesnGreases. Perhaps consumers will be receptive to higherquality oils. Get in touch touch and let let’s’s see ho how ww wee ccan an suppor supportt yyour our business business. You should also think about whether the lower oil prices will result in changes in your customer base due to potential consolidation in the industry. Perhaps at this point you are thinking that it doesn’t make sense to IIt’s t’s all in the he ffollo follow-through… ollow-through… MOVING? You Y ou can ccount ount on R Renkert enkert Oil to to cconsistently onsistently be there there when you you need us. it is timely to recast your financial plan at least for 2015 if not for the next three years. This may lead to opportunities for others. us. for example the availability of project labor may be higher. and there may be more competition in bidding for the projects that are still proceeding. Certainly you need to watch the market closely as you consider and implement price concessions.. If you haven’t done so already. Don’t miss an issue of Lubes’n’Greases FFrom rom the first pr product oduct cconsultation onsultation tto o the momen momentt yyour our shipmen shipmentt ar arrives. On time time. One point on which I think most readers would agree is that oil prices over the next few years are likely to be more volatile and unpredictable than ever. reduce risk and step up their operations. It is worth pondering what kind of projects and focus will be most beneficial in such an economic environment. supply. I suggest you evaluate the areas mentioned and pick a few in which to focus your response.com or phone (908) 400-5210. I hope some of these suggestions may be useful in these rapidly changing economic times! ❚ Sara Lefcourt of Lefcourt Consulting LLC specializes in helping companies to improve profits. • Focus internally on cost-reduction projects.com Performance packaging solutions to deliver your products safely. and sustainably. Her experience includes many years in marketing. including not only raw materials but also transportation. scholle.com.com ipn-group. It is worth staying even closer to your customers to ensure that in times of economic uncertainty they are not considering switching suppliers. especially those which reduce costs sustainably over a long period and which are not reliant on high energy prices to justify. Stay the course on long-term research areas where the impact will be felt in five to 10 years. • Focus on development of new products and capabilities addressing unmet market needs. Here are some suggestions: • Focus externally on customer satisfaction.rethink all of these areas since oil prices are likely to rebound. While this is certainly a possible scenario (and perhaps at $45/barrel there is likely to be greater upside than downside potential). economically. • Focus externally on ensuring that your procurement activity is securing the right level and timing of price reductions. Consumer Advantages • Easy-to-handle. where she was vice president. LUBES’N’GREASES 21 . I suggest that the degree of change in the oil market demands some response. compact packaging • Reduce product loss • User-friendly fitments protect from splashing and glugging Institutional/Retail Advantages • Improve inventory management and space utilization • Reduce overall packaging carbon footprint See us at the upcoming PPC Spring Meeting and ILMA Forum or contact us at scholleNA@scholle. first for Exxon and then at Infineum. sales and procurement. utilities and services. such as an area of large risk or most significant shortterm reward. E-mail her at saralefcourt@gmail. 200 barrels per day (270. this latest round of closures will remove 1. Also making for the exits are: • Total. • Nynas will end Group I production (3. • Shell’s Group I plant in Pernis. Germany. France. France. around the end of March. The plant already can make some Group III.300 b/d) in favor of making naphthenic specialty oils at its plant in Harburg. plus another 500 b/d of Group III base stocks. which in November told workers it planned to modernize its 9. It reportedly would decrease its overall capacity by about half and then upgrade the remainder to make highervalue stocks.100 b/d of capacity. with 7.600 b/d Group I plant in Gonfreville. which it acquired from Shell in 2013. a company source confirmed to Lubes’n’Greases last month.Colas Joins Group Colas Group intends to cease making base oils at its plant in Dunkerque. Netherlands. The plant has capacity to produce 5. and to shut down entirely in early 2016. That makes the road-paving company the latest in a parade of Europeans leaving the Group I arena in the face 22 MARCH 2015 of slackened demand and heated competition from hydrotreated Group II and III base oils. roughly 800 b/d.000 metric tons per year) of API Group I.2 million metric tons of . All told. It expects to switch off one lube train by the end of this year. Netherlands.” the Colas release stated. provided notification to the works council at SRD regarding an employment preservation plan relating to job losses associated with the closure of base oil production units. by Pierre-Francois Grosjean. At the time of the sale. “These measures aim to refocus SRD’s business solely on bitumen production. BP sold its shares to ExxonMobil to prepare for the plant’s LUBES’N’GREASES 23 . when it paid a reported Euro 20. France. France. the executive management of Societe de la Raffinerie de Dunkerque (SRD). 6. The company.6 million) to acquire the French bitumen and base oil plant. center. In the case of Colas. “At the end of October 2014. Before Colas bought it. the Dunkerque plant had been a joint venture of ExxonMobil.” Colas stated in its news release. In its mid-November 2014 quarterly earnings statement. Total and BP. left. Total.I Exodus BY GEORGE GILL & GABRIELA WHEELER Group I units will be closed by Colas in Dunkerque. in order to recover economic equilibrium in due course and ensure sustainability for the production site in Dunkerque. respectively. a 100 percent wholly owned Colas company. said that it held an information meeting Nov. France. and Shell in Pernis.5 million ($26. (Photos: Colas. 40 percent and 10 percent. followed by a negotiation phase. Total in Gonfreville. Colas revealed preliminary plans for Dunkerque. Shell International) Group I capacity from the global stage. which is headquartered in Boulogne-Billancourt. it marks the end of a short-lived foray into Group I which dates back only to June 2010. which owned stakes of 50 percent. “I expected Colas to exit Group I stocks in July of 2013 because they had a three-year agreement with ExxonMobil to provide technical support from the date of acquisition. Claxton said its primary products are asphalt mixes and aggregates. rail and maritime transport infrastructure. the only byproduct is the deasphalted oil that can be disposed of in the merchant market as heavy vacuum gas oil. Stephen B. reflected that the purchase of SRD was driven principally by the refinery’s approximately 300. An industry source told Lubes’n’Greases that the majors are generally no longer taking base oils from Dunkerque.000 b/d.K. No Group I plants have closed in the United States since.” Claxton remarked last month. Colas said the location would supply 25 percent of the bitumen for their operations in France. 2013. principal of consultancy My Energy in Hummelstown.” Technically. It had 6. Shell Canada converted its entire crude oil refinery in Montreal — which had housed a 2. Ontario. liquid asphalt and polymer modified binders and emulsions for road construction.060 b/d Group I plant at the former Shell Stanlow.800 b/d of Group II capacity. Other than the bitumen product. a 3. At the time of the acquisition. France. Pa.800 b/d of Group I and 3. not a “refinery. solvent dewaxing and hydrofinishing — other than the propane deasphalting plant. . crude refinery. 2008. 24 MARCH 2015 2014. according to Lubes’n’Greases estimates..800 b/d unit in Kentucky both ceased operations. U. Additionally. Citgo’s 9. ready-mix concrete. they switch from atmospheric residue to vacuum residue as plant feed. 2011.” Amy Claxton. “The base oils. Ames of SBA Consulting. and Marathon’s 6.. Colas is a global producer of materials for construction and maintenance of road.000 b/d Group II units. He went on to observe that for Colas to continue bitumen production at the plant after closure of the base oil operations is relatively simple. air. In Asia.500 b/d base oil unit in Louisiana. base oil plant off line for good in April. Colas had an off-take agreement whereby Total bought 40 percent of their base oil for the first two years of operation. Taiwan.400 barrel per day Group I plant operated by CPC-Shell in Kaohsiung. was permanently shut down at year end. refinery. diesel and aviation fuels. “They [would] shut all of the base oil units — solvent extraction. Caltex closed Australia’s sole base oil facility. 2013. 2010.300 b/d Group I unit near Sydney. 2011. “In addition.” he explained. Ohio.300 b/d Group I and 1. Petroplus took its Petit-Couronne. “At the same time. Pepper Pike.000 b/d of Group I capacity.” She noted they bring in reduced crude — atmospheric distilla- Recent Departures Essar closed the base oil plant at Stanlow in 2013. since 2010 Japan has gradually pared 10. she explained. the Colas facility is a small specialty plant. the 5. Canada’s Imperial Oil stopped making base oils.700 b/d Group I unit — into a fuels terminal for gasoline. and Central and Eastern European operators have trimmed off 30. shuttering 2. also confirmed that the key reason for Colas Group’s acquisition of the Dunkerque facility in 2010 was to have more bitumen/asphaltic material to support its road-building infrastructure.acquisition by Colas. Essar shut down a 5. process oils and waxes at its Sarnia.” Ames said. extracts and waxes held little interest to Colas. it had purchased the facility just three years earlier.000 t/y capacity for making bitumen. “Also. which is much more costly than operating a base oil plant that is part of a large refinery. also called atmospheric residuum — from another refinery as feedstock to produce Group I base oils.” Claxton said. while it was owned .tion bottoms. “Thus their Group I economics were not as robust as a fully integrated Group I plant in a large refinery. Dunkerque. . . Africa and the CIS countries. driven by vehicle population growth. warehousing and private labeling Technical Exper tise. To illustrate the large shift in production among the different base oil groups. process and marine segments are flat. a very high-cost operation relative to their competition. thanks to the addition of significant Group II and III volumes to the global supply system. vice president of IHS Energy’s downstream industry consulting practice. the automotive lubricants sector is expanding in the developing regions such as China. while requirements from the industrial. capacity is growing much faster. South Asia.” And what does the future hold for the world’s surviving Group I plants? How will Group I producers adapt to the changing market conditions? Those are some of the questions that Blake Eskew. Russia and some Northeast Asian countries. Consistent. adding that as the automotive sector increases its use of Group II and III oils. began a small Group III production operation by purchasing fuels hydrocracker bottoms from a third-party refinery as feedstock to produce Group III base oils — again. steaming. call Soltex. “Group I producers are likely to see strong competition for the remaining automotive market. it comes as If market changes have you searching for a stable supply. One of the main downstream markets for base oils is the automotive segment. who produce Group III base oils as part of a large. Fast shipping from large inventories of popular grades Logistics Solutions. integrated refinery operation. By contrast. Europe. Even in these markets though.soltexinc. including blending. Both sectors however are actually slowing in mature markets such as North America.com See our full line of performance chemicals: SULFONATES • DETERGENTS • GREASE ADDITIVES • VI IMPROVERS • SYNTHETICS • POUR POINT DEPRESSANTS • BRIGHT STOCK REPLACEMENT • RUST & CORROSION INHIBITORS • AND MORE 26 MARCH 2015 no surprise that Colas is working to streamline their specialty plant operation to focus on asphalt. Announced projects total almost 10 million tons through 2020 — a volume equal to roughly 20 percent of current capacity worldwide — and these oil additions are fairly balanced between Group II and III.” Eskew said. we’ve been a stable. For over 25 years. down from 75 percent in 2005. At the AFPM International Lubricants and Waxes Meeting in Houston. +1 281 587 0900 +1 800 275 8580 www. Established global network with a full range of supply chain services and support. Eskew pointed out that. Eskew said. Eskew explained. “For all of these reasons. Eskew confirmed that while base oil demand is growing at a steady but not very robust rate. by ExxonMobil/Total/BP. based on announced base oil projects and changes. transloading. Ready Availability. The answers you need plus laboratory services and assistance in grade selection Dependable Quality. Group I will only represent about 40 percent of global capacity by 2020. reliable source for quality polybutenes. Middle East. Latin America. not base oils. Group I producers will need to retain industrial . high quality with lot-to-lot traceability Call today to see what a supplier with a 25-year commitment to the industry can do for you. and on a global basis demand from this sector is growing only slowly. packaging. addressed in a presentation last November. 800. generally enjoys more advantageous natural gas.S.” Group I producers are likely to try all strategies in the quest to survive. while heavy neutrals and bright stock margins have increased by almost 50 percent.437. feedstock advantages. production of specialty products and forward/backward integration will determine which Group I facilities will be able to survive the tsunami of new base oil capacity coming to the market. creating opportunity to enhance margins. Eskew explained that U.3188 317. Eskew concluded.” he noted. He stressed that even if the world’s 34 smallest plants were rationalized. hydrogen and power prices. operating cost control.000 b/d). waxes. coupled with the benefit of lower energy and operating costs. The U. while wax and specialties margins jumped by 200 to 300 percent. Asia has 39 percent of global capacity and 27 percent of Group I capacity. but each facility’s performance ultimately will be measured relative to transparent markets: “Integration will not disguise uneconomic operations. While Group I production is not likely to completely disappear any time soon. Integration within a larger operation can help.S producers are well positioned relative to those in Europe and Asia because of size and configuration advantages. but 25 percent of the Group I capacity. Group I byproduct values have also risen sharply.P P.markets to maintain their momentum.5660 www . Eskew said. LUBES’N’GREASES 27 . Small Group I plants — those with less than 3.com © 2014 Calumet Specialty P Products roducts Partners. Eskew explained. Margins for byproducts sold as feedstocks/intermediates were largely unchanged in the past decade.calumetspecialty. light neutral margins have remained unchanged in the past decade. . Latin America and Asia. according to Eskew. “Bright stock. Partners. Europe has only 15 percent of the world’s total base oil capacity.P.com
[email protected]. and while some will be successful. it would be insufficient to rebalance the market. and there may be some opportunities for producers if they can concentrate on the more profitable products. The Group I plant profile also differs widely across the globe.calumetspecialty. most existing Group I capacity is concentrated in Europe and Asia. ❚ Your Y oour Single Singl Source For High Quality Specialty P roducts Products 1.000 b/d capacity — are commonplace in the Middle East.com www. extracts and asphalts — all are necessary to sur- vival. Africa. operating factors such as Blake Eskew location advantages. How can Group I operators stay in the game? Base oil price relationships have changed dramatically in the last 10 years. Nevertheless. while North America boasts the most large plants (with over 6. For example. emphasized Eskew. others will not. LL. Table 1 on page 30 lists the current J300 grades — newly updated for 2015 — and shows their defined limits. lowtemperature viscosity is also defined in J300 using dynamic tests. One is the maximum cranking viscosity. more tests were added to address engine needs. SAE J300. SAE J300 initially defined kinematic viscosity at low-shear conditions for two temperatures: 40 degrees C (“KV40”) and 100 C (“KV100”). when they first see an SAE 0W-12 oil). Over time. This a high-shear viscosity that is measured by the . such as shear rates and higher operating temperatures. As the table shows. Almost all consumers have heard of “10W30 oil” (their heads may explode. though.Is Fuel Economy Hiding in SAE J300? BY DON SMOLENSKI 28 MARCH 2015 Viscosity is arguably the most fundamental property of lubricants.” is the standard for defining the viscosity grade of vehicle engine oils. always using standard ASTM test methods that are available industrywide. although it’s more common to cite results in centiStokes (cSt) now. Measurement was made by a capillary viscometer and reported in mm2/sec. “Engine Oil Viscosity Classification. Dating back to 1911 and regularly updated. which relates to the oil’s facilitation of starting the vehicle at low temperatures. Let’s just call it a hunka.cold-cranking simulator (ASTM method D5293). Both parameters are reported in mPa•sec. viscosity index (V. The temperature at which each low-temperature test is conducted is dependent on the SAE viscosity grade of the oil. or by a capillary viscometer at 1. high-shear viscosity is defined at 150 C (“HTHS150”) and measured by tapered bearing or tapered plug methods at a shear rate of 106 sec -1. high-temperature. or centipoise (cP).4 x 106 sec -1. Finally. hunka churning stuff. which relates to the oil’s ability to circulate throughout the engine. and is believed to be related to oil film thickness in high shear areas of the engine. (It is difficult to explain 106 sec -1 in an easily understandable way. A log-log plot of viscosity vs. Another is the maximum low-temperature pumping viscosity. Although not specifically covered in J300.I. this is a low-shear viscosity that is measured by the Mini Rotary Viscometer (ASTM 4684). temperature gives a straight © aleksandarfilip .) HTHS is reported in mPa•sec or cP.) is another key physical property of engine oils. It is a measure of the variation in kinematic viscosity with temperature.Fotolia LUBES’N’GREASES 29 . 2 SAE Viscosity Grade Low-temperature (ºC) Cranking Viscosity3. the lower the variation of its viscosity with temperature.Figure 1.I.I. a V.3 12. Oil) Figure 2. a poorly refined naphthenic base oil was somewhat arbitrarily assigned a V. regardless of viscosity.2 <9. 3 ASTM D5293 (cold-cranking simulator) 30 Low-temperature Low-shear-rate Low-shear-rate Pumping Kinematic Kinematic Viscosity4.0 6.I.9 9. 40 grades 3.9 cP. 1 cSt = 1mm2/s.0 2. Instead of a log-log plot.3 21. Maximum 0W 5W 10W 15W 20W 25W 8 12 16 20 30 40 6200 at -35 6600 at -30 7000 at -25 7000 at -20 9500 at -15 13 000 at -10 — — — — — — 60 000 at -40 60 000 at -35 60 000 at -30 60 000 at -25 60 000 at -20 60 000 at -15 — — — — — — 3.3 40 — — 12.I. Minimum — — — — — — 1.9 cP for an SAE 5W-30 oil. CEC L-36-A-90. Figure 1 shows the difference between high V. Very High V. A benefit of a high V.6 9. Viscosity5 (mm2/s) Viscosity5 (mm2/s) Maximum with No at 100 ºC. 20W-40. both meet the HTHS150 minimum of 2. oil is that it can be blended to meet the same minimum HTHS150 as a low V.I. Variation in Viscosity with Temperature (Low V.7 3.I. oils.3 4. of 0.1 5.I.5 <16. 25W-40. mPa•s. High V. and the 216 V.7 5 ASTM D445 (kinematic viscosity) 6 ASTM D4683.9 <21.I. is calculated from an oil’s KV40 and KV100. oil an HTHS 150 of 2.I.5 — — — — — — <6.6 2. With today’s hydrocracked and synthetic oils and viscosity index improvers. mPa•s. and a highly refined paraffinic base oil was assigned a V.8 4. But Below KV100 Minimum Kinematice Viscosity. Oil vs.0 cP.) V. A very high V. High-shear-rate Viscosity6 (mPa•s) at 150 ºC. as Figure 2 illustrates. oil. ºC — potentially resulting in a fuel economy improvement. cSt Log Viscosity VISCOSITY INDEX Low VI oil High VI oil 70 60 greater than 100 is now achievable. ASTM D4741 (tapered bearing or tapered plug methods) .3 <12. The 164 V.7 2.I. at 100 ºC.5 <16.1 6.1 1 cP = 1 mPa•s. (See Figure 1. Yield Stress Minimum Maximum MARCH 2015 4 ASTM D4684 (apparent viscosity) Note that the presence of any yield stress detectable by this method constitutes a failure. of an oil.6 5.1 <8.5 (0W-40. and low V.7 (15W-40.8 3. This formula was developed long ago.1 <7. Oil Formulated to Meet HTHS150 Minimum. Continued on page 32 Table 1.I.I.I. this graphic shows a linear plot to more clearly highlight the viscosity differences at lower temperatures. oil has an HTHS 150 of 3. The higher the V. oil could be formulated to meet a minimum HTHS150. of 100. such as you’d see in their engines’ connecting rod and main bearings.I.3 50 60 — — — — 16. 2 All values are critical specifications as defined by ASTM D3244.9 <26. Currently most original equipment manufacturers specify a minimum HTHS150 to ensure sufficient oil film thickness in hydrodynamic lubrication conditions. Viscosity Grades for Engine Oils (SAE J300)1.3 2.I.0 5. but 140 160 actually fall below the minimum KV100 requirement.9 3. but will have a lower viscosity over the rest of the (lower) temperature range 216 VI 40 30 20 10 0 Log Temperature line that is inversely proportional to V.I. far 164 VI 50 40 60 80 100 120 Temperature. 5W-40 & 10W-40 grades) 3. flow capacity be comproover the four cycles.5% for each grade. This level of fuel economy to the OEMs is like the latest cell-phone technology to a teenager. We’ve done much despite ourselves when we decided we will.0-liter Opel turbocharged engine on an engine dynamometer. such as ILSAC and General Motors’ Dexos. or changing the para98. very high V.5% on the need for 3 runs average. as shown So. The SAE 5W-20 oil — despite the for discussion. including 19 foreign exchange students over the years.2 permum may actually hinder there be any durability issues cent. Classification Panel would meeting ILSAC GF-5 and which would drop it to an likely be the proper vehicle Dexos 1 specifications.” JC08 NEDC FTP75 WLTC Reference So what is the Oil path forward? The Very High VI Test Oil* *same DI as reference oil SAE Engine Oil Viscosity the minimum of 9. oil ceed. The think of the difference associated with such a repeatability for three tests between the two lines as fuel change. the same Comparing the KV40 of data to prove that there is base oils — with a different the two oils in Figure 2 compelling incentive to proV.4 percent that the current KV100 minia change!) For instance.5% “critical. and a cooperative program designed. We should be clear. as people genercycle are excellent. for more than 30 years. (This may not be on each oil and each test economy potential.3 cSt. max and min consideration of 100.5 cSt. and is the co-creator of GM’s patented Oil Life Monitor.) Figure 3 illustrates the fuel mised? Could oil consumpThe fuel economy improveeconomy obtained with a tion be a problem? There are ment with the very high V. below 32 MARCH 2015 FTP75.I.com .8 percent to in four different fuel econosort out which are technical 1.0% ■ Average revising the KV100 specification mini■ Max 99. The V. a list of all potential issues 242 for the test oil.” Many would say this proposal is blasphemous — and yet still. the KV100 of the 164 V. For Next would be to generate 164 for the reference oil and those who are not oil geeks. collect more fuel economy concentration.I.I. the variability my test cycles. oil is 10. smolenski@evonik. It’s naive to believe this change could be straightforward or quick. too difficult. Fuel consumption difference between conventional and my data are comvery high V. very high V. they all this? The contention is when they feel threatened by varied less than 0. improver. data or testing required to adequately address these issues should be defined. ❚ Based in the Detroit area.I. oil. oil in four fuel economy test cycles pelling enough to provoke discussion 100. (The repeatability the fuel economy achievable not adequately addressed by shown for the reference oil for a given viscosity grade HTHS150? Could oil-pump was the worst repeatability with a very high V. however.the different “appetites” of the test cycles. as well.I. E-mail him at donald. well above the SAE J300 minimum of 9. that commercial issues should not be a “show stopper. He is also the parent of 22 kids. Don Smolenski is Evonik Oil Additives’ OEM liaison manager for North America. will and usually less than 0. this panel same detergent/inhibitor HTHS150 minimum for an would probably want to first additive package at the same SAE 5W-30 oil. oil over the commercial oil meets the KV100 minimum) The next step would be to ranges from 0. issues and which are comfrom cycle to cycle is due to Continued from page 30 Fuel Consumption Relative to Reference Oil As Figure 2 shows. oil (which still likely several others.I. test oil uses the fact that it meets the at a minimum.s of the two oils are is 40 percent lower. and is not unexpected.6 percent. WLTC and JC08.3 cSt. He has been involved in developing engine oil tests and specifications. These data are from tests conducted on a 2. Hopefully these (and yet to come) fuel econoFigure 3. what is all the point of ally become more vocal by the range of results. I believe that. The KV100 of the 216 V. For the technical issues.0% include lowering the KV100 limits 98.0% meter to a “report” rather than being 97.I. The reference oil in this test was a commercial oil mercial issues.0 cSt. For the commercial issues — such as this change being problematic for a small oil market for which SAE J300 was never intended — possible solutions should be discussed. shows that the higher V.I.5% mum in SAE J300.I. ■ Min Possible options 99. oil however is 8. the clock continues to tick.I. the NEDC. But it’s time to get moving. Photo: Trans Ocean Bulk Logistics 34 MARCH 2015 . 000 of those units a year. “Potentially. totes and ISO tanks for cost reasons. chemicals. said Mark Reader. you can only fit 88 55-gallon drums on pallets into a 20-foot shipping container.000. a total of around 139. you probably can get 18 totes into the same 20-foot container. estimates Trans Ocean Bulk Logistics.000-gallon plastic bag.” As he explained to Lubes’n’Greases. the market is huge. personal care. That’s only about 17.” he confirmed. that number had grown to 600. If you ship tote bins.FIRST OF TWO PARTS WEIGHING THE FLEXITANK OPTION BY LISA TOCCI I ndustrial packaging’s rising star is a 6. but that’s still just LUBES’N’GREASES 35 . “With drums. versus 24. In 2005. fitted into a standard 20-foot shipping container. making it the world’s largest manufacturer and shipper of flexitanks. Trans Ocean itself moves about 140. foodstuffs. the market for this bulk liquid packaging option has more than quadrupled in the past 10 years — and sources say that much of the momentum came from the lubricants industry. “Lubricants are a significant user of flexitanks. a leading supplier of flexitank shipping services.000 liters of actual product. We’re especially seeing growth from lubricant customers who are moving away from drums. because any nonhazardous liquid can be handled this way — lubricants. By 2014.000 container loads were sent by flexitank worldwide. and this year it estimates that some 700. business development manager for the company in Houston.000 liters in the same space using our flexitank.000 container units of nonhazardous fluids will travel this way. Known as the flexitank. that’s no different.elmusa.800 bottles. the bag is braced with a bulkhead (usually plastic or metal) to hold it in place. etc. or each container. lubricants and transformer oils using this shipping method.000-liter flexitank you’ve reduced your shipping cost per gallon or per kilo or pound. but at some destinations it can be hard to find an ISO-certified cleaning location. Non-bioaccumulative • Biodegradable. So with the 24. Next. closer to the final consumer. If a location in Africa or the Caribbean or South America can’t clean the tank.” Reader pointed out. ball or butterfly valve. because flexies do take more handling. She said cost savings are behind the growing volumes of base oils. Those packages can be easily filled at the destination. “This is a one-use. it is filled with the liquid product through a gate. like any intermodal container. Professor Emeritus. “We also see a small quantity of flexitanks that serve as storage.-based base oil trader Puma Crown. Shippers do have to be mindful of weight restrictions on European roads. a receiver in Cote d’Ivoire might keep a container for a month. For finished lubricants. “They even can be cheaper than using bulk parcel carriers. jugs. “Lubricants are one of the biggest users by far. additives. door-to-door. you have to attest each shipment. YOUR BIOBASED PRIVATE LABEL HERE See our web site for products list: www.000 liters. “It’s a big business and we’re almost overwhelmed right now by demand for shipments going out of the United States.” Erica Kurth. Ray Masson of the U. the entire unit is ready to travel by truck. which mandate a maximum of 20 metContinued on page 38 . Africa. he emphasized. under the normal documents and bill of lading. he sees base oil moving via flexitank from a supplier’s inland storage tank. Finally. USDA Bio-preferred • European Ecolabel Products Let us join your team to offer your clients a full line of biobased products under your own confidential private label. any way you measure it. Once delivered. it would fit only 16. and on some routes — like Black Sea-to-Far East — they are far.000 bottles of wine.” Typically. there’s no need to pay to have the container cleaned or repositioned for its next trip. In each case. The wine industry offers an excellent example of the efficiency: Frog’s Leap regularly ships wine abroad from California in 24. versus heavy steel ISO tanks or totes.000-liter flexitanks. disposable and recyclable option.” The flexitank is an elegant and simple concept: A large. which they couldn’t afford to do with an ISO tank. then on a container vessel to a developing country.ASK US ABOUT BIOBASED/VGP BIODEGRADABLE Dr. with some shipments as large as 30 containers.” Masson said. far cheaper than bulk. another seller of flexitank bags that offers loading services. a big advantage for flexitanks is that most of the weight conveyed is actual product — not bottles. But the flexitank goes all the way to the customer. but not nearly what it is for a tankcar or ISO tank. Bulk is always going to be more efficient if you have terminals at both ends of the route. Lou Honary.com ® 36 MARCH 2015 18.” said Masson. Bulk products such as base oils can ship more economically too. “Unlike with ISO tanks.K. a volume equivalent to 32. agreed. Middle East. One of the problems with an ISO tank is that you have to clean it for reloading with the next product. an operations manager in Houston with SIA Flexitanks. especially from Europe to customers in Central Asia. sees growing numbers of cargoes moving via flexitanks. Here in Houston we are shipping about 150 to 180 loads a month. For example. the material is drained or pumped out of the bladder.” The deadhead return trip and cleaning requirements add cost that are sidestepped with the flexitank. cartons.000 tons — where the material started at an inland terminal.com 319-824-5203 Put our expertise to work for you! • Over two decades of Universitytransferred Technology • World renowned and patented Microwave based grease manufacturing for lower cost and improved performance – • Biobased.” she related. “We’ve done five to 50 containers in a single shipment — that’s 260. it has to be shipped back to Houston for cleaning. Author ELM President lou. thick plastic or rubber bladder is unfurled inside a standard 20foot-equivalent shipping container.honary@elmusa. the container is then offloaded onto a truck and hauled by road to the customer’s location for unloading. Were it to use the same 20-foot container to ship cases of wine. There’s demurrage on the container. After the container doors are closed and secured. the floor and walls of which have been padded with heavy corrugated paper. drums. India and Asia. container ship or in some cases rail to its final destination. Fla. “Every two minutes. filled and closed properly. trucks and rail connections. Leverage the full range of technical resources and quality products only Monson delivers by contacting customer sales and service at 1-800-235-0957. or a bit more in the Baltic states.com for your local Monson sales representative. 24 hours a day. reported..MONSONCO. where road limits are greater than 20 tons. “The bag is fixed inside a frame. and has ready access to ships. “is that you must not ever open the container until you’re ready to empty the bag. you can load a flexitank. Kurth of SIA said. senior vice president of Amalie Oil Co. a Trans Ocean flexitank is being loaded or unloaded somewhere in the world. customers and suppliers with unrivaled formulation and technical assistance.. including the container’s tare weight.Continued from page 36 ric tons. many users take on the loading themselves. Once they are trained for the process and have several shipments under their belts. “The one absolutely critical thing. Loading a flexitank is a simple operation.” Denny Madden. MA 01453 | 1-800-235-0957 | WWW. and takes from one to two hours.” In other geographic areas. although heavy stuff may require a pump. the top flexitank suppliers offer “supervised loading. you fill it from the top and discharge from the bottom — often just using gravity alone. the weight may climb higher. depending on the viscosity of the product being pumped in.” Masson added. “If you can load a tanktruck or an ISO tank. Masson said.” Mark Reader said assuredly.” For a fee.” A DEDICATED TECHNICAL CENTER FOR LUBRICANTS AND METALWORKING TO TACKLE THE INDUSTRY’S MOST COMPLEX CHALLENGES Monson Companies Lubricants & Metalworking Technical Center supports its sales team. Just like with a tank truck. “You can ship approximately 18 tons of product in a flexitank. 365 days a year. everyone agrees. In his experience. some transloading plant operators — rail yards for example — require supervised loading at all times when material is transferred from railcars into flexies. However.COM Monson’s Testing Capabilities • RPVOT • Hydrolytic Stability • Timken EP • Four Ball Wear • Copper Corrosion • Falex Pin & Vee Block • Grease Testing .” sending a representative to an approved loading site to assure the bag is set up. which is based at the Port of Tampa. “We have used flexitanks very successfully for about 15 to “The one absolutely critical thing is that you must not ever open the container until you’re ready to empty the bag. L U B E S A N D G R E A S E S | M E T A L W O R K I N G | P U L P A N D PA P E R | P O LY M E R S | W AT E R T R E AT M E N T A N D P O W E R 154 PIONEER DRIVE 38 MARCH 2015 | LEOMINSTER. the effort and equipment required are the same as with any bulk shipment. or via email to csr@monsonco. None of these are insurmountable issues.17 years now. you can take the used bags apart and a lot of the material may be recycled. “Over the years we have had very few problems. I think it’s a bigger problem to fill a shipping container with drums.” she said. “Fifteen percent of the plants dispatching bulk finished products now report using flexitanks as one of their methods. The ability to securely load into and dispense from flexies requires training. “If you are good and are conscientious. Even so. And insurers have voiced concerns regarding overweight shipments. for example. “we were hearing from our benchmarking study customers that they felt it was more difficult. which rub up against each other and develop leaks during a long journey. Benchmarking studies of lubricant plant operations indicate that “it is definitely becoming more popular. hears Annie Jarquin of the research and consulting firm Malik/Pims. Puma Crown’s Masson asserted. and added wear and tear on the shipping containers themselves. rigorous attention to quality and proper handling. We like them. allowing contents to seep out.” Madden continued. ❚ LUBES’N’GREASES 39 . where flexies are filled with a range of products destined for export and marine markets. our data so far suggests there is no advantage or disadvantage with regard to opex [operating expense]. and some innovative uses for flexitanks. Operationally. — although if using quality flexitanks this should not be a problem. “If properly fitted and loaded. Read more about that. in next month’s issue.” she stressed. We most frequently send flexitanks to Chile. and our customers who use them seem to like them. We have a very well-trained crew here who set these bags up in the 20-foot containers and send them on their merry way to the far-flung locations. the whole package makes some uneasy. I think people are still worrying about leakage. We probably are shipping an average of one or two per week over a 12-month period. We have sent them to locations as far away as Australia and China.” Other lubricant blenders are also adopting this packaging and shipping method. they are absolutely oil-tight.” Usage is particularly high in port cities such as Singapore. too. etc. fitness for rail carriage. “You have to check that the pin is locked down. Jarquin commented.” That big worry — leakage from a burst bag — has not been a problem when flexies are used to ship base oils. bag integrity.” Kurth says that most leaks occur when the user fails to secure the lockdown pin on the bladder’s valve. On the other hand. says Mark Reader of Trans Ocean — but they do require engineering know-how. the it deems a hazardous waste. the question now is whether Brazil’s reverse logistics system has been compromised. which according to government data.” The collection rate. According to Brazil’s Resolution No.7 percent system it calls “reverse logistics. and only they may South 37% work in this business. In 2008.Gathering Clouds Used Oil Collection Falters in Brazil B By Miriam Raquel Sands razil appears to be that the used oil collection network falling behind on came up short by about 14. Brazil had raised collection targets to encourage greater recycling. used oil collection.” said Pedro Nelson Belmiro. by 2011 it hit Northeast 32% 37 percent — better than expected. 33. and it seemed to be North 31% working. its goal was reverse logistics process encourages to collect 38. However. Each year. 362/2005. “Today.1 percent — meaning the reuse of various products for the purpose of capturing value and/or Brazil’s 2015 Oil Collection Targets by Region Nationwide Goal: 38. lated the collection of used oil. Lubricants Committee Continued on page 42 40 MARCH 2015 . preferably through rereSoutheast 42% fining. all lubricating oil used or contaminated (OLUC) must be collected Center West 35% for recycling.5% proper disposal. In Since 2005.7 million meeting its targets for liters (4 million gallons).4 percent of used oil was collected. there are 14 rerefiners authorized and registered in the National Petroleum Agency. under a whole country reached a 35. which is considered the best alternative for the waste. and what actions — if any — the government will take to get used oil collection back on track. With 2014’s setback. Brazil has strictly regu- the first half of 2014. Inc. adding that Brazilian legislation more ambitious and more restrictive also determines the payment to be policy goals. “According to the last Petroleum. and impressive tribochemical activity under sub-EHD conditions. used oil collection. for each region and publish them in CONAMA.9% 36. As he explained to Lubes’n’Greases. importers. Inc. we would welcome hearing from you. Bessette to discuss partnership opportunities. “This resolution applies to all However. the contract between any lubricant producer or importer and its collection agent company can begin its sales activity in Brazil’s Mandated Oil Recycling Rates Year 2008 2009 2010 2011 2012 2013 2014 2015 National Target (avg. South and Southeast ensure anything now.9% 37.4% 34. Industry and Foreign Trade. Brazil’s National Council for the Environment. 42 ministerial ordinances. in terms to those established in the law. Prior to 2014.” said Florentino de Toledo In the future. The latest and generators (consumers) share in Interministerial Ordinance came in legal responsibility for compliance.0% 35. including its potential such as producers. contact President Paul A. they did not close the [full- regions in Brazil: North. used oil collection goals to be achieved Gas and Biofuels Institute (IBP). Natural Gas and Biofuels presentation of the rerefiners’ represen- Agency (ANP).” current law. and it of reverse logistics. • PFPEs • PAOs • Silicones • Esters • PAGs done through agents properly regis- met the targets.com Brazilian Ministry of Development.Continued from page 40 and Mines & Energy together set the coordinator for the Brazilian Petroleum. “The expectation is that Brazil’s Ministries of the Environment MARCH 2015 Lubes’n’Greases.5% the country.” regions. Northeast. the rerefining industry is the collected used oil were very close ments of the lubricant market. retailers to boost oil recycling rates. TS&E has gravitated towards manufacturing our own line of synthetic oils and greases.” Nelson Belmiro told “In Brazil. was established in 2000 to provide clients with sound technical advice pertaining to the manufacture and testing of synthetic lubricants.” observed general substitute coordinator of the If you are a distributor or manufacturer wishing to expand your product line. Bessette President Triboscience & Engineering. The ordinances Continued on page 44 . corrosion protection. and key players individual region. tative. synergism means coupling technical horsepower with access to markets for the benefit of us and our partners.1% 38.) 33. but the industry must first made for used oil “to prevent improp- meet the minimums established in the er disposal of this waste. The company also must commit to collect a minimum percent- was never an issue until the third quar- age of used oil. If you’re interested in this approach. industry seems to have tered at the Brazilian National Demetrio Florentino de Toledo Filho. For us. CONAMA may establish Filho. has oversight for consider the characteristics of each Paul A. Our greases include: practice however. year] numbers yet. lubricant producers 2015. The ministries are reviewing and importers bear the greatest respon- these figures in order to publish new sibility for collection.2% 35. Since 2006. and we cannot Midwest. which must be targets for the coming years.4% 38. In 2012 and established targets through Triboscience and Engineering. “the percentages of one of the most well organized seg- We also have a broad line of synthetic gear oils possessing superior thermooxidative stability. must be presented to ANP before the We can be reached at 508-674-9116 or by email at pabessette@tselubes. which is established by ter of last year when they became wor- law for each region of the country. ried about not matching the target. . done. we can the used oil for burning. Government ished lubricants was 1.” to 4 percent. and its South and Southeast. and producers will push final data is in.” The latest research from Editora wide. Rerefined base oil prices are normally around 5 percent to 10 percent less Additional complications are the recent dramatic drop in crude oil prices “This will be a very interesting year. 2014 lubricants demand nal cost for collecting and processing the collectors and rerefiners to collect will show a small reduction of about 3 the used oil. According to Nelson Belmiro. “the main challenge for the rere- oil at the end users’ point. and everybody is very careful with any statement at the moment. together with rising collection for collecting for other regions than Onze in Rio de Janeiro.” stated Nelson Belmiro. Nelson Belmiro the inspection and control of the used IBP. It expects that when price of the base oil and the high inter- the producers. who is and Petrobras adjusts their prices to it. Renewable and Sustainable Products PULSAIRS LINE OF RAIL CAR TANK MIXERS ' " %" ' # " # ! ' " !!$ % ! ' " ' " " ' $ " ! ' " " ' !#& . with a lot of discussions about this subject. The industry is izes in lubricants and publishes Lubes slowing GDP growth. shows that Brazil’s demand for fin- said. also Lubes em Foco’s editor.37 million met- finers today is the low international is trying to give more responsibility to ric tons in 2013. pushing the government to increase em Foco magazine in partnership with For the year ahead. which special- costs. some situations of illegal deviation of said Nelson Belmiro. there are all the amounts contracted by them. Besides that. Brazil “Based on these figures.Continued from page 42 CONAMA may increase the percentage and consequently base oil prices world- than the fresh base oil.” ❚ Palm Based Oleochemicals & Derivatives: Fatty Acids Glycerine Fatty Alcohols Fatty Acid Esters Fractionated Methyl Esters Castor Oil & Derivatives: CO Fatty Acid 12 Hydroxy Stearic Acid Hydrogenated Castor Oil Ricinoleic Acid Methyl 12 Hydroxy Stearate Sebacic Acid New Product: Bio-PEGS Your Partner in Global Sourcing of Green. Brazil’s inflation rate. “The base oil price in impact on the environment if it is not used oil. since the understand the importance of collect- price of fuel oil is higher than the one still imports about 40 percent of its ing the used oil produced and the great rerefiners pay to the industry for the base oil needs. Brazil follows the international trend. COM WWW. $
[email protected] . 44 MARCH 2015 . the company says. The company said the oil can be used in manual. New Pig says. Shell’s Naturelle S4 Stern Tube Fluid 100. corrosion and most chemicals. Ford. Web: www. and contains no DCHA. grease. to give problem-free winter shifting.and corrosionfree. the global testing and quality-control consulting company. and Intertek then provides a full range of testing for the oils. while ensuring that bearings and other components remain rust. hydraulic fluids and filters. its new containment pallet can hold the spill yet remain easily moveable without a forklift. made with fully saturated ester base oil. It then adds expert interpretation and advice to help the clients reduce potential damage. Intertek’s focused service promises to provide test kits and fast couriers and turnaround to clients worldwide. and can be moved single-handedly with only a pallet jack. to provide protection under prolonged. 46 MARCH 2015 ntertek. is launching a service designed to keep large wind turbines producing energy instead of headaches. is fully compliant with the Environmental Continued on page 48 . mild to the skin with a near-neutral pH. Turbine operators can collect and send their lubricant samples. Both lighter and more mobile than similar products. the deck’s low-density polyethylene construction resists UV rays. including 6000 and 7000 series aluminum.cimcool. com Gear Oil for Foreign Makes B ritish blender Morris Lubricants has added to its stable of products a high-performance gear oil aimed at passenger cars with manual and semi-manual transmissions. is engineered for outstanding cold-start fluidity. Honda.S.co. Web: www. Only 6. titanium and other exotic alloys. more-stringent U. Web: www. has a 22-gallon sump well to catch spills and drips. Lodexol MTF SAE 75W-80. it can hold two fully loaded drums (2.5-inches high. stainless steels. Both Boeing and Bombardier Aerospace have given their seals of approval to Cimcool’s Cimtech 320Z for use in their heavy-duty machining of non-ferrous and ferrous metals. Web: www. automated manual and semi-automatic gearboxes in makes including BMW.com TurbineCheck Launched I Containment deck offers cache and carry. demanding operation.com Shell Adds Marine EAL S hell has added a stern tube fluid to its line of lubricants designed to help ship operators comply with new.PRODUCT NEWS PRODUCT NEWS Cimcool Fluid Takes Flight O How is your turbine oil performing? A Shropshire lube ne of Cimcool’s newest metalworking fluids has earned two thumbs-up from heavy hitters in the aerospace sector.newpig.000-pound load capacity). the company says. The oil. Called the Pig Poly Deck. maintenance downtime and costs.intertek. 320Z is designed to increase tool life and provide superior lubricity while remaining low foaming. Called TurbineCheck. which uses mostly water-soluble raw materials. morrislubricants. Made with Cimcool’s trademarked InSol technology.uk Beat the Drum’s Drips N ew Pig has added a new tool for the unending battle against unwanted spills. rust. It is transparent. environmental regulations. Volkswagen and Volvo. The product also offers high-temperature stability. 5 kg).S. Web: www. humidity and pressure variations. it has done so without sacrificing durability. phosphates. It thus qualifies as an environmentally acceptable lubricant.5 kg to 13. It also describes how well steel drums maintain their structural integrity. The trade group wants to make sure customers in the packaging and shipping industry remain mindful of the versatility. Web: www. Called ControXid 1642.oelheld. they remain the strongest. which offers improved resistance to hydrolysis and oxidation. security. cost-effectiveness and environmental friendliness of steel drums. Wartsila and Kemel. the company says. Spotlight on Steel Drums T he Industrial Steel Drum Institute is using a new. the ready-to-use coolant is based on synthetic. the company added. Web: www. has already won approval by several marine engine makers. is offering a new water-based corro- ISDI’s video makes the case for drums. Low-foam Spindle Coolant L 48 MARCH 2015 ubricant maker Oelheld U. their reconditioning and reuse. is not caustic and contains no nitrites. It is low foaming and protects against fungal and bacterial contamination. and the rigors of UN performance testing.shell. The result has to cut the force needed to open them by 25 percent (from an average of 17. water-soluble rust inhibitors.com sion inhibitor for spindle coolant systems. helping to prevent leakage. Strong Cartridge F ischbach USA says it has found the perfect opening on how to improve their plastic grease cartridges: Make them easier to open. stays tough.org Continued on page 51 . Light.com Cartridge opens easy.whysteeldrums. The fluid. waters. These are the first all-plastic grease cartridges made in North America. such as fire conditions. The two-and-a-halfminute video uses whiteboard animation to show how steel drums perform in extreme temperature. and is widely recommended by equipment makers.Continued from page 46 Protection Agency’s so-called Vessel General Permit rules. educational video to drum up a little love for these steel shipping containers. It protects ferrous metals from corrosion without adversely affecting nonferrous metals or system seals. which since 2013 apply to most ships entering U. Catch the video on YouTube or the group’s own website. most robust and durable grease cartridge available. chlorine or amines. heavy metals.com Spindles chill out with Oelheld. Blohm & Voss. or EAL. Plus.S. The fluid. chromites. and in response to customer requests Fischbach has tweaked the design and materials of the products’ pull tabs and breakaway membranes. which Oelheld says dissipates heat better than similar coolants. Web: www. including Aegir Marine.plasticgreasecartridge. Web: www.amsoil. Nordson’s New Fluid Systems N ordson EFD has introduced a new series of automated fluiddispensing systems designed to inject anything from lubricants to adhesives with pinpoint accuracy in any manufacturing operation. The vision system is integrated with EFD’s software. specially designed for precise fluid application. The Pro Series has a smart vision camera that captures detailed component part images and converts them into high-resolution digital files. resists viscosity loss due to mechanical shear and maintains protection in metal-tometal contact regions for maximum engine life. It withstands the stresses of high horsepower and heat. the company said. which simplifies programming. easy to program and operate. Amsoil’s 5W-50 synthetic motor oil provides outstanding antiwear protection.com Nordson goes Pro. The company’s Pro Series integrates vision and laser height-sensing with closed-loop encoding to provide a complete automated system the company says is quick to set up and LUBES’N’GREASES 51 . which now includes an SAE 5W-50 synthetic motor oil designed to Ford’s specifications for the sportscar’s high-horsepower engines.com ❚ PRODUCT NEWS Amsoil Rides A Mustang A msoil has added Ford Mustang to its list of cars getting special treatment in the form of its specially formulated Signature Series line. Web: www.Continued from page 48 Puts the tang in Mustang. including top-quality detergents and dispersants to help prevent sludge deposits and keep engines clean.nordson. the company says. 415 fine issued in 2013 for violating the state’s weights and measures laws. in a deal expected to close by early March. for $85 million cash from Nuverra Environmental Solutions. Also in 2013. McKim said. Based in Scottsdale. The company operates a fleet of trucks and rail cars. Thermo Fluids went back on the block. Michigan took action against Bullseye products in October 2013. That court ruled in favor of API in a November 2014 decision.415 on Oct.PLACES ’ N ’ FACES PLACES ’ N ’ FACES Clean Harbors Buys Thermo Fluids C lean Harbors. the American Petroleum Institute sued Bullseye in an Indiana district court for unlawful use of API’s trademarks.000 customers. Ariz. The Illinois-based motor oil merchant also owes the American Petroleum Institute almost $2 million as a result of a 2013 lawsuit. including Georgia and Ohio. will acquire used motor oil collector Thermo Fluids Inc. formerly Heckman. “The addition of TFI’s environmental business will perfectly complement our SK Environmental Services business. and its products have been banned by other states in the past few years. after a 12-month investigation found that bottles of Bullseye-branded oils neither contained the amount of products its labels claimed nor met the viscosity and other standards its labels advertised. parent of Safety-Kleen. 30. but that deal fell through last year after Verolube cut its offering price from $175 million to only $145 million. Michigan’s Department of Agriculture and Rural Development banned sale of the products and fined it $711. TFI has a network of 36 permitted facilities extending across 21 U. 2013. and services more than 20. Continued on page 55 . Judge to Bullseye: Pay Up! B Defective motor oil seller Bullseye must pay fine. Declaring that Bullseyebranded motor oils could cause lasting damage to engines. (Photo courtesy PQIA) 52 MARCH 2015 ullseye continues to face legal retribution for selling defective motor oil. had hoped to sell TFI to Verolube USA. 9 press release from the agency noted that the court mandated the fine as a default judgment after Bullseye failed to respond to summons or appear in court.. A Feb. TFI will add approximately 50 million gallons of waste oil to Safety-Kleen’s recycling and rerefining business.” Clean Harbors CEO Alan S. Nuverra. A Michigan circuit court last month ordered it to pay the $711. as well as drive incremental volumes into our hazardous waste disposal facilities. After that deal came apart. Department spokeswoman Jennifer Holton said the agency escalated the case to the Ingham County Circuit Court in August 2014 to seek payment from an unresponsive Bullseye.S. states. paid 1. Estonia. will keep the current Neste Oil brand. Before that time. S-Oil operates the world’s largest base oil refinery. to reflect its growing orientation to non-petroleum products. with capacity to produce 42. Lithuania and St. A Aramco Grows S-Oil Stake dditives International has named Toronto-based Brenntag Canada as exclusive distributor for all its products in Canada. Neste Oil’s board of directors plans to recommend the company change its name simply to Neste Corp. a company spokesperson said. sodium and calcium sulfonates. Additives International is part of Lockhart Chemical. Neste Rethinks “Oil” A t its annual shareholders meeting April 1. metalworking and grease markets globally. according to its website. metal processing.700 barrels a day of API Group II and III stocks.98 trillion won (U. rust preventive packages. $1. and to pay $1. The court ordered Bullseye to recall and destroy all its products displaying API trademarks. Russia. “we believe Brenntag Canada is a leader in supplying additives into the lubricant.4 percent of S-Oil. for the time being. South Korea.V. in Onsan..Continued from page 52 Additives Picks Brenntag finding Bullseye guilty of counterfeiting. its Nexbase base oil brand and other trademarks will stay the same. President and CEO Matti Lievonen said renewable products accounted for 40 percent of the company’s comparable operating profit in 2014. Even if the parent adopts the new name. grease and industrial coatings markets. one of whose two founding parties it was from 1998 to 2005. It produces a wide range of petroleum oxidates. it had operated under the name Neste for 50 years. With this stock acquisition. Aramco Overseas now owns 63. trademark infringement and false advertising.S. Its retail station network in Finland. which is a subsidiary of Korean Air Lines Co. metal processing additives and gelled calcium sulfonates for lubricant. Neste Oil was formed 10 years ago when it demerged from Fortum. giving Saudi Arabia’s state investment company the majority ownership position in one of South Korea’s largest oil companies. With its warehousing across Canada. in late January wrapped up the sale of its 28. B. Petersburg.4 percent stake in S-Oil Corp. rust preventive. president of Additives. Aramco Overseas Co.” said Greg Jorjorian.8 million in damages plus interest to the trade association. Latvia. H anjin Energy Co.83 billion) for the shares held by Hanjin Energy. LUBES’N’GREASES 55 . barium.. N0. was named the exclusive supplier in India of Rockwall. Spain’s Repsol Lubricants is to supply lubricants in Australia for . Hyundai named Shell Lubricants as its preferred aftermarket motor oil supplier for another five years. these will be Quaker State lubricants (owned by Shell). The deal calls for branded motor oils manufactured by Shell to be recommended in Hyundai dealerships and workshops in over 70 countries. McQuade) Done Deals R enewable oil company Solazyme Inc. and all interested Coeur d’Alene Resort 56 MARCH 2015 parties are welcome to participate. With initial emphasis on Eni’s oil and gas fields worldwide. need has arisen for separate performance classifications that can be used by equipment manufacturers. part of Italy’s Eni.com) and ASTM’s Alyson Fick (afick@astm. The voluntary standard will cover fluids used in both stationary and mobile applications.000 metric tons of Encapso annually.org) ExxonMobil to supply Virgin Atlantic’s Dreamliners (Boeing photo by M. of Panolin International. to expand commercial use of Encapso. Contacts: Patrick Laemmle of Panolin America (patrick. operators. Texas-based Whitmore Manufacturing’s mining.laemmle@panolin. ASTM WK31234 is being developed by Subcommittee D02.Bio-hydraulic Standard Floated W ith biodegradable hydraulic fluids increasingly being specified by government and industry. sales are targeted to exceed 3. points out ASTM member Patrick Laemmle. Since biodegradable fluids have been found to perform differently than traditional mineral oils. Solazyme’s biodegradable encapsulated lubricant for drilling fluids. Gulf Oil Lubricants India Ltd. Low Aquatic Toxicity Hydraulic Fluids. Versalis’s distribution network will help drive global sales for Encapso as a high-performance and sustainable drilling fluid additive. end users and regulators. rail and industrial lubricants and greases.03 on EcoEvaluated Fluids. In North America. ASTM has a new standard in the works: WK31234. Specification for Biodegradable. The aim is to help ensure that proper fluids are being used at environmentally sensitive sites. has signed up Versalis. to produce a new line of lubricants for industrial uses requiring high performance. the European oleochemicals company. To attend. associate professor for the minor.edu.edu/tribology Faces in the News W allover Oil has named David Custis as regional sales manager. BioAmber. the first minor of its kind in the United States. the Society of Tribologists & Lubrication Engineers.Erebus Motorsport’s supercars. to jackson@auburn. The program has garnered support from the National Lubricating Grease Institute. which runs through 2018. As part of the partnership.auburn. and others.000 tons per year. Oleon. Oleon plans to combine the bio-succinic acid with bio-based alcohols. Under the terms of the five-year contract. Details: eng. RSVP by March 19. Mitsui & Co. Virgin Atlantic has selected ExxonMobil’s Mobil Jet Oil 387 to lubricate the Rolls-Royce Trent 1000 turbofan engines on its new Boeing 787-9 Dreamliners. edu/career/trl/. which is expected to be completed early this year with an initial capacity of 30. Virgin Atlantic is the first European to operate the aircraft. has signed an exclusive supply agreement for bio-based succinic acid with Oleon. Robert Jackson. It will supply Oleon from its Sarnia plant.auburn. with two delivered and 15 more on order. estimates the addressable market for succinic acid in specialty lubricants to be $100 million. says interested companies can create an employer profile and identify prospective Tribology Minor students at the Tiger Recruiting Link. plus a job fair to interview students for internships and jobs. Repsol will provide support from its workshop in Melbourne and technical center in Queensland. southern David Custis Illinois and Iowa. The day will include student presentations. LUBES’N’GREASES 57 . http://www. Industry can meet faculty and students at an open house there April 9. BioAmber Team Up Open House for Tribology M I inneapolis-based BioAmber Inc. laboratory tours and collaborative discussions. BioAmber Sarnia will supply Oleon with bio-based succinic acid for the development and production of succinate lubricants. a joint venture with ndustry demand is high for graduates who have a background in tribology — but where to find those? One place is Auburn University’s tribology and lubrication science minor. responsible for northern Missouri. New Zealand.. biodegradability and renewable content. .... 20 Scholle Packaging . Of thousands of firms it insures. 47 Soltex .. Custis has over 12 years of experience including sales and electroplating processes.. of Iowa graduate.. Alex Yim is the new regional sales manager for Asia at UniMarine Lubricants in Singapore... 7 Neste Oil . Berenfield Containers has received an Excellence in Risk Control award from CNA. .. 48 CHS Inc. 11 Petronas ... 16 Biederman Enterprises .... 44 Afton Chemical .... Terms were not disclosed. Back Cover NanoMech . Glander International Bunkering. With a degree in maritime business from Andreas Johansen Southampton Solent Univ... 21 SK Lubricants ... additive comAdam Henderson pany he joined in 2004. He joined the Tampa-based Larry Mitchell blender and packager in 2012 as national accounts manager. A Univ.... 27 Chevron . 15 Bericap . 51 Elco Corporation . 9 Snyder Industries Inc.. 42 58 MARCH 2015 Based out of St. the Piedmont.. Bulzan has more than 30 years of chemical industry experience...... RelaDyne last month announced its third acquisition of the year.... Inside Front Cover ExxonMobil Basestocks . The Cincinnati-based mega-distributor of fuels and lubricants acquired San Antonio-based fueling services company Sunwell Corp... 56 Nynas .. . PCC Chemax also added Stefan Bulzan as a surfactant additives forStefan Bulzan mulator.. known as RediFuel.. 31 Heritage-Crystal Clean . Specialty chemical distributor Walsh & Associates named Scott Cerny as its sales representative in the Great Lakes region..... 39 Triboscience & Engineering. 19 NLGI 2015 Annual Meeting .. Korean and Japanese.. 45 Lubricants Industry Factbook . 20 Lubline .. 10 ELM Inc. 55 Lubes’n’Greases .. 25 Phillips 66 ... OSA makes and sells table-top fluid analysis hardware and software technologies... in November..-based maker of analytical tools and software for industrial fluids analysis. 36 Ergon ....... 44 Renkert Oil . Adam Henderson has advanced from analytical chemist to become the new technical manager at PCC Chemax.. Amalie Motor Oil has promoted Larry Mitchell to vice president of national accounts... Johansen has extensive experience in both shipping and trading..INDEX OF ADVERTISERS Acme-Hardesty . Cerny Scott Cerny has 10 years of sales and management experience in the chemical industry.. Inc. The insurance giant cited the industrial packaging manufacturer’s outstanding safety record at its six plants.. Louis. 61 Avista Re-Refining USA ..C. the Chelmsford. 33 Biosynthetic Technologies . 43 PBF Energy ... 5 Chevron Phillips Chemical . 13 Chevron Oronite .. 59 Pulsair Systems .. 37 HollyFrontier Refining & Marketing . 41 Cross Oil Refining & Marketing . oil and lubricants for municipal and commercial fleet vehicles.... 49 Infineum .. . ❚ . primarily for on-premise testing of coolant. says it acquired On-Site Analysis Inc.. Fluent in English. 54 Monson Companies .. only 28 earned the award and just six of these were manufacturers.. 57 Base Oil Price Reports . Briefly Noted S pectro Scientific.. a global bunkering and lubricant firm. Inside Back Cover American Refining Group . and led the expansion of its private-label and branded products sold through national chains and large retailers. 17 Calumet Specialty Products Partners . Henderson holds a chemistry degree from Wofford College in South Carolina.. appointed Andreas Johansen to its Dubai office as a bunker and lubricant trader.. 26 Teknor Apex ... 53 Loadmaster Lubricants . he has deep maritime experience including more than 14 years in shipping with Hyundai Merchant Marine and Gulf Oil Marine.. Mass. 38 Motiva .. .. 50 BASF . S. With a degree in chemical metallurgy and process technology from the Institute of Technology in Slatina-Timisoara..... A. Let’s talk base oils. Phillips 66. Pure Performance and their respective logos are trademarks of Phillips 66 Company in the U.com ©2015 Phillips 66 Company. Ultra-S is a trademark of S-Oil Corporation.527.S. . 800.phillips66.com • baseoil. We’ll manage the details and logistics so you can focus on what you do best.A STEP UP IN BASE OILS Take your business to the next level with Phillips 66® base oils. Why base oils from Phillips 66? • Direct access to Group II Pure Performance® and Group III Ultra-S® base oils • Proven supply chain • Customer-first service and solutions Contact us today.3236 • baseoilsales@p66. and other countries. MayJune July Aug. has been able to continue loading base oil shipments on barges and tank cars. Sep. and well into January of this year with a round of price decreases on the naphthenics side. postings of the month for mid-vis grade before applicable discounts. What seemed fairly clear was that the market still had a rough road ahead. and even if crude prices staged a rebound.Oct. players said base oil demand was not expected to improve substantially until the end of February or early March. ❚ Base Oil and Crude Prices Price (U. $/gallon) 5 MARCH 2015 Group I Base Oil 4 Brent Crude 3 West Texas Intermediate crude 2 1 60 Group II Base Oil Feb. the rush to revise base oil prices appeared to have abated — at least for a short interval — in the first few days of February. One of the affected refinery operators. Energy Information Administration . base oil production as well. it was difficult to assess whether base oil prices could stabilize at prevailing levels. which could potentially impact already-precarious price positions. Sources: Lubes’n’Greases research. was starting to impact crude oil prices and to a limited extent. The United Steelworkers Union strike. With fundamentals remaining fairly weak. U.Nov.S. but truck shipments have been interrupted. refineries and was unresolved at this time of writing.Feb. The answers to these queries were of particular importance to base oil producers.Dec. base oil market participants knew that downward pressure would persist because of the ample availability of most grades. Lyondell Basell in Houston. as crude oil showed signs of strengthening in a number of consecutive trading sessions. after seeing base stock values drop dramatically alongside crude oil prices during the second half of 2014. Jan. 15 Base oil prices are lowest U. BY GABRIELA WHEELER Moreover. when lubricant blenders typically begin to build inventories for the spring production season. But upstream fundamentals remained in turmoil. However. Base oil producers seemed to have been given a reprieve to reassess market conditions and evaluate future movements. or whether they would encounter further obstructions on the way to recovery — or to another stumble. This would coincide with additional API Group II+ capacity coming to the U.BASE OIL REPORT Are We There Yet? “W Gabriela Wheeler hen are crude oil prices going to stabilize? Where is the bottom? Are we there yet?” These were some of the questions discussed in recent weeks by almost everyone connected to the oil industry.S. Texas. market from ExxonMobil’s expanded plant in Baytown. 1 at several U. Mar. which commenced Feb.S. Apr. with posted prices remaining unchanged for a few weeks.S.S. and that it could take some time before prices attain a stable footing. Crude prices are monthly averages. ” Hotelier J.” Sometimes it is also necessary to read between the lines. You can learn a lot by keeping your ears open and your mouth shut.: “First of all. he knew he did not have all the answers. “I like to listen.” —Irvine Robbins. if you ever become a consultant and the CEO tells you his problems. How did he do that? Very easy. and you’re messing up. go to the shop floor and they’ll tell you the solutions. Anyone who’s worth talking to is worth listening to. CEO of American Water Works Co. And the way to get that engagement was to have them understand that he cared what they thought. Ren McPherson.com.YOUR BUSINESS Your Problem is Communications M Jack Goodhue.” The importance of effective communications between (and among) top executives. It’s a good idea to begin your communications with a few kind words. What he needed was the full engagement of the people under him. author of the new leadership book “Afraid To Win. he knew he could not implement the solution to the problem by himself.” —Mother Teresa. ‘your problem is communications. “The most important thing in communication is to hear what isn’t being said. candidate Robert Grayson: “Bob. it’s that I had the ability to listen to the right people. attorney. “If I’ve done anything to be successful. When you come out just say.” said this about his former boss. it’s especially important that I have people around me who can give me feedback — the kind of people who will come to me. “Kind words can be short and easy to speak. As Peter Drucker points out. CEO of Dana Corp. management coach. supervisors at every level must become skilled in verbal. Most people never listen. W. Listening carefully.’ and you’ll be right 99 percent of the time. but their echoes are truly endless. They should make an effort to understand their people. I have learned a great deal from listening carefully.” To which he added. Marriott Jr. establishing an atmosphere conducive to an honest exchange of thoughts and ideas.) . ice cream entrepreneur. 62 MARCH 2015 anagement consultant Peter Drucker gave this advice to Ph. BY JACK GOODHUE recognizing the different views of the audience. “The four most important words in the English language are ‘What do you think?’ Listen to your people and learn. letting people know that they are important. written and personal example communications. and even if he did have the right answer. “Try to listen before you speak. In order to properly do their job. adds. Active listening is probably the most important component of effective communication.” Gus Franklin. “Listen to what the top people have to say — then hide in a closet for a couple of hours. may be contacted by e-mail at goodhue@aol. and welcoming feedback can work wonders. he listened to their answers. managers and those who report to them cannot be overstated.” ❚ (To be continued next month.’” —Susan Story. ‘You’re wrong.D. close the door and say. managers must make sure that they and their listeners are communicating on the same wavelength. Let’s consider some advice from the experts: “As CEO. spiritual leader. In order to convey their message.” —David Boies. As novelist Ernest Hemingway observed.