lubes & greases april 2013

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A P R I L 2 0 1 3 V O L . 1 9 I S S U E 4

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3LUBES’N’GREASES

LUBES’N’GREASES®

“The Magazine of Industry in Motion”LNG Publishing Company, Inc.6105-G Arlington Blvd.Falls Church, VA 22044 USAPhone: (703) 536-0800Fax: (703) 536-0803Website: www.LNGpublishing.comE-mail: [email protected]

Nancy J. DeMarco Publisher Lisa Tocci Managing EditorRichard Beercheck Senior EditorGreg Whitlow Art DirectorSheryl Unangst Circulation ManagerRobert Green Circulation Assistant ManagerLaura Hughes Production Assistant

George Gill, Tom Glenn, Jack Goodhue,Carolyn L. Green, Boris Kamchev, David McFall, J. Berkshire Miller, Tim Sullivan, Steve Swedberg Contributors

Gloria Steinberg BriskinManaging Director/Vice President, AdvertisingPhone: (703) 536-7676

(800) [email protected]

Megan Matchett Account [email protected]

Lubes’n’Greases (ISSN1080-9449), an independenttrade magazine, is published monthly by LNGPublishing Company, Inc., 6105-G Arlington Blvd.,Falls Church, VA 22044 USA. Copyright 2013, LNG Publishing Company, Inc. Printed in USA.

Subscriptions to the print edition are free to qualifiedsubscribers in the United States and Canada who areactive in the lubricants industry as man ufacturers, marketers, volume buyers and users, or as supplierswho maintain close ties to the lubricants industry.Qualification is subject to publisher’s approval.

Subscriptions to the print edition outside theUnited States and Canada: $115 for 12 issues;$215 for 24 issues.

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Show EditorialExcellenceAwardGold Winner

We extend our thanks to the anonymousreaders who participated in this and previ-ous Readex surveys.

A long with rating ads, the surveyrespondents answered sev-

eral quick questions about read-ing Lubes’n’Greases, and theirreplies are impressive:74 percent read half or more of

each issue.83 percent spend a half-hour or

longer with each issue.65 percent save each issue for

reference.87 percent have taken action

on reading articles or columns.61 percent have acted on ads!

Nancy J. [email protected]

PUBLISHER’S LETTER

Congratulations toLiqui-Box, AftonChemical and

Heritage-Crystal Clean!Twice a year we engage

Readex, an independentresearch company, to sur-vey Lubes’n’Greases read-ers about how attention-getting, how believable and how informa-tive each ad in the selected issue is. I’vejust received the results from January’ssurvey.• Liqui-Box is undisputed champion,

scoring highest as most believable andmost informative, and also scoring highestoverall.• Afton Chemical takes the prize for

most attention-getting.• Heritage-Crystal Clean was right behind

Liqui-Box in combined scores and was avery close second in two categories.Kudos go to the marketing communica-

tions and creative teams who put theseeffective ads together. We send the com-plete scores to every advertiser in the sur-veyed issue, so they can compare theirperformance with other studied ads, to dis-cover ways to communicate more effec-tively with our readers.

And the Winners Are ...

Lisa Tocci, Nancy DeMarco & Gloria Steinberg Briskin

4 APRIL 2013

TABLE OF CONTENTSF E A T U R E S :

14 After the Surge, the Slump. For U.S. base oil sellers,first-half 2012 was the stuff dreams are made on. Thesecond half, a sleepless night.

26 They Wrote the Rerefining Playbook. There were norookies on the management team that built Heritage-Crystal Clean’s API Group II rerefinery. They had alldone this before.

34 Naval Ship Puts Accuracy to the Test. The U.S. sealiftship Watson needed to monitor its lubricants to detectand prevent failures in mission-critical equipment.Could hand-helds help?

40 Question Complexity. Our industry has finiteresources, so let’s use them to add value — notneedless complexity such as redundant engine tests,urges Trevor Russell of Infineum.

46 China: Too Hot for Japan’s Lubes? The political sparksbetween the two nations have many investors onedge, but some Japanese lubricant firms still hope tofind a warm welcome in China.

54 The Mythical Multi-vehicle ATF. Let’s face it: Today’smarket requires at least six automatic transmissionfluids. Afton’s Brad Onofrio slays the old Dex/Mercmyths (and the ones about top-treats).

Page 34

6

Page 54

A P R I L 2 0 1 3 V O L . 1 9 I S S U E 4

D E P A R T M E N T S :

3 Publisher’s Letter

6 Automotive

24 Need to Know

62 Product News

67 Classified

68 Places’n’Faces

74 Advertiser Index

76 Base Oil Report

78 Your Business

On the cover: Heritage-Crystal Clean’s rerefinery in Indianapolis

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Call 800.527.3236 or visit http://baseoil.phillips66.com

A STRONGER BASE. FOR EVERY APPLICATION.

a download on the API

website.

Even with this update in

place, API’s Lubricants

Group is already hard at

work to modify one of the

most important pieces of

the document, the six

pages that make up Annex

C. That’s the section on

how to develop a new

automotive engine oil cate-

gory, in this case for gaso-

line-fueled cars and light

trucks. The API Lubricants

group has been working on

the new process and is

getting close to a final rec-

ommendation.

API 1509 was originally

developed to address the

concerns of automakers

that vehicle owners could-

n’t be sure that they were

getting the engine oil per-

formance level that

was required for

their car or light

truck. In particular,

there was no

simple way to

identify engine

oils that gave sat-

isfactory fuel econ-

omy benefits for the

latest-model vehicles,

although API had used its

APRIL 2013

Can We Upgrade the Systemfor Oil Upgrades?

AUTOMOTIVE

BY STEVE SWEDBERG

6

Donut service mark for

some time to display the

engine oil category, SAE

viscosity grade and fuel

conserving tendencies.

However, the OEMs were

concerned that their

newest vehicles would be

serviced with oils that were

designed for prior-year

models, and hence have

potential for big problems.

Before 1993, when

Document 1509 first codi-

fied the processes for

engine oil upgrades, the

“need” for engine oil

improvements was deter-

mined by an ad hoc com-

mittee. If someone (mean-

ing an automaker) wanted

to see an upgrade in the

specification, SAE Inter -

national would form a

committee to review the

request and to recommend

proceeding — or not — on

the years-long task of

developing a new engine

oil category. This “needs”

committee was a balanced

group drawn from engine

oil users (the OEMs) and

producers (oil and additive

industry types).

I know you’ll find it hard to

From time to time

I’ve commented on

the development of

new engine oil categories.

The American Petroleum

Institute’s voluntary

Engine Oil Licensing and

Certification System

(Document 1509) has

been the bible of engine

oil category development

as well as labeling for

the last 20 years.

The 17th edi-

tion of

EOLCS was

published

in Sept -

ember

2012 and is

available as

Continued on page 8

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believe, but there were dif-

ferences of opinion about

what constituted “need.”

For instance, when the

automakers said they need-

ed improvements in perfor-

mance, the oil industry

replied (not unreasonably),

“Can you provide us with

some evidence of need?”

The OEMs responded (not

unreasonably), “what do

you need to see, baskets of

failed parts?”

Improvements, of

course, are a bit subjec-

tive. Oil and additive com-

panies asserted that

engine oils had to protect

the engine from wear and

other damage, and did

8 APRIL 2013

Continued from page 6 exactly that. But OEMs

increasingly focused on

areas such as fuel econo-

my, emissions reductions

and the oil’s performance

over its service life.

Automakers also argued

that the API Donut, with

its string of alpha-numeric

codes, was not user

friendly. What consumers

needed was a simple logo

that could be shown in

vehicle owner’s manuals

and on containers of quali-

fied engine oils. That

would simplify the pur-

chase and assure the right

oil went into new cars.

What finally emerged in

1994 was another API

trademark, the so-called

Starburst certification sym-

bol still found on the front

labels of engine oil con-

tainers. The Starburst indi-

cated that the product had

the proper engine protec-

tion and fuel economy

performance, without

needing to check its API

category, and that it repre-

sented the latest and

greatest in engine oils.

Since succeeding cate-

gories of engine oil were

backwards compatible —

able to service earlier vehi-

cles without risk — an

owner could be confident

that his or her vehicle was

getting oil that would pro-

vide good performance.

Of course, the devil is

always in the details. From

the first, there was a lot of

anguish and hand-wring-Continued on page 10

AUTOMOTIVE

11. API administers volun-tary certification andlicensing program.

12. API administersAftermarket Audit

Program.

1. ILSAC/Oil determinesneed & timing.

2. ILSAC/Oil identifies testdevelopment needs and

alternatives.

3. ILSAC develops tests.

5. ILSAC/Oil develops draftspecifications.

6. Industry review of draftspec

7. ILSAC/Oil reviews comments.

9. ILSAC/Oil finalize spec.ILSAC issues spec.

10. API Lubricants Groupapproves licensing &

criteria.

The Current Route to New Oil CategoriesProcess for Developing New Engine Oil Performance Standards

for the API Certification Mark

Consumer Needs

Engine Requirements

Overall Timing

Regulatory Requirements

Lubricant Technology

4. Within agreed upontimeframe: Admin.

Guidance Panel forms afunding group if neces-sary; ASTM, CEC, JASOprovide comments on pro-posed draft spec; ASTM,CEC, JASO formalize tests.

8. API collects data ondemonstration oils.

Source: API 1509, Annex C

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known as ILSAC (which

now stands for

International Lubricant

Specification Advisory

Committee). AOAP is the

focal point for new catego-

ry developments which can

be requested by anyone,

although the OEMs are

typically the source of new

category requests. This is

very similar to Annex D.

One of the primary ques-

tions for AOAP is who can

be a member. While the

final wording of this sec-

tion of Annex C is still

being reviewed, the core

statement being deliberat-

ed is as follows: “AOAP

membership shall consist

of automakers (auto) and

oil and additive companies

(oil) that have a material

interest in the specifica-

tion.” The term “material

interest” is also being dis-

cussed, but seems to sig-

nify whoever makes vehi-

cles or engines as well as

whoever makes finished

oils, or additives for the fin-

ished oils.

Another concern is voting

within the AOAP. No final

rules have been set yet,

but there will always be a

basic tension between

users and producers as to

need, tests and limits for

every engine oil category.

In any negotiation, consen-

sus is always desired but

hard to obtain. There is no

difference here.

Here’s another issue that

should hit everyone: who

pays! The cost of develop-

ing over what tests should

be used to measure perfor-

mance, as well as where to

set the test limits for certi-

fying a product’s quality.

Even more fundamental -

ly (and rather like a vam -

pire in a teenage horror

flick), the question keeps

arising: How do we know

we really need a new

engine oil specification?

We’ve struggled through

the introduction of five

new light-duty categories

since the early ‘90s and it

isn’t any easier. In fact, the

process is tough enough

that everyone wants to

improve it.

Fortunately, there is a

model to follow: Annex D

of 1509, the mechanism

for developing new heavy-

duty engine oils. It seems

to be functional and gets

the job done with compar-

atively little angst.

The API Lubricants Group

has been hard at work try-

ing to come up with a

process for gasoline-

fueled, light-duty truck and

passenger car engine oils

that covers the essential

questions and uses some

of the best of Annex D.

While nothing is finalized

at this point, some details

have begun to emerge.

First, a new group called

the Automotive Oil

Advisory Panel has been

formed. The AOAP will be

co-chaired by representa-

tives from API and the

automotive OEM group

ing a new category is hun-

dreds of millions of dollars.

Test development is

extremely costly and can

result not only in new tests

and engines but also

require new test stand con-

struction. When the new

generation Caterpillar

SCOTE engines were first

introduced, the test labs

needed to build new test

stands to handle the

increased power output of

the engines. So not only

the physical stand itself but

instrumentation may need

to be replaced or improved

when tackling an upgrade.

Assuming that Annex C

follows Annex D in general

format, after determining

need a development team

will need to be established.

Currently, PC-11, the next

heavy-duty engine oil

upgrade, is in this New

Category Development

Phase, and has a team

engaged in guiding the

development of tests and

limits for the new category.

Once that work is done,

the next phase is imple-

menting the new category

with licensing procedures.

This may include such

things as determining

when the new category

may be used, and how

long a lead time there

should be from final deliv-

ery of the category and its

tests to the first licensing

date. (Wishful thinking says

one year, but of late this

lead time has become

10 APRIL 2013

Continued from page 8AUTOMOTIVE

Continued on page 12

We’ve struggledthrough the

introduction offive new light-

duty categoriessince the early

‘90s and it isn’tany easier. In

fact, the processis tough enough

that everyonewants to

improve it.

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For those who want to dive deeper,

API Document 1509 can be found at

www.api.org, under the area labeled

Certification Programs.

So where does this leave us? As

consumers, we will continue to see

oils introduced to meet the needs of

the vehicles on the road. Since all

categories so far have been back-

wards compatible, you can be sure

shorter due to constraints outside

the industry’s control, such as gov-

ernment regulations).

In addition, designations for the

new category need to be intro-

duced, which may include API

nomenclature such as SN or

Starburst identifiers like GF-5. As I

said earlier, the devil is in the details.

12 APRIL 2013

Industry consultant Steve Swedberg

has over 40 years experience in lubri-

cants, most notably with Pennzoil

and Chevron Oronite. He is a long-

time member of the American

Chemical Society and SAE

International, where he was chair-

man of Technical Committee 1 on

automotive engine oils. He can be

reached at [email protected].

that when you buy oil at your local

big box or automotive parts store,

the Starburst on the container

assures you that the oil will satisfac-

torily protect your engine. Your local

oil change outlet should have the lat-

est and greatest in its bulk storage

tanks or on its shelves, ready to pro-

tect your engine and provide long,

efficient operation. Your automobile

dealer’s service bays should stock

the oil your car or light truck needs

for optimum performance.

Lest anyone think that the intro-

duction of new oil categories is a

piece of cake, it takes many individu-

als from various parts of the overall

industry working together to develop

each specification and to formulate

the oils needed to meet those speci-

fications. Sometimes it can get a bit

contentious, but in the end the

needs of all parties are met and con-

sumers receive the benefit. I’d say

the people doing all of this deserve

a big “Atta boy” for their efforts and

their dedication. ❚

Continued from page 10

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of base oil, according to statistics

recently released by the U.S. Energy

Information Agency. That’s 7 percent

below the 62 million barrel mark hit in

2011, and 4 percent less than the

60.2 million barrels refined in 2010.

(Still, it was better than the low-tide

year of 2009, when base oil output

plunged to 55 million barrels.)

The 2012 total included 47.2 million

barrels of paraffinic base oil, and 10.4

million barrels of naphthenic base oil

(versus 50.6 million barrels and 11.4

million barrels, respectively, in the

prior year).

From January to June, the country’s

refiners produced 29.3 million barrels,

but in the second half of 2012 they

only managed 28.3 million barrels of

output.

That second-half downturn in out-

put was due almost entirely to wors-

ening paraffinic production. After

reaching 24.2 million barrels in the

year’s first six months, second-half

paraffinic volumes tapered off to 22.9

million barrels.

A big contributor to this million-

plus-barrel decline, and one of the

year’s most painful events, was an

Aug. 6 fire in the crude unit at

Chevron’s Richmond, Calif., refin-

ery. Richmond’s 20,000 barrel/day

API Group II lube unit was not dam-

aged in the fire, Chevron quickly

assured customers. But it did not

14 APRIL 2013

U.S. Base Oil Dimmed in 2012


Although U.S. base oil

refiners opened 2012

on an upward surge,

their monthly output

started to wobble in

the summer and then proceeded to

lose momentum until the year finally

drew to its close.

By then, U.S. base oil refineries had

produced a total 57.6 million barrels

Exports were abright spot in

lackluster year

BY LISA TOCCI

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We can really changethe way you see things

operate at anywhere near normal

capacity for the rest of the year.

Leading up to the fire, Richmond

had been averaging about 520,000

barrels of base oil a month, the EIA

data indicate; afterward, it averaged

barely one-fifth of that volume.

Pressing MattersJeremy Kriska of Tulstar Oils in Tulsa,

Okla., cited a number of additional

factors that may have further

depressed domestic base oil produc-

tion. “One thing may have been the

slowdown in the European econo-

my,” he observed. “That led European

producers to become very aggressive

on pricing, and we saw them export-

ing more base oil to North America.”

Second, “a large amount of rere-

fined base oil is now on the market,

much of it API Group II quality, and

we may be seeing some impact of

that,” he said. U.S. rerefiners’ name-

plate capacity for making Group II

has grown to more than 11,000 bar-

rels/day, according to Lubes’n’Greases

research. Rerefiners do not report

their base oil production volumes

to the EIA, however, so their

impact is not captured in the

agency’s data.

Third, new Group III base oil refin-

ers in the Middle East — Neste-

Bapco in Bahrain and Shell’s Pearl

project in Qatar — began ramping up

exports, too. “So there was more

competition here, and more choices

for U.S. buyers,” Kriska said.

16 APRIL 2013


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“One thing may havebeen the slowdown in

the European economy.That led European pro-ducers to become veryaggressive on pricing,

and we saw themexporting more base oil

to North America.”

Together, these factors helped to

push down base oil prices significant-

ly starting in July. And as values

declined, Kriska said, U.S. refiners

began to trim back their base oil

units’ operating rates rather than

endure unacceptable margins on their

feedstock.

Refiners also tend to slow down as

the year winds down, he added, to

avoid carrying too much inventory at

the year end.

The New Normal?A base oil marketer in the Houston

area, speaking on condition of

anonymity, said the market has

become quite cyclical as the year pro-

gresses. U.S. producers typically see


0

1

2

3

4

5

6

2012

2011

Dec.Nov.Oct.Sept.Aug.JulyJuneMayApr.MarchFeb.Jan.

Mill

ion

Barr

els

U.S. Monthly Productionof Base Oils

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Source: EIA

rising sales from March to May, this

marketer explained, as the prelude to

the “driving season.” Then, they may

continue to operate at high rates dur-

ing the summer, building a cushion

of safety stocks against the hurricane

season ahead.

“By the end of the third quarter,”

this source added, “now they have to

work off the hurricane stocks, so

they may slow down production

some. And then you’ll see destocking

until the year end, to pull down their

inventories for tax reasons before the

year closes.”

Industry consultant and base oil

expert Terry Hoffman, in San Antonio,

tended to agree. “We seem to be on

a cycle, where the first half of the

year goes well, and people produce

and buy a fair amount of base oils.

Then, in the second half, the market

takes a step change down, until final-

ly, in November and December, we

see people try to pull their inventories

down, due to inventory taxes that

Louisiana and Texas put on whatever

refiners have in their tanks at year

end. They want to avoid that tax.”

“Naphthenics seemed to be doing

okay all year,” Kriska pointed out.

Although production was off 8.4 per-

cent from 2011, the 2012 volume of

10.4 million barrels was right in line

with levels that have been typical

since 2004. Unlike paraffinic base

stocks, pale oils did not see any

slackening of productivity in the sec-

ond half of the year; they actually

moved at a quicker pace from July

to December.

Incoming TidesU.S. base oil producers also faced

stiff headwinds from imports last

year. Total imports rose to 10.7 million

barrels, versus 10.1 million barrels

in 2011.

Dallas-based Jamie Brunk, manager

of lube studies at the research firm

Solomon Associates, reminded

that 2012 saw a number of new

“opportunity” base oil plants begin to

unleash large volumes of material.

Opportunity plants are primarily built

to produce base oil for the global

merchant market, rather than to

assure supply for the operator’s own

finished lubricants.

“Group II and III plants are cheap-

er to build and operate, too,” Brunk

18 APRIL 2013


0

10

20

30

40

50

60

Naphthenic

Paraffinic

2012201020082006200420022000

39%SouthKorea

21%Canada

20%Persian

Gulf

20%Rest ofWorld

20%Canada

22%Rest of World

4% Central America17% Mexico

15% OtherSouth

America

11% Brazil

11% EU

Top U.S. Base Oil Trading Partners in 2012

Imports10.7 million barrels

Exports27.3 million barrels

Source: EIA

Yearly U.S Refinery Production of Base Oils (million barrels)

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SUCCESSTOGETHER

SUCCESSTOGETHER

pointed out, “and all that new

material got dumped into the global

playing field.” The bad news — or

good, depending on your vantage

point — is that more new Group II

and III plants are under construc-

tion, including sizable ones in the

United States, Spain, Abu Dhabi,

China and Russia.

The largest sources of 2012’s base

oil imports continue to be South

Korea, with 39 percent of the total,

and Canada (21 percent), but they

have now been joined by Qatar,

home to the Pearl project, and

Bahrain, where Neste-Bapco began

operating last year. Pearl sent 1.5 mil-

lion barrels to the U.S. in 2012, and

Neste-Bapco brought in 603,000 bar-

rels. Both Pearl and Neste-Bapco are

Group III producers.

Hoffman said imports of Group III

base oils have grown “as we get into

better-quality motor oils, like SAE 5W-

20 and 5W-30, and 10W multigrade

heavy-duty oils. All these are needed

more and more for fuel economy

benefits, and they need the same

base oil viscometrics. So demand for

Group III keeps going up.”

Flowing OutU.S. base oils also are part of a

global trade, he emphasized. “We

suck in a lot of Group III now,”

Hoffman continued, “and Shell

seems to be pushing in a lot from

Pearl. Meanwhile, more Group II is

going out of the United States to

enable the multinationals to pro-

duce their global heavy-duty engine

oil formulations.”

The export side was very favorable

to U.S. material, and rose 9.6 per-

cent. A total 27.3 million barrels

were shipped in 2012, versus 24.9

million barrels in the prior year. In all,

more than 47 percent of the total

U.S. base oil production was shipped

outside its borders in 2012, the EIA

data show. Here too, though, the

greater portion of shipments were

made in the first half of the year,

while the second half’s shipments

were less robust.

By destination, the largest recipient

of U.S. base oil exports was Canada

(traditionally the largest trading part-

ner); 5.4 million barrels went north in

2012, versus 3.2 million barrels in

2011. The next biggest buyer was

Mexico, with 4.6 million barrels in

2012 (compared to 3.7 million in

2011). Third place as usual was

Brazil, with 2.9 million barrels taken,

versus 2.6 million the year before.

Exports have become something of

an escape valve for U.S. oversupply,

in fact. The two products most likely

to hit foreign shores include Group II

and naphthenics, said Hoffman, but

substantial amounts of Group I ship

out, too.

Heading now into spring, the current

market is “looking steady, and steadily

better as each week passes,” accord-

ing to the unnamed Houston base oil

seller. “Sales look good,” he indicated,

“especially for Group III base oils.”

“Demand seems fine, it’s not too

low, not too high — just coming

along nicely,” said Tulstar’s Kriska.

“We’re not seeing weakness on the

demand side, at least not from our

customers.” �

20 APRIL 2013


with Rob Coffin, Ph.D.

Q:Does a higher viscosity index (VI) always reflect a better

quality base oil?

A: Having a high viscosity index helps to protect an engine at extreme temperatures.

However, VI doesn’t tell the whole story. VI only tells us about the viscosity/temperature relationship between 40 ºC and 100 ºC (104 ºF and 212 ºF). It fails to tell us anything about viscosity above or below those temperatures. High temperatures can thin and break down oil, crippling its lubricating ability, whereas low temperatures can rob a lubricant of its ability to reach critical parts. Where low temperatures are concerned, two lubricants with the same VI may perform dramatically different at temperatures lower than 40 ºC; for example at -20 ºC (-4 ºF), the viscosities of the two lubes can be thousands of centipoise (Cp) different. This is clearly illustrated by noting the differences between a Group III mineral oil and Synfluid® PAO 5 cSt, both having 144 VI, in the Scanning Brookfield chart below.

Lubes made with PAOs demonstrate an inherently high viscosity index and maintain excellent low-temperature performance, compared with mineral oils. While viscosity improvers can enhance VI, they can break down over time, resulting in diminished performance. The reason a PAO is selected as a lubricant basestock is its ability to improve performance and solve problems. Give us a call, and we’ll be glad to discuss your applications to determine how Synfluid PAOs can help deal with your low temperature issues.

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jurisdictions owned by Chevron Phillips Chemical Company LP

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Idon’t know about you, but myeyes are not what they used tobe. I say this because there was a

day when I could read what wasprinted on the back of motor oil bot-tles. Stuff written there was legible;big enough to see. Sure I can still

see important information suchas the oil’s viscosity grade, APIand ILSAC Service category, theAPI donut. And there’s nomissing the obscure barcodes and quick-responsecodes. But now, even withmy glasses on, I oftenstruggle to read some ofwhat’s written on theback labels.

At my age, youworry about thingslike this. Could itmean presbyopia,cataracts, glauco-ma, maculardegeneration orsome other age-related eye prob-lem? Or is some-thing else goingon?In a semi-panic

after struggling toread some of theback labels on oil

containers at Wal-Mart,I recently decided it wastime to see a vision spe-cialist. And at the risk of

having him refer me for diag-nostic psychological testing, Ibrought some motor oil bottleswith me.

My glasses indeed were mis-aligned and in need of adjustment,

he said, and my eyes were in factchanging with age — but these werenot the reasons I was struggling toread the labels. Instead, after carefulinspection of the labels on the motoroils I brought along, he said the 6-point font on the labels was toosmall, the color contrast was notideal, and the spacing between let-ters and words was very tight.

In short, his diagnosis was that myeyes were fine but the labels hadissues: They were “too crammedwith information.” With that, Ibreathed a sigh of relief and decidedrather than questioning my eyesight,maybe it was time to take a closerlook at how labels have changedover time.

Looking back, the first observationis that some things have notchanged. The real estate available toprint info on the back label of amotor oil bottle is one example. Thatspace has remained at roughly 3inches by 4 inches for decades.

But although the size of the labelhas remained nearly the same, onechange that occurred was the needto make space on the label for aUniversal Price Code. The UPC com-prises a unique 12-digit number andbarcode used for scanning tradeinformation at the point of sale, forautomated checkout and inventorycontrol. Whereas UPCs are generallymeaningless to consumers, they arevitally important to retailers, so UPCsnow occupy somewhere between 7and 15 percent of the back label on aquart of motor oil. That’s a lot ofspace for something consumers gen-erally can’t read or understand.

Another big change on the back

Cramming: Can less be more?

NEED TO KNOW

BY THOMAS F. GLENN

APRIL 201324

© lightpoet - Fotolia


label speaks to diversity and theappreciation that Hispanics representan important and growing segmentof the U.S. population, and the do-it-yourself motor oil market. Although itdiffers by lubricant manufacturer andregion, many motor oil labels arebilingual. That’s very helpful toHispanic consumers, but the realityis, it takes more space. In fact, theinclusion of Spanish on the backlabel can consume 15 to 30 percentof the available space.Also taking space on the back

labels of motor oils are the neces-sary warnings about the dangers ofskin contact with used oil, keeping itout of reach of children, and con-serving resources by recycling.Taken together, this material canaccount for as much as 8 percent ofthe back label. Add this to the 5 per-cent required to include contactinformation on the product’s manu-facturer, marketer and/or distributor.Then add a date of manufacture orbatch code, too.And just when you think there is no

space left for anything more on theback label, toss synthetics claimsinto the mix, add some slick graphicscomparing the attributes of variousbrands, weave in some creativeadvertising ideas for cross-merchan-dizing, and if needed, expand theback label to be a three-page pull-outor peel-off. Why not include a magni-fying glass and decoder ring as aprize for those truly interested inreading the label?Then again, maybe less could be

more. What about that obscure QRcode on the back label? What if therewere a smart-phone application that

knew the make and model of yourcar and allowed you to scan the QRcode on the motor oil label to see ifthe product meets that vehicle’s war-ranty requirements and is APIlicensed? What if that same app gaveyou the most current data andapprovals on the product, customerreviews, independent test data andanalysis? In addition, the app couldlet you know where to get the bestdeal on that product and others likeit, plus coupons and rebates.Surely younger, digital-savvy buyers

would find such an enriched QR andapp useful. The same could be saidfor older folks like me — if the appprovided an opportunity to make thefont size larger and showed the textwith a high-contrast background andbetter spacing between characters.In today’s day and age, that’s not

asking for much. ❚

Tom Glenn is president of the consulting firm PetroleumTrends International, the PetroleumQuality Institute of America andJobbers World newsletter. Phone: (732) 494-0405. E-mail:[email protected]

26 APRIL 2013

They Wrote thePlaybook

Rerefiner’s Team Aims to Repeat Earlier Success

BY RICHARD BEERCHECK

Heritage-Crystal Clean hopesto expand its rerefinery inIndianapolis.

HES generally focused on largeindustrial customers, but it had somedemand for waste collection and recy-cling from smaller firms. “To addressthe needs of smaller customers, HEScreated a service called PetroleumManagement to pick up small quanti-ties of used lubricating oil, and anoth-er called Crystal Clean to provide sol-vent parts-cleaning services,” saidGreg Ray, Heritage-Crystal Clean chiefoperating officer. “By the 1990s,Crystal Clean and PetroleumManagement were generating annualrevenue of about $10 million, con-centrated in the Midwest.”Separately, during the 1960s, a

Chicago-based businessman namedDon Brinckman had acquired a smallbusiness called Safety-Kleen and putin place a plan to develop the partscleaning business across the U.S.“Over the next 30 years,” Ray added,“Brinckman grew Safety-Kleen into a$1 billion company with more than160 branch locations in the U.S. andCanada, providing a wide range ofenvironmental services to hundredsof thousands of small customers.”In 1987, Brinckman decided that

Safety-Kleen should expand into usedoil recycling, so he acquired Breslube,based in Breslau, Ontario, whichChalhoub had built into a successfulNorth American rerefiner. “Chalhouband his team joined Safety-Kleen andled a vigorous expansion of used oilcollection and rerefining,” said Ray,“ultimately building the largest rere-finery in the world, in East Chicago,Indiana.”In 1998, though, Safety-Kleen fell

victim to a hostile takeover engi-neered by Laidlaw Environmental

W ith consumerattitudesbecomingwarmer towardrerefinedengine oils,

demand for them is increasing. Inresponse, one of the largest U.S. col-lectors of used oil, Elgin, Ill.-basedHeritage-Crystal Clean, invested in a50 million gallon per year rerefineryin Indianapolis. Earlier this year,Lubes’n’Greases visited the facility tolearn more about its capabilities andthe company’s plans for the future.Although Heritage-Crystal Clean was

organized in 1999, its history can betraced to The Heritage Group, a family-owned business founded inIndiana in the 1930s. “The businessstarted out distributing fuel oil, andunder family management it was suc-cessful and achieved steady growth,”explained Heritage-Crystal CleanPresident and CEO Joe Chalhoub. Inthe 1970s, THG expanded by found-ing Heritage Environmental Services(HES) to collect and recycle wastes.

Services, a Canadian company in thehazardous waste business. “Laidlawmanagement dismissed the top Safety-Kleen management and relocated thecorporate headquarters to Columbia,S.C.,” Ray noted. Ultimately, theembattled company was driven to filefor bankruptcy.Safety-Kleen emerged from bankrupt-

cy in 2003 and soon began to grow andbuild again. Still North America’slargest rerefiner, in December it wasacquired by Clean Harbors for $1.25billion. Long before, though, its rerefin-ing management team had moved on— and many of them landed atHeritage-Crystal Clean.

Out of the Ashes“After the Laidlaw takeover, I had to sitidle for 12 months to observe my non-compete restrictions,” said Chalhoub.“But after that time had elapsed, I wasready to develop a new businessopportunity for myself and otheremployees who had exited Safety-Kleen with me.” He connected withthe family that owned THG, and


develop a strong growth culture. Wehired branch managers and created aregional structure to support local oper-ations.” The company also welcomedDon Brinckman as a director in 2002.“The company was profitable by 2004

and generated sales in excess of $100million by 2008,” Chalhoub added. Thatyear, the company had a successful ini-tial public offering as Heritage-CrystalClean Inc.

together they determined that theCrystal Clean business would provide agreat foundation for a new companyfocused on serving the environmentalneeds of small customers.THG contributed the Crystal Clean

and Petroleum Management assets to anew entity called Heritage-Crystal CleanLLC. “At the outset,” Chalhoubexplained, “Heritage-Crystal Cleanplanned to expand geographically and

For the year justended, Heritage-Crystal Clean hadrevenues of $252million, including$108 million in oilproduct sales, large-ly base oil. Netincome for 2012was $2.3 million.Greg Ray (also a

Safety-Kleen alumnus) explained thatduring its first decade, HCC’s businesswas focused on environmental services;namely, parts cleaning and hazardouswaste drum collection, recycling anddisposal.“By 2010, we were preparing to enter

the used oil rerefining business,” hesaid. “Most of our senior managementhad worked in used oil collection andrerefining earlier in their careers, and itwas a natural move to get back into thisbusiness.”To support this initiative, the compa-

ny constructed the Indianapolis rerefin-ery, now the second largest in theUnited States. The plant reached fulloperation in January 2012, using vacu-um distillation and hydrotreatingprocesses to produce base oil. “We’vemodified the typical rerefining installa-tion somewhat,” said Tom Hillstrom,vice president of operations, “and basedon our results, we’re satisfied with thenew design.”“Today, we operate 71 branches in 40

states, with roughly 900 employees,”said Chalhoub, “and our annual revenueis approximately $250 million, dividedequally between environmental servicesand our oil business.” The branchessupply 75 to 80 percent of the used oilinput to the Indianapolis plant; theremainder is purchased from other col-lectors.

Products & MarketsRay said, “Within environmental ser-vices, we offer parts cleaning; drum col-lection, recycling and disposal; and vac-uum truck services. Our oil businessincludes used oil collection and recy-cling, oily water collection, and the sale

28 APRIL 2013


Joe Chalhoub

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this business comes from generatorsengaged in vehicle service, such as autodealers, quick lubes and trucking com-panies. The other half is from smallindustrial or manufacturing plants.”Customers for the base oil produced

in Indianapolis include independentblenders and compounders and majoroil companies. “We decided to build thererefinery in Indianapolis after perform-ing an extensive study of a number of

of products and byproducts from ourrerefinery.” The company’s rerefineryproduces API Group II base oil, as wellas byproducts such as hydrotreated fueland asphalt extender.“Our customers include tens of thou-

sands of small generators of used oiland hazardous waste in 40 states,almost everywhere except for the PacificNorthwest,” said Ray. “Roughly half of

possible locations,” said Hillstrom. “Weknew that we would be shipping usedoil to the plant from our widespreadbranch network by rail, and we neededa location that offered competitive railfreight rates. Indianapolis was the mosteconomical of the sites we studied.”The company already had a sizable

operation in Indianapolis, includingavailable land to build the plant and sig-nificant available tankage. Finally, the cityand state offered incentives that madeIndianapolis the most attractive choice.“Before we built the rerefinery, we

were already in the business of pickingup waste from small customers,” saidRay. “These customers generate usedsolvent, hazardous waste and used oil.And they told Heritage-Crystal Cleanthat they wanted us to expand intoused oil collection to be able to handleall their requirements related to liquidand hazardous waste.”“Since we knew something about the

business,” said Hillstrom, “we felt wewould be unable to offer a competitiveand successful program until we had arerefinery behind us to upgrade thevalue of the used oil.”“We had built a successful used oil

collection and rerefining business earli-er in our careers,” Chalhoub added. “Inaddition, we knew that business hadproven profitable for the new owners,and we felt that with dedication andpatience we would be able to repeatour success in a market that has roomfor new entrants.”

Making Their Mark“In all the markets where we compete,”Ray observed, “we face vigorous compe-tition, mostly in the form of lowerprices.” For example, in February thecompany noted that the average spotprice for Group II base oil declined byabout 5 percent in fourth quarter 2012,compared to the third quarter. Thisdeterioration followed a drop ofapproximately 10 percent from the sec-ond quarter to the third quarter.In early 2013, Group II spot prices

were still slipping, prompting ChiefFinancial Officer Mark DeVita to state,“We believe that current base oil pricing

30 APRIL 2013


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burdens from our customers.”“We don’t have many challenges

stemming from government regula-tion,” said Ray. “In most cases, when wehave an opportunity to provide input tolegislators or regulators, we feel it isbest to encourage the government toplay a very limited role. We think thatexisting penalties for improper waste

and the resulting spread between crudeoil and lube oil prices reflect conditionsthat are not sustainable in the long runfor the virgin production of lube oilfrom crude.” Indeed, as this issue goesto press, some upward pressure wasbeing seen in Group II postings.

On the environmental services side ofthe business, Hillstrom said Heritage-Crystal Clean anticipates a continuingshift away from solvent-based partscleaning toward aqueous parts cleaning.“This business is among the fastest-growing parts of our company. We haveacquired patents on some aqueousparts-cleaning machines, and we haveinvested in the development of a lead-ing aqueous cleaning chemistry.”

He outlined the company’s philoso-phy of trying to help small shops thattypically are not very experienced withthe requirements for hazardous wastemanagement: “We try to design our ser-vices so they are easy to use, andremove administrative and economic

management are sufficient to discour-age intentional pollution, and moreusually can be accomplished by enforc-ing existing rules than by adopting new ones.”

Look to the Future“Heritage-Crystal Clean been growing itsrevenue at an annual rate of more than

32 APRIL 2013


From used oil (left), Heritage-Crystal Clean produces API Group II quality base oils suchas this 150N cut (right).

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20 percent for the past decade,” Raypointed out. The company hopes to con-tinue to see double-digit top-line growththrough a strategy that combines:• Geographic expansion, as it contin-

ues to open new branches and “fill inthe map.”• Increasing sales at existing locations

by signing up new customers and sell-

ing more services to current customers.• Product line extensions through

expansion into new lines of business.Aqueous parts cleaning, for example, isa quickly changing arena, so the compa-ny has launched a new line of AquaFiltration Service products.• Expanding the used oil rerefining

business. The Indianapolis plant has an

operating capacity of 50 million gallonsof used oil per year, and Heritage-Crystal Clean has secured permits toexpand this to 75 million gallons/year.The company is also looking to grow

by acquisition. “While we have maderelatively few acquisitions in recentyears, we are always evaluating opportu-nities to add to our organic growth orexpand our service territory via anacquisition,” said Chalhoub.At the beginning of this year, the com-

pany acquired a controlling interest inMirachem LLC, which supplies aqueousfluids for parts cleaning. “With theMirachem chemistry and our patentedaqueous parts-cleaning equipment,”Chalhoub said, “we are very excitedabout the potential of our aqueousparts cleaning service offering.”He ended by saying, “Our success

going forward is ultimately based onour ability to sustain a growth culture,where our employees are working tocreate a larger and more successfulcompany.” ❚


The plant’s hydrotreater

Three years ago, the ship switched tohandheld lubricant condition monitors,and one year ago added a portable vis-cometer to its oil testing arsenal.“The portable instruments help us get

more done in less time while providingresults that are more accurate and reli-able than single-test kits,” said OceanShipholdings’ William Maus, chief engi-neer of the USNS Watson. “When Ishow them to engineers from otherships they ask, ‘when can we get ours?’”

Major military moverMilitary Sealift Command operatesapproximately 110 non-combatant, civil-

The United StatesNaval Ship (USNS) Watson is one of thelarge, medium-speed, roll-on, roll-offships that have significantly expandedthe nation’s sealift capacity. The Watsonhas a considerable amount of machin-ery, including main engines, generatorsand cranes, that need oil tested on aregular basis to detect potential prob-lems and eliminate the possibility of acatastrophic failure. Operated by OceanShipholdings Inc. under contract to theMilitary Sealift Command, the Watsonpreviously used oil test kits but foundthem time-consuming. Its engineersquestioned the kits’ accuracy, too.

ian-crewed ships that replenish U.S.Navy ships, strategically pre-positioncombat cargo at sea around the worldand move military cargo and suppliesused by deployed U.S. forces and coali-tion partners.The Watson can carry a variety of mili-

tary equipment in support of Army andMarine Corps operations. The Watsonand other ships of its class were themajor transporters of military equip-ment during Operations EnduringFreedom and Iraqi Freedom and duringthe military operations in Afghanistanand Iraq that began after the September2001 terrorist attacks.

34 APRIL 2013

NavalSealift

ShipPuts

Accuracyto the

TestBY DAN WALSH

USNSWatsonunder

way

The Watson is 950 feet long, has abeam of 106 feet, a fully loaded dis-placement of 62,644 tons, and a ser-vice speed of 24 knots. It has a cargo-carrying capacity of more than 380,000square feet — equivalent to almosteight football fields. There are two gasturbine engines, each with an outputof 32,000 brake horsepower (bhp), dri-ving two shafts with 24-foot control-lable pitch propellers at 95 rpm at fullpower. The ship’s diesel generators arecapable of producing 12,500 KW ofelectrical power. The ship has manyhydraulically powered cranes, cargodoors and ramps.

Oil: Critical to mission“Our engineering department consistsof 11 people, which is not a lot for a950-foot ship,” Maus said. “We areresponsible for millions of dollars ofmachinery which could at any momentbecome critical to our national defense.As in all major Navy ships, oil analysisplays a critical role on the Watson byalerting us to problems that have thepotential to damage a vital system.” Theinformation provided by oil analysisenables Maus and his team to efficientlyallocate scarce resources and to planmaintenance based on actual need asopposed to simple intervals of time.


In the past, Watson engineers usedtest kits for oil analysis. Engineers col-lected oil samples, brought them backto the control room, and mixed themwith the chemicals in the test kit. It wasnecessary to perform tests in the con-trol room in order to maintain a stableenvironment for the test chemicals andfor the test equipment. The chemicalsused in the testing process are classifiedas hazardous, which poses problems forshipping the chemicals and disposal ofthe used reagents.Normally, it takes about five minutes

to collect a sample, five minutes tobring it back to the control room, and

U.S. Army tracked vehicles are loaded aboard the roll-on, roll-off ship USNS Watson. (USAF photo by Staff Sgt. Ricky A. Bloom)

leum-based lubricants and fluids. It candetermine lubricant contamination,degradation and cross-contamination atthe point of use by measuring key oilcondition parameters. FluidScan canreadily determine total acid number(TAN), total base number (TBN), oxida-tion, nitration, sulfation, additive deple-

tion, incorrect lubricant, water, glycol,soot, glycerine and FAME (fatty acidmethyl esters) in biodiesels.The SpectroVisc Q3000 was designed

to determine kinematic viscosity in thefield, for applications when immediateresults are required to determine thehealth of critical equipment. Thisportable, battery-operated instrumenthas a touch-screen interface and isdesigned to be easy to use. Requiringno solvents, no density checks and nothermometer, the SpectroVisc Q3000measures each sample at a constanttemperature, for consistent accuracywithout pre-test measurements.

Hours saved“The first thing we noticed was thatSpectro’s instruments greatly simplifythe process of measuring oil condi-tions,” Maus said. “The instruments arelight and don’t require any chemicals orextra steps, so you can carry them tothe machinery and perform the analysison site.” Additional benefits he notedwere a major reduction of the quantityof oil required for testing, and no gener-ation of hazmat that requires disposal.“The FluidScan Q1000 measures the

full range of oil condition parameters inabout five minutes, the same time that

five minutes to perform each of the fivetests required for generator oil, for atotal of 35 minutes. Maus was con-cerned about accuracy and repeatabilitybecause the tests were dependent onusing the right amount of both oil andchemicals, and on the reliability of thekit’s base equipment. He was also con-

cerned about the need to work withhazardous chemicals.Alternatives were found with the

Spectro FluidScan Q1000 handheldlubricant condition monitor, and theSpectroVisc Q3000 portable viscometer.The Q1000 performs 87 tests and pro-vides 174 results in about two-thirds thetime it took to conduct 138 tests yield-ing 138 results with the chemical testkit. But Watson’s operators wanted tobe sure these test results were accurateand reliable, not just fast.

Head-to-head comparisonThe USNS Watson was one of twoMilitary Sealift Command ships asked toperform a head-to-head comparison ofthe traditional one-test-at-a-time kitsversus portable instruments that oper-ate on the same principles as laboratoryinstruments. To evaluate the perfor-mance of the kits versus portable instru-ments, Watson personnel were asked toperform a specified number of tests intriplicate — once on a test kit, one on aportable instrument, and also by send-ing a sample to a lab on shore.The FluidScan Q1000 is a rugged,

handheld infrared spectrometer thatmeasures a range of key oil conditionparameters in both synthetic and petro-

is required to measure a single parame-ter with a test kit,” Maus said. He calcu-lated that it takes five minutes to take asample of oil from a diesel generator,five minutes to measure critical parame-ters on the oil condition analyzer at thegenerator, and five minutes to measurethe viscosity, for a total of 15 minutes.That’s less than half the time requiredwith test kits.“When we are sitting in port and not

operating a lot of equipment, we saveabout 10 hours per week,” Maus said.“When we are under way the savingsare approximately 15 hours per week.The responsibility for oil analysis isassigned to a licensed engineer withmany other responsibilities, so thesetime savings make his job much easierand allow more efforts to be focused onmaintenance and repair throughout the ship.”

Proving accuracyA key part of the head-to-head assess-ment was comparing the accuracy of

the portable instrumentsto the test kits. Testingby an independentlaboratory showed

thatthe

portable instruments were consistentlyaccurate over the full range of measure-ment parameters. The accuracy of thetest kits, on the other hand, varied fromgood to poor depending on the specifictest and the care taken by the personrunning the test.For example, problems were identi-

fied in the measurement of TBN withthe test kits. This measurement is usedon diesel engine oil to measure addi-

36 APRIL 2013


Oil viscosity results are vis-ible in the Q3000 display.

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was in doubt. The FluidScan Q1000, onthe other hand, accurately measuresTBN without being dependent onmanufacturers’ specs. The portableinstruments also provide many addi-tional measurements at no additionalcost or time.

Maus added that another benefit ofusing portable instruments is that

tives used to neutralize acids producedas a byproduct of combustion. The testkit measurement is based on andrequires entry of the original TBN inthe oil. Ship’s engineers entered thisvalue based on the specifications pro-vided by the oil manufacturer; howev-er, the accuracy of these specifications

their higher accuracy increases theconfidence in their results and leadsto greater predictive maintenanceefforts. “The accuracy of the portableinstruments gives us confidence tobase our predictive maintenance pro-gram on their results. We can trackexactly what’s going on and identifyproblems in plenty of time to takecorrective action. At the same time, ifthe results look good we can extendthe service life of the oils to save timeand money.” In addition to the advan-tages this equipment offers, theportable instruments are actually lessexpensive than the test kits previouslyused, which required replenishmentof chemicals and periodic recalibra-tion of the base unit.

“At the end of the trial period, ourguys did not want to give up theSpectro instruments and go back tothe test kits,” Maus said. “The Navyagreed that the Watson could continueto use the Spectro kits while they con-tinued their evaluations. We are hope-ful they will decide to switch the entirefleet over to the new portable instru-ments. The end result will be increasedaccuracy and more measurements,which in turn will provide higher mis-sion readiness, lower maintenanceexpenses, and time savings that can beapplied to other shipboard projects.Our future goal is to integrate theresults from the new instruments intothe ship’s computer based mainte-nance program so measurementresults will automatically be available toshore-side personnel within 24 hoursafter samples are tested.” ❚

Daniel Walsh is director of productmanagement for Spectro Inc. Spectro,based in Chelmsford, Mass., special-izes in analytical instrumentationand software for machine conditionmonitoring, and is one of the largestsuppliers of oil and fuel analysisinstruments to industry and the mili-tary worldwide. For more informa-tion, visit www.spectroinc.com orphone (978) 431-1120.

38 APRIL 2013


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Given the lubricantsindustry’s limitedresources, it’s time tofocus attention andresources where theyadd value — and not

on needless complexity such as redun-dant engine tests, urges Trevor Russellof Infineum.

Complexity, said the additive compa-ny executive, can be both the friendand foe of the lubricants industry. It isthe driver for many niche opportunities

40 APRIL 2013

IS COMPLEXITY ASIGN OF PROGRESS?Not unless it adds value, says Infineum’s

Trevor Russell. Let’s be sure it does.

BY LISA TOCCI

and is what enables product differentia-tion, he allowed. Yet some processesand procedures — especially thoseused to develop engine oil specifica-tions and tests — have become more“resource-sapping” than they should be,and risk the industry’s ability to inno-vate and grow.

“On the one hand, complexity canbring endless opportunities for differen-tiation and niche developments,”Russell told the ICIS World Base Oils &Lubricants Conference on Feb. 22. “On

the other, it can bring consumer confu-sion, duplication of effort and cost.”

Russell, Infineum’s Abingdon, U.K.-based chief strategy officer and salesand marketing vice president, listednumerous areas where complexity is onthe rise. There are more original equip-ment manufacturers to be satisfied,more farflung geographic markets to bereached, more engine hardware typesthat demand attention, and increasingvariations in the base stocks — particu-larly API Group IIIs — that blenders

want to use in their lubricants.Perhaps life seemed simpler in the

1980s and 1990s, after the emergenceof truly global OEMs, Russell noted.Those OEMs required suppliers withequally global capabilities, and that ledto a landscape where a handful of majoroil companies in each geographic areahad significant market shares.

“Today,” he added, “the picture ischanging again, driven by the enormousdemographic and economic changesthat we see on a global scale. Now weare operating in an industry where themajor markets in the West are matureand experiencing much lower growth,even shrinkage, while those of thedeveloping economies in Asia, EasternEurope, Russia and Latin America aregrowing rapidly.”

Oil and additive companies arealready investing in these high-growthregions, Russell stressed. “The shifteast of vehicle manufacturing has beenfollowed by lubricant production, asseen with the announcement of manynew blending plants in China andSoutheast Asia. At the same time, wealso see movement in the oppositedirection, with rising [national oil com-panies] in emerging countries havingclear global growth aspirations.

“This mutual movement into newterritory has the potential to createtension, as established global giantsmove east and south, while thegrowth-economy nationals move westand north,” he said.

Of course, as it shifts east withdemand, the lubricants industry can-not neglect the established marketsof North America, Western Europeand Japan, Russell said, even if theseare seeing flat or falling lubricantsconsumption. They are still thesource of most new lubricant specifi-cations, and organizations such as APIand ACEA remain the bedrock ofglobal specifications.


Complexity can drive innovation, or cansimply drain resources. For example,would a smaller, more streamlinedprocess be better for engine oil categorydevelopment?

Illu

stra

tion

: In

fin

eum

Neste-Bapco, GS-Caltex and Chevron,SK-Pertamina and Shell, to name someof the largest. These companies usediffering processes and feedstocks,and interchange is minimal, so inten-sive testing programs arerequired when blendersconsider a change of suppli-ers.Group III’s rise has been

accompanied by the demiseof uncompetitive Group Iplants, “which results in thepotential for a significantamount of reformulationwork and/or brand reposi-tioning,” he said. Form -ulators also must work across a widespectrum of viscosity grades, frommonogrades to SAE 20-50 and nowdown to the new 0W-16 grades.Costs are also climbing — sharply —

for engine oil development programs,such as the API C categories that formthe basis of most global heavy-dutydiesel lubricants, Russell said. Forexample, API CF required a candidateoil to pass only two engine sequencetests; today’s API CJ-4 oils must pass 19

“The level of complexity linked tospecifications is clearly growing, as theycontinue to fragment,” Russell said.Some OEMs are moving to globallylicensable specifications, but overall,“we not only see an increase in thecomplexity of our industry categoriesbut also in OEM specifications. In therecent past, only a few OEMs wereactive, but now almost all OEMs want toplay a part and have their own systemsand specifications — which are oftenmutually exclusive.”This requires the oil and additives

industry to “be smarter” about the pro-liferation of specifications, to satisfyboth the OEMs’ need for faster deliveryof new technologies and the lubricantblenders’ desire for differentiated, high-er value products.Another issue, he observed, is the

wide variety of API Group III base oilsavailable, complicating the grade slatethat confronts formulators. Not longago, the world had three merchants ofGroup III base oils: SK and S-Oil, bothin South Korea, and Finland’s Neste Oil.Today, the list of Group III producers

includes Petronas, Petro-Canada,

tests, and the entire category cost near-ly 20 times as much to complete.

“All this added complexity has thepotential to add significant cost to lubri-cant marketing and supply chain bud-gets, in addition to more expensivedevelopment programs,” Russell said,“rendering some programs of border-line commercial justification.”Russell foresees “real cost chal-

lenges” ahead for the industry, as itstruggles to simultaneously create thenext generation of passenger car andheavy-duty engine oil upgrades.Meanwhile, additive companyresearch budgets reportedly are risingmore than 7 percent a year, he said,and huge capital expenditures areneeded to support emerging markets.“Indeed, it’s a matter of public recordthat all four major additive companiesare expanding capacity in Asia.”Russell continued, “To be clear, this is

definitely not about lowering technicalhurdles but is about reducing the

amount of duplication,redundancy and wastedeffort.”Looking at the current oil

development structures andprocesses, he said the indus-try should ask: Are thesemeeting our needs, movingquickly enough, and arethey indeed sustainable? Arethey creating value, versusadding unnecessary com-

plexity? “My fear is that the balancecould tip towards complexity that does-n’t create value.”Drawing to a close, Russell suggest-

ed that the processes for developingnew specifications are ripe for reform.Those processes typically establishstandards via consensus, and are ledby trade associations. “Infineum isboth committed to and supports suchbodies,” he insisted. “However, such

42 APRIL 2013


Trevor Russell

Lubricants demand is shifting and somust resources, says Trevor Russell.Pictured is Infineum’s Singapore plant,now undergoing a major expansion insalicylates capacity.

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processes now entail large numbers ofpeople, sometimes with unclear vot-ing rights and decision-making author-ity.” Participants must continually findconsensus and also grapple with verytight timelines.In North America, “with the slippage

of the GF-6 timelines and serious chal-lenges around meeting PC-11,” Russellcautioned, “we already see leadingindicators that the system needsreview — and that’s before we start toconsider the European challenge ofACEA 2014.”What’s the alternative? “We believe a

smaller, more streamlined systemfocused on delivering a baseline per-formance specification from whichindividual OEM specs can be built isworthy of detailed consideration,” hesaid. Removing duplication — forexample where the same basic perfor-mance criteria are assessed in multipletests — would be a good start.“Finally,” he concluded, “we must

ensure the interchange guidelines forviscosity modifiers, base oils and com-ponents are robust, current and fit forpurpose. Addressing these issues willallow a release of resources to sup-port and promote rapid innovation,which in turn will benefit all industrystakeholders and consumers.”Afterward, Russell sat down with

Lubes’n’Greases for an exclusiveinterview and to expand on the topicof complexity. He said that shiftingresources to growth markets doesnot mean Infineum plans to trim itsoperations elsewhere. “The way I’mlooking at it, ‘moving resources tothe East’ in fact is already under way.The growth is in the East, but ourexisting markets in North Americaand northwest Europe still need tobe served. Our additives resourcesare in place there, and we don’tmean to take those away. But wehave to meet geographic growth, andwe face technical challenges.“What we’re seeking is to do things

more efficiently. We’re seeingresources getting tied up in stuff that

44 APRIL 2013

Continued from page 42 doesn’t add value.” One possibleexample, he said, could be base oilinterchange and viscosity grade read-across guidelines, which determinethe testing regimes for many candi-date engine oils. “Are these guidelinesrobust? Do they lead to too much test-ing?” he pondered.As the London audience heard,

Russell sees the process for introduc-ing new engine oil categories asanother resource-sapping effort thatneeds fresh thought. “We have seensome of the industry committeesgrow to where they are too large,unwieldy, and don’t let the technicalwork progress.“The standards-setting organiza-

tions, within each committee andspecification body, should have amandate to think about complexity,”he suggested. “They need to be opento having a dialogue, to asking is thefluid we’re creating relevant, to askingif another test is really needed. Forexample, do we really need to run sixengine tests to establish base oilinterchange, or could three tests besufficient?”Within Infineum itself, simplification

is an ongoing goal, Russell said.“We’re always looking to at our busi-ness processes, our interactions, ourhardware, where we can use nimbleand lean manufacturing. I’m proudthat our customers say we’re numberone in terms of supply reliability, andwe’re extremely conscious of whatgoes into that. It takes constant ques-tions: Should we expand a plant?reduce units? how to get the rightcapacity in the right places?”Some listeners at the ICIS meeting

felt that Russell’s real goal in speak-ing was to justify the firm prices andmargins now seen for additives. “Fora number of years we were not get-ting the returns needed for reinvest-ment in our business,” Russellresponded. “We are now able to rein-vest in leading edge technologies andmanufacturing facilities. I just hatespending resources on low value,duplicative or wasteful activities.” ❚

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It was February 18, 2013.

After months of rhetoricalbarbs and diplomatic inci-dents, Japan and Chinaappeared to be on the cuspof escalating their territorial

spat in the East China Sea toa more comprehensive andintractable conflict. A

Japanese fishing vessel waschased around the disputed

Senkaku/Diaoyu islands bythree Chinese surveillancevessels. According toreports, the commercial ves-

sels came within 60 metersof contact before a JapaneseCoast Guard ship cut

between the parties andstymied any potentialmishap.Luckily, there was no acci-

46 APRIL 2013

dent, and no navy presence

from either side. But thatwas the extent of the silverlining, as this opaque and

high-stakes game ofbrinkmanship continues toplay out between theworld’s second and thirdbiggest economies.

U.S. Assistant Secretary ofState to Asia Kurt M.

Will China Rift Deter

I

Campbell emphasized thispoint recently in a trip to the

region. On Feb. 26, he toldThe Australian newspaper,“In four years as assistant

secretary I’ve faced many dif-ficult diplomatic situations,but none more difficult thanthis. I’ve rarely seen diplo-mats on both sides [Japan

and China] more white-

knuckled, and on both sides

the sense that no retreat orcompromise is possible.”The good news is that the

economic integration andinterdependency of bothcountries means that Tokyoand Beijing have powerfulincentives to remain “eco-

nomically warm” even if“politically cold.” Whether

nationalism, political jockey-ing and a dynamic securityenvironment hijack this rela-

tionship remains to be seen.However, it is clear that nei-ther side wants this end.Lubes’n’Greases recently

discussed the bilateral eco-

nomic relationship withlubricant company officialsin Japan, and heard two key


r Japan’s Lube Sellers?

BY J. BERKSHIRE MILLER

Protesters in China (left) andJapan (right) rally againsteach other’s country. News -com photos: Feature China (l);Rodrigo Reyes Marin/AFLO (r)

research from the KlineGroup, China’s lubricantsmarket is cornered bynational companiesPetrochina and Sinopec,which in 2011 held 21 per-cent and 19 percent shares,respectively. The leadingforeign investors includeShell (7 percent), Exxon -Mobil (5 percent) and BPGlobal (3 percent).Japanese petroleum compa-nies such as JX NipponEnergy, Idemitsu Kosan andMitsui Chemicals all haveshares under 3 percent.Despite this, China contin-

ues to be a target forJapanese petroleum compa-nies because of the cheaperoperating costs and sus-

points: First, corporateJapan (not just the petrole-um industry) is extremelynervous about the potentialfor a greater strain in theSino-Japanese relationship.And second, most Japan-based lubricant companieshave no intention — at leaststated — to abandon theChinese market or evenreduce investments there. Atleast for now the opportuni-ties in China outweigh thepolitical risk.

Demand Still RulesThe Chinese lubricant mar-ket remains dominated bydomestic and non-Japaneseforeign companies.According to industry

tained levels of demand inboth the automotive andindustrial markets. JXNippon set up a venture in2005 with Sinopec to form the Nippon Oil(Guangzhou) LubricantsCorp. Asked by Lubes’n’ -

Greases whether the currentpolitical tensions betweenChina and Japan wouldaffect JX’s lubricants strategyin China, spokesmanHayashi Suzuki remarkedthat there has been “nochange in strategy.”

48 APRIL 2013

Tel. +370 687 31011. E-mail, [email protected]. Web. www.Lubrita.com

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Concept

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Lubricants Market Leaders in China2011 Total Volume: 7.6 million tons

Source: Kline Group, “Global Lubricants 2011”

Sinopec 19%Petro China 21%

Shell 7%

ExxonMobil 5%

Monarch 4%BP 3%All others 39%

Regardless of the political cli-mate, Suzuki added, “busi-ness in China is still impor-tant for JX.” Moreover, thecompany’s most recentannual report noted that“against a background ofprogress in motorization inemerging countries, sub-stantial growth is expectedin worldwide lubricantsmarkets, especially in Asia.The company has takensteps to steadily expand itsoperations.”However, despite the rosy

outlook, JX remains cautiousabout future investment inChina. The company’s riskprofile ranks “risks related tobusiness operations in Chinaand other East Asian coun-

tries” as its second biggestrisk, after access to rawmaterials abroad. Another(and related) risk fault linerelates to currencyexchange and the value ofthe yen to purchase over-seas and run subsidiariesoverseas. The yen’s bullishstrength over the past cou-ple of years, while problem-atic in other ways, hasallowed Japanese companiesto be more aggressive intheir foreign expansion.This luxury may be ebbing

now though, as the yen hasweakened significantly sincethe election of new PrimeMinister Shinzo Abe lastDecember. Abe has intro-duced a policy of quantita-

tive easing and massive stim-ulus, aimed at weakeningthe yen to drive up Japaneseexports, a theme which hastraditionally dominated itseconomy. However there isthe potential that suchmoves could be counter-pro-ductive and actually triggerhyperinflation (which is theopposite of Japan’s neardeflationary situation of thelast decade). Abe’s movesmay drive down the price ofthe yen at first and are beingwelcomed by internationalinvestors, but they raise thespecter of a highly indebtedeconomy.Idemitsu Kosan, another

of Japan’s big petroleumcompanies, also acknowl-

edged the risk of volatiledemand in China, andspokesman Miki Shimizutold Lubes’n’Greases that“despite demand for petro-chemicals in China increas-ing recently, there remainsthe potential that demandwill eventually decline as aresult of an economic slow-down or other factors.”Indeed, Idemitsu admittedin its annual report (for fis-cal year ended March 31,2012) that demand for itspetrochemical products haddropped as a result of slug-gish demand in China, thefloods in Thailand, and theeffect of the Great EastJapan Earthquake in 2011. It



repeated the leitmotif of“sluggish demand fromChina” in a more recentfinancial report, for the ninemonths ending Dec. 31,2012.Still, Idemitsu remains a

key player in China, main-taining three branches in thecountry (Shanghai, Tianjinand Guangzhou) and pro-ducing a range of automo-tive and industrial lubricantsat six Chinese plants. Salescontinue to be successful inthe country and Idemitsuhas targeted mainland Chinaas one of five core marketsin Asia Pacific (along withSingapore, Malaysia, HongKong and Australia).Currently, 8 percent to 9percent of the company’ssales come from this region.Mitsui Chemicals is also

invested heavily in China.Mitsui has more than 500employees based in thecountry — its highest headcount after Japan, Thailandand the United States.Moreover, 34 percent of itssales now go to China, com-pared with 46 percent in therest of Asia. In 2011, Mitsui

decided to construct a plantthere to produce phenoland polymers through ajoint venture with Sinopec,China’s largest chemical

company. Commercial oper-ations are slated to start in2014 and produce 75,000

metric tons per year. Thiswas an easy decision in part,as China’s automobile pro-duction is growing at a rate7 percent per year and ris-

ing. Vehicle production in

Japan for comparison isdecreasing by 4 percentannually.Mitsui, JX Nippon and

Idemitsu Kosan remain fixat-ed on demand from China— which makes sense —and have deflected the ideathat it might be time to lookelsewhere, due to politics.

The Economic Tiesthat BindDiscussions with lubricantofficials in Japan make itclear that they are uneasyabout the sour turn in rela-tions between Japan andChina. However there is abelief and hope that thisdoes not spill over into agreater trade war. Beijingand Tokyo are deeply inte-grated with each other eco-nomically and neither sidebenefits from a prolongedconflict. Indeed, Abe said asmuch during a Feb. 28 poli-cy speech in the JapaneseDiet: “My doors of dialogueare always open to Chinaand it is one of Japan’s mostimportant bilateral partners.”Hundreds of millions yens’worth of Japanese corporateinvestment fled China afterthe riots last fall, in which

Chinese demonstratorsattacked Japan-owned busi-nesses there. This political

conflict hurts the economiesof both countries.Japan’s economy is often

underrated when comparedwith China (which surged

past Japan last year tobecome the world’s secondlargest economy) and SouthKorea (with has inked signif-

50 APRIL 2013



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icant foreign trade agree-ments with the United Statesand the European Union).However, Tokyo has taken aproactive approach in recentyears, signing economicpartnership agreements withIndia, Singapore, Malaysia,Thailand, Indonesia,Vietnam, Brunei and thePhilippines. Japan also is incurrent EPA negotiationswith regional heavyweightsSouth Korea and Australia.There is a growing narra-

tive in the world media thatJapan is in permanentdecline and cannot com-pete with Asia’s young anddynamic markets. This is anoverly simplistic view, asJapan expert EamonnFingleton wrote in the NewYork Times in January 2012.“By many measures, theJapanese economy hasdone very well during theso-called lost decades,which started with a stockmarket crash in January1990,” he asserted. “Bysome of the most impor-tant measures, it has done a lot better than theUnited States.”While Japan has significant

demographic (low birth rate,high percent of pensioners)and economic (high debt,

low growth) pressures, thecountry and its companiescontinue to innovate and bean important part of thesupply chain in Asia. China’s

economy relies primarily onmanufacturing and —despite its sparring withJapan — on foreign direct

investment from Tokyo and

niche technologies fromJapan to complete itsexports.Similarly, as the

Association of South EastAsian Nations (ASEAN)grows, it will continue torely on Japan as a secureplayer in the global supplychain. As economist GillianTett argued in a FinancialTimes piece, “Japan stillplays an important role insome manufacturing supplychains, most notably in theauto and electronics sectors.The country, for example,produces about 30 per centof the world’s flash memory[used in electronic camerasand smartphones] andaround 15 per cent of the D-Ram memory [used in com-puters].”ASEAN will also stay close

to Japan for geopolitical rea-sons and to hedge againstChina. It will be an immensechallenge however for Abeand his government to lever-age this role and positionJapan for a prosperous andsecure future. Abe’s inten-tion to separate politics fromeconomics with regard toJapan’s territorial disputes is

supported by business lead-ers and foreign politiciansalike, but maintaining thiscourse could be increasinglychallenging over the coming

months.For now, it seems that

Japan’s petroleum compa-

nies are taking a “wait andsee” approach to the rift andnot making any sweeping orrash decisions. And hopingthat incidents like Feb. 18 donot reoccur. ❚

52 APRIL 2013


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There was a time when thevast majority of automatictransmission needs were sat-isfied with a single transmis-sion fluid, Dex/Merc. That’snot true anymore. Today,

many original equipment manufacturersrequire unique, stand-alone fluids thatmeet their specific requirements.Fluid specifications vary for each trans-mission type, and additives must becarefully formulated to deliver the rightbalance of friction, wear resistance, oxi-dation resistance, extreme-pressureproperties, aeration control and durabili-ty. As transmission hardware becomesmore complex and compact, developingthe fluid and hardware in parallel is theonly way to provide optimum perfor-mance and component protection, aswell as other benefits such as fuel effi-ciency and extended drain intervals.

Why Multi-vehicle Fluid Is WaningMulti-vehicle ATF was introduced sothat an installer or quick-lube did nothave to carry so many different fluids.Generally, formulators would designone or two fluids to serve the majorityof vehicles likely to come in for service.This was fine until Ford and GeneralMotors deactivated their respectiveMercon and Dexron-III specificationsabout six years ago. Ford replaced theformer with Mercon V, GM createdDexron-VI, and both declared that theexpired products were obsolete and nolonger to be used. Since then, automanufacturers have evolved or substan-tially changed their transmissiondesigns so this older fluid technologynow only meets the needs of a decreas-ing number of vehicles.Afton Chemical has been doing mar-ket research on ATFs for the past fiveyears. While unlicensed Dex/Merc fluidstill comprises a significant portion ofthe market, we see that portion declin-ing considerably in the next five years.Conversely, market share has increasedfor current specifications such asMercon V and Dexron-VI.Penetration of these newer fluids isgreater at car dealerships, where MerconV has 25 percent market share and

Dexron-VI 21 has percent. Multi-vehicle(universal) fluids remain the second-largest application, particularly at quicklubes (39 percent) and repair garages(23 percent).This situation has given rise to a greatdeal of confusion in the industry withrespect to which ATF should be recom-mended for which transmission type.The confusion has led to some mythsthat, at best, cause the consumer to paymore for transmission fluid changesand, at worst, damage transmissionsthat the fluid is meant to protect.

Five Fluid Myths Myth 1: Top-treatscan be added to an older Dex/Mercfluid to convert its performance to alater specification such as Mercon V orDexron-VI. Further, top-treated ATFsdeliver the same performance as OEM-specific formulations.The Reality: This is a bit like suggest-ing a Formula 1 champion driving anordinary car could compete head-to-head with a Formula 1 car on the race-track. In fact, meeting the stringent for-mulation parameters set by automakersrequires specific base oil and additivecombinations.Because base oil comprises 80 to 90percent of a typical ATF, it is not possi-ble to dramatically alter the viscometricproperties of the fluid with a small bot-tle of additive. This is especially true ifthe top treatment is added to a fluidformulated with poor-quality API GroupI base oils. The reason for this is thatGroup I oils have inherently worse cold-temperature performance in addition tolower thermal and oxidative stability.Using an older specification fluid plus atop-treat to convert it to a new specifica-tion can be seriously detrimental to fluidperformance, and is not recommendedby automakers. Performance that may becompromised by using top-treated fluidincludes shifting, oxidative stability, fuelefficiency and transmission life.There is also a risk of increased wear,caused by an improperly balanced addi-tive system. If the basic performance isnot present from the start, top treatingwon’t miraculously get you there.It also has been suggested that prod-


Mythsof theMulti-vehicleATFTo serve today’s marketplace,it’s impossible to have fewerthan six ATF formulations.Despite this reality, a numberof myths still persist abouttransmission fluids and theirapplication. Here’s the truestory.

BY BRAD ONOFRIO

ucts are available that allow the installermarket (quick lubes and garages) tostock one or two basic ATFs, then simplytop-treat with a dose of bottled additivesthat supposedly meet a variety of vehiclespecifications. However, Afton has inves-tigated a number of cases and found thatit is not possible to meet a newer, moreadvanced specification by top-treating anATF meeting an older one.We have sampled numerous products

from the marketplace, and found thatATF performance deteriorates in manyareas following addition of a top-treat.In one case, the friction performance ofa top-treated fluid deteriorated to sucha degree that torque capacity was sub-stantially reduced. This would likelylead to clutch plate slipping that the dri-ver would feel as poor shifts, accompa-nied by excessive heat and glazing.

Myth 2: Merely meeting the viscosityrequirements of a specification makesa fluid suitable for transmissions cov-ered by it.

56 APRIL 2013

CVTs and dual-clutch transmissions will be in 13 percent of new cars by 2015, and eachrequires its own specific fluid — not a multi-vehicle ATF. (Photos: Ford)

The Reality: Viscosity is only part of thestory. ATFs serve a variety of functions ina transmission and are formulated withadditives designed to meet the needs ofspecific transmission types. Additivesinclude antiwear, rust and corrosioninhibitors, detergents, dispersants andsurfactants (that protect and clean metalsurfaces), viscosity modifiers, anti-shud-der additives, seal swell additives, agentsthat extend temperature range, antifoamagents and antioxidants to inhibit oxida-tion and improve fluid stability.

Myth 3: It is possible to meet multi-ple specifications and approvals whenthe viscometric requirements of thoseapprovals are mutually exclusive.The Reality: The fallacy of this state-

ment is self-evident. For example, themaximum viscosity for Dexron-VI fluidwhen new is 6.4 centiStokes at 100degrees C, while the minimum new-fluidviscosity for Mercon V is 6.8 cSt and oftengreater than 7.0 cSt. There is no way asingle fluid can meet both specifications.

Finally, viscosity requirements for con-tinuously variable transmissions (CVTs),dual-clutch transmissions (DCTs) andheavy-duty transmissions vary significant-ly from these values. CVT fluids musthandle steel-on-steel friction and protectboth belt- and pulley-type CVTs. Fluidsdesigned for conventional transmissionscan cause a CVT to fail due to belt slip-page. DCT fluids must handle higherextreme pressures, accommodate thespecial frictional needs of the synchroniz-ers, and have different frictional proper-ties to work with a friction-launch clutchrather than a torque converter.

Myth 4: ATF labeling laws relate onlyto packaged products, not to bulk oils.The Reality: A consultation with the

California Department of Weights andMeasures confirmed that bulk ship-ments are covered by that state’s label-ing law. Even with bulk shipments, themarketer should ensure that either thecontainer or the accompanying docu-ments satisfy California labeling law.

State officials verified that they doenforce this requirement.

Myth 5: Defining a “suitable foruse” list, showing vehicle modelsrather than ATF specifications met, isalways satisfactory.The Reality: Here too, the California

Department of Weights and Measuresinformed us that they enforce duty-typespecifications, measured by industryestablished procedures. The agency fig-ures that if the statute says you mustmeet recommended specifications, itmeans you must follow Dexron, Merconand other specification requirements.They even will cite and pull from sale anATF that fails to comply.

Basic Specs While there are more than70 ATF specifications and claims, in theNorth American market the specifica-tions issued by General Motors, Ford,Chrysler and JASO-1A are most signifi-cant. Fluids meeting the requirementsof these specifications each differ in


some key ways from the others, relatingto viscosity, oxidation, friction durability,aeration control and wear protection.Optimum performance requires a carefulbalance of these important attributes.The basic performance goals of each

OEM in issuing these specifications aredurability, shift feel, fuel efficiency andcompatibility with the materials insidethe transmission. This last requirementis becoming increasingly importantbecause there are about 1,000 differentcomponents in an automatic transmis-sion. In addition, new transmissionsoperate at higher temperatures, withsmaller sumps and longer drain inter-vals. And OEMs are introducing newmaterials to simultaneously reduce costand increase durability.Since the ATF touches every compo-

nent in the transmission, material compat-ibility is critical. Licensed fluids offer theassurance that a fluid formulation hasbeen evaluated and approved by the OEMfor acceptable material compatibility.The ATF market is becoming more

fragmented, and the opportunity to mar-ket ATF with multiple specifications isdiminishing. The latest count of the U.S.vehicle population shows that the maxi-mum portion of the market that can beserved by a single fluid is now only 68percent. As older vehicles are replaced,this percentage will drop significantly.This is a low-viscosity fluid that has beenapproved by Ford and General Motors,and that meets JASO 1A to serve themajority of Japanese imports.By 2015, the largest vehicle population

in North America will call for low-viscosityATFs that have been formally approvedand licensed. North American productiongrowth will consist primarily of 6-, 7- and8-speed automatic transmissions.As a result, the best strategy for formu-

lators to meet the needs of the market isto offer five or six fluids. Three would beaimed at conventional automatic trans-missions — namely, a Mercon V, aChrysler ATF+4, and a low-viscosity fluidthat satisfies Dexron-VI/Mercon LV/JASO1A. In addition, the market needs sepa-rate fluids for CVTs and DCTs. Finally,heavy-duty transmissions would be

58 APRIL 2013


Total North American ATF Market, 2011

Source: Afton Chemical

Dex/Merc 52%

Other 6%

Multi-vehicle 17%

Toyota T/IV 3%

ATF +3/+4 6%

Dexron-VI 7%

Mercon V 9%

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served by Allison-approved fluids such asthose meeting TES 295.The bottom line is that blenders can-

not streamline part of their formulationsor take shortcuts, because the legal andtechnical risks associated with shortcutshave increased substantially in the pastfive years. This has happened with theexplosion of new transmission designsthat are often linked to the automakers’Corporate Average Fuel Economy claims,which are legally binding.To emphasize the importance of using

proper fluids, General Motors’ websitestates in part that “Dexron ATF containsthe prescribed combination of additivesthat improve lubricating qualities foryour GM vehicle. ...Due to the complexi-ty of these fluids, it is very importantthat both technicians and owners referto their Owner’s Manuals in order toensure they’re selecting the correct fluidfor the given application.”Further, the Chrysler owner’s manual

states: “Automatic Transmission Fluid(ATF) is an engineered product and itsperformance may be impaired by sup-plemental additives. Therefore, do notadd any fluid additives to the transmis-sion. The only exception to this policy isthe use of special dyes to aid in detect-ing fluid leaks. In addition, avoid usingtransmission sealers as they mayadversely affect seals.”The conclusion: The best way to miti-

gate risk is to choose products that areOEM licensable. When in doubt, ask theadditive supplier for the data to supportits claims. ❚

Brad Onofrio is director of marketingfor Afton Chemical in Richmond, Va. E-mail him at [email protected] for informationabout this article.

60 APRIL 2013

NLGI 80THANNUAL MEETING

JUNE 15-18, 2013tucson, arizona

Continued from page 58North American Automatic Transmission Types, Past and Future

3, 4, 5-speedAT 37%

3, 4, 5-speedAT 72%6, 7, 8-

speed AT 20%

6, 7, 8-speed AT 50%

DCT 2% DCT 5%CVT 6%

CVT 8%

,Source: Afton Chemical

2010 (18 million units) 2015 (20 million units)

temperatures as low asminus 78 degrees F. It is ablend of synthetic oilstreated with extreme pres-sure additives, corrosioninhibitors, antioxidants,antifoam agents and anti-wear additives. It’s intend-ed for use on food-pro-cessing equipment such asspiral freezers, freezerbearings, fans, chains, gearboxes, conveyers, rollers,and bottle and cartonfillers. Web: FoodGrade.Sprayon.com

All About Nanofluids

ASTM International’snew publication,

“Nanofluids” (STP 1567)features 11 papers focus-ing on the properties ofnanofluid technology,including heat transfer/ther-mal transport, composi-tion, applications, prepara-tion and characterization.Nanofluids have extensiveapplication as coolants inthe electronic, nuclear andheat-treatment industries.They also can enhance thelubricating properties ofoils and reduce emissionsin automobiles. Topicsinclude optimizing heattransfer rate, copper oxidenanofluids, nanofluid boil-ing, flow visualization, criti-cal heat flux enhancementand transient characteris-tics, and effect of alu-

2.5 Gallons Plus View-stripe

Champion Brands isoffering 2.5-gallon bot-

tles with an optional view-stripe from top to bottom— a configuration which itboasts is unique to thiscontainer size — to itsblow-mold and private labelcustomers. The company’sblow-molding operationcan produce high-densitypolyethylene (HDPE) andpolyvinyl chloride (PVC)bottles in sizes rangingfrom 4 ounces to 2.5 gal-lons, in a wide range of col-ors. Champion’s multipleBekum blow-moldingmachines have a capacityof over 36 million bottlesper year. The company alsohas the ability to use post-consumer resin to meetstate recycling laws, help-ing customers to market inthese states. Web:www.championbrands.com

Low-temp Lube for Food Industry

Sprayon Products hasintroduced LU 214 low-

temperature lubricant aspart of its line of NSF H1-rated lubricants for thefood-processing industry.The company says LU 214,which is also Kosherapproved, is a multipur-pose lubricant designedfor extended service at

62

PRODUCT NEWS

APRIL 2013

minum nanoparticles oncooling performance andquench severity. The 196-page publication is avail-able for $55, in print or as an e-book. Web:www.astm.org

Grease for Direct Food Contact

Foodmax Grease Inorfrom Matrix Specialty

Lubricants is approved as acategory 3-H product, fordirect contact in the meatand food processing indus-try. The product is intendedfor use as a multipurposebearing grease and as arelease agent on grills,ovens, loaf pans, boningbenches, chopping boardsor other hard surfaces incontact with meat andpoultry, to prevent foodfrom adhering during pro-cessing. The company saysthat Inor 3-H also protectsmachinery from damage byaggressive contaminants,thereby increasing equip-ment life. Foodmax GreaseInor 3-H is registered withthe agency InS, under refer-ence 1796089. Web:www.lubes-portal.com

Additive Package forSemi-Synthetics

Chevron Oronite haslaunched OLOA

54050, an additive pack-Continued on page 64

PRODUCT NEWS

Champion’s 2.5-gal.containers feature aview-stripe.

Sprayon lubricant pro-tects food machinery.

“Nanofluids,” fromASTM

ing solvents, moisture dis-placement fluids, defluxingagents, and carrier sol-vents for lubricants. AE-3000 hydrofluoroether is acarrier solvent for fluorinat-ed oils, greases and sili-cone oils. With a VOC of 0grams/liter, it also meetsSouthern California airquality requirements. AE-3000ATE cleans plastics,substrates, electrical com-ponents and metals, andremoves particles. AE-3000AT removes oils and greases from metal and electrical components, and AE-3100E can be used as adrying agent after wet plating. Web: www.agcchem.com

EcoPower GarnersDetroit Diesel Nod

Safety-Kleen Systemsannounced that Detroit

Diesel has approvedEcoPower SAE 10W-30heavy-duty diesel oil foruse in its engines. Thecompany says this rere-fined engine oil meetingAPI CJ-4/SM helps fleetsimprove fuel economy upto 1.5 percent (versus its15W-40 grade). Safety-Kleen’s Rodney Walkerpoints out, “A fleet using8 million gallons of dieselfuel at $4 per gallon could

age for semi-syntheticpassenger car motor oilformulations. Oils formu-lated with the additivemeet ACEA A3/B4-10specifications and API SNrequirements. The compa-ny said the product cov-ers several key OEMclaims, is formulated withGroup II base oils to pro-vide improved oxidationand thermal stability, andincludes a new generationof V.I. improver. OLOA54050 also has a highTBN, which is helpful inprotecting against oxida-tion and neutralizing thecorrosive effects of highersulfur fuels. Other bene-fits cited for OLOA 54050include minimal sludgeformation, deposit preven-tion, improved enginecleanliness and strongerwear protection. Web:www.oronite.com

Solvents ReplaceHalogenated Fluids

A GC ChemicalsAmericas (a subsidiary

of Asahi Glass) haslaunched a line of four flu-orinated solvents that thecompany says have noflash point, no ozonedepletion potential, andlow global warming poten-tial. AsahiKlin AE-3000Series fluids are for intend-ed use as precision clean-

save up to $480,000.” Theengine oil also providesbetter cold-weather startsand sludge, varnish anddeposit control, he added,while requiring up to 85percent less energy toproduce than oil madefrom virgin crude. OtherEcoPower products forheavy-duty enginesinclude an SAE 15W-40CJ-4/SM and an NGP-215W-40 natural gasengine oil. Web:www.ecopoweroil.com

Folding Impeller forNarrow Openings

Sharpe Mixers has intro-duced a folding

impeller for new andretrofit installations wheretank entry is not practicalor too expensive. TheHyflo 218 impeller fea-tures a hydrofoil-style,four-blade design thatfolds for installation andopens with centrifugalforce, locking in placewhen fully opened. It isavailable in up to 210-inchdiameter, and the blade-locking mechanism canbe accessed from outsidethe tank to remove themixer. Applicationsinclude side entry for largestorage tanks or top entrywhen the tank service haschanged and a new mixer is required. Web:www.sharpemixers.com

64 APRIL 2013


EcoPower rerefinedengine oil

AGC’s solvents replace halo-genated fluids.

Impeller folds for easy installation.


PRODUCT NEWS

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Attend this conference to: Gain information on how Asia can deal with market balances Hear about the potential for recovery in demand, especially from China Listen to expert opinion on the future for Group I in the new scenario Find out about the potential in developing country markets, such as Thailand and Indonesia

Learn about prospects for PAO, re-refined and speciality oil markets Gain a perspective on whether an abundant supply of higher quality base oils will see a subsequent upgrade in lubricant specifications

Hear about new developments in shipping affecting the transport and storage of base oils

PLUS of course the best networking in the region to extend your business contacts!

How will Asia face current market challenges?With the economy in Asia slowing, China producing more domestic product and new Group II and Group III production on the horizon, the key question for base oil producers, marketers, traders and lubricant manufacturers will be how to deal with the supply/demand imbalance. When will demand recover, which are the growth products in the future, where are the new potential markets – and can Asian manufacturers turn this situation to their advantage? These are the issues to be addressed at the 2013 ICIS Asian Base Oils & Lubricants Conference.

The ICIS Asian Base Oils & Lubricants Conference in numbers

2 days packed with content and networking opportunities300 attendees in 2012

16 sessions offering vital insights from key stakeholders across the global base oils & lubricants industry

5 hours of networking lunches and refreshment breaks37 countries represented in 201216 high-level speakers

Marina Bay Sands, Singapore. Wednesday 26th – Thursday 27th June 2013

For further information and to book your place visitwww.icis.com/asianbaseoils or telephone: +44 (0)20 8652 4659

or email: [email protected] must enter your promo code URY69287 to receive your early booking discount –

a saving of US$ 350 off the standard delegate rate

The 7th ICIS Asian Base Oils& Lubricants Conference

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Barrier Kit Contains Spills

New Pig’s crush-resistant Build-A-Berm barrier kit allows facilities

to create a semi-permanent spillcontainment barrier around machin-ery or storage areas. The kit elimi-nates the expense of buildingcement curbs or cutting andinstalling angle iron as part of a con-tainment plan. The open-cell barriercan be shaped to suit any applica-tion or environment and springsback into shape after being walkedon or rolled over with light, wheeledequipment. The barrier has a high-visibility yellow color, and the vinylcovering resists oils, coolants andmost chemicals. Build-A-Berm is forboth indoor and outdoor use. It canbe removed easily with a flat-bladeshovel if containment needs change.Web: www.newpig.com

Website Covers Driveline Lubes

Lubrizol Corp. has launched www.DrivelineNEWS.com, a websitededicated to driveline topics for bothon- and off-road vehicles. The web-site will publish the latest industrynews, market intelligence and tech-nical insights. It merges content pre-viously found on Lubrizol’s earlierindustry websites (AxleFacts.comand DCTFacts.com), which will bediscontinued. The company saysDrivelineNEWS.com will providebroader coverage to offer the indus-try a single source for access of

knowledge, expert opinion and com-mentary. Web: DrivelineNEWS.com

Biostable Lube for Drawing,Stamping

Houghto-Draw 7060-B fromHoughton International is a new

heavy-duty, biostable lubricant thatcan be used for drawing and stamp-ing operations on a variety of metals.The product was formulated specifi-cally for use on yellow metals, butcan also be used on high- and low-carbon steel and alloy steels,Houghton reports. Houghto-Draw7060-B is water soluble, and thecompany says it provides excellentcorrosion protection. Houghto-Draw7060-B is compatible with hardwater, and its biostable formula pro-vides long, odor-free sump life. Web:www.houghtonintl.com

Precise Fluid Dispensing

GoatThroat Pumps has intro-duced the RT Series of remote

discharge taps that the companysays provide precise delivery for low-viscosity liquids. Thermoplastic,injection-molded RT taps can deliverliquids at rates from drops to gallonsinto beakers, weighing scales or daytanks. They can be used withGoatThroat Pumps or on-demandelectric pumps with 0.5-inch inletand outlet tubes. RT taps are madeof food-grade polypropylene andcome with Nitrile, EPDM or Vitonseals. PVC, Tygon 2375, 4040 or200SE hoses are available. Web:www.goatthroat.com �


Barrier kit helps with secondarycontainment and stormwatercompliance.

Taps dispense low-viscosity liquids.

CHEMIST

JOB DESCRIPTION:

This position will require you to re-search and formulate new productsfor the metalworking industry, with aheavy focus on water-based metal-working fluid chemistry. �• You will be responsible for con-

ducting research, developing newproducts, improving existing prod-ucts and conducting field evaluationson new products.�• Coordinate research and devel-

opment activities with marketing,manufacturing, laboratory, and healthand safety departments. �• You will be required to perform

lab validations, testing procedures fornew products along with conductingevaluations based on customer proce-dures.�• Must be able to work within well

established time frames and sched-ules and you may be required to visitcustomer locations as required to ob-serve, monitor and troubleshoot.�• Recommend new raw materials,

equipment and manufacturing proce-dures. �• Provide technical and supervi-

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MaxPro lubricants, andUnion distributes 76,Conoco, Phillips 66, Kendalland Mystik lubricants.Union’s David Lueth and

Warren Lueth and BrownEvans’ Kathye Brown willretain joint principal owner-ship, and Chris Lindblom,ex-chief of Canyon StateOil, will be president andCEO.

Grease Firm Plots Growth

Engineered CustomLubricants, which

makes specialty lubricatinggreases for OEM applica-tions, has moved into twobuildings in Illinois andplans to expand furtherthrough acquisitions.Formerly based in Detroit,ECL relocated to Aurora,Ill., in 2011. With 24employees and about49,000 square feet formanufacturing, the compa-ny is still expanding. “Wehave a mergers and acqui-sition company in place,and they’re helping us totry to acquire companies,”co-owner and vice presi-dent of sales and market-ing Paul Bedford said. “Weexpect to close on a cou-ple companies in the next12 months.”Bedford said ECL had

about $5 million in sales in2009 and expects to do

oil customers that willallow it to shut down thebase oil plant at itsStanlow, U.K., refinerywithin “the next couple ofmonths,” a companyspokesman confirmed lastmonth. The 5,060 barrelsper day API Group I baseoil plant is part of a fuelsrefinery that Essar boughtfrom Shell in August 2011.The European/U.K. mar-

ket is oversupplied, andmargins are very low, thecompany official noted. Toproduce base oil requiresvery specific, higher costcrudes, the spokesmansaid, explaining that cur-rently base oil representsonly 2 percent of the refin-ery’s output but dictatesthe choice of crudes foraround a quarter ofStanlow’s total needs. Soclosing the base oil plantallows Essar to boost therefinery’s margins by asmuch as $3 per barrel ofcrude, it said.

Distributors Join Forces

Brown Evans Distributingand Union Distributing

have merged to formSenergy Petroleum, whichwill distribute lubricants inArizona and the U.S.Southwest. Terms werenot disclosed.According to their web

sites, Brown Evans distrib-utes Chevron, Texaco and

FTC Ends LZ-ChemtoolReview

The U.S. Federal TradeCommission has closed

its investigation intoLubrizol’s acquisition ofRockton, Ill.-based greasemanufacturer Chemtool,clearing the way for comple-tion of the deal. The acqui-sition was originallyannounced in November2011, two months afterLubrizol itself was acquiredby Berkshire Hathaway for$9.7 billion. The Wickliffe,Ohio-based Lubrizol hadsaid Chemtool’s private-labelgrease manufacturing wouldbe a good fit with Lubrizol’sadditives business.The commission was

investigating whether theproposed deal would violateantitrust laws. “Upon furtherreview of this matter, it nowappears that no furtheraction is warranted by thecommission at this time,”the FTC stated in Feb. 28 let-ters to Berkshire Hathaway,Lubrizol and Chemtool.“Accordingly, the investiga-tion has been closed.”As this issue goes to

press, Lubrizol said it wasunable to comment yet onits next steps toward clos-ing the acquisition.

Bye-bye, StanlowGroup I

Essar Energy reached anagreement with its base

PLACES’N’FACES

68 APRIL 2013

PLACES’N’FACES


Let’s face it; driveline design can be a real brainteaser. Reduced emissions. Improved fuel economy.Enhanced vehicle performance. Getting all the pieces to fi t is challenging—especially when youcan’t see the whole picture. That’s why you need one more piece to solve the driveline puzzle.

Introducing DrivelineNEWS.com—a single, all-encompassing website exclusively dedicated todriveline topics for both on- and off-road vehicles. Log on for the latest news, market intelligence,

technical innovations and hardware animations to help you fi nd solutions and move your business forward.

It takes ingenuity and persistence to succeed in today’s driveline market.Test your skills at DrivelineNEWS.com/Puzzle.

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© 2013 The Lubrizol Corporation. All rights reserved.121569

Where All the Pieces Fall Into Place

2013, and is expected totake six months. The inde-pendent lubricant blendersaid it is completely over-hauling the site to create amore efficient, economicaland environmentally friend-ly manufacturing facility. Itwill demolish the currentVictorian-era building andcreate a modern, steel-framed facility to house anew research laboratoryand production line.Exol Lubricants supplies

lubricants and associatedproducts for passenger car,commercial vehicle, agricul-tural, rail and industrialapplications. Improvementsalso are coming at its bulkblending site in Rotterdam,the company added.

NLGI to Hear “Argo” Author

Tony Mendez, author of“Argo,” the best-selling

memoir that inspired thefilm of the same name (win-ner of the 2013 AcademyAward for Best Picture), willdeliver the keynote addressto the upcoming NLGIAnnual Meeting. The techni-cal trade association for theglobal lubricating greaseand gear lubrication indus-try, NLGI holds its 2013annual meeting June 15-18in Tucson, Ariz. The meetingmarks the group’s 80thanniversary, and is expectedto draw hundreds of partici-pants from around theworld.In addition to Mendez’s

keynote, attendees willhear presentations focus-ing on lubricating greaseperformance, testing,applications and ad -vances, including energy-saving and biobasedgreases. Grease education

told Lube Report lastmonth. She added, “As weline out the exact detailsof what that means — youhave to build the waxyintermediate stocks, andthen start up the finishers— it looks more like thefirst quarter [of 2014]before we have commer-cial quantities of oil forsale. We’re hoping veryearly in the first quarter.”

U.K. Firm Upgrades Site

Exol Lubricants is invest-ing more than £ 2 mil-

lion (U.S. $2.6 million) toredevelop its head officeand manufacturing site inthe United Kingdom. Workat the 120,000 sq.ft. site inWednesbury, West Mid -lands, will start in July

courses (both basic andadvanced) are offeredconcurrent with the event,and technical workinggroups also meet. Theevent presents numeroussocial and networkingopportunities as well.For more details, includ-

ing registration and hotelinformation, visitwww.nlgi.org

Pettit Oil Expands inWashington

Pettit Oil Co. acquiredthe lubricant distribu-

tion and other assets ofPNEC Corp., which doesbusiness as SC Fuels, foran undisclosed amount.The acquisition includesTacoma, Wash-basedPNEC’s distribution facili-ties in Bremerton andEverett, Wash., as well asthe company’s heating oiland commercial fuel dis-tribution assets. “Thismove significantlyexpands our company’sfootprint within westernWashington, especially inthe Puget Sound, andOlympic and Kitsap penin-sulas,” said Pettit OilPresident Jim Tener.Privately held Pettit Oil,

headquartered inLakewood, Wash., distrib-utes lubricants for Chevron,Texaco and 76 Lubricants. Itsupplies the marine, com-mercial, industrial, automo-tive and other markets fromseven locations. SC Fuelssupplies bulk and packagedlubricants, includingChevron, Shell, 76, Phillips66, Kendall and Castrolbrands, to commercial,industrial and automotivecustomers.

70 APRIL 2013


about $18 million in busi-ness this year. “With acqui-sitions, our goal is to get to$100 million in revenue by2021 and to stay focusedexclusively on OEM greaseapplications,” he said.

Pascagoula Steamingto 4Q Launch

Chevron’s $1.4 billion,25,000 barrels per day

API Group II base oil projectin Pascagoula, Miss., is onbudget and on track forstartup in the fourth quarterof 2013.“We will be mechanically

complete, and go throughour commissioning andstartup in the fourth quar-ter,” Patti Leigh, generalmanager for ChevronLubricants’ base oil group,


Tony Mendez, author of Argo, shown here at the opening of the AcademyAward-winning film based on his memoir, will speak at NLGI.

Photo: O

livier D

ouliery

Retooled for

2013 Lubricants Industry Factbook

U.S. MarketplaceEngine Oil Trends

North American Base Oil DataMergers and AcquisitionsGlobal Lube Perspectives

Base Oils WorldwideAdditives: What, Where and How

Closing June 3 for August publication

Contact Gloria Steinberg [email protected]

800-474-8654; +1 703-536-7676

ADVERTISE TODAY!

activities when it opens inDecember 2013.Availon Inc., an inde-

pendent service providerto the wind industry, hassigned a distributorshipagreement with SKF’sLubrication Business.Availon will sell, installand support a wide rangeof SKF and Lincoln auto-matic lubrication systemproducts. Its engineersand field technicians alsowill receive training bySKF specialists on lubrica-tion systems for windenergy.According to an official

Kazakh government web-site, Lukoil’s presidentVagit Alekperov said hiscompany is activelydeveloping projectsthere, including building alubricants plant inKazakhstan’s south with acapacity of 100,000 tonsper year. The move is partof a push by the Russianoil major into the marketsof Central Asia.Tu Po Lubricants Co. Ltd.

began distributing SanMateo, Calif.-based Top 1Oil Products’ lubricants inChina in February.PetroChoice acquired

lubricants distributor U.S.Lubes’ Southern Division,including a terminal facilityin Wakefield, Va.Intertek has opened an

oil condition monitoringtest laboratory in Chicago.The facility will provideexpert lubricant analysis,used oil testing, and oilcondition monitoring ser-vices, and can help cus-tomers identify the risk ofdamage to equipmentfrom wear metals, conta-minants and other lubri-cant-related issues.

Oxea, CPI Ink China Deal

Lubrizol’s CPI Engi -neering Services is

partnering with OxeaChemicals to manufacturesynthetic refrigerationlubricants in Nanjing,China. Oxea has alsobegun constructing a spe-cialty derivatives plant inNanjing that will makeesters used in compressorlubricants.The plant will manufac-

ture CPI’s Emkaratebrand synthetic refrigera-tion lubricants, with pro-duction anticipated infirst-quarter 2014. CPIsaid the lubricants aresuitable for use withozone-friendly refriger-ants in the Asian market-place, which is home tosome of the world’slargest original equip-ment manufacturers ofrefrigeration equipment.“This additional manufac-

turing capability will helpensure we provide amplecapacity for the evolvingAsian market,” said CPIPresident Tom Rajewski.

Briefly Noted

Shell Chemical said itmay expand its

Geismar, La., petrochemi-cal facility by adding anadditional linear alphaolefin unit to meet growingglobal demand for prod-ucts such as syntheticlubricants and lubricantadditives.Arizona Chemical broke

ground on a $10 million,27,000-sq.ft. science andtechnology center inGeorgia that will be thenew home for its U.S.research and development

Faces in the News

Ann Oglesby, a 25-year veteran ofthe oil and gas industry and recent-

ly Phillips 66’s vice president of com-munications and public affairs, wastapped last month as the new generalmanager of Phillips 66 Lubricants. Shetakes over from Tom Liberti, who ismoving to a different role withinPhillips 66 after 11 years leading thedivision. Oglesby holds a bachelor’s degree inchemical engineering from Oklahoma State Univ.,began her oil industry career in 1987with Mobil, and has served in manage-ment roles at ConocoPhillips andPhillips 66 for the past 12 years.Kluber Lubrication North America has

picked Ralf Kraemer to be chief execu-tive officer. He has more than 15 yearsof sales, marketing and managementexperience, including with a Swisstechnology company in the Chicagoarea, a German machine tool accessories companynear Raleigh, N.C., and, for the past nine years, aGerman machine tool company in Pittsburgh.Kraemer takes the reins from Dieter A.Becker, who returned to Kluber’s glob-al headquarters in Munich, Germany,after leading the North American opera-tions for nearly three years.Mike Reddick joined Universal

Environmental Services, part of AvistaOil AG, as vice president of sales andmarketing for rerefined products.Reddick has more than 25 years ofexperience, and came to UES fromChampion Brands. The company’s newrerefinery in Peachtree City, Ga., is dueto start up in May.Lubricant and additives industry vet-

erans Sally Pavlica and Mark Trotterhave joined the board of directors atPetroleum Chemicals. Pavlica waspromoted from manager to vice presi-dent of sales, and is responsible formanaging all sales, marketing, distrib-ution and customer service. Trotterwas promoted from manager to vicepresident of operations, and nowoversees manufacturing, purchasingand logistics.Jim Herman has moved to a new

position at Chevron Phillips ChemicalCo., as strategic procurement manager

72 APRIL 2013



Sally Pavlica

Mark Trotter

Ann Oglesby

Ralf Kraemer

Mike Reddick

Anne O’NealGLOBAL MANAGER, OPERATIONAL EXCELLENCE AND HEALTH, ENVIRONMENT & SAFETY,CHEVRON ORONITE COMPANY LLCFAVORITE HOBBIES - Scrapbooking, hiking and watching kids’ sports

FAVORITE FOODS - ItalianFAVORITE BOOKS - Historical fictionFAVORITE MAGAZINES - For business, Anne reaches for Lubes’n’Greases and for personal funreading, Sunset Magazine

FAVORITE PLACE TO ADVERTISE AND WHY - “Lubes’n’Greases, great magazine that speaks toour audience!”

FAVORITE PLACE TO TRAVEL - Ireland

FAVORITE QUOTE - “There’s always time to do it right.”

MORE ABOUT ANNE - Anne has been an active volunteer for over 30 years. She currentlyserves on the boards of a youth organization, her church and the chemical engineering department of her alma mater.

A LUBES’N’GREASES PROFILE

For advertising information contact Gloria Steinberg Briskin (800)474-8654 or (703)536-7676

e-mail: [email protected]

within its Global Procurement organization, effectiveJan. 1. Replacing him as global business managerfor polyalphaolefins is James “Jay” Bickett II, whohas been with the company for 10 years. Bickettjoins the PAO team from CP Chem’s polyethylenebusiness, where he served as western regional sales manager.Trico Corp. has named Jim Jung—

the fourth generation of his family toown and operate the lubricants compa-ny — as vice president, responsible forshaping its future direction. Jung holdsa bachelor’s in production and opera-tions management from University ofWisconsin-Milwaukee. He previouslyserved as director of operations at thePewaukee, Wis., lubricants company, and recentlyheaded its complete restructuring; he is now also astockholder.AOCA, the Automotive Oil Change

Association, selected Meredith Youngas its executive director. Young isemployed by SmithBucklin, the associ-ation management firm retained byAOCA in October to manage its day-to-day operations. She’ll have completeoversight of all programs includingmembership, finance, marketing andpublic relations, and also will provide strategic direction and governance training to the board ofdirectors.Dorf Ketal Chemicals named Ralph G.

Beard its global technical and businessdevelopment manager for lubricantadditives. Formerly with PalmerHolland, he oversees product develop-ment for Dorf Ketal’s lubricant additivecomponents, as well as sales and mar-keting strategy. Prior to Palmer-Holland,Beard was president and co-owner ofTriad Lubrication Components, where his accom-plishments included developing biotech-based for-mulations and aerosol penetrating compounds forspecialty lubricant manufacturers.Mike Cox joined Resolute Oil LLC as

sales and business development man-ager, responsible for growing the salesof its MaxPar line of white oils andother base oil products. Cox has morethan 25 years of experience, with BiglerSpecialty Oil and other national chemi-cal distributors, and most recently wasa managing partner at Ponderra LLC.

74 APRIL 2013


Jim Jung

Ralph Beard

Mike Cox

Meredith Young

I N D E X O F A D V E R T I S E R S

ABB France ... 21Acme-Hardesty ... 75Afton Chemical ... 25, Inside Back CoverAllegheny Petroleum Products ... 45American Refining Group ... 12Avista Re-Refining USA ... 56Axel Christiernsson ... 17Base Oil Price Reports ... 75BASF ... 51Battenfeld Grease & Oil Corp. of NY ... Back CoverCalumet Specialty Products Partners ... 50Chevron ... 37Chevron Oronite ... 7Chevron Phillips Chemical ... 20Dover Chemical ... 39Elco Corporation ... 30Ergon ... Inside Front CoverEvonik Oil Additives ... 29ExxonMobil Chemical ... 9Heritage-Crystal Clean ... 53HollyFrontier Refining & Marketing ... 43ICIS 7th Asian Base Oils & Lubricants Conference ... 66Infineum ... 15Inolex ... 32Intertek ... 44IPAC ... 65J.A.M. Specialty Products ... 16Koehler Instrument ... 52Lubes’n’Greases Europe-Middle East-Africa ... 44Lubes’n’Greases ... 73Lubricants Industry Factbook ... 71Lubrita.com/Lubrita International ... 48Lubrizol ... 19, 69Mitsui Chemicals ... 38Monson Companies ... 57Motiva ... 77NanoMech ... 22-23Nexeo Solutions ... 63NLGI 80th Annual Meeting ... 60Nynas ... 11PBF Energy ... 58Phillips 66 ... 5Precision Fluids ... 67Rhein Chemie ... 13San Joaquin Refining ... 49SK Lubricants ... 31Summit Lubricants ... 28Ultrachem Inc. ... 33Vanderbilt Chemicals LLC ... 59Wolf Lake Terminals ... 52WTC 5th World Tribology Congress ... 61

I N D E X O F A D V E R T I S E R S

David Tran has joined PAC, which supplies analyti-cal instruments and online process applications, asvice president of product management and market-ing. Tran has over 30 years of experience, includingwith Texaco, Sun Oil, Emerson Process Manage -ment, Honeywell and most recently Thermo FisherScientific. Tran replaced Daniel Benitez, whobecame vice president of PAC’s process analyticsgroup.Amalie Oil Co. has hired Steven Subick as western

region manager, responsible for growing sales of itsAmalie, Wolf’s Head, Xcel and private-label lubri-cants in an 11-state region. Previously, with NorthAmerican Lubricants, he has over 15 years of salesand management experience.

John Bortak

John Bortak, 66, died Feb. 14, after suffering aheart attack while on vacation in Aruba. Bortak

served as president of Franklin Oil from 1985 untilFuchs acquired the company in 1996. He laterworked at Tower Oil & Technology Co. and then for16 years at Carus Corp. until his retirement.Survivors include his wife, Linda Bortak of Princeton,Ill., three children, and four grandchildren.

Lindsay Dryden Jr.

L indsay D. Dryden Jr., 85, died March 6 of cancerin Towson, Md. Dryden and his son, Lindsay D.

“Trip” Dryden III, owned Dryden Oil Co. until itsacquisition by Castrol in the early 1990s. TheBaltimore-based independent lubricant companyhad been started by Lindsay Jr.’s grandfather in1893. Lindsay Dryden Jr. took it over in 1952 andgrew it to more than 450 employees and 17 loca-tions in the East. After selling it, he started anotherbusiness in Florida, Orlando Drum & Container Corp.His hobbies included steeplechase racehorses, golfand motor yachting. Survivors include his wifeSandra, son Trip Dryden, daughter Carroll DrydenKnott, stepson Keith Hackley and stepdaughter KimCobb, a sister and many grandchildren and great-grandchildren.


ORDER TODAYwww.BaseOilPrices.com

Know past pricing andmake sense

today.

Get timely, accurate U.S. Base Oil Price Reports from Lubes’n’Greases.

Correction

In February’s issue, a graphic on page 30 wasmislabeled as “2012 PAO Production.” The datashown was PAO production in 2011.

A s the U.S. base oil market headsinto April, participants viewed busi-ness as impressive, “just what the

doctor ordered.” They observed that strongbuying in the final days of winter couldusher in a Spring Fling that’s equal to othersatisfactory and on-target years. At the veryleast, hoped many, this spring won’t be“slow as molasses” (or as 2009). There isalso belief that base oil supplies will narrowgoing forward, against stronger demand.In the midst of cranking up for the robust

month ahead, there has been some evi-dence that prices have firmed. Producershave hiked up their API Group I and GroupII postings. Not all refiners had soughthigher postings on all grades as of thiswriting, but more were bound to jump onthe band wagon and push for increases,many customers surmised.As well, it is understood that spot values

have been on the rise, moving up on sev-eral occasions within a short time frame.Sources who buy on a regular basis, butare not tied to a contract, reported thatsuppliers upped spot values at least two

76 APRIL 2013

A Healthy Trend Continues

BASE OIL REPORT

BY CAROLYN GREEN

Carolyn Green

Base Oiland

CrudePrices

Base oil prices arelowest U.S. postingsof the month for mid-vis grade beforeapplicable discounts.Crude prices aremonthly averages.

Sources: Lubes’n’Greasesresearch, U.S. EnergyInformation Administration

or three times in early March. In somecases, higher prices became apparent assellers cinched in temporary voluntaryallowances. In a few cases, TVAs werecompletely removed, thus allowing spotquotes to climb.Several customers cited upstream com-

petition for refinery feedstock (mostly vac-uum gas oil), as a key factor driving upbase oil spot prices. They see refiners con-tinuing to ramp up production of high-mar-gin transportation fuels, such as gasoline,diesel and jet fuel, at the expense of baseoil production.Even with crude prices around the

$90/barrel mark, VGO values now are con-sidered very steep. VGO is in greatdemand along the Gulf Coast and also inshort supply, according to energy experts.Most recently, VGO premiums to WestTexas crude were on either side of $40/bbl,depending on the sulfur content.The upshot: Less VGO, but costlier, may

be available now for making base oil, fur-ther stimulating prices alongside improvedbase oil demand. ❚

1

2

3

4

5

West TexasIntermediatecrude

Brent Crude

Group IBase Oil

Group IIBase Oil

Jan13

Dec.Nov.Oct.Sep.Aug.JulyJuneMayApr.Mar. Mar.Feb.

Pric

e (U

.S. $

/gal

lon)

occurred to me that Harrishad been as much afraidof me as I had been ofhim. This was a view ofthe question I had nevertaken before; but it wasone I never forgot after-wards. From that event tothe close of the war, Inever experienced trepida-tion upon confronting anenemy, though I alwaysfelt more or less anxiety. Inever forgot that he had asmuch reason to fear myforces as I had his.”

As Eleanor Rooseveltnoted, “You gainstrength, courage andconfidence by everyexperience in which youreally stop to look fear inthe face... You must dothe thing you think youcannot do.”

We usually think ofstress as being harmful tohealth, but research hasshown that it can speedup thinking, help memoryand even improve theimmune system. Dr. AliaCrum of Columbia pointsout, “You could have tonsof stress, but it’s themindset about stress thatmatters.”

A friend of mine handlesstress and overcomesobstacles using her “AAA”approach: Acceptance +Attitude = Accomplish -ment. Stress, she says,causes her to focus moresharply and come up more

Stress can be eithergood or bad, depend-ing on how you han-

dle it. As Shirley Wangsays in a recent Wall StreetJournal article, “It alldepends on your atti-tude.” Researchers at Yaleand Columbia found in arecent study that “whenpeople see stress as debili-tating, their bodies don’treact as well as when theyview stress as having posi-tive effects.”

Ulysses S. Grant wrotethat he had learned anearly lesson which taughthim how to respond tostress. In 1861, as acolonel leading an Illinoisregiment into Missouri toroot out Confederates, heremembered that “As weapproached the brow ofthe hill from which wecould see Colonel [Thomas]Harris’ camp, and possiblyfind his men ready to meetus, my heart kept gettinghigher and higher until itfelt to me that it was in mythroat. I would have givenanything then to have beenback in Illinois, but I hadnot the moral courage tohalt and consider what todo... When we reached apoint from which the valleybelow was in full view Ihalted... The marks of arecent encampment wereplainly visible, but thetroops were gone. Myheart resumed its place. It

quickly with solutions toproblems.

Our great-aunt, a WorldWar I veteran, lived inde-pendently until she wasnearly 103 years old. Somethought that the mountainair had enabled her to liveso well, and for so long,but we knew that it washer attitude that made itpossible. She had learnedto live her life without neg-ative stress.

Having a positive atti-tude — the right mindset— helps overcome anxi-ety and stress, leadingnaturally to personal andcareer success. ThomasJefferson said it well:“Nothing can stop theman with the right men-tal attitude from achiev-ing his goal; nothing onearth can help the manwith the wrong mentalattitude.” �

78 APRIL 2013

YOUR BUSINESS

BY JACK GOODHUE

Jack Goodhue, manage-ment coach, may be contacted by e-mail at [email protected].

With the Right Attitude, Stress Can Be Good

Ulysses Grant

The world’s industrial power plants, mills and factories are home to important machinery that works hard around the clock. And Afton is focused on keeping that equipment productive.

By providing industrial lubricant additives for these increasingly-complex machines, Afton helps you preserve their reliability and efficiency. And our Passion for Solutions and collaboration with you will keep those machines operating smoothly … and keep the world’s industry rolling along.

© 2013 Afton Chemical Corporation is a wholly-owned subsidiary of NewMarket Corporation (NYSE:NEU). www.aftonchemical.com.

Afton has additive solutions that keep industry moving forward.

Battenfeld Grease – 1174 Erie Avenue, N. Tonawanda, NY 14120 – P: 716.695.2100 F: 716.695.0367Battenfeld-American – 1575 Clinton Street, Buffalo, NY 14206 – P: 716.822.8410Battenfeld Grease (Canada) Ltd. – 68 Titan Road, Toronto, Canada M8Z2J8 – Ph: 416.239.1548

“Battenfeld strives to deliver on our ‘Quality Without Compromise’ pledge everyday, because our employees won’t accept anything less. Our integrity is on the line. You can see that in the face of every one of them.” – Barbara Bellanti - CEO, Battenfeld Grease Inc.

ISO 9001:2000 • QS-9000:1998

lubes & greases april 2013

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