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Watch the Spreads |
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The most direct way to assess the relationship crude
price has with base oils is to look at the
differential between the price of crude oil and base
oil (the spread).
Excluding the rapid run-up in the price of crude in
2008, the spreads averaged close to $1.20 a gallon
from 2004 to 2007. Fairly consistent with that
average, the spread year-to-date for 2009 is $1.18 a
gallon.
But take note, the spread has been trending down
since April. Since that time the average spread is
$0.75 and, as of today, its $0.88 a gallon.
Assuming the price of crude oil continues its
current trend up, its likely we will see the
relationship crude has to base oil, and ultimately
finished lubricants, make its mark in the next
month, or two. |
Lyden Oil
Company, an Ohio-based petroleum products distributor, is
celebrating its 90th Anniversary this year and is
introducing a new line of API approved “green” passenger car
motor oils. These motor oils will be sold under the
ProGuard® ECO brand
name.
According to Paul Lyden, Vice President of Lyden Oil
Company, “ProGuard® ECO
motor oils are made from high quality segregated used motor
oil feedstocks that are re-refined in a new state-of-the-art
facility in Columbus, Ohio.” In addition, Lyden says, “They
are blended with the most advanced additives to allow for
formulations with the maximum amount of re-refined,
hydrotreated Group II+ base oils.” Lyden Oil Company plans
to market ProGuard® ECO
in their primary areas of distribution in Ohio, Michigan,
Indiana, Pennsylvania and West Virginia, and also will
license other distributors in areas outside their primary
market.
Lyden says ProGuard® ECO
motor oils are especially appealing to the environmentally
conscious consumer, because conceptually the consumer can
see the oil make the full circle trip from
crankcase-to-crankcase. The used passenger car motor oil
is re-refined through an advanced hydro-treating process and
formulated into a new product instead of being burned in
furnaces or disposed of through other means. “This process
truly minimizes the environmental footprint of passenger car
motor oil,” says Lyden. And he adds, ProGuard®
ECO motor oils are also
appropriate for fleets mandated to follow Executive Order
13101, requiring the use of re-refined motor oils. Most
government entities, including the United States Postal
Service, are required to comply with this ruling.
In addition to the ProGuard®
ECO , Lyden Oil is also offering a “green” line
of hydraulic oils for environmentally conscious industrial
customers. Lyden says, by using the same high-quality
re-refined base stocks combined with a premium additive
package these hydraulic oils offer improved performance
beyond conventionally formulated products. These will be
distributed through the same channels as the ProGuard®
ECO motor oils.
Paul Lyden tells JobbersWorld,
rerefined oils have come a long way from the days when it
used to be some of the darkest, lowest quality oil in the
market. He adds that it was a tough sell decades ago because
rerefining technology was not very advanced, and the quality
of rerefined motor oils was rightfully so, considered poor.
But that’s changed.
Lyden says rerefining technology
has advanced to a point where the quality of the base oils
from some rerefiners is indistinguishable from that produced
through refining of crude oil. In fact, it’s actually better
than the quality of some of the so called “virgin” base oils
currently in the market. Because whereas some majors are
still producing API Group I (and the so called Group I+, or
Group II-), the rerefined base oil used in
ProGuard® ECO, is a API
Group II+.
Lyden points to a sample bottle
of the rerefined base oil in his office that’s used in
ProGuard® ECO,
noting that it’s water clear, API Group II+, base oil you
can be “proud of.” And when that rerefined base oil is
blended with the quality of additives available from Afton
and Infineum, Lyden says “the result is a finished lubricant
our company can confidently, and proudly market as a
high-quality engine oil backed with science and industry
research.” And in addition to being proud of the product
quality, Lyden says, he and its employees are “proud to know
ProGuard® ECO
is doing something good for the environment, the economy,
and its customers.”
About
Lyden:
Lyden Oil Company is a fourth-generation, family-owned and
operated lubricant distributor. Brothers Breen and Paul
Lyden serve as President/CEO and Vice President. The company
has locations in Youngstown, OH; Northwood, OH; Massillon,
OH; Lansing, MI; Allen Park, MI and Shelby Township, MI. The
company specializes in bulk industrial, automotive,
commercial, agricultural and food-grade lubricants. In
addition, it sells and services the equipment for storing
and using our products. For more on Lyden Oil Company, see
website link below:
www.lydenoil.com
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PetroCard Systems Expands Mobile Fueling Services to
Oregon |
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PetroCard Systems, Inc., a leading fuels and
lubrication distributor in the Pacific Northwest,
announced it has brought its mobile fueling service
in-house and under its own brand to have end-to-end
control of the quality and reliability of service.
PetroCard employees will now deliver and fuel
commercial vehicles parked at depots or other lots
from rigs owned and operated by PetroCard, rather
than via independent contractors. The company's
mobile fueling service delivers more than 125,000
gallons per month of diesel fuel to the Oregon
market.
"Our customers in Oregon asked us for an integrated
mobile fueling solution in addition to our cardlock
services. To meet those demands we have brought all
of our services in the Oregon market under the
PetroCard brand," said Steve Tolton, CEO of
PetroCard. "We place the highest premium on quality
of service to our customers and now we have more
control of that."
Following the company's recent acquisition of
Estacada Oil and Northwest Petroleum, PetroCard now
maintains three office locations in Oregon, which
will support the new mobile fueling operations.
PetroCard currently offers fuel services via three
primary methods: via mobile fueling, via "cardlocks,"
or unattended, self-serve fueling stations and as
well as via delivery to bulk fuel tanks. PetroCard
is one of the largest cardlock operators in the
Pacific Northwest. In addition to its fuel services,
PetroCard Systems currently sells lubricants to many
different classes of trades such as retail chains,
wholesale operations, automotive installers,
commercial and heavy-duty fleets out of its two
offices located in Arlington and Spokane, Washington
and now Clackamas, Oregon. PetroCard is the largest
ExxonMobil distributor in Washington State.
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