Chevron Announced Last Wednesday

Chevron announced a general price increase for its finished lubricants and greases to be effective October 2, 2006. This increase will reportedly hike its price of its lubricating oils by an average of 6% to 10%. It’s gear oil and grease prices will move up by an average of 3% to 5%. Word on the street is the price change for DELO 12/1s and 6/1s package will be effective November 3, 2006. The price increase for Delo in drums, pails, bulk, and other package styles, however, will be effective October 2, 2006.

As always, and in what seems like the chant of every other notification of price increases in the lubricants business, Chevron attributes this increase to the rise in the cost of base oil, additives, and packaging.

So there you have it Warren was the first to move, ExxonMobil was second. Chevron was next - only to be followed by ConocoPhillips.

Calumet, based in Indianapolis, Indiana, has made the strategic decision to exit the finished lubricants business. According to Jobbers World sources, the decision was made nearly three months ago and the company has been quietly advising its customers of its orderly exit since.

The reasons given for its exit are primarily related to the challenges base oil companies have when they both supply and compete with their customers. As a long-time, full line supplier of naphthenic and paraffinic base oils, Calumet’s decision to enter the finished lubricant business nearly 3.5 years ago was a difficult one to make. This is because base oil customers are often reluctant to source base oil from a company that also competes with it in finished lubricant market. This challenge, together with Calumet’s decision to invest in expanding its Shreveport base oil facility, resulted in its decision to exit the finished lubricants business.

So now it’s clear, Calumet is a full line supplier of naphthenic and paraffinic base oils as well as aliphatic solvents and paraffin and microcrystalline waxes. They do not compete in the finished lubricants business.

Pinnacle Oil announced that it has signed an agreement to supply lubricants under the Marathon, Speedway, SuperAmerica and Pilot brands. Marathon Oil Corporation, through affiliated companies, owns or participates in each of these brands.

Pinnacle Oil announced that it has signed an agreement to supply lubricants under the Marathon, Speedway, SuperAmerica and Pilot brands. Marathon Oil Corporation, through affiliated companies, owns or participates in each of these brands.

“We are pleased to be supplying Marathon and their affiliated companies with a quality product,” said Charles Collins, Pinnacle’s Vice President Sales. “This expands our marketing base with one of the premier companies in the Midwest."

Pinnacle Oil is an Indianapolis-based supplier of lubricants for contract customers. The company blends and packages automotive, industrial, aircraft, 2-cycle and other specialty lubricants for its customers. Pinnacle recently opened Golden Triangle Lubricant Services in Nederland, Texas, to focus on Marine Lubricants and other products.

Further highlighting their growing presence in the antifreeze market, KOST USA, Inc. announced the launch of a new range of high performance coolant/antifreezes called DefendAL. “The launch of DefendAL – Your Coolant System’s Best Defense represents the next step in our strategy to offer the market product ranges that will not only compete with the major brands on performance and packaging appeal, but also extend component lifecycles” said Steve Overdeck, Vice President of Sales and Operations.

The DefendAL range is currently comprised of four products; specifically formulated to OEM specifications and precise performance levels. The DefendAL range is offered in concentrate as well as pre-mixed 50/50 with deionized water and consists of; DefendAL Universal Coolant/Antifreeze, DefendAL Heavy Duty Pre-Charged Coolant/Antifreeze, DefendAL Heavy Duty Extended Life Coolant/Antifreeze, and DefendAL Global Extended Life Coolant/Antifreeze.

Each product has been formulated with field tested and certified state-of-the-art additive technology to protect coolant systems. The DefendAL range exceeds OEM specifications for existing engine designs and is positioned to meet any new specifications for 2007 heavy duty diesel engines.

Additionally, the DefendAL range features KOST USA’s Bitter-Aid Anti-Consumption Additive. Bitter- Aid is a bitter agent that deters consumption. Three states, California, New Mexico and Oregon currently have laws requiring the use of a bitter agent in antifreeze. The need for a bitter agent has also received national attention. The House Committee on Energy and Commerce passed H.R. 2567 (known as the Antifreeze Bittering Act) on July 12, referring the legislation to the House Judiciary Committee. A companion Senate bill (S. 1110) was approved in committee late last year, and awaits action on the Senate floor.