Author Archives: Carlos De Sordi

Mobil Releases Inaugural Global Base Oil Industry Report

ExxonMobil released its inaugural global base oil industry report, which features input from key industry influences and top decision makers.

Learn More: Check out PetroChoice’s line of Mobil Products 

The ExxonMobil Base Stocks 2018 Industry Pulse Report was created in conjunction with KRC Research.  Among the reports key findings were that almost 75 percent of industry respondents  consider Group II base oils the “heart of the market,” especially among those in the automotive, marine, industrial and commercial vehicle industries.  Almost 33 percent said they still consider Group I base oil an important commodity despite demand for it decreasing rapidly.

Those polled also expressed their confidence in American Petroleum Institute (API) standards, with a majority agreeing they were “sufficient for formulating and manufacturing engine oil.”  About 61 percent said current standards were fine, with another 12 percent saying they would be in favor of gradual changes.  Respondents also expressed confidence that the industry would be able to keep up with tightening regulations.

 

Battery Industry Projected to Drive Lithium Growth

Global demand for lithium is projected to rise 8.9 percent per year through 2019, according to a research study.

Read More: Learn about PetroChoice’s mining products and services

The Freedonia Group study projects demand for the metal will reach more than 49 thousand metric tons by the end of next year.  The prediction is the result of expansions in the lithium-ion battery industry driven by increased demand for electric vehicles, energy storage systems and portable electronics.

The value of the global lithium market could rise to $1.7.  Some experts believe these estimates may be too conservative, as the market for the mineral continues to out-pace expectations and demand remains significantly higher than supply.

Re-Refined Oil a Cleaner, Greener Alternative

Oil before and after re-refiningEnvironmental protection and sustainability have become important parts of any business.  Changing attitudes and intensifying regulations have pushed “going green” from a consideration to a necessity.  This trend has led to more and more people turning to re-refined oil.

By hydrotreating used oil, worn out additives and contaminants are separated from base oil, allowing it to be used again.  The base oil, usually 80 to 85 percent of the mixture, can then be used again and new additive packages can be included.  The spent additives can be used or sold, as they have applications in construction, paving, roofing and other industries.

Businesses of all sizes face growing social and government pressure to reduce their carbon footprint and adopt sustainable technology.  Using re-refined oil could be a step in that direction, especially for large scale enterprises that cycle through a lot of lubricant.

Related Product: Eco-Ultra

“Big corporations, their carbon footprint is being tracked very closely.  Using re-refined products is a great way to stay on top of that,” Mike Wyant, Director of Technical Services for PetroChoice, said.  “It’s how you perceive that oil and what value you place upon it.  It’s sustainable, it’s a better carbon footprint, there are less emissions, there are all these good things about the oil.”

In the past, industry insiders have thought of re-refined oil as an inferior product.  That perception is beginning to change as new technology and more advanced hydrotreating techniques allow for better quality.  Wyant said re-refined oils, provided they are treated correctly, can even outperform more traditional products.

“Some folks think it is inferior.  That is a myth,” Wyant said.  “The API (American Petroleum Institute) actually encourages re-refined oil.  When they designate qualities of oil, the terms re-refined and ‘virgin’ are not even involved.  Sulfur saturates and viscosity index are the building blocks of quality oil.  As long as it is hydrotreated correctly, re-refined oil is going to perform as good, if not better, than a ‘virgin’ crude-based oil.”

Related: Learn more about PetroChoice’s green engine oil

Wyant said he is beginning to see re-refined oil become more prevalent as its benefits become more apparent.  Re-refined oils can cause as much as 81 percent fewer greenhouse gas emissions.  The re-refining process also uses 85 percent less energy than refining from new crude oil.

“We have seen it take off.  I think it is how you get it out into the world and relay the story behind it.  It does make a difference, we know that it makes a difference.  It takes less energy to refine, it has less emissions, it requires less crude.  We know there is a benefit.”

CVSA Announces Safe Driver Week Crackdown

The Commercial Vehicle Safety Alliance (CVSA) has announced its annual Operation Safe Driver Week will take place July 15-21.

The group partners with local law enforcement throughout North America to crack down on seat belt enforcement, traffic violations, roadside inspections and regulatory compliance.  They will also focus on distracted driving, texting and compliance with local traffic laws.

During last year’s Operation Safe Driver Week, the CVSA reported almost 39,000 citations and warnings were issued to commercial vehicle drivers.  An overwhelming majority of those, 84 percent, were for state and local moving violations.  Speeding (7.4 percent), failure to use a seat belt (2.6 percent), failure to obey a traffic control device (2.5 percent) and using a cell phone (0.8 percent) round out the top five.

Learn more about commercial vehicle services available through PetroChoice

PetroChoice Sponsors HCA Golf Outing

PetroChoice at the 19th Annual Don Clarkson Golf TournamentPetroChoice sponsored a hole at the 19th Annual Don Clarkson Golf Tournament Monday, May 14 in Kansas City, KS.  The event was sponsored by the Heavy Constructor’s Association (HCA).

Employees golfed alongside representatives from Ideker, Inc, a customer  based in St. Joseph, MO.  Pictured from left to right are Adam Miljavac, Controller for Ideker, Inc., Jeff Draffan, Territory Sales Manager for PetroChoice and Ken Ideker, Principal in Ideker, Inc.

Political Tension Could Impact Oil

As regional strife and political tension continue to grow in Iran, some in the oil industry speculate the price of crude oil could reach $100 per barrel by 2019.

Several investment banks and other companies have called for prices to climb to anywhere from $80 to $90 per barrel by next year.  Some, like Hong Kong-based Seismik Technology Co., have said they believe the price could go higher.  Prices have already gained nearly ten percent this past month and almost 20 percent since January.

Much of the speculation centers around the current political climate in Iran, the fourth largest member of the Organization of the Petroleum Exporting Countries (OPEC).  The Middle Eastern nation has added one million extra barrels of crude oil per day and could face sanctions.

 

Gas, Oil Drilling, Completions Rise

Natural gas, oil drilling and completions have increased 35 percent year over year, according to the American Petroleum Institute.

The first quarter increase from 2017 to 2018 is a sign of strength for the United States’ oil and natural gas industries.   Q1 2018 also saw a 60 percent increase in success rate for exploration of oil and natural gas- the highest it has been since 2009.

PetroChoice offers a wide range of products and services for shale oil and gas drilling companies.  Learn more about them here.

Oil, Lubricant Analysis Saves Money, Prolongs Equipment Life

Oil and Lubricant Analysis LabConsistently analyzing oil and lubricants can help companies across all industries extend the life of their equipment, reduce damage and prevent costly failures.

Oil analysis can provide high-level insight into performance of lubricants and equipment, identifying contaminants or other problems which might be impacting operations. This data can be valuable for companies who invest large amounts of capital into their equipment.  It can also provide added protection against equipment failure.   It can help determine where lubricant or system upgrades can lead to savings in the long run.

“Failures happen frequently and oil analysis will help eliminate a lot of them,” Mike Wyant, Director of Technical Services for PetroChoice’s West Division, said.  “If you have an engine failure, it could cost a lot of money in repairs and downtime.  A locomotive engine could be two million dollars.  There is dirt hauling equipment that costs millions of dollars.  These investments are taken seriously.”

Learn More: Ask your sales representative about Engine Guard

Analysis can be performed on any lubricants, not just engine oil.  Not all lubricants are tested for the same contaminants, but all lubricants can lose their effectiveness over time.

“Every component is going to have issues.  Hydraulic systems usually have elevated dirt levels because they aren’t kept clean,” Wyant said.  “The way wear metals are structured for reporting, the hydraulic systems are going to be more restrictive.  You need to have less wear metals present for it to work, and you have to have a cleaner system than with an engine oil that is designed to collect contaminants.  Hydraulic systems are designed to shed contaminants you don’t want them collecting.”

Related: Learn more about PetroChoice’s oil analysis options here.

Testing can go a long way towards early detection, but performing analysis on a consistent basis is critical for ensuring optimal equipment operation.  Consistently submitting lubricant samples for analysis can reveal trends in the results that a one-time test can’t.  Tracking these trends can help operators determine if they have problems with their equipment or need to switch to a new product.  Falling off an inconsistent schedule or providing inconsistent samples can cause skewed results.

“You lose the value of trending.  When you become inconsistent you can’t trend anymore,” Wyant said.  “The linear graph that you are looking at won’t be accurate if you lose consistency.  When you sample in a different location, you are going to get a different reading.  When you sample less frequently it is going to skew that graph.  It needs to be consistent for it to work.”

Lubricants are vulnerable to a huge range of contaminants, from dirt to metal shavings to chemicals.  While no contamination is good contamination, Wyant said leaking anti-freeze mixing with engine oil have produced some of the worst samples he has seen.

“Anti-Freeze contaminated engine oils are easily the worst we see.  It sets up like a Jell-O mold.  When you drop the oil pan, the shaft has a depression in the oil around it and it looks like Jell-O.  That ethylene glycol in the anti-freeze will polymerize the engine oil and turn it into a massive ball of goo.”

PetroChoice-Mobil 2017 Maintenance Symposium

This past week the North Star Region of the West Division held its 8th Bi-Annual Maintenance

2017 Maintenance Symposium Day 1 Gathering.

Symposium in Duluth, Minnesota. This record setting event was co-hosted by Mobil Oil and attracted more than 210 customers, prospects, employees and vendors. The symposium is typically focused around the latest technology and maintenance best practices. Events like these can help support customer retention, upselling of premium products, the creation of new product lines to market, and build credibility with potential new customers. PetroChoice is the industry leader in Solution Based Selling and it is events like this that prove it.  A huge tip of the hat to Dan Lenz (PetroChoice Field Marketing) and Matt Dinslage (Mobil Lube Engineer) for coordinating a highly educational and flawless event.