29 November 2012 21:19 [Source: ICIS news]
NEW YORK (ICIS)--North American base oil capacity has shifted dramatically over the last 14 years with the transition from Group I to Group II base oils, but less change is expected in the ?xml:namespace>
“Most new capacity coming on line globally will be Group III base oil production, as it is more efficient to operate and Group III expansions will take place in
In 1998, there were 36 plants producing 264,500 bbl/day of base oils in
In 2012, there are 28 base oil plants in North America producing 255, 700 bbl/day and Group I represents just 28% of total supply, while Group II base oil production represents 47% of total supply.
Group I and II, II+ base stocks will still be around for the foreseeable future,
There have been many Group I base oil closures in North America and
Group I is still the top choice for many industrial lubricant uses and produces specialty products that other base oil Group do not produce including bright stock and paraffin wax. It has niche applications in the process oil and diluent sector, but its future in engine oils is questionable,
Group II is also used in industrial lubricants and commercial engine oils.
Group II+ and Group III base oils have lower viscosity and are better suited for automotive applications, transmission fluids and gear oils.
The major focus for finished lubricant demand is on the automotive market where engine oil represents 43% of total lubricant demand, Barrow said.
The global light duty fleet will double by 2030, but most of that growth will come from the developing economies of the world.
The conference ends on Friday.
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