We’re #1 in Premium Base Oil
PASCAGOULA, Miss. – Advancing motor oil specifications and quality standards made now the right time for Chevron to launch its 25,000 barrels per day API Group II base oil plant here, Chevron Lubricants’ president said at a commissioning event Aug. 21.
Key Chevron leaders and Mississippi government officials, including Miss. Gov. Phil Bryant, spoke at a breakfast reception Aug. 21 at the Hilton Garden Inn in Pascagoula, part of the commissioning event. The plant began shipping base oil in July.
“Advancing specifications and quality standards are driving demand growth for lubricants containing premium base oils, much faster than the overall market,” Chevron Lubricants President Colleen Cervantes told the reception. “These increased engine demands require lower viscosity lubricants and are formulated with the latest additive technology. In fact, industry estimates predict the compounded growth rate of roughly 10 percent a year will take premium base oils from approximately 30 percent of the global market today to more than half of the market by 2020. The shift is already under way.”
She said stringent emission standards are already established in Europe, which will be a major export market for the Pascagoula plant’s base oil. “The rest of the world is also pushing towards increasingly stringent standards,” Cervantes added.
As another example of changing standards, she cited heavy duty motor oil in the North American market. “Over the next 10 years, the North American on-road heavy duty motor oil market will shift dramatically from primarily a 15W-40 market to lower viscosity grades,” she said. “We estimate that this trend will shift roughly 180 million gallons of annual demand to multiple viscosity grade motor oils. This irreversible trend is being driven by a combination of government regulations, for improved fuel economy and lower carbon emissions, and to address truck owners’ laser focus on improving their bottom line through lowering their operating costs. Seven of the 10 largest fleets in North America have already moved to lower viscosity heavy duty motor oil.”
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