If you’ve ever wondered where your used motor oil (UMO) goes after you get an oil change, the short answer is “to a network of small collectors who sell the used oil to re-refiners, who remove impurities and sell it to lubricant producers as a base oil”. It’s a fairly straightforward industry, but it’s helpful to know some basics: a typical lubricant formulation is something like 90% base oil and 10% additive (things like antioxidants, detergents, anti-wear additives, rust/corrosion inhibitors, etc.). Base oils are categorized into groups according to their viscosity and impurity content. Groups I, II, and III base oils are produced at refineries from the vacuum gas oil (VGO) fraction after crude oil distillation, but they can also be made by recycling UMO—which is done through a series of processes that remove solids, metals, and broken down additives, leaving a virgin-like base oil behind. It’s “re-refiners” like Safety-Kleen and Heritage-Crystal Clean who do this UMO recycling, but I’m writing about it today because a Shell joint venture with Blue Tide Environmental just started up their new 5,000 barrel per day re-refining site in Baytown, Texas. [LINK]