ILMA Compoundings - May 2021 - 27

LOOKING AHEAD

The DOE report concludes that the
near future for the used oil sector will
be influenced - both positively and
negatively - by at least three factors.
First, demand for higher-performing lubricants is expected to grow in
response to automotive and industrial
requirements. While the impact of this
remains to be seen, it may push recyclers to develop new technologies and
processes that will increase both the
performance and appeal of recycled and
re-refined oils, while also strengthening
overall interest in used base oils.
Second, soon-to-be-implemented
United Nations International Maritime
Organization regulations limiting the
sulfur content of marine bunker fuel are
expected to lead to declining sulfurheavy fuel markets. " Used oil sources

tied to high-sulfur fuel will see lower
used oil values and, in tandem, the value
of used oil in traditional fuel markets
will likely decline, " the report stated.
Finally, a robust domestic supply of
low-priced natural gas will continue
to lower demand for used oil as a fuel.
" These external factors are likely to
enhance the dynamic nature of the
domestic used oil sector, " the report
summed up, " making it even more
important for the stakeholders to have
access to accurate data and for there
to be policies in place to support a
healthy and robust used oil collection
and reuse industry. "
At the manufacturer or supplier
level, Bruce said, " I think we'll
continue to see consolidation among
the used motor oil collectors. And
I think the new administration will

help in creating a kind of preference
for re-refined products, either through
pricing or other incentives. "
" It's hard to imagine that sustainability will become less important
in the future, " Moncrieff added. " In
time, any major lubricants marketers
will need to develop sustainability
plans for that business, which demonstrate their responsible custody over
the life cycle of their products, as well
as their environmental impacts. "
While he has seen little tangible
evidence of that responsibility from
the majors to date, Moncrieff believes
that will change going forward. " We're
on the cusp, " he said. " The future for
re-refining will be brighter. "
Bittner is a Michigan-based freelance journalist
and a frequent Compoundings contributor.

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ILMA Compoundings - May 2021

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