U.S. DEPARTMENT OF COMMERCE
National Technical Information Service
PB-251 716
A Technical and Economic
Study of Waste Oil Recove
Parts IV, V and VI
Teknekron, Inc.
Prepared For
Environmental Protection Agency
October 1975
-------
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A TECHNICAL AND ECONOMIC STUDY
OF WASTE'OIL RECOVER]
EPA No. 68-01-2904
PART IV ENERGY CONSUMPTION IN WASTE OIL RECOVERY
by Peter M. Cukor and Timothy Hall Report No. EEED 109
PART V A FIELD TEST OF THE QUALITY OF RE-REFINED LUBE OILS
by Peter M. Cukor Report No. EEED 109
PART VI A REVIEW OF RE-REVIN ING ECONOMIC!;
by Peter M. Cukor
Report No. LEED 109
Prepared for
Office of Solid Waste Management
Programs »
U.S. Environmental Protection Agency
Washington, D.C.
Project Officers:
Mr. Laurence B. McEwen, Jr.
Dr. John H. Skinner
ENERGY AND ENVIRONMENTAL
ENGINEERING DIVISION
Teknekron, Inc.
2118 Mil via Street
Berkeley, CA 94704 (415)848-1464
October 25, 1975
-------
BIBLIOGRAPHIC DATA
SHEET
1. Report No.
EPA/530/SH-90 C.4
3. Recipient's Accession No.
4. Title and Subtitle
A Technical and Economic Study of Waste Oil Recovery
Parts 4, 5 and 6: Energy consumption in waste oil recovery,
a field test of re-refined lube oil quality, a review of re-re
5. Report Date
October, 1975
6.
:im'nq economics.
7. Autlior(s)
Peter M. Curor and Timothy Hall
8- Performing Organization Rept.
No.
9. PerfornyBj; Organization Name and Address
Tekne^ron, Inc. and the Institute of Public Administration
2118 Mil via Street
Berkeley, Calif. 94704
10. Project/Task/Work Unit No.
11. Contract/Grant No.
EPA Contract No:
68-01-2904
12. Sponsoring Organization Name and Address
Office of Solid Waste Management Programs
U.S. Environmental Protection Agency
Washington, D.C. 20^60
13. Type of Report & Period
Covered
Final 1 year
14.
15. Supplementary Notes
Part 1 printed as PB-237 618; Part 2 printed as PB-237 619; Part 3 printed as
PB-237-620 ..
16. Abstracts
Part 4: An energy balance of waste oil recycling as lube oil and waste oil recovery
as fuel oil.
Part 5: A description of a potential field test re-refined lube oil utilizing
motor vehicles on a federal facility.
Part 6: An update of re-refining economies reflecting increased prices of
petroleum products (1974-75).
17. Xry Words and Document Analysis. 17o. Descriptors
Secondary Oil Recovery, Economic Analysis
17b. Idcntif iers/Open-Endcd Terms
Waste Oil re-refining, recycling, re-refining industry analysis.
17c. COSATI Field/Group
18. Availability Statement
19. Security Class (This (21. No. of Pages
Report) | • '
UNCLASSIFIED •
20. Security Class (This
Page
UNCLASSIFIED
(••ORM NTIS-35 (REV. 3-721
USCOIvlM-OC 1«932-P72
-------
A TECHNICAL AND ECONOMIC STUDY OF WASTE OIL RECOVERY
This final report (SW-90c.4) describes work performed
for the Federal solid waste management programs
under contract no. 68-01-2904 to TEKNEKPON, INC.
and is reproduced as received from the contractor
U.S. ENVIRONMENTAL PROTECTION AGENCY
1976
-------
ACKNOWLEDGEMENT
Teknekron, Inc. wishes to acknowledge the Resource Recovery Division,
Office of Solid Waste Management Programs, U.S. Environmental Protection
Agency, for support of this study. In particular we are grateful to
Mr. Laurence B. McEwen, Jr., the Project Officer and Dr. John H. Skinner,
Deputy Director, Resource Recovery Division for their guidance and
assistance in the conduct of this research.
Teknekron, Inc. would also like to acknowledge the assistance of
Mr. Joseph Urbanek, Special Assistant for Environmental Quality
and Ms. Paula McLain, Staff Assistant for Environmental Quality,
Property Disposal Division, Defense Supply Agency for their assistance
in providing data concerning waste oil disposal by military facilities.
We would also like to express our sincere appreciation to the following
individuals and organizations whose assistance was vital in completing
this project.
The six re-refiners interviewed
Mr. Belton R. Williams, President, Association of Petroleum Re-refiners
Mr. Thomas Sheahan, Mr. Curtis Gordon and Mr. Donald Eriksen, the
Lubrizol Corporation
Mr. George Weamer, Chevron Research Company, Standard Oil Company of
California.
-------
EPA Review Notice
This report has been reviewed by the Resource Recovery
Division, Office of Solid Waste Management Programs,
EPA, and approved for publication. Approval does not
signify that the contents necessarily reflect the views
and policies of the Environmental Protection Agency,
nor does mention of trade names or commercial products
constitute endorsement or recommendation for use.
-------
A TECHNICAL AND ECONOMIC STUDY
OF WASTE OIL RECOVERY
PART IV Energy Consumption in Waste Oil Recovery
by Peter M. Cukor and Timothy Hall
-------
TABLE OF CONTENTS
1.0 INTRODUCTION AND SUMMARY - - — - 1
1.1 Introduction 1
1.2 Summary 1
2.0 ASSUMPTIONS-- - — - 5
3.0 ANALYSIS OF CASE A: LUBE OIL PRODUCTION AND WASTE OIL
DISPOSAL BY BURNING — 7
3.1 Atmospheric and Vacuum Distillation 7
3.2 Propane Deasphalting 9
3.3 Solvent Extraction 9
3.4 Hydrotreating 9
3.5 Hydrogen by Steam Reforming 9
3.6 Solvent Dewaxing 10
3.7 Waste Oil Drying— --- - - - 10
3.8 Feed — - -- 10
4.0 DESCRIPTION OF CASE B: LUBE OIL PRODUCTION AND WASTE OIL
RECOVERY BY RE-REFINING - 11
5.0 MATERIAL AND ENERGY BALANCES — - 13
5.1 Consumed Energy 13
5.2 Comparison 13
5.3 Discussion --- 13
6.0 SENSITIVITY ANALYSIS 21
6.1 Refining Process Energy 21
6.2 Lube Oil Yield from Reduced Crude 21
6.3 Re-Refining Losses 23
7.0 REFERENCES — - 31
-------
LIST OF TABLES
1. Summary of Material Balance and Energy Consumption Calculations 2
2. Material and Potential Energy Balance — - 14
3. Energy Consumed in Process Units 15
4. Process Energy Consumption 16
5. Material and Energy Balance Summary — 17
6. Sensitivity of Energy Balance to Consumption of Refining
Process Energy (Btu/day x 109) - 22
7. Sensitivity Analysis - Alter Lube Yield by ± 25%
Material Throughputs (b/d) 24
8. Sensitivity Analysis - Alter Lube Yield by ± 25%
Required Processing Unit Capacities (b/d) 25
9. Sensitivity Analysis - Alter Lube Yield by ± 25%
Process Energy Consumption (Btu/day) 26
10. Sensitivity Analysis - Alter Lube Oil Yield by ± 25%
Energy Balance Summary (Btu/day x 109) 27
11. Sensitivity Analysis - Effect of Changing Re-Refining Losses
on Total Energy Consumption, Material Balance (b/d) - 28
12. Sensitivity Analysis - Effect of Changing Re-Refining Losses on
Total Energy Consumption, Energy Balance (Btu/day x 109) 29
-------
LIST OF FIGURES
1. Case A: Lube Oil Production and Waste Oil Disposal by Burning 8
2. Case B: Lube Oil Production and Waste Oil Recovery by Re-Refining 12
111
-------
1.0 INTRODUCTION AND SUMTARY
1.1 Introduction
Studies of the disposition of waste lubricating oils have shown that burning
for energy recovery and re-refining to produce recycled lubricants are two
possible methods for utilizing the resource value of these materials. This
chapter analyzes material balances, energy requirements and the energy conser-
vation potential of these alternatives by considering the following cases:
Case A Waste lube oils are dried and used for fuel. The potentially
recoverable lube oil which has been lost is replaced by manu-
facture of virgin lube oil from atmospheric reduced crude oil
using standard refining processes.
Case B Lubricating oils are recovered and recycled by re-refining the
waste oils using the acid/clay process. Virgin lube oil pro-
duction, in Case A, is reduced by the amount of oil recycled.
1.2 Summary
The results of the material balance and energy consumption calculations are
summarized in Table 1. In Case A, where waste crankcase oils are converted to
fuel oil, and Case 8, where waste crankcase oils are re-refined to produce lube
oil, the total lube oil production (equal to the sum of production figures for
virgin lube oil and re-refined lube oil) is 4,950 barrels per day. Since
virgin lube oil production in Case A is nearly three times that in Case B, the
process energy consumed is nearly three times as great. Although the process
energy consumed in recovery of fuel oil or lube oil from waste crankcase oils
is small, significant losses of hydrocarbons occur during re-refining. Losses
of lube oil during use in automobiles are the same for the two cases.
Comparison of the figures for total energy consumption for the two cases reveals
that production of lubricating oils by re-refining waste oils shows a net energy
savings of about 20,970 Btu per gallon of oil produced over production of a like
amount of lube oils from virgin atmospheric reduced crude, assuming in both
cases that all products other than the produced lubes are burned as fuel.
Re-refining the 221 million gallons per year of waste crankcase oils burned as
fuel plus the 290 million gallons (1972 volumes) disposed of by methods not
involving energy recovery would result in an annual energy savings of at least
1.5 million barrels of crude oil equivalent. This is equal to an annual
savings of fuel oil expense and currency outflow for foreign crude of about
$18 million.
-------
Table 1
SUMMARY OF MATERIAL BALANCE AND ENERGY CONSUMPTION CALCULATIONS
Case A Case B
to to
Disposition of Waste Lube Oils Fuel Oil Re-Refining
Production of Lube Oil (barrels/day)
By refining of atmospheric reduced crude 4,950 1,790
By re-refining of waste crankcase oils - 3,160
Total lube oil production 4,950 4,950
Energy Consumption (Btu's/day)
Process energy consumed in virgin q q
lube oil production 15.28 x 10 5.52 x 10
Process energy consumed in recovery of
fuel oil (Case A) or recovery of re- o q
refined lube oil (Case B) from waste oil 0.26 x 10 0.86 x 10
Hydrocarbon losses
9 9
During lube oil use in automobiles 5.94 x 10 5.94 x 10
g
During re-refining _ 4.80 x 10
Total Energy Consumption (Btu's/day) 21.48 x IP9 17.12 x IP9
Energy Consumed In Case A - Energy Consumed in Case B
Total Lube Oil Production
= (21.48 x IP9 - 17.12 x 109) Btu's/dav = 20,970 Btu's/gal
4.950 b/d x 42 gal/b
-------
The advantages of re-refining waste lube oils over burning, cited above, are
based on the presently used acid/clay techniques. Any new technology, such
as combinations of solvent-extraction, vacuum distillation, hydrotreating,
etc., which increases lube oil recovery without an offsetting increase in
process energy consumption would improve the energy conservation aspects of
re-refining.
-------
2.0 ASSUMPTIONS
This study is based on the following assumptions:
A. A reduced crude is charged to vacuum distillation followed by
deasphalting of vacuum residuum, solvent extraction, hydrotreating
and dewaxing of lube charge stock. The overall yield based on
reduced crude is 21.8 volume percent base lube stocks.
B. Lube oil losses during use (in automobiles) are 20 volume percent*.
C. During use, the lube oil becomes contaminated with water and gasoline.
As a result, the waste lube oil contains 6.8 volume percent water and
3.2 volume percent gasoline plus light fuel oils'3). The gasoline
and light fuel oils are recoverable as fuel oil.
D. Lube oil recovery in re-refining is 80 percent of the lube oil frac-
tion in the waste oil feed. This is equivalent to an overall yield
of 72 percent of the waste oil feed'^J. All calculations are based
on re-refining by the acid/clay process.
E. Both cases assume 4,950 barrels per day of lube oil are charged to
the "users." Based on assumptions B and C, 4,400 b/d of waste oil
are available for use as feedstock for re-refining or for fuel
recovery. This figure includes water and gasoline plus light fuel
oil.
* These losses result from burning in the engine and spillage.
Preceding page blank
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3.0 ANALYSIS OF CA^E A:
LUBE OIL PRODUCTION AND WASTE OIL DISPOSAL BY BURNING
Figure 1 is a flowsheet typical of modern lube oil plants. The general process
described is capable of producing high quality lube oils from a wide range of
crude oil sources. Certain crudes which are especially suitable for use in
lube manufacture (e.g., Pennsylvania and Mid-Continent crudes) can be used with
either less intensive processing at each step, or with elimination of some
steps. Conversely, use of crudes high in aromatics, asphaltenes or sulfur will
require more intensive processing in some of the steps. Further, different
lube oil feedstocks will yield different volumes of products per barrel of
throughput. Hence, the process energy requirements to produce a gallon of lube
oil depend strongly on the physical and chemical properties of the crude oil
fractions which are being processed and the selection of processing steps and
sequence. The effect of lube oil yield on process energy requirements is
examined in some detail in Section 6.2.
Also, for a given crude oil, the fraction which is converted to lube oil varies
from firm to firm depending on the pattern of demand for the company's products
and the relative economics of producing lube oil or fuels. For example, in
the early part of 1974, price controls were removed from petroleum fuels, but
not from lube oils. Hence, it became more profitable to crack the light and
medium lube distillates than to process these materials to lube oils. As a
result, lube oil stocks were drawn down. In some instances, oil companies put
large consumers on lube oil allocation.
3.1 Ajtmospheric and Vacuum Distillation
Atmospheric (not shown) and vacuum distillation are the first two processing
steps in a typical refinery. The heavy crude fraction (reduced crude) from the
bottom of the atmospheric distillation unit is vacuum distilled to produce
light, medium and heavy distillates. The residuum from the vacuum unit may be
used in heavy fuel oil or processed further, as in this case, to yield a heavy
lube charge stock.
Although atmospheric and vacuum distillation of crude oil are energy intensive
processes, it is quite difficult to justify assigning a given portion of the
energy consumed to the manufacture of lube oil. Even if no lube oil were pro-
duced, these two steps might be carried out with the same energy consumption
and the distillates produced would be converted to fuels. Hence energy con-
sumed in the atmospheric and vacuum distillation steps has been omitted from
the present calculation.
Preceding page blank
-------
Figure I
CASE A
LUBE OIL PRODUCTION ond WASTE OIL DISPOSAL by BURNING
All Throughputs expressed in Barrels per Stream Day
VOCUl
R*ndu
Medium
J77S Mac 0,11.
N«o.»
4066 Vac.Oitt
2131 voctuim Oiillilol* 909
J.iinO* I'1
LU8E OILS
Light Htwlrol J76
iutn Nlutrol 219
Nvulral 1801
Brigni Slock
CHANKCASE DILUTION
fo1«. 300
Gaiollnf MO
Dry Wa«lt Lubt OH
4IOO
-------
3•2 Propane Deaspha1ting
The residuum from the vacuum distillation tower is treated with propane to
separate asphalt from the heavy oil. The separation is based upon the diffe-
rence in the solubility of the asphalt and the heavy oil in propane. The
products are deasphalted oil solution and an asphalt solution. The exit solu-
tions are processed through evaporation and steam stripping to recover the
propane from the oil and asphalt products.
3.3 Solvent Extraction
Lube distillates from the vacuum tower and the deasphalted oil are separately
extracted in a blocked operation with furfural, a commonly used organic com-
pound which has a high solvent power for those components of petroleum which
are relatively unstable to oxygen as well as other undesirable materials
including color bodies, resins, carbon-forming constituents and sulfur com-
pounds. A typical furfural extraction unit consists of an extraction or
treating section, sections for the recovery of furfural from the refined oil
and extract solutions, water removal facilities, process surge tanks, and
pumping equipment.
3.4 Hydrotreating
The oil raffinate from the furfural extraction unit, together with hydrogen,
are fed to a reactor. Hydrotreating improves the viscosity index and color
stability of the processed oils and serves to remove sulfur, nitrogen and metal
bearing compounds and carbon residues from the lube oil feedstocks.
3.5 Hydrogen by Steam Reforming
The hydrogen consumed in the hydrotreating process is typically manufactured by
passing sulfur-free natural gas and superheated steam through nickel catalyst
tubes at a temperature of 1400°F to 1600°F. The reformed gas contains hydrogen,
carbon monoxide, carbon dioxide and excess steam. This gas is cooled and
passed through shift converters where the carbon monoxide is reacted with
steam in the presence of a catalyst to produce hydrogen and carbon dioxide.
The carbon dioxide is removed by scrubbing, and the residual carbon dioxide is
removed by methanation. The product gas typically contains 95-97% hydrogen.
-------
3.6 Solvent Dewaxing
The wax-bearing oil stream from the hydrotreater is diluted with a solvent and
chilled. The solvent is introduced in such amounts at selected points in the
chilling cycle so as to insure a wax crystal structure and liquid viscosity
most suitable for filtration. The filtrate is purified by evaporation of
solvent from the dewaxed oil solution. The wax mix may be heated by either
steam or fuel-fired heaters.
The solvent employed generally consists of a mixture of methyl ethyl ketone and
an aromatic solvent (benzol, toluol, or a mixture of the two). Because of its
relatively low boiling point, the solvent can readily be recovered from the
dewaxed oil and wax solutions in simple evaporating and steam stripping equip-
ment.
3.7 Waste Oil Drying
Waste oils are dried by heating and flashing off the water. Any hydrocarbons
carried overhead with the water are decanted from the condensed water and
returned to the dry oil. The waste oils are then cooled and filtered to
remove solids.
3.8 Feed
22,714 barrels per day of reduced crude are charged to the vacuum unit to meet
the fixed demand of 4,950 barrels per day of lube oils sent to the users.
10
-------
4.0 DESCRIPTION OF CASJ B:
LUBE OIL PRODUCTION AND WASTE OIL RECOVERY BY RE-REFINING
The Case B process block flow diagram is shown in Figure 2. The lube oil
refining processing sequence is the same as in Case A. The difference is in
the processing of waste lube oils. In Case A, waste lubricating oils are
treated only to remove water and solids. The remaining oils (lubes plus gaso-
line and light fuel) are assumed to be blended with other fuels and burned
for energy recovery.
In Case B, crankcase drainings are re-refined to recover lube oils which are
recycled to the users. In this case only 1,790 b/d of virgin make-up lube
oils are required. This reduces the atmospheric reduced crude charge to
vacuum distillation from 22,714 b/d in Case A to 8,214 b/d in Case B. However,
since in Case B waste crankcase oils are not a source of fuel supply, total
fuel oil production is reduced by 15,300 b/d. In order to maintian a constant
supply of fuel oils, an additional stream of 15,300 b/d of reduced crude has been
added. Since the heating value of reduced crude oil is only slightly greater
than the heating value of dry waste oil (see Table 2, lines 6 and 8), this
addition has a negligible effect on the energy balance calculations.
The re-refining process considered here consists of a flash dryer, acid and
clay treating, redistillation and filtering. This process is typical of most
installations in the United States^5). No provision has been made in this
study for disposal of acid sludge or spent clay.
11
-------
Figure 2
CASE B
LUBE OIL PRODUCTION and WASTE OIL RECOVERY by RE-REFINING
All Throughputs expressed in Barrels per Stream Day
Mid-u-
Voc 0.11
LUBE OILS
Ligh) Ntul'OJ 1
Mtdiun Ntutrol 79
Hfovy Nlutrol
I5.3OO
-------
5.0 MATERIAL AND ENERGY BALANCES
Feed and product material and potential energy balances are shown in Table 2.
For this study, the potential energy is the high (gross) heating value (HHV)
of the various streams. In each case, the material and potential energy inputs
in the form of reduced crude oil plus gasoline from cylinder leakage must equal
the material and energy outputs in the form of virgin fuels plus losses. The
entries in Table 2 verify the consistency of the data used in this analysis.
5-' Consumed Energy
Each process step in the refining of crude oil or re-refining of waste oils
requires energy in some combination of electricity, steam and fuel. In order
to make energy comparisons between the various processing steps, the electri-
city and steam requirements have been converted to Btu equivalents. This
permitted the calculation of the total energy input for each process, expressed
in Btu per barrel of unit charge. The conversion factors used are:
KWH x 10,000 = Btu
High pressure steam (above 150 psi); Ib x 1450 = Btu*
Low pressure steam (150 psi and less); Ib x 1400 = Btu*
Energy consumed in each of the processes considered in this study is shown in
Table 3. Table 4 summarizes the energy consumed in the various processing
steps for the two cases.
5.2 Comparison
Table 5 summarizes the material balance and potential and process energy con-
sumed for the two cases. The energy balance shows that the total sum of
potential energy loss plus energy consumed is 4.36 x 10^ Btu/day higher for
Case A than for Case B. Based on the 4,950 b/d of lube oil required, the addi-
tional energy consumption is 20,970 Btu/gallon of lube oil used.
5.3 Discussion
The two cases analyzed in this study were selected in order to determine how
energy consumed changes when a fixed amount of lube oil and a fixed amount of
fuel oil are supplied in two different ways. The results of the material and
energy balance calculations for both methods of supply are summarized in
Table 5. Justification for the entries in Table 5 is provided in Tables 2,
3 and 4.
*Assumes a heater efficiency of 80 percent.
13
-------
MATERIAL AND
Heatinq Value
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
1.3.
14.
15.
Stream
Waxes
Hydrotreating Unit Distillate
Extract from Furfural Unit
Vacuum Gas Oil
Asphalt
Reduced Crude
Total Virgin Fuels
Re-refining Fuel
Total Fuel
Hydrocarbon Losses
Losses During Use in Auto-
mobiles
Losses During Re-refining
Total Losses
Total Fuel and Losses
Feed
Atmospheric Reduced Crude
Gasoline from Cylinder
Leakage
Btu/gal
142,000
142,000
154,400
142,850
163,600
150,750
142,700(A)
140,000(8)
142,800
142,800
150,750
140,000
Table 2
POTENTIAL ENERGY BALANCE
CASE A
Throughput
b/d*
1,927
141
4,715
4,856
6,125
_
17,764
4,100
-
21 ,864
990
_
990
22,854
22,714
140
22,854
Potential Energy
Btu/day
11.49 x 109
.84
30.58
29.13
42.09
-
114.13 x 109
24.57
-
138.70 x 109
5.94
-
5.94
144.64 x 109
143.82 x 109
.82
144.64 x 109
CASE B
Throughput
b/d*
697
51
1,705
1,756
2,215
15,300
21 ,724
-
140
21 ,864
990
800
1,790
23,654
23,514
140
23,654
Potential Energy
Btu/day
4.16 x
.30
11 .06
10.53
15.22
96.87
138.14 x
-
.82
133.96 x
5.94
4.80
10.74
149.70 x
n — : = — =
148.88 x
.82
149.70 x
109
ioy
ioy
V
109
ioy
* 1 barrel = 42 gallons
-------
All utilities are per
where utilities
Process
Propane De-asphalting^ '
Solvent Extraction
(2)
Hydrotreating
Dewaxing^ '
(2)
Waste Lube Drying
(2)
Waste Lube Re-refining v
Hydrogen Plant^ (Btu/MM scf HZ)
* Fuel includes natural gas fe
Table 3
ENERGY CONSUMED IN PROCESS UNITS
barrel of charge except in the case
are expressed per million standard
Electricity Steam- 1
kilowatt hours HP
290
1 40
3
12 40
%
Us
600 (35,000)
•ed.
of the hydrogen pi
cubic feet of H2
b Fuel
LP Btu
90,000
285,000
13 26,000
290,000
55,000
65 90,000
470x1 O6
( )
1
ant
1
1
Total Energy
Btu
511 ,000
353,000
74,000
468,000
60,000
196,000
426xl06
= export steam
-------
Table 4
PROCESS ENERGY CONSUMPTION
Propane De-asphalting
Solvent Extraction
Hydrotreating
Dewaxing
Hydrogen Plant (Btu/MM scf H?)
Total Process Energy Consumed
in Lube Production
Waste Oil Drying
Re-Refining
Total Process Energy Consumption
Consumed
Energy
Btu/bbl
511,000
353,000
74,000
468,000
426x1 O6
60,000
196,000
CASE
Capacity
b/d
12,720
11,733
7,018
6,877
2.11 (MM scf H2)
4,400
A
Energy
Btu/day
6.50 x 109
4.14
.52
3.22
.90
15.28 x 109
.26
_
15.54 x 109
CASE B
Capacity
b/d
4,600
4,243
2,538
2,487
0.76 (MM scf H2)
4,400
Energy
Btu/day
2.35 x 10
1.50
.19
1.16
.32
5.52 x 10
-
.86
9
9
6.38 x ID9
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Table 5
MATERIAL AND ENERGY BALANCE SUMMARY
r A B
Case -JL-
Disposition of waste lube oils to fuel oil to re-refining
Reduced crude charge to vacuum unit
(see Figure 1 and Figure 2) 22,714 8,214
Products, b/d
Virgin lube oil 4,950 1,790
Re-refined lube oil - 3,160
Total lube oils 4.950 4,950
Virgin fuel oil 17,764 6,424
Waste lube fuel oil 4,100 140
Reduced crude oil - 15.300
Total fuel oils 21,864 21.864
Energy Balance
Total potential energy losses, Btu/day Q q
(from Table 2) 5.94 x 10y 10.74 x 10*
Total process energy consumed, Btu/day Q q
(from Table 4) 15.54 x 10* 6.38 x 10*
Total 21.48 x 109 17.12 x 109
Q
Case A - Case B = 4.36 x 10 Btu/day
4.36 x 109 Btu/d = B al
4,950 b/d x 42 gal/b
17
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In Case A, where waste crankcase oils are converted to fuel oil, the entire
4,950 b/d of lube oil are produced from virgin atmospheric reduced crude oil.
In Case B, where waste crankcase oils are re-refined to produce lube oil,
1,790 b/d of lubes are produced from virgin oils and 3,160 b/d of lubes are
produced by waste oil re-refining. Since the process energy consumed in the
production of virgin lube oil is about 3.09 x 106 Btu's per barrel of virgin
product, while the process energy consumed in waste crankcase oil re-refining
is only 0.27 x 106 Btu's per barrel of re-refined product (see Table 4), total
process energy consumed in Case A is much higher than in Case B. However,
since considerable hydrocarbon losses (equal to 1.52 x 106 Btu's per barrel
of re-refined product) occur during the acid treating step in re-refining
(see Table 2), the net energy losses in Case B are much higher than in Case A.
As mentioned earlier, in both Case A and Case B, the lube oil losses during
use in automobiles (shown in Table 2} are assumed to be equal. Process
energy consumed in recovery of fuel oil from waste crankcase oils is a very
small contribution to total energy consumed (see Table 4).
The net result of these calculations is shown at the bottom of Table 5. The
energy consumption for Case A is 4.36 x 10^ Btu/day greater than the energy
consumption for Case B. Based on Tube oil production of 4,950 b/d, the
energy savings realized by re-refining is 20,970 Btu's per gallon of lube oil
produced.
(A)
The Waste Oil Report to Congressv ' presents figures for the generation,
destination and disposition of waste automotive oils for 1972. Of the 616
million gallons of waste automotive oil generated, only 105 million were re-
refined1". Of the remaining 511 million gallons, 221 million were used for
fuel and 290 million were disposed of in ways which did not involve energy
recovery (e.g., road oiling, asphalt manufacture, surreptitious dumping). If
all of the remaining 511 million gallons of waste automotive oil had been re-
refined, the net production of re-refined lube oil would have been about
409 million gallons. The energy savings would have been about 20,970 Btu per
gallon for the 177 million gallons of lube oil that could have been produced from
the waste automotive oil that was used for fuel and perhaps a like amount per
gallon for the 232 million gallons of lube oil that could have been produced
from the waste oil that was disposed of in ways which did not involve energy
recovery1"1". On the basis of 5.8 million Btu's per barrel, the total annual
energy savings would have amounted to about 1.5 million barrels of crude oil
equivalent. Since domestic petroleum production is in a period of decline
this extra energy savings would reduce crude oil imports by 1.5 million
t The 616 million gallons does not include dilution of waste oil by water,
sediment or light fuels.
tt Use of waste oil as road oil or in asphalt manufacture replaces petroleum
products normally used in these applications. Separate energy balance calcu-
lations would be required to specify the net energy savings that would result
if waste oil now used on these applications were re-refined to produce lube
oil.
18
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barrels per year. This is enough to operate a modern 1000 megawatt oil burning
power plant for over 6 ^ weeks at full load. In financial terms, at a price
of $12 per barrel of crude, the annual savings in fuel expense and currency
outflow would have been $18 million. An investment of this magnitude in re-
refining facilities would be nearly sufficient to provide the capacity to pro-
cess an additional 64 million gallons of waste oil.
19
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6.0 SENSITIVITY ANALYSIS
Although the above analysis shows that re-refining of waste lube oils yields
a substantial energy savings over alternative disposal methods, the results
are dependent on a number of variables including the energy consumed in
refining process units, the lube oil yield from reduced crude oil, and the
lube oil losses during re-refining. In order to verify the energy conserva-
tion potential of waste oil recycling, a sensitivity analysis was made by
increasing and decreasing the values of each of these three variables.
6.1 Refining Process Energy
As discussed above, lube oil plants may vary considerably in the design and
type of process units utilized. For certain premium crudes, less intensive
processing at each step may be required. Some processing steps might be
eliminated. On the other hand, use of crudes high in aromatics, asphaltenes,
or sulfur requires more intensive processing. The sensitivity of the energy
balances for Case A and Case B was tested by arbitrarily increasing the
refining process energy by 50 percent and by reducing the refining process
energy sufficiently to equalize total energy consumption in the two cases.
Table 6 shows the results of this analysis. Increasing the refining process
energy by 50 percent results in a net energy savings for Case B (re-refining)
over Case A (burning) of about 44,500 Btu per gallon of lube oil produced.
This is an increase of nearly 112 percent over the net energy savings, 20,y70
Btu per gallon, determined in the base case (Table 5).
In order to equalize the total energy consumed in Case A and Case B, the
refining process energy must fall by slightly more than 55 percent. Although
the variations in process energy considered here may be extreme, it can be
safely concluded that under assumptions A through E, waste oil recovery by re-
refining (Case B) requires significantly less total energy than waste oil
disposal by burning (Case A).
6.2 Lube Oil Yield from Reduced Crude
The overall lube oil yield determines the volume of reduced crude which must
be processed to produce a given quantity of lube oil. In the base case, this
yield was 21.8%. Since different crude oils will yield different fractions
of lube oil, the sensitivity of total energy consumption in Case A and Case B
to lube oil yield was tested assuming a change in yield of plus or minus
25 percent. This means that the new overall yields were 27.2 and 16.4 percent,
respectively.
Preceding page blank
21
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Table 6
SENSITIVITY OF ENERGY BALANCE TO CONSUMPTION OF
REFINING PROCESS ENERGY (Btu/day x 109)
1. Increase Refining Process Energy
Consumption by 50%
Case A Case B
Net change in potential energy 5.94 "10.74
Energy consumed in waste oil drying 0.26
Energy consumed in re-refining - 0.86
Refinery process energy 22.92 8.28
Total 29.12 19.88
,. . (29.12 - 19.88) x 109 Btu
Energy saved by re-refining = 495Q b/d x 42 gal/b
= 44,444 Btu/gal
2. Decrease Refining Process Energy Sufficiently to Equalize Total Energy
Consumed in Case A and Case B
If X = required percent reduction in process energy consumption then:
15.28 (X/100) + 5.94 + 0.26 = 5.52 (X/100) + 10.74 + 0.86 j
9.76X =540 X = 55 percent
22
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Changing the lube oil yield requires that the material and energy balance cal-
culations be repeated in order to determine the required capacities of the
lube treating units and the process energy consumed. These calculations are
shown in Tables 7, 8 and 9. All non-lube oil throughputs were taken to be
proportional to the values for (reduced crude - lubes) shown in Table 7. Note
that in all these calculations the volume of lube oil produced remains con-
stant. Only the volumes of reduced crude required and fuel products produced
change.
The effect on total energy consumption of changing the lube oil yield is
summarized in Table 10. Except for the refining process energy, all entries
in Table 10 are the same as for the base case. In all three instances, re-
refining shows a net energy savings over burning. In the base case, the net
energy savings of Case A over Case B is 20,970 Btu/gal of lube oil produced.
An increase of 25 percent in the lube oil yield from reduced crude results in
reducing this net energy savings for Case B over Case A to 13,997 Btu per
gallon of lube oil produced. Reducing the lube oil yield by 25 percent
increases this net energy savings for Case B over Case A to 32,419 Btu per
gallon of lube oil produced.
6.3 Re-Refining Losses
Conventional acid/clay re-refineries have an overall yield of about 72 percent
based on the waste oil feed. Based upon the assumption that the waste oil
feed contains 10 percent water plus fuels, this means that typically 20 per-
cent of the potentially recoverable lube oil is lost in the acid/clay process.
In order to test the effect of re-refining losses on the energy balance calcu-
lations, the material and energy balances shown in Tables 2, 4 and 5 were
repeated under the following two assumptions:
1. Re-refining losses amount to only 10 percent of the lube contained
in the waste oil feed.
2. Re-refining losses amount to 30 percent of the lube contained in
the waste oil feed.
In these calculations, lube oil demand, lube oil losses during use, and waste
oil feed to the re-refinery are held constant. Changing the re-refinery losses
changes the production requirement for virgin lube oil and hence the process
energy consumed. Of even greater importance, however, is the change in poten-
tial energy loss which accompanies a change in re-refinery yield. The rele-
vant material and energy balances are summarized in Tables 11 and 12.
23
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Table 7
SEMSITIVITY ANALYSIS - ALTER LUBE YIELD BY ± 25%
Material Throughputs (b/d)
Case A Case B
Base +25% -25% Base +25% -25%
Feed
Reduced Crude 22,714 18,200 30,183 8,214 6,580 10,914
Virgin Lube 4,950 4,950 4,950 1,790 1,790 1,790
Reduced Crude minus
Virgin Lube 17,764 13,250 25,233 6,424 4,790 9,124
Products
Virgin Lube 4,950 4,950 4,950 1,790 1,790 1,790
Waxes 1,927 1,437 2,737 697 520 990
Hydrotreating Distillate 141 105 200 51 38 72
Extracts 4,715 3,517 6,698 1,705 1,271 2,422
Vacuum Gas Oils to Fuel 4,856 3,622 6,898 2,215 1,310 2,494
Asphalt 6,125 4,569 8,700 1,756 1,652 3,146
Total 22,714 18,200 30,183 8,214 6,581 10,914
24
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Table 8
SENSITIVITY ANALYSIS - ALTER LUBE YIELD BY ± 25%
Required Processing Unit Capacities (b/d)
I'rocossing Unit __ Cjsj? A Case B
V25X " -25% +25% -25%
Dewaxing 6,387 7,687 2,310 2,780
Hydro-treating 6,492 7,887 2,348 2,852
Solvent Extraction 10,009 14,585 3,619 5,274
Propane Deasphalting 10,137 16,990 3,665 6,144
Hydrogen (106 SCF/d) 1.95 2.37 0.70 0.86
L_
25
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Table 9
SENSITIVITY ANALYSIS - ALTER LUBE YIELD BY ± 25%
Process Energy Consumption (Btu/day)
Processing Unit Case A Case B
+25% -25% +25% -25%
Dewaxing 2.99 x 109 3.60 x 109 1.08 x TO9 1.30 x 109
Hydrotreating 0.48 0.58 0.17 0.21
Solvent Extraction 3.53 5.15 1.28 1.86
Propane Deasphalting 5.18 8.68 1.87 3.14
Hydrogen 0.83 1.01 0.30 0.37
13.01 x 109 19.02 x 109 4.70 x 109 6.88 x 109
26
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Table 10
SENSITIVITY ANALYSIS - ALTER LUBE OIL YIELD BY ± 25;
g
Energy Balance Summary (Btu/day x 10 )
Case A
Lube Oil Yield from Reduced Crude
Refining Process Energy
Energy Consumed in Waste Oil Drying
Energy Consumed in Re-refining
Total Process Energy Consumed
Potential Energy Loss
Total Energy Consumed
Summary of Energy Savings by Re-refining (Case B) over
Burning (Case A); (Btu/gal of Lube Oil Produced)
+2535 Base -255:
27.2% 21.8% 16.4£
13.01 15.28 19.02
0.26 0.26 0.26
13.27 15.54 19.28
5.94 5.94 5.94
19.21 21.48 25.22
Case B
+25- Base -25%
27.2 21.8r; 16.4%
4.70 5.52 6.88
0.86 0.86 0.86
5.56 6.38 7.74
10.74 10.74 10.74
16.30 17.12 18.48
+25%
Base Case
-25%
Net Energy Savings
13,997
20,970
32,419
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Table 11
SENSITIVITY ANALYSIS - EFFECT OF CHANGING RE-REFINING LOSSES
ON TOTAL ENERGY CONSUMPTION
Material
Waste Lube Feed to Re-refinery
Waste Lube Feed Free of Water
and Fuels
Re-refining Losses
Re-refined Oil Produced
Virgin Lube Required
Ratio of Refinery Lube Production
to Base Case
Reduced Crude Required
Virgin Fuel Oils Produced
Re-refining Fuel Produced
Total Fuel Oil Produced
Balance (b/d)
Approximately
10% Loss
4,400
3,960
400
3,560
1,390
0.7765
6,379
4,988
140
5,128
Approximately
20% Loss
(Base Case)
4,400
3,960
800
3,160
1,790
1.0
8,214
6,424
140
6,564
Approximate!}
30% Loss
4,400
3,960
1,200
2,760
2,190
1.2235
10,050
7,860
140
8,000
28
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Table 12
SENSITIVITY ANALYSIS - EFFECT OF CHANGING RE-REFINING LOSSES
ON TOTAL ENERGY CONSUMPTION
Energy Balance (Btu/day x 10 )
Approximately Approximately Approximate^
10% Loss 20% Loss 30% Loss
(Base Case)
Refining Process Energy 4.28 5.52 6.75
Energy Consumed in Re-refining 0.86 0.86 0.86
Total Process Energy Consumed 5.14 6.38 7.61
Potential Energy Losses:
Re-refining 2.40 4.80 7.20
Lube Oil Use in Automobiles 5.94 5.94 5.94
Total Potential Energy 8.34 10.74 13.14
Total Energy Consumed 13.48 17.12 20.75
Total Energy Consumed in Case A
(Burning) 21.48 21.48 21.48
Energy Savings by Re-refining over
Burning, Btu/gal 38,480 20,970 3,510
29
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The results of this analysis show that the energy balance is strongly affected
by altering the lube oil yield from the re-refinery. Increasing the overall
yield (based on waste oil feed) from 72 percent to 80 percent increases the
net energy savings for Case B over Case A by 88 percent. Hence national
policies aimed at stimulating investment in new re-refining technologies would
be consistent with energy conservation goals. Conversely, increased re-refining
losses can result in little or even no net energy savings over waste oil
disposal by burning.
30
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7.0 References
1. 1972 refining processes handbook. Hydrocarbon Process inn, 9:111-222,
Sept. 1972.
2. Personal communication. T. Hall to P. M. Cukor, Jan. 1975.
3. Environmental Quality Systems, Inc. Haste oil recovery practices;
state-of-the-art, 1972. Washington, U.S. Environmental Protection
Agency, Dec. 1972 250 p. (Distributed by National Technical
Information Service, Springfield, Va., as PB-229 801.
4. Waste oil study; report to the Congress. Washington, U.S. Environmental
Protection Agency, Apr. 1974. 402 p.
5. Cukor, P., M. J. Keaton, and G. Wilcox (Teknekron, Inc., and the
Institute of Public Adrr;i ni strati on.) A technical and economic
study of waste oil recovery, pt.3. Economic, technical and
institutional barriers to waste oil recovery. Environmental
Protection Publication SW-90c.3. U.S. Environmental Protection
Agency, 1974. 143 p. (Distributed by National Technical Information
Service, Springfield, Va., as PB-237 620.)
-------
A TECHNICAL AND ECONOMIC STUDY
OF WASTE OIL RECOVERY
PART V A Field Test of the Quality of Re-refined Lube Oils
by Peter M. Cukor
-------
TABLE OF CONTENTS
1.0 Introduction 1
1.1 Background 1
1.2 Scope of the Problem 2
1.3 Research Objective 3
2.0 Design of the Experiment 5
3.0 Implementation Plan for Closed-Cycle Demonstrations 9
3.1 Key Personnel and Their Roles 9
3.1.1 Federal Facility Personnel 9
3.1.2 Re-Refining Personnel 10
3.1.3 The Lubrication Engineer 11
3.1.4 Representatives of EPA and EPA's Technical
Consultant 11
3.2 Selection of Participating Facilities and Re-Refiners 12
3.2.1 Lube Oil Consumption and Waste Oil Generation 12
3.2.2 Waste Oil Disposal 14
3.2.3 Lube Oil Procurement by Military Facilities 17
3.2.4 Potential Participants - Military Facilities
and Re-Refiners 18
4.0 A Closed-Cycle Demonstration: Policies and Procedures for
Implementation 29
4.1 Design of the Field Test 29
4.1.1 Number of Vehicles ?9
4.1.2 Types of Vehicles 30
4.1.3 Engine Inspections 31
4.1.4 Used Oil Analysis 3/1
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4.2 Policies and Procedures for Waste Crankcase Oil
Accumulation and Collection — 36
4.3 Policies and Procedures for Waste Crankcase Oil
Re-Refining - - 38
4.4 Policies and Procedures for Purchase and Utilization
of Crankcase Oils 41
4.5 Potential Problems in Implementing the Closed-Cycle
Demonstration 43
5.0 References 49
Appendix A: Military Specification MIL-L-2104C for Engine
Crankcase Oils 51
Appendix B: Military Specification MIL-L-46152 for Engine
Crankcase Oils 65
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LIST OF TABLES
1. Estimated Procurement of Internal Combustion Engine
Lubricating Oils for Military Facilities for Fiscal Year 1975 — 13
2. Sales of Waste Crankcase Oils by Defense Property
Disposal Service 15
3. Locations of Key Military Facilities and Nearest Re-Refiners 21
4. Commercial Lube Oil Re-Refiners 26
5. Costs of Engine Sequence Tests Required Under Specification
MIL-L-46152 32
6. Recommended Operating Limits for Used Engine Oil Tests 37
-------
LIST OF FIGURES
1. Closed-Cycle Re-Refining System 6
2. Locations of Key Military Facilities and Nearest Re-Refineries -- 20
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1.0 INTRODUCTION AND SUMMARY
1.1 Objectives
This report presents a plan for conducting a field test of the quality of re-
refined lube oil under controlled conditions. The goal of the program is to
provide the re-refining industry with an opportunity to demonstrate the quality
of its products in order to revise lube oil specifications established by the
Federal government. Since these specifications prohibit the purchase of re-
refined oils by government agencies, many commercial/industrial consumers have
been reluctant to use these products. Demonstration of the quality of re-
refined oil at a Federal facility could lead to revision of these specifica-
tions to permit procurement of re-refined engine oils by government agencies.
This in turn would reduce barriers to sales of re-refined oil in high quality
commercial and industrial markets.
1.2 Background
Previous research has described the economic, technical, environmental and
institutional barriers to recovery of waste oil by re-refining. Briefly stated,
these studies have determined that:
1. Uaste Oil recovery by re-refining is desirable because:
f 2)
• Valuable resources are conservedv
• Energy is conserved^ '
• Pollution risk can be reduced^ '
2. Production of re-refined oil has fallen sharply and the re-refining
industry has contracted because:
• Between 1960 and 1973 many re-refiners, faced with increased
costs and competition from suppliers of virgin lube oils,
were unable to increase prices in order to maintain profil.-
able operations. A large number of these firms wont out. of
business^/.
• Re-refiners have failed to provide the public with products
of consistently high quality 0
-------
• The lack of quality assurance has restricted most sales of
re-refined oil to low quality markets; in these markets
profitability is subject to wide fluctuations depending on
the supply of virgin lube oils and general economic condi-
tions^'.
• Equipment modifications to meet environmental regulations
have been beyond the financial capability of some re-
refiners (2).
3. Since late 1973, when world petroleum prices rose by a factor of four,
the re-refining industry has enjoyed a period of increased profit-
ability. Nevertheless,
• High prices and depressed economic conditions have curtailed
the demand for lubricants to the point where market prices
for re-refined lube oils have recently begun to fall.
• Increased production costs, due to competition from fuel
reprocessors for waste oil feedstocks and inflation in the
cost of raw materials, are also contributing to a decline
in the profitability of re-refining.
4. One strategy for prevention of recurrence of a cost/price squeeze in
re-refining is the development of high quality markets for re-refined
oil.
• The profitability of sales in these markets is considerably
higher than sales in the low quality markets to which re-
refined oil is now restricted.
• The few re-refining companies which have been successful in
penetrating high quality lube oil markets have, without
exception, experienced long periods of continued profita-
bility(2).
5. The major difficulties faced by re-refiners in penetrating high quality
commercial/industrial lube oil markets is the poor public image of the
quality of re-refined oils.
• A successful demonstration of the use of re-refinod oil in ,j
high quality commercial application could well provide t.hc:
industry with an opportunity to increase sales to the;
commercial/industrial sector.
• Lube oil specifications established by the Federal government
are a major influence in the selection of lubricants for use
in the commercial/industrial sector. Since these specifica-
tions prohibit the purchase of re-refined oils by government
agencies, many commercial/industrial consumers are reluctant
to use these products.
-------
6. New investment in waste oil recovery and an increase in the produc-
tion of re-refined oil could result if:
• A field test of the quality of re-refined oil at a Federal
facility was successfully accomplished.
• Following the successful demonstration, current Federal
specifications were revised to permit procurement of re-
refined engine oils by government agencies.
1-3 Description of the Program
Since military bases operate vehicle types similar to those owned by potential
commercial/industrial users of re-refined oil, one or more of these facilities
would be suitable locations for conduct of such demonstrations. The selection
of candidate facilities is, however, limited by the volume of waste oil
generated on site and the distance of the base from a reputable re-refiner.
The first limitation is imposed by the requirement that the properties of the
waste oil feedstock to the re-refinery be held reasonably constant in order to
assure that the performance of the lube oi1 so produced will always fall
within specified limits. One way of meeting this requirement is to re-refine
the waste oil drained from vehicles operated by the participating facility.
This arrangement, which is called a "closed-cycle system," provides the
customer with assurance that the properties of the lube oil purchased will not
be affected by changes in the feedstock from which the oil is produced.
Normally between 2000 and 3000 gallons of waste oil are required for economic
batch operation of a re-refinery. Hence participating facilities are limited
to those with relatively large lube oil requirements. The economics of waste
oil and lube oil transport pose additional restrictions on the locations where
closed-cycle demonstrations are feasible. However, a number of military
facility-re-refiner combinations have been identified which meet these restric-
tions.
A field test of the quality of re-refined oil will require the cooperation of
a number of persons including facility personnel involved in purchasing, waste
disposal and vehicle maintenance. A systems engineer familiar with lube oil
service requirements and the additive response of base oils will provide
technical assistance to the re-refiner and, in cooperation with represont.it.ivos
of EPA, will be responsible for selection of participating facilities .mcl r<>-
refiners, coordination of the demonstration and establishment of policies
-------
provide evidence of constancy of base oil properties. Suitable additive
packages will be selected on the basis of engine sequence tests performed on
the first batch of re-refined oil produced in any demonstration. Lube oils
produced must meet the specifications established for relevant service appli-
cations. Facility personnel responsible for vehicle maintenance will monitor
the performance and lube oil consumption of test vehicles.
For each vehicle type which is used in the field test, four units will be
operated using re-refined oil and four units will be operated using a qualified
virgin oil. Measurements of the wear of key engine parts and ratings for rust,
sludge, and varnish formation will provide the basis for comparing the perform-
ance (quality) of the re-refined oil and the virgin oil.
Successful completion of the field test will lead to a second phase of the
program in which the restriction against the use of outside sources of waste
oil would be removed. Successful completion of the second phase will lead to
the establishment of new government specifications which allow the procurement
of re-refined oil. Revision of government specifications and the favorable
publicity which will result from successful demonstrations will aid in estab-
lishing the confidence of commercial/industrial consumers in the quality of
properly re-refined oils. This will enable re-refiners to sell their products
for use in high quality applications. The magnitude and stability of profit
margins in these markets should encourage new investment in waste oil recovery.
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2.0 CONCEPTUAL FRAMEWORK FOR THE EXPERIMENT
A field test for demonstrating the quality of re-refined oil could logically be
conducted at any location where an adequate number of vehicles is available to
provide for statistically significant test results. The program proposed here
is, however, considerably more constrained than a normal product field test; in
order to meet the goals of the demonstration, a number of restrictions must be
placed on the experiment.
Since a goal of the demonstration is to encourage acceptance of re-refined
crankcase oil by commercial and industrial customers, the vehicles involved in
the demonstration must be similar to those operated by these potential users
of re-refined oil. The service classifications of lube oils used in the demon-
stration vehicles will then be the same as the service classifications of lube
oils used in vehicles operated by commercial and industrial consumers. A
large military base where vehicles such as light and heavy trucks, buses and
motor pool passenger cars are operated is one type of facility which meets
these requirements.
However, in order to carry out a demonstration at a military base (or any other
government facility), the lube oil used must pass the physical, chemical and
performance tests which are a part of military specifications. While there is
evidence to indicate that properly re-refined oils blended with appropriate
additives can pass these tests, military specifications also require that once
a lube oil has been qualified, no changes in the feedstock, refining process or
additive package can be made. This requirement places an additional restric-
tion on the proposed demonstration since re-refined oil is normally produced
from waste oils collected from a variety of sources.
However, if the demonstration is arranged so that the waste oil which is re-
refined is collected from the vehicles which will use the re-refined oil, then
the restriction against variations in feedstock can be met. This type of
arrangement, which is depicted in Figure 1, is called a closed-cycle re-refining
system. Closed-cycle systems have economic as well as quality control benefits.
A number of re-refiners have, for many years, produced re-refined oil under
closed-cycle conditions for industrial and commercial clients, especially
rail roads(2).
Although a closed-cycle demonstration offers control over possible variations
in feedstock properties, additional restrictions must be imposed on the experi-
ment. Since waste oils supplied by the facility must be kept separate from
waste oils collected elsewhere, the volume of feedstock required will be fairly
large. This is because the charge to a re-refinery must, in general, bo af:
least 2,000-3,000 gallons for economic operation. Assuming that most vehicles
require about one gallon of lube oil and that dilution of crankcase oil with
fuel and water is compensated for by losses during vehicle operation, the
crankcase drainings from approximately 2,000-3,000 vehicles will be needed to
produce the minimum volume of re-refinery feedstock. Further, since waste oil
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Figure 1
CLOSED-CYCLE RE-REFINING SYSTEM
Processing.
Materials
Additives.
Haste Products
Re-Refined Lube Oil
Re-Refiner
Used Lube Oil
Virgin Lube Oil
Federal Fleet
Burning Loss
-------
cannot be economically transported over great distances, the facility must be
located within reasonable proximity to the re-refiner. Hence, candidate
facilities for the proposed demonstration should meet the following criteria:
1. Be willing to participate
2. Have a large number of vehicles whose lube oil requirements and
operating conditions are similar to those of vehicles owned by
potential commercial and industrial users of re-refined oil
3. Be located near a qualified re-refiner
A qualified re-refiner must be capabls of producing lube oils which can be
qualified under the rigid quality control standards set forth in military
specifications. In addition, the re-refiner must have established a reputation
for consistently producing high quality crankcase oils. This performance
should be documented by references from his existing commercial and industrial
clients and by laboratory tests of the physical and chemical properties of
re-refined base oils produced by his company (see Section 4.3 and Appendix A
for a discussion of appropriate laboratory tests). Preferably, the re-refiner
should have experience in lube oil production under closed-cycle conditions.
Further, it is essential that the participating re-refiner recognize the need
for maintaining the highest standards of product quality and professional
services. For if an attempt at demonstrating the quality of re-refined oil
should fail, it would be extremely difficult to persuade any government or
private facility to participate in future demonstrations. Moreover, barriers
to acceptance of re-refined oil in high quality markets would remain intact.
Thus the participating re-refiner must be willing to accept this responsibility
and the fact that he has a stake in the successful completion of the demonstra-
tions.
-------
3.0 THE PARTICIPANTS IN A CLOSED-CYCLE DEMONSTRATION
This chapter provides a description of the duties and qualifications of the key
personnel representing the Government and the re-refiner who will participate
in the field test of re-refined oil. In addition, the criteria for selection
of the participating facility and re-refiner are developed in some detail in
order to insure that the restrictions described in Section 2.0 are met. Esti-
mated volumes for lube oil consumption and waste oil generation for major
military facilities are presented; locations of these bases are then matched
with nearby re-refiners in order to minimize transport costs and provide a
preliminary listing from which the choice of the facility and re-refiner can be
made.
3.1 Key Personnel and Their Roles
A successful closed-cycle demonstration of the use of re-refined oil will
require the cooperation of a number of participants. These people will include
representatives of the participating Federal facility; the re-refiner; the
Environmental Protection Agency; the Department of Defense; and a systems
engineer who is acquainted with the response of base lube oils to additive
formulations, the lube oil requirements of a wide range of vehicle types and
the testing procedures for evaluation of lube oil quality.
3.1.1 Federal Facility Personnel
The participating activity will provide both the source of the waste oil and
the vehicles which will use the re-refined product. Consequently, personnel
concerned with property disposal, oil purchases, quality assurance and vehicle
maintenance will be involved. In addition, an oversight officer should be
assigned to monitor the progress of the demonstration and coordinate the
activities of the facility personnel.
The property disposal personnel will have responsibility for assuring that
waste lube oils available for collection by the re-refiner are kept separate
from other wastes and free of undesirable contaminants. Since current pr.ictico
at many Federal facilities is to mix waste lube oils with other wastes includ-
ing gear oil, fuel oils, grease, paint, solvents, etc., modification of was to
management practices and acquisition of separate storage facilities will
probably be required. Property disposal personnel will keep records of f.hr-
sources and volumes of waste lube oil which are added to the storaqo coni..i iwr-.
and the volumes of used oil which are removed for re-refininq. .SampJos of
waste oil should be withdrawn and examined prior to removal for re-rpfiriirifj in
order to assure the re-refiner that the feedstock is free of undesirable
contaminants.
Preceding page blank
-------
Personnel responsible for lube oil purchase will monitor the quantities,
specification types, viscosities and container sizes of lube oils recycled to
the facility. The brand name of these products must be clearly marked in order
that they be distinguished from other lubricants in use at the facility.
Records should be kept which include prices, dates of purchase and delivery
as well as the information mentioned above.
Samples from each shipment of re-refined lube oil should be sent to the quality
assurance personnel who will be responsible for obtaining data on the physical
and chemical properties of the recycled oil. If laboratory facilities are not
available on site, it will be the responsibility of the quality assurance group
to obtain test results from a nearby independent laboratory.
The cooperation and support of personnel responsible for vehicle maintenance
are essential to the conduct of closed cycle demonstrations. These persons,
including shop foremen and mechanics, have responsibility for the mechanical
performance of facility motor pools and may, therefore, be somewhat reticent
to substitute re-refined oils for lubricants which have provided satisfactory
performance. Close contact should be maintained between maintenance personnel,
the systems engineer and the re-refiner in order that any questions concerning
lube oil performance, specifications, additives and physical and chemical
properties be quickly resolved. The close working relationships which exist
between re-refiners and their quality conscious commercial and industrial
customers should serve as examples for the closed-cycle demonstration.
The maintenance personnel should keep records of vehicle service including
dates, oil change intervals in miles and weeks, quantities and types of oil
added, oil filter types and change intervals, incidence of engine maintenance,
etc. Any mechanical problems should be reported immediately in order that a
determination of the probable causes can be made. If any vehicles in use at
the facility are believed to suffer from manufacturing defects, these vehicles
should be excluded from the demonstration.
3.1.2 Re-Refining Personnel
Success of the closed-cycle demonstration is highly dependent upon the integrity
and diligence of the participating re-refiners. Although a successful demonstra-
tion will provide re-refiners with a valuable opportunity to expand sales of
re-refined oil to quality conscious customers, participation in a demonstration
may result in little or no immediate financial return. Thus it is essential
that the participating re-refiner be willing to accept the longer term
marketing benefits that can result.
The re-refiner must pay strict attention to feedstock quality and $egro-
refining process conditions must be strictly monitored. The properties of thr-
base oils produced must be tested for compliance with physical, chemical ,md
performance standards established under existing specifications.
10
-------
Recommended additive packages must be blended in required proportions. Deter-
mination of the proper amounts and types of additives should be made by the
systems engineer.
Packaging of lube oils for use in a demonstration should reflect the needs of
the participating facilities. Service classifications, specifications,
viscosity and brand name should be clearly marked. Container sizes should be
as specified by the purchasing agent at the Federal facility.
3.1.3 The Systems Engineer
The systems engineer should possess extensive knowledge of lube oil require-
ments of internal combustion engines operating under a wide range of service
conditions. He should be intimately familiar with the "additive response" of
base lube oils and the testing procedures for lube oil qualification under
existing specifications. He should have extensive experience in providing
technical services to re-refiners and to producers and compounders of virgin
lube oils. Above all he must be capable, as an independent expert, of pro-
viding technical advice to the vehicle maintenance and quality assurance
personnel as well as to the re-refiner.
3.1.4 Representatives of EPA and the Department of Defense
Representatives of EPA and the Defense Department will have responsibility for
selection of the participating facility and re-refiner, for initiation of the
closed-cycle demonstration, for close monitoring of the program, for resolv-
ing any difficulties that may arise and for disseminating the results of the
demonstration to all interested parties.
It is particularly important that these representatives maintain close contact
with the other key personnel in order to assure the success of the program.
They must be familiar with lube oil purchase, vehicle maintenance and waste oil
disposal procedures at the participating facility. They must have knowledge
of re-refining technology and the performance properties of various lube/oil
additive blends. Finally, they must have a grasp of the roles and concerns of
each of the key personnel and how these persons must cooperate in order to
effect a successful demonstration.
11
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3.2 Selection of the Participating Facility and Re-Refiner
3.2.1 Lube Oil Consumption and Waste Oil Generation
Table 1 is a summary of the estimated volume of crankcase oils procured by
major military facilities in fiscal 1975. The figures must, however, be viewed
as only rough estimates of the actual quantities of lube oil consumed. This
is because a military facility may order lube oils either directly from
qualified suppliers whose bids have been accepted by the Defense Fuel Supply
Center (DFSC) located at Cameron Station, Virginia, or from military service
depots which are located throughout the country. Data on lube oil procurement
may be found in the Oil Contract Bulletin, which is published annually by
DFSCV 4 ). The data in Table 1 reflect volumes of lube oil procured (but not
actually ordered) by DFSC under indefinite quantity contracts which have not
been funded. Lube oils procured in this manner are, upon request, delivered
by the supplier directly to the ordering activity. Large orders are handled
in this way in order to reduce costs associated with warehousing. Table 1
does not account for smaller lube oil orders which are handled by military
service depots. Thus the estimated lube oil needs for each facility do not
reflect quantities of oil actually purchased. Data on actual lube oil
purchases by military facilities are not publicly available.
Data on waste crankcase oil generation at military facilities are also not
available to the public. The Naval Supply Systems Command did commission a
study by Exxon Research and Engineering Company of waste oil generation and
disposal at nine major Navy terminal complexes^ 5), This research was com-
pleted in 1973 but distribution of the results has been restricted. Studies
of waste crankcase oil generation at Army and Air Force facilities have not
been made. An estimate of annual volumes of waste crankcase oil generated at
a given facility can be made by applying a "waste oil generation factor" to
the figures for estimated procurement shown in Table 1. A waste oil genera-
tion factor is that fraction of lube oil purchases which is not consumed or
lost in use and is, therefore, available for ultimate disposal. If one
assumes that for a government fleet eighty percent of oil purchased is used
for oil changes and that the oil drained is equal to eighty percent of filled
capacity, then the appropriate waste oil generation factor is 0.64. Thus, a
rough approximation of the waste oil that might be made available for re-
refining in a closed-cycle demonstration at a given facility can be obtained
by multiplying the procurement volumes shown in Table 1 by this factor. Based
on this method, about 1.27 million gallons of waste oil were generated in
fiscal 1975 at the 21 military facilities listed in the table.
12
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Table 1
ESTIMATED PROCUREMENT OF INTERNAL COMBUSTION ENGINE
LUBRICATING OILS FOR MILITARY FACILITIES FOR FISCAL YEAR 1975*
Name and Location Estimated Lube Oil Procurement
(gallons)
1. Fort Riley, Kansas 320,000
2. Fort Hood, Texas 260,000
3. Fort Lewis, Washington 144,000
4. Fort Bragg, North Carolina 129,000
5. Camp Lejeune, North Carolina 128,000
6. Fort Carson, Colorado 128,000
7. Fort Sill, Oklahoma 86,000
8. U.S. Marine Corps, 4th Amtrac Battalion,
Tampa, Florida 89,000
9. Naval Ship Compound, Norfolk, Virginia 89,000
10. Fort Campbell, Kentucky 70,000
11. Fort Bliss, Texas 68,000
12. Fort Benning, Georgia 56,000
13. Camp McCoy, Wisconsin 54,000
14. Camp Shelby, Mississippi 54,000
15. Marine Corps Air Station,
Cherry Point, North Carolina 53,000
16. Fort Eustis, Virginia 48,000
17. Travis Air Force Base, California 40,000
18. Fort Knox, Kentucky 40,000
19. Elgin Air Force Base, Florida 36,000
20. Tinker Air Force Base, Oklahoma 35,000
21. Fort Meade, Maryland 34,000
22. McClellan Air Force Base, California 32,000
TOTAL 1,993,000 gallons
* All lube oils listed were procured under specifications MIL-L-2140C and
MIL-L-46152. Of the oil procured, more than 90 percent was procured under
specification MIL-L-2104C.
Source: Oil Contract Bulletin - Fiscal Year 1975; DSA 600-74-0100; Defense
Fuel Supply Center, Cameron Station, Alexandria, V1rginia.
13
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3.2.2 Haste Oil Disposal
The Defense Supply Agency (DSA) has established a detailed set of policies and
procedures for disposal of surplus property by military facilities. In the
case of waste lubricating oils the Defense Disposal Manual specifies that!6 ):
Disposition...may be by one of the following methods if in
accordance with local pollution abatement rules:
1) Burning as fuel oil
2) Spraying on roads, parking areas, etc., to control dust
3) Use in experimental fire fighting practices
4) Use as a spray for insect control
5) Any other authorized use on the activity
6) Donation to authorized recipients
7) Sale
8) Abandonment or destruction of oils which have no sale
value
If waste lube oils are not disposed of by methods 1-6, these materials are
supposed to be offered for sale by the local Defense Property Disposal Office
(DPDOJ. There are 190 DPDO's located throughout the country. These DPDO's
are divided into three sales regions having headquarters offices in Ogden, Utah,
Columbus, Ohio and Memphis, Tennessee. Upon request from a local DPDO, the
headquarters office issues an Information for Bid (IFB). Awards are made on
the basis of the highest price bid for each item listed in the IFB. Thus, if
large volumes of waste lube oil are not disposed of on site, data as to the
location and quantity of these wastes should be available from DSA.
In order to test this hypothesis, copies of all IFB's issued during the calen-
dar year 1973-1974 were obtained from the Market Research Group at Defense
Property Disposal Headquarters, Battle Creek, Michigan. Table 2 summarizes the
data collected for sales of waste crankcase oils. Approximately 345,000 gallons
of waste oil were sold through local DPDO's during this period. Since this
figure is less than 30 percent of the volume of waste oil estimated in Section
3.1.1 (and a much smaller fraction of total waste oil generated annually by all
military facilities in the continental United States), it is clear that if
specified disposal procedures have been followed then only a very small frac-
tion of these materials have been made available for recycling. Further, in
most cases the waste crankcase oils sold through the DPDO's were contaminated
with a number of other waste petroleum products. Hence the actual volumes of
recoverable lube oil are much lower than the volumes listed in Table 2.
14
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SALES OF
Date of Sole
November 14. 1973
December 19. 1973
January 3, 1974
February 27. 1974
February 27. 1974
February 27, 1974
March 5, 1974
March 5, 1974
March 21, 1974
April 16, 1974
April Ic. 1074
May 3. 1974
Hay 21. 1974
June 25, 1974
WASTE CRANKCASE
Volume
(gal Ions)
50 drums
containing
2750 gallons
800 drjms
containing
44,000 gallons
15,000
198 drums
containing
5940 gallons
85 drums
containing
4655 gallons
507 druns
containing
25,350 gallons
25,000
35 drums
containing
1750 gallons
218 druns
containing
12.000 gallons
91 drums
containing
5,000 gallons
273 dr-ums
containing
15,000 gallons
750 drums
containing
41 ,250 gallons
1525
30 Orurns
containing
1 ,650 gal Ions
Table 2
OILS BY DEFENSE PROPERTY
Location Successful Sid
(cents per gallon)
Fort Gordon, rejected
Georgia
Fort Devers, 3.6
Mass.
Letterkenny Army 2.3
Depot, Chambersburg,
Pennsylvania
OPOO, Portsmouth, N.A.
Rhode Island
OPDO, Naval N'A'
Training Center,
Great Lakes, Illinois
DPDO, Fort Heade. N.A.
Maryland
Naval Air Station. none received
Corpus Christl,
Texas
Fort Huachuca, 3
Arizona
OPDO, Fort Belvoir, N.A.
Virginia
DPDO, Grissom Air 1 .1
Force Base, Peru,
Indiana
Luke Air Force 1
Base, Arizona
Naval Air Stotlon, N.A.
Norfolk, Virginia
Lockbourne Air N.A.
force Base,
Lockbourne, Ohio
Camp Pencelton, none received
Cal ifornia
DISPOSAL SERVICE
Comments
Drums included in sale.
High bid of SI .06 per
drum rejected as too low.
Drums included In sale.
Oil contaminated with
solvents, sludge, etc.
Drums leaking.
i
Used engine oil from
aircraft and reciprocating
engines.
Contaminated oil and fuel •
mixed with water. !
i
Contaminated aircraft and
automotive lube oils.
Drums included in sale.
.
Drums included In sale.
Used automotive and
aircraft and engine oils.
Automotive and hydraulic
oils, solvents, carbon
remover, tlron-.s inolu.K'd
In sale.
Furl oil, liy'lrnu I li oil.
luljru.illiKj ut 1 .in.l ji'l
fuu).
Jet and autoi-'Otivo cri'iine
of 1 , jet fuel , aviation
gasoline, hydraulic fluid.
solvents.
1 ?»•'
-------
Table 2 (continued)
SALES OF WASTE CRANKCASE OILS BY DEFENSE PROPERTY DISPOSAL SERVICE
Date of Sale
July 2, 1974
July 17. 1974
July 30, 1974
August 20, 1974
August 20, 1974
August 20, 1974
Volume
(gallons)
10,000
8,000
300 drums
containing
16,500 gallons
100 drums
containing
5,500 gallons
111 drums
containing
6,100 gallons
250 drums
containing
13.755 gallons
Location
Otis Air
Force Base,
Falmouth, Mass.
Fort Campbell ,
HopMnsvll le,
Kentucky
Fort Oevens,
Mass.
U.S. Coast Guard
Yard, Curtis Bay
Baltimore, Md.
U.S. Naval
Academy,
Annapolis, Md.
Norton Air Force
Base, California
Successful Bid
(cents per gallon)
none received
4.5
rejected
N.A.
N.A.
18
Comments
August 20. 1974
September 11, 1974
October 1, 1974
October ), 1974
October 1. 1974
October 22. 1974
880 drums
containing
48,400 gallons
50 drums
containing
2750 gallons
10.000
17 drums
containing
935 gallons
365 drums
containing
20,000 gallons
36 drums
containing
2,000 gallons
Malstrom Air Force
Base, Montana
Fort Gordon,
Georgia
7.4
OUs Air Force N.A.
Base, Falnouth,
Mass.
Pittsburgh Air 3S.3
Force Base,
Plattsburg, New York
Wurtsmith Air rejected
Force Ease, ,
OscacJa, Michigan
3.75
an Air
Force Bdse,
Knob Noster.
Missouri
Drums Included in sale;
high bid of 13.5i per drum
rejected as too low.
Lube oils from ships, boats,
automobiles, trucks, cranes
and powerhouses. Drums
are dented and rusty.
Oil, fuel and lubricants,
waste.
Aircraft and automotive
engine oils, petroleum
derivatives, dirt, and
chemicals. Drums included
In sale.
Aircraft and reciprocating
engine oils, antifreeze
solvents, water, etc.
Drums Included in sale.
Drums Included In sale.
Used engine oil contaminated
with solvents, water, etc.
Drums included in sale.
Aircraft and reciprocating
engine lube oils. Item
withdrawn Jur to
mtsdcscriptlon.
Drums Included In tale.
Total Volume 344,810 gallons
16
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According to DSA personnel, waste crankcase oils which are not sold through
DPDO's are generally disposed of by burning. This is especially true at facili-
ties where fuel oil is used' for heating. However, a number of large bases are
located in regions, such as the south central states, where natural gas is
still the principal boiler fuel. The data in Table 2 indicate that in 1974 very
little waste oil was sold by DPDO's located in this region. Since waste lube
oils could not be used for fuel at these installations it is possible that
disposal is being accomplished by incineration without energy recovery or by
some other environmentally undesirable method. Although it is possible that
these facilities could be selling waste oils directly to independent collectors,
this practice is prohibited under DSA regulations.
3.2.3 Lube Oil Procurement by Military Facilities
Lubricating oils for use in motor vehicle engines are procured under two sets
of specifications. Specification MIL-L-2104C is for "Lubricating Oil, Internal
Combustion Engine, Tactical Service." Lubricating oils covered by this speci-
fication are intended for the crankcase lubrication of reciprocating spark
ignition and compression ignition engines used in all types of military tacti-
cal ground equipment and for the crankcase lubrication of high speed, high
output, supercharged compression ignition engines used in all ground equipment.
Specification MIL-L-46152 is for "Lubricating Oil, Internal Combustion Engine,
Administrative Service." Lubricating oils covered by this specification are
intended for the crankcase lubrication of commercial-type vehicles used for
administrative (post, station, and camp) service typical of: (1) gasoline
engines in passenger cars and light to medium duty trucks operating under
manufacturer's warranties; and (2) lightly supercharged diesel engines operated
in moderate duty. Lubricating oils procured under either specification are
intended for use when ambient temperatures are greater than -20°F. Further
details of each specification are provided in Appendices A and B.
Since the goal of the field test is to demonstrate the performance of re-refined
oils used in vehicles operated by commercial and industrial consumers, lube
oils used in the test program should meet the requirements of Specification
MIL-L-46152. However, an inspection of Table 1 reveals that only a small
fraction of the lube oil requirements of major military facilities are met by
administrative service oils. More than 90 percent of the lube oil procured in
fiscal year 1975 met Specification MIL-L-2104C. Conversations with DFSC
personnel revealed that in many cases it is likely that lube oil which IIK.'PI.S
both Specifications is being used in vehicles which require administrative
service oil. Vehicles selected for use in the field test described in Chrjpf.fr 4
must meet the definition of administrative service provided above.
Procedures and policies for lube oil qualification under military specifica-
tions have been presented in a previous study(8). Lube oil procurement for all
agencies of the Federal government is the responsibility of DFSC. Nearly all
lube oil is procured in 'five gallon pails, 55 gallon drums or in bulk tank car
loads. An exception is lube oil ordered by the Defense General Supply Center
in Richmond, Virginia, some of which is procured in containers smaller than five
gallons.
17
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Each year DFSC prepares a list of the previous year's lube oil purchases for
each government agency. Such a list is sent to all ordering activities who
then respond with an estimate of the coming year's requirements. The various
military and Executive Branch agencies submit to DFSC their total lube oil
requirements. DFSC then distributes invitations to submit bids for lube oil
supply to all firms listed on a bidder's mailing list. Any company may submit
a bid provided the firm can prove that:
1. It is a qualified supplier (i.e., its lube oil meets the military
specification under which the oil is being procured); or
2. It is supplying the product of a qualified supplier.
Bids received are evaluated solely on the basis of price, provided, of course,
that the lowest bidder is a qualified supplier. Contracts are then prepared
and a bulletin of successful bidders is printed and mailed to the ordering
activities for all government facilities. This is the Oil Contract Bulletin
described earlier. The ordering activities place their order directly with the
contractors listed in the Bulletin. DFSC does not maintain an inventory of
lube oil products. All the contracts are for indefinite quantities of oil and
are unfunded with no prepayment clauses. Payment is made after delivery to the
facility making the order. However, DFSC administers any problems which may
arise between the ordering activity and the lube oil supplier.
Lube oil ordered by the Defense General Supply Center in packages smaller than
five gallons is procured by DFSC on firm quantity, firm funded contracts. The
Defense General Supply Center maintains inventories of these packaged lube oils
at Defense Depots located throughout the United States.
3.2.4 Potential Participants - Military Facilities and Re-Refiners
Figure 2 is a map of the United States which shows the locations of the mili-
tary facilities listed in Table 1 and the locations of existing re-refineries.
The legend for this map is provided in Table 3 which shows the distances between
each military facility and the two nearest re-refineries. Names, addresses and
telephone numbers of the re-refining companies are listed in Table 4. The data
in Table 3 provide a basis for a tentative matching of potential participants
with re-refiners. Using the selection criteria discussed above, several facili-
ties should be chosen. Once authorization has been received from the Defense
Department, specific data for these bases should be collected which include
the following information:
« Names and telephone numbers of the following base personnel:
Base Commander
Purchasing Agent
Property Disposal Officer
Vehicle Maintenance Foreman
18
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• Actual lube oil requirements by viscosity and service classification
• Number and types of vehicles operated
• Current vehicle maintenance procedures
• Current waste oil disposal practices
All of this information can probably be obtained from the base personnel. One
or more meetings should then be arranged between the base personnel, the re-
refiner, the systems engineer and representatives of EPA and the Department of
Defense. The purpose of these meetings will be to acquaint each person with the
policies and procedures to be followed during the demonstration and his respon-
sibilities in the conduct of the test program.
19
-------
Figure 2
LOCATIONS OF KEY MILITARY FACILITIES AND NEAREST RE-REFINERIES
\ *s KEY MILITARY
AMP
-------
Table 3
LOCATIONS OF KEY MILITARY FACILITIES AND NEAREST RE-REFINERIES
Military Facility
Estimated Lube
Oil Procurement
Fiscal 1975 (gall
Nearest Re-Refinery
Distance
(Highway
miles)
CALIFORNIA
McClellan A.F.B., California
Travis A.F.B., California
COLORADO
Fort Carson, Colorado
FLORIDA
Elgin A.F.B., Florida
U.S. Marine Corps, 4th Amtrack
Division, Tampa, Florida
GEORGIA
Fort Benning, Georgia
32,000
40,000
128,000
36,000
89,000
56,000
Fabian Oil Refining Company, Oakland, California 80
Bayside Oil Corp., San Carlos, California 100
Fabian Oil Refining Company, Oakland, California 80
Bayside Oil Corp., San Carlos, California 100
Alco Refining Co., Salt Lake City, Utah 555
Davis Oil Co., Tallahassee, Florida 157
Jackson Oil Products Co., Jackson, Mississippi 298
Peak Oil Co., Tampa, Florida 0
Petroleum Products Co., Hallandale, Florida 234
Davis Oil Co., Tallahassee, Florida 237
Seaboard Chemical Co., Doraville, Georgia 118
Davis Oil Co., Tallahassee, Florida 157
-------
Table 3 (continued)
LOCATIONS OF KEY MILITARY FACILITIES AND NEAREST RE-REFINERIES
Military Facility
Estimated Lube
Oil Procurement
Fiscal 1975 (gal)
Nearest Re-Refinery
Distance
(Highway
mi 1es)
KANSAS
Fort Riley, Kansas
KENTUCKY
Fort Campbell, Kentucky
Fort Knox, Kentucky
MARYLAND
Fort Meade, Maryland
jMISSISSIPPI
:Camp Shelby, Mississippi
320,000
70,000
40,000
34,000
54,000
Coral Refining Co., Kansas City, Kansas 124
Double Eagle Refining Co., Oklahoma City, Okla. 273
Gurley Oil Co., Memphis, Tennessee 198
Keenan Oil Co., Cincinnati, Ohio 292
Seaboard Chemical Co., Doraville, Georgia 301
Keenan Oil Co., Cincinnati, Ohio 145
Westville Oil and Mfg., Inc., Westville, Indiana 280
Berks Assoc., Inc., Douglasville, Pennsylvania 106
Diamond Head Oil Refining Co., Kearny, New Jersey 190
National Oil Recovery Corp., Bayonne, New Jersey 190
Jackson Oil Products Co., Jackson, Mississippi 96
Davis Oil Co., Tallahassee, Florida 347
S&R Oil Co., Houston, Texas 419
-------
Table 3 (continued)
LOCATIONS OF KEY MILITARY FACILITIES AND NEAREST RE-REFINERIES
Military Facility
Estimated Lube
Oil Procurement
Fiscal 1975 (gall
Nearest Re-Refinery
Distance
(Highway
miles)
ro
NORTH CAROLINA
Fort Bragg, North Carolina
Marine Corps Air Station
Cherry Point, North Carolina
Camp LeJeune, North Carolina
OKLAHOMA
Fort Sill
Tinker A.F.S., Oklahoma
129,000
53,000
128,000
86,000
35,000
South Oil Co., Greensboro, North Carolina
Seaboard Chemical Co., Doraville, Georgia
South Oil Co., Greensboro, North Carolina
Berks Assoc., Inc., Douglasville, Pennsylvania
Seaboard Chemical Co., Doraville, Georgia
South Oil Co., Greensboro, North Carolina
Seaboard Chemical Co., Doraville, Georgia
Double Eagle Refining Co., Oklahoma City, Okla.
Capital Supply Co., Hurst, Texas
Texas American Petrochemicals, Inc.,
Midlothian, Texas
Cooks Oil Co., Boyd, Texas
Double Eagle Refining Co., Oklahoma City, Okla.
83
360
205
452
491
193
460
83
168
168
168
0
-------
Table 3 (continued)
LOCATIONS OF KEY MILITARY FACILITIES AND NEAREST RE-REFINERIES
Military Facility
Estimated lube
Oil Procurement
Fiscal 1975 (gal)
Nearest Re-Refinery
Distance
(Highway
miles)
PO
TEXAS
Fort Bliss, Texas
Fort Hood, Texas
VIRGINIA
Fort Eustis, Virginia
Naval Ship Compound, Norfolk,
Virginia
68,000
260,000
48,000
89,000
Capital Supply Co., Hurst, Texas 605
Texas American Petrochemicals, Inc., Midlothian,
Texas 605
Cooks Oil Co., Boyd, Texas 605
Double Eagle Refining Co., Oklahoma City, Okla. 682
Capital Supply Co., Hurst, Texas 147
Texas American Petrochemicals, Inc., Midlothian,
Texas 147
Cooks Oil Co., Boyd, Texas 147
S&R Oil Co., Houston, Texas 195
South Oil Co., Greensboro, North Carolina 235
Berks Assoc., Inc., Douglasville, Pennsylvania 296
South Oil Co., Greensboro, North Carolina 230
Berks Assoc., Inc., Douglasville, Pennsylvania 286
-------
Table 3 (continued)
LOCATIONS OF KEY MILITARY FACILITIES AND NEAREST RE-REFINERIES
Military Facility
Estimated Lube
Oil Procurement
Fiscal 1975 (gal)
Nearest Re-Refinery
Distance
(Highway
miles)
WASHINGTON
Fort Lewis, Washington
WISCONSIN
Camp McCoy
PO
144,000
54,000
Nu-Way Oil Co., Portland, Oregon
Ager & Davis Refining Co., Portland, Oregon
Lubricants, Inc., West All is, Wisconsin
Gopher State Oil Co., Minneapolis, Minnesota
Warden Oil Co., Minneapolis, Minnesota
113
113
166
176
176
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TABLE 4
COMMERCIAL LUBE OIL RE-REFINERS
As of September 1974
California
Florida
A. Ray Banks
Bayside Oil Corp.
977 Bransten Road
San Carlos, California 94070
(415) 593-2944, 593-4848
Brian Fabian
Fabian Oil Refining Company
4200 Alameda Avenue
Oakland, California
(415) 532-5051
George Leach
Leach Oil Co., Inc.
625 E. Compton Blvd.
Compton, California 90220
(213) 323-0226
Howard Dudley
Motor Guard Lubricants Co.
4334 E. Washington Blvd.
Los Angeles, California 90023
(213) 269-3437, 268-6877
A.M. Talley
Talley Bros., Inc.
2007 Laura Avenue
Huntington Park, California 90255
(213) 587-1217
Roger E. Humphrey
Nelco Oil Refining Co.
1211 McKinley Avenue
National City, California 92050
(714) 474-7511
George Davis
Davis Oil Company
Box 1303
Tallahassee, Florida
(904) 576-3116
32302
Alan Venzer
Petroleum Products Co.
Box 336
Hallandale, Florida 33009
(305) 989-4000
John Schroter
Peak Oil Company
Route 3, Box 24
Tampa, Florida 33619
(813) 626-9116, 626-9153
Georgia
Jack and Bernard Blase
Seaboard Chemical Co., Inc.
Box 333
Doraville, Georgia 30340
(404) 451-6900
Illinois
B.R. Williams
Motor Oils Refining Co.
7601 W. 47th Street
Lyons, Illinois 60534
(312) 242-2306
26
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TABLE 4 (continued)
Indiana
New Jersey
Andrew Carson
Westville Oil and Mfg., Inc.
Box 104
Westville, Indiana 46391
(219) 785-2534
Kansas
Richard O'Blasny
Coral Refininc] Company
765 Pawnee Avenue
Kansas City, Kansas 66105
(913) 281-5454
Michigan
Jack Epstein
Bernie Horton
Dearborn Refining Co.
3901 Wyoming Avenue
Dearborn, Michigan 48120
(313) 843-1700
Minnesota
C.H. Romness
Gopher State Oil Co.
2500 Delaware Street, S.E.
Minneapolis, Minnesota 55405
(612) 331-5936
Al Warden
Warden Oil Company
187 Humboldt Avenue, N.
Minneapolis, Minnesota 55405
(612) 374-1200
Mississippi
H.K. Robertson
Jackson Oil Products Co.
Box 5686
Jackson, Mississippi 39208
(601) 939-3131
Arthur Vash
Diamond Head Oil Refining Co.
1427 Harrison Turnpike
Kearny, New Jersey 07032
(201) 991-5800
Salfred Mazius
.National Oil Recovery Corp
Box 338
Bayonne, New Jersey 07002
(201) 437-7300
New York
George T. Booth & Son, Inc.
76 Robinson Street
North Tonawanda, New York 14120
(716) 693-0861
North Carolina
Jerry Blaise
South Oil Company
Box 106
Greensboro, North
(919) 375-5811
Carolina 27402
Ohio
Jac Fallenberg
Alan Gressel
Research Oil Refininq Co.
3680 Valley Road
Cleveland, Ohio 44109
(216) 749-2777
Darryl Thomas
Keenan Oil Company
#1 Parkway Drive
Cincinnati, Ohio 45212
(513) 631-2900
27
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TABLE 4 (continued)
Oklahoma
Texas
Cameron L. Kerran
Double Eagle Refining Co.
Box 11257
Oklahoma City, Oklahoma 73111
(405) Office: 232-0244
Plant: 232-6878
A.L. Geary
Nu-Way Oil Company
7039 46th Avenue, N.E.
Portland, Oregon 97218
(503) 281-9375
T.M. Diivis
Harold W. Ager, Jr.
Ager & Davis Refining Company
9901 - 33rd Avenue, N.E.
Portland, Oregon 97211
(513) 288-3584
Pennsylvania
Lester Schurr
Berks Associates, Inc.
Box 305
Douglasville, Pennsylvania 19518
(215) 385-3031
Tennessee
William M. Gurley
Gurley Oil Company
Box 2326
Meinphis, Tennessee 38102
(901) 527-9940
R.A. Swasey
S & R Oil Company
Box 35516
Houston, Texas 77035
(713) 729-8740 - main office
Mr. Kildorf
Capital Supply Co.
Refining & Chemical Division
1401 West Hurst Blvd.
Hurst, Texas 76053
(817) 268-1129
Ed Fisher
Texas American Petrochemicals, Inc.
North 67
Midlothian, Texas
(214) 291-4400
Joe Gillespie
Cooks Oil Company
Boyd, Texas
(817) 433-2754
Utah
J.R. Mastelotto
Alco Refining Co.
133 No. First Street
Salt Lake City, Utah 84113
(801) 364-4214
Wisconsin
Dick Drexeler
Lubricants, Inc.
1910 South 73rd
W. All is, Wisconsin 53214
(414) 541-1000
28
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4.0 A CLOSED-CYCLE DEMONSTRATION:
POLICIES AND PROCEDURES FOR IMPLEMENTATION
Once the participating facility and re-refiner have been selected, it is essen-
tial that policies and procedures for the design and conduct of the field test
be clearly defined and agreed to by the key personnel. This chapter presents
such a set of guidelines for implementation of the closed-cycle demonstration.
These guidelines have been developed as a set of generic procedures and, for any
particular situation, may require modification. The goal in preparing these
guidelines is to provide a comprehensive set of procedures which, if followed
closely, will insure the satisfaction of the re-refiner and the customer,
facilitate smooth operation of the demonstration and, most importantly, provide
adequate evidence to the user community of the quality of the oil being tested.
A thorough evaluation of the quality of an engine crankcase lubricating oil
includes laboratory tests of the physical and chemical properties of the base
stock, engine sequence tests of the performance properties of the lube oil-
additive blend, and a field test of lube oil performance under actual service
conditions. Specification MIL-L-46152 (Appendix B) provides information con-
cerning laboratory and engine test requirements for lube oils which will be
used in the demonstration. Details of all test procedures are provided in those
publications of the American Society of Testing and Materials (ASTM) which are
cited in Appendix B. There are only three commercial laboratories in the
United States which have been approved by the Army Fuels and Lubricants Center
for conducting the required laboratory and performance tests.(') Thus one of
these organizations must participate in the qualification of the re-refined
product(s) used in the demonstration.
Unlike the laboratory and performance tests discussed in Appendix B, standard-
ized field tests are not required for lube oil qualification. However, in view
of the actual service conditions encountered, a properly designed field test can
provide a more complete determination of the performance of a lubricant in day
to day service. Since the vehicles which will be used in the field test will be
similar to those operated by potential commercial users of re-refined products,
a successful demonstration can be an important aid in reducing the barriers to
use of re-refined oil in the commercial sector. It is the purpose of this
chapter to establish policies and procedures for the closed-cycle demonstration
including the design and conduct of the field test and guidelines for the accu-
mulation and re-refining of used crankcase oils and the utilization of re-
refined oils.
4.1 Design of the Field Test
4.1.1 Number of Vehicles
The design of a field test is constrained both by the need for obtainintj resull.r>
which are statistically significant and by the amount of money available for
conducting the test. Ideally, a large number of vehicles of each class should
29
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_,.vvr.i«i> , %»w w i v wj^wr i ui it UCO t> plU~
gram. Such factors include excessively light or excessively heavy duty use,
improper maintenance procedures, lost or incorrect test data, vehicle loss with
to accident or theft, etc. In practice, a field test is usually designed to
the expectation that the vehicle mortality rate will be 25 percent.
Although the use of a large number of vehicles is desirable, high costs restrict
the number of vehicles used in a field test of a given lube oil. The major cost
components include labor and vehicle operation (estimated at 10 cents per vehi-
cle mile), engine purchase, overhaul, and inspections. As discussed in Section
4.1.3 (below), in order to determine lubricant performance all field test
vehicles must be equipped with new or newly rebuilt engines. A new eight
cylinder passenger car gasoline engine costs about $1000 while a new light duty
diesel engine costs about $5000. In most test programs for every vehicle
operated using the test oil a vehicle is operated using a reference oil whose
performance properties are well established. Thus the cost of the evaluation
rises twice as fast as the number of vehicles operated using the test oil. If
two oils are being evaluated, then sets of three vehicles (one using each test
oil and one using the reference oil) are required. If the same oil is tested
in more than one type of service (e.g., gasoline passenger car and light duty
u^sel engines), separate sets of vehicles using the test and reference oils
are required. Therefore, as a consequence of cost considerations, most field
tests are designed with a minimum of four vehicles of the same type using each
test oil. On fche basis of a 25 percent mortality rate, this provides assurance
'hat at least \^«2e sets c* ^ata will be obtained for each combination of lube
vehicle ty^ v^ class ov ;•= '
vehicles
Lube oil procureu
line engines in passenyt ra,- !cation >l1I'^'-^l52 ii, **..,^ded for u^>.;? qaso-
manufacturers warranties ano V;> ^9ht to medium duty ;>..;-<; operatiny "i ,.^r
in moderate duty. Since these ai^'V'' 5UPer charged dieset ^..-;nes operated
commercial users of re-refined oil ,'^ nes of equipment opera^.- N notential
cars, gasoline fueled trucks and liqhtlv - •••* he desirat)1e tn incluuC v;°nger
the demonstration. However, as discussed ilVrV"ned dl'ese] fce-ed trut-:s 1>n
veh cle classes will require a min ?££ of ^elve £ '-,1'1 1 1nc1u^on of ^
twelve vehicles for the reference mY T^ f I V , °r each test oil and
'''' ' '
-------
Large additional costs will be incurred for qualification of the re-refined oil
and for analyses of used crankcase oils. The cost of the five engine sequence
tests required for qualification under Specification MIL-L-46152 is approximately
$15,000. Since failure of one or more tests on the first try should be antici-
pated, the total cost of qualification could easily exceed $20,000. The quoted
costs of the engine sequence tests required under MIL-L-46152 are summarized in
Table 5.
Used oil analyses are much less costly than engine tests. A complete used oil
analysis costs about $50 per sample. However, over the two year period of this
demonstration (see Section 4.1.4 below} as many as 300 such analyses could be
required. Hence the cost of used oil analyses could amount to $15,000.
4.1.3 Engine Inspections
4.1.3.1 Wear Measurements
Prior to commencement of the demonstration, the engines of all test vehicles must
be inspected in order to ensure that any wear found at the end of the program is
due solely to operation of the engine during the demonstration. For example,
broken or missing piston rings, missing valve guides, etc., are frequently found
during these inspections. Further, subtle differences in engine wear cannot be
detected using manufacturers' tolerances for new parts. The same inspections
must be made following completion of the test program. A comparison of the
"before and after" measurements provides the data on engine wear which are used
in evaluating the relative performance properties of the "test" and "control"
lubricating oils.
The following measurements of key engine parts should be made prior to commence-
ment and following completion of the test program:
1. The longitudinal and transverse bore of each cylinder.
2. The diameter of each camshaft lobe.
3. The height of each valve lifter.
4. The diameter of the valve guide for each intake and exhaust valve.
5. The weights of the top compression ring, second compression rinn,
and oil control ring on each piston.
6. The weights of each main bearing and each connecting rod bearing.
7. The diameter of each crankshaft journal.
8. The thickness of each piston ring.
31
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Table 5
COSTS OF ENGINE SEQUENCE TESTS
REQUIRED UNDER SPECIFICATION MIL-L-46152*
Cost
Tests (dollars)
Oldsmobile Sequence II C $ 2,350
Oldsmobile Sequence III C 3,600
Sequence V-C 3,925
CRC L-38 990
Caterpillar 1-H 3,675
Total Cost $14,540
* Costs supplied by Automotive Research Associates
32
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9. The gap between each piston ring and the piston.
10. The valve seat wear for each intake and exhaust valve seat. A
reference valve, not used in the field test, is used for this
purpose.
11. The tip wear and stem wear for each intake and exhaust valve.
4.1.3.2 Rust, Sludge and Varnish Ratings
Following completion of the test program all engines should be disassembled and
inspected for rust, sludge and varnish formation, plugging of oil lines,
scuffing and wear, etc. Engine disassembly must be accomplished in accordance
with standard practices recommended by automobile manufacturers for engine
maintenance and overhauls. Engine inspections shall include the following:
• Rust ratings for
Valve lifters
Rocker covers
Pushrods
Oil pan
• Sludge ratings for
Rocker arm covers
Valve decks
Valve lifter chamber
Valve chamber cover
Timing gear cover
Oil pan
• Varnish ratings for
Rocker arm covers
Valve chamber covers
Timing gear cover
Oil pan
Piston skirts
Cylinder walls
Pushrods
Valve lifter bodies
• Other ratings
Percent oil screen filling
Percent oil ring filling
Piston land varnish
Number of stuck rings
33
-------
Other ratings (continued)
Number of sluggish rings
Number of stuck valve lifters
Number of scuffed or pitted lifters
Deposits on intake and exhaust valves:
a. underhead deposit
b. stem deposit
c. observation on seat condition
All ratings shall be conducted in accordance with procedures specified in the
Coordinating Research Council (CRC) engine rating manuals.
4.1.4 Used Oil Analysis
4.1.4.1 Purpose of Used Oil Analysis
Physical and chemical tests of the properties of used engine oils provide
valuable information concerning the level of contamination with undesirable
solids and liquids and the extent of decomposition of the lube oil-additive
blend. Contaminants include fuel combustion products, liquid fuel, wear
particles (e.g., steel, copper, etc.), water and coolant additives. In a
field test, a comparison of the levels of contaminants in the used oils provides
information concerning the mechanical condition of the engine and the severity
of service.
The decomposition which takes place in engine oils involves several chemical
reactions including:
• Oxidation, which results in deposits and an increase in oil
viscosity.
• Neutralization of alkaline additives by fuel-derived acids,
which results in loss of wear protection.
• Cracking, in which long chain molecule additives are sheared
into smaller ones.
Under normal conditions high quality lube oils break down slowly. Thus, durirui
the field test, it is expected that used oil analyses should not reveal oxu>'.-
sive levels of decomposition or contamination. However, if service condi I. iorr.
are overly severe, if the engine develops mechanical problems, or if the oil r.
unsuitable for the class of service, used oil analyses can reveal if corit.inacd
operation without an oil change might result in engine damage. Honce .1 com-
parison of the analyses of the used oils being tested can provide informal, ion
concerning the relative quality of the oils and the degree of uniformity ol t.hc>
mechanical condition and the operating conditions of the test vehicles.
34
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4.1.4.2 Procedures for Used Oil Analysis
The engine in each test vehicle and each control vehicle should be fitted with
a 1/8 inch pipe ball valve to facilitate removal of lube oil for used oil
analysis. The valve can be installed at any convenient point downstream of the
oil filter.
Used oil samples should be withdrawn at mileage intervals equal to one-half the
normal oil change interval. The sampling procedure is as follows:
a. Four ounces of oil (or a volume greater than the "dead
space" in the sampling tube) are withdrawn and discarded.
b. A four ounce sample of used oil is withdrawn into a
sample bottle.
c. The label of each sample bottle should include the
following information: vehicle identification, date,
odometer miles, oil miles, and whether the sample is a
drain sample or an interim sample (see below).
d. Eight ounces of fresh oil are added to the crankcase to
replace the oil which was withdrawn. Such additions
should not be entered as oil consumption.
Each sample of used oil should be subjected to the following tests:
a. Appearance and odor
b. Water (ASTM D 95)
c. Viscosity (ASTM D445)
d. Spectrochemical analysis
e. Flash point (ASTM D 92)
f. Fuel dilution (ASTM D 322)
g. Glycol test (ASTM 0 2982)
h. Insolubles (ASTM D 893)
i. Alkaline reserve (ASTM D 2896)
At the end of each drain interval, the oil filter should be removed ,md rcplm rrl
The used filter should be cut open and residue contained on tho walls of f.hc
filter removed. Spectrochemical analysis and insoluble^ determination-. (AMM
D 893) should be made on this residue.
35
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Used oil analyses should be conducted by an independent, certified laboratory.
If any of the test results exceed by a wide margin the recommended operating
limits shown in Table 6, the crankcase of the relevant engine should be promptly
drained and refilled with fresh oil and an investigation made of the reasons
for breakdown of the used oil.
If after a six month period the used oil analyses conducted at one-half the
drain interval mileage reveal no adverse effects, such interim analyses should
be discontinued. Used oil analyses should then be made only at the end of
each drain interval.
4.2 Policies and Procedures for Waste Crankcase Oil Accumulation
and Collection
1. All waste crankcase oils which are to be re-refined must be stored sepa-
rately from all other wastes including other waste oil products such as
fuel oil, synthetic lubricants, animal fats, etc. Sump tanks must be
cleaned prior to storage of waste lube oils. If sump tanks are not avail-
able, waste lube oils should be stored in clean drums equipped with tight
fitting covers. The Property Disposal personnel at the Facility will be
responsible for providing the Re-refiner with waste oil in quantities
sufficient to produce the required volume of re-refined oil.
2. In order to reduce the cost of re-refining, single viscosity waste crank-
case oils should be stored separately from multiple viscosity waste crank-
case oils. Viscosities must be clearly marked on the storage containers.
3. Records must be kept which contain the following information concerning
accumulation of waste crankcase oils: Identification of vehicle from
which crankcase oil was drained; vehicle mileage; date of oil draining;
specification and viscosity of crankcase oil used in the vehicle; approxi-
mate volume of waste oil drained; identification of container in which
waste oil was stored.
4. In order to assure uniformity of the waste oil properties and the additive
response of the re-refined product, the Facility must agree for the dura-
tion of the demonstration to purchase all virgin crankcase oil used in the
control vehicles from the same supplier.
5. Waste oils collected for re-refining should be characteristic of seasonal
variations in dilution and severity of service. Thus at least four batches
of waste crankcase oil should be re-refined annually.
6. The volume of waste crankcase oils accumulated must be sufficiently great
to justify re-refining this oil as a single batch. The minimum volume
shall be agreed to by the participating Facility and the Re-refiner.
36
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Table 6
RECOMMENDED OPERATING LIMITS FOR USED ENGINE OIL TESTS
Basic Tests
Appearance and Odor
Viscosity Increase at 100'JF, ", Max.?
Viscosity Increase at 210°F, %, Max.2
Viscosity Decrease at 100°F, X, Max.
Fuel Dilution, Vol %, Max.
Trace Metals, ppm, Max.
Aluminum
Boron
Chromi uin
Copper
Iron
Lead
Silicon
Silver
Sodium
Tin
Zinc
Supplementary Tests
Flash, Point, °F
Water, Vol %, Max.
Glycol Test
Insolubles
Pentane, Wt %, Max.
Benzene, Wt ™, Max.
Oxidation Resins (Pentane-nenzene)
Wt %, Max.
Coagulated Pentane, Wt ?-, MJX.
Coagulated Benzene, Wt », Max.
Alkaline Reserve
Total Case Number
PH
'Numbers refer to ASTM D method
Test Method
445
2161
Spectro-
Chemical
Analysis
92
95
2982
893
893
893
893
393
2896
C64
Gasoline
Engines
Automotive
Diesel Engines
No Numerical Limits
50
35
25 3
5
40
40
40
100
-
20
-
-
40
-
ii
0.2
Negative
1.5
0.7
1.0
-
-
-
?Limit hased on SAP. 30 viscosity oils (RR-SAE .10) under normal opi.-rrition;
varied for other viscosity nun.her oils and special operation condiLionr..
'fuel dilution will usually control.
35
25
25 ?
5
40
40
40
100
100
20
-.
-
40
-
i<
0.2
Negative
1.5
0.7
1.0
--
-
?.
/I
1 imi t c an l>o
''Should be measured and compared with fresh oil value when fuel dilution suspected.
37
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7. The vehicle which collects the waste crankcase oil for shipment to the re-
refinery must be empty of any other waste products such as sludge and other
contaminants. The waste oil can be collected by the Re-refiner using his
own vehicles or by a common carrier who has agreed to the procedures
enumerated here.
8. Payment for waste oil collected shall be arranged as follows:
(a) If a single tariff for waste oil collection, closed-cycle re-
refining and crankcase oil delivery has been arranged, then
no payment shall be made by either party.
(b) If separate charges have been arranged, then the Re-refiner
shall pay the Facility a fixed amount per gallon of waste oil
collected. The size of this payment shall be agreed to by
the re-refiner and the Facility Purchasing Agent.
(c) If a common carrier is used for waste oil shipment, then the
Re-refiner shall be responsible for payment of all transpor-
tation charges.
9. Records shall be maintained by the Facility which contain the following
information:
(a) Volume, specification and viscosity (when new) of waste
crankcase oils collected.
(b) Identification of the containers from which the oils was
removed and/or the containers in which the oil was removed.
(c) The payment (if any) made for collection of waste crankcase
oil.
4.3 Policies and Procedures for Waste Crankcase Oil Re-Refining
All waste crankcase oils delivered to the re-refinery from the Facility
shall be stored in sealed containers or covered tanks and kept separate
from other waste crankcase oils. The Re-refiner shall keep records of the
volume, specification and viscosity (when new), delivery dates, BS&W con-
tent, and flash point of all waste crankcase oils delivered from the
Facility. If possible, waste oil delivery should be scheduled so that the
waste oil may be fed directly into the dehydration unit.
Waste crankcase oils collected from the Facility shall be re-refined in a
separate batch operation under conditions consistent with maintenance of
product quality. The Re-refiner shall determine these conditions (tempera-
tures, quantities of acid and clay, etc.) and shall assume responsibility
for insuring that all re-refined oils produced meet the relevant limitations
for physical and chemical properties (see below).
33
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3. Re-refined base oils shall be stored in tanks empty of oils whose origin
is other than the participating Facility. Samples of re-refined base oils
shall be subjected to the following laboratory tests using standard ASTM
test procedures:
Viscosity @ 100°F
Viscosity @ 210°F
Pour Point, °F
Flash Point, °F
Gravity, API
Neutralization Number
Carbon Residue
Phosphorus
Chlorine
Sulfur
Nitrogen
Sulfated Residue
Fe, ppm
Pb, ppm
Ca, ppm
Ba, ppm
Zn, ppm
Cr, ppm
Al, ppm
Cu, ppm
Si, ppm
Testing shall be performed by an independent, certified laboratory. All
test results must be in compliance with limits established under existing
Specification MIL-L-46152 (see Appendix B). Where necessary, bright stock'
or other viscosity improvers shall be blended with re-refined base oil in
order to raise the viscosity to the specified level.
4. Performance additives shall be blended with the re-refined base oils in
accordance with procedures specified by the Systems Engineer. Blender! oil-
shall be packaged in containers marked with the appropriate specification
and viscosity as specified by the Purchasing Agent.
5. Samples of compounded oil shall be subjected to engine sequence tests as
specified in MIL-L-46152. This testing shall be performed only on tho
first batch of re-refined oil produced in a closed-cycle demonstration.
39
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The Systems Engineer shall review the results of the engine tests and
recommend appropriate changes in the additive package. Once an oil passes
all required engine sequence tests, no changes shall be made in the
volume or type of additives or in any other step in the re-refining pro-
cess, except as approved by the project Systems Engineer.
Engine sequence tests shall be conducted by a certified laboratory. The
results of such tests, including color photographs of the engine parts,
shall be submitted to the EPA Project Officer. The EPA Project Officer
and the Systems Engineer will review the test results.
A complete set of laboratory and engine test results including engine
parts will be presented to the Military Automotive Review Committee. Upon
approval by this committee, the re-refined oil will be shipped to the
Facility. Subsequent batches of re-refined oil produced during a demon-
stration project shall not require engine testing nor review of test
results by the Military Automotive Review Committee.
6. Prior to shipment of re-refined oils to the Facility, Quality Assurance
Personnel, assigned by the Department of Defense, shall inspect each batch
of oil according to test procedures specified by the Department of Defense.
The test results shall be forwarded to the Systems Engineer and EPA's
Representative. The analyses must satisfy the requirements of the speci-
fication for which the oil was compounded. Further, the levels of calcium,
zinc, and other components must be consistent with those that would be
obtained after blending the base oil with the recommended additive package.
If the levels of these components are found to be inadequate, then the
Quality Assurance Personnel shall reject the entire shipment of lube oil.
If any cause for rejection is found the Systems Engineer shall have
responsibility for determining the sources and causes of any deficiencies.
In cooperation with the Re-refiner, steps shall be taken to correct these
deficiencies.
7. The Re-refiner shall be responsible for delivery of all re-refined lube
oils ordered by the Facility.
8. All re-refined lube oils produced as a result of a demonstration which are
not purchased by the Facility, shall be the exclusive property of the
Re-refiner.
9. The Re-refiner shall present evidence of liability and property damage
insurance coverage on all vehicles owned by him which are used to transport
oil to and from the Facility.
10. The Re-refiner shall present evidence of liability insurance for damage to
the engines of any demonstration vehicles that may result from inadequate
performance of any lube oil provided by the Re-refiner. The amount of such
coverage shall be agreed to by the Facility Purchasing Agent and the Re-
refiner.
40
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4.4 Policies and Procedures for Purchase and Utilization of
Crankcase Oils
1. The Purchasing Agent at the Facility shall provide the Re-refiner with
purchase orders for all crankcase oil used in the demonstration vehicles.
These orders shall specify the following information: volumes of lube oil
required by specification and viscosity, container sizes and delivery
dates.
2. The prices paid for re-refined lube oils shall be agreed to in advance of
the start of the demonstration program. Prices shall be competitive with
those quoted by traditional suppliers of lube oil for the same quantities,
container sizes and specifications. Unless other arrangements are made in
advance, prices established at the start of the demonstration shall not be
subject to escalation.
3. Selection of vehicles which will be used in the demonstration shall be
based on the following criteria:
(a) Three classes of vehicles - passenger cars, gasoline fueled
light to medium duty trucks, and light duty diesel fueled
trucks shall be included in the field test.
(b) Within each vehicle class all units shall be of the same make
and model and shall have the same size and design drive train.
(c) Vehicles which are subjected to unusually severe or unusually
light duty service, or which run odd routes (e.g., exclusively
on dirt roads) or which are equipped with unusual accessories
(e.g., four wheel drive, towing equipment, etc.) shall not be
used in this demonstration.
(d) In view of the limitations on cost, eight vehicles of each
type listed in (1) above shall participate in the demonstra-
tion. Within each group four shall be operated using re-refined
lubricating oil and four shall be operated using virgin lubri-
cating oil exclusively. The re-refined oil shall be that oil
provided solely for use during this demonstration. The virgin
oil shall be that oil which is being used at the start of the
field test in other vehicles of similar types to those speci-
fied in (a) above. Sufficient virgin oil of the same brand and
formulation shall be kept in storage to supply the needs of
twelve of the test vehicles throughout the field test.
4. Throughout the field test each test vehicle and each control vehicle wit.hin
a given vehicle class (e.g., passenger car) shall use the same grado of
fuel obtained from the same supplier. At no time during the field test
shall the grade or supplier of fuel be changed.
41
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5. Two identical record books shall be kept for each vehicle used In this
demonstration. All data concerning maintenance, measurements, oil and fuel
consumption, used oil analyses, etc., shall be entered into these record
books. One copy of the book shall be kept in the vehicle; the other copy
of the book shall be retained by the Maintenance Foreman.
6. Prior to initiation of the experiment, measurements shall be made of cer-
tain parts of the engines of all vehicles. The parts to be measured and
the measurements to be made are listed in Section 4.1.3, above. If any
parts are found to be worn or defective, these parts shall be replaced.
7. Al] new engines shall be "broken-in" using a virgin lubricating oil which
meets Specification MIL-L-21260. During the break-in period (and in all
subsequent periods) records shall be kept of fuel consumption, oil consump-
tion, and miles per day driven in order to estimate severity of service and
to forecast dates for oil inspections and oil changes. The break-in period
shall be that recommended by the engine manufacturer. At the end of the
break-in period, the oil in each engine shall be drained and replaced with
either virgin or re-refined oil which meets Specification MIL-L-46152.
8. Used oil analyses shall be conducted as specified in Section 4.1.4.2, above.
9. Periodic maintenance shall be performed on all test vehicles. The mainte-
nance shall include oil and oil filter removal and replacement. Mainte-
nance intervals shall be the same as prescribed in normal operations. The
Maintenance Foreman shall keep records of all repairs, including vehicle
mileage, dates, type of maintenance and, where relevant, probable cause of
damage. Records shall also be kept of the quantities, dates and vehicle
mileage of any additions of motor fuel and of crankcase oil.
10. Duration of the Demonstration
The closed-cycle demonstration shall continue for a period of at least one
year. At the end of one year, inspections shall be made of the condition
of the engine crankcase, valve stems, rocker arms and rocker covers. If,
on the basis of these inspections and used oil analyses, sufficient
differences in wear, rust, sludge and varnish formation between the
engines of the control group and the test group are not evident, the
engines shall be reassembled and the test.program continued for a second
year. Records of the results of these interim inspections shall be made a
part of the general record of the demonstration.
In order for the field test to produce meaningful results, participating
vehicles should be driven as much as possible during the period of the
demonstration. Thus the criteria for vehicle selection should include the
expected annual mileage accumulation (see item 3, above).
11. Following completion of the test program, the engine parts inspected at the
beginning of the demonstration shall be re-examined for wear. Measurements
specified in Section 4.1.3, above, shall be made and compared with the
values obtained previously. The Systems Engineer shall prepare a report
42
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which contains all data relevant to the conduct of the demonstration
including a statistical analysis of the measurements made on key engine
parts and data on oil consumption and vehicle maintenance. On the basis of
this analysis conclusions will be drawn as to the comparative performance
of re-refined and virgin engine oils.
12. Following completion of the demonstration the Facility Oversight Officer,
in cooperation with the other Facility Personnel, shall prepare a written
report which summarizes their activities in the demonstration and contains
the documentation specified earlier in these instructions. Copies of this
report shall be sent to the EPA Project Officer, the Systems Engineer and
the Re-refiner. This report shall be available within sixty days of com-
pletion of the demonstration.
4.5 Potential Problems in Implementing the Closed-Cycle Demonstration
As discussed in Chapter 2, implementation of a closed-cycle demonstration of
the use of re-refined crankcase oil at a military facility will require modifi-
cation of existing procurement procedures for lubricants. Authorization for
such modification will probably have to come from the Office of the Assistant
Secretary of Defense for Installations and Logistics (ASDI&L). In addition,
since military specifications now prohibit the purchase of re-refined crankcase
oils by government agencies, these specifications will require modification or
revision to permit the use of re-refined oils which have passed all qualifica-
tion tests. Further, procurement officials must be satisfied that restrictions
on feedstock variation can be met through the use of a closed-cycle system and
that the additive response of different batches of re-refined oil will be
essentially the same.
While these problems must be resolved prior to commencement of any demonstra-
tion, additional difficulties may arise once authorization to proceed is
granted. This section discusses a number of potential problems and proposes
possible actions which can lead to their resolution.
Problem 1: Re-Refined Oil Fails to Pass One or More Engine Sequence Tests
Only a few sets of engine test data for re-refined oils exist; the results of
these tests have not been encouraginq. In 1974, the U.S. Army Mobility 1'ijii ipim-
Research and Development Center conducted engine tests on two sample, of n>-
refined oil. The tests conducted were those required under Specifioitiori*.
MIL-L-2104C and MIL-L-46152. Of the samples, one failed all engine tests by a
wide margin. The other sample passed only one of the seven tests; performance
on the other six tests was, however, significantly better than that of the
other re-refined product.
43
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At first examination, these results would appear to be discouraging. However,
chemical analyses of the two test samples revealed that the first oil contained
essentially no performance additives and the second oil contained about one-
half the additive volume normally required to pass the engine tests. Thus the
test results are certainly not surprising. In fact, failures for both these
oils could have been predicted on the basis of the chemical analyses alone.
For this reason the policies and procedures listed in Section 4.3 include a
requirement for chemical analysis of samples of re-refined oil prior to accep-
tance of any shipment by a participating facility.
During the past year, several large petroleum companies have investigated the
technical and economic feasibility for purchasing lube oil from re-refiners,
compounding the oil to meet relevant performance specifications, and marketing
the oil under their own label. In the course of these investigations, at
least one company has run a series of engine tests on a re-refined base oil
blended with a variety of additive packages. Results of these engine tests
would be of value in selecting the proper types and volumes of additives for
use in the demonstration program. Experience has shown that of the engine
tests required under MIL-L-46152 the Caterpillar I-H test may be the most
difficult to pass. This test measures the performance of engine lubricating
oils under high temperature, medium supercharged conditions and is used for
determining the effect of a lube oil on ring-sticking, wear, and the accumula-
tion of engine deposits. A diesel fuel of low-sulfur content is used. The
criteria for passing the I-H test are sufficiently stringent that many virgin
lube oils fail the test several times. In some cases, it is necessary to
experiment with a number of additive blends before the I-H test is passed.
The test is further complicated by the fact that test results are sensitive to
the sulfur content of the fuel, the operating temperature, etc. Hence additive
packages need to be adjusted as these test parameters vary. During the past
several years the severity of the I-H test has been increased by raising the
engine operating temperature. As a result, some lube oil manufacturers may
have been using additive blends which were not adequate to insure qualification
under the new test conditions. Thus it is essential that the additive packages
be selected on the basis of current engine test conditions.
Problem 2: Regulations Established Under the Mandatory Petroleum
Allocation Program
Regulations established under the Mandatory Petroleum Allocation Program
(10 CFR §211.01 et seq_.) require that the relationship between a supplier and
a wholesale purchaser of petroleum products, including lube oils, be maintained
for the duration of the Program. The relationship is that which existed during
the calendar year 1972.
44
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Specifically 10CFR §211.9 reads:
§211.9 Supplier/purchaser relationships.
(a) Supplier/wholesale purchaser relationship. * * *
(2) * * *
(ii) Unless otherwise provided in this Part or directed by FEA,
the supplier/wholesale purchaser-consumer relationships defined
by specific dates or base periods or otherwise imposed pursuant
to this part shall be maintained for the duration of the Mandatory
Petroleum Allocation Program and may not be revised or otherwise
terminated except that any such relationship may be terminated
by the mutual consent of both parties.
(b) Supplier/end-user relationship. Each supplier of an allocated
product shall, to the maximum extent practicable, supply all
end-users which purchased that allocated product from that
supplier as of January 15, 1974, and which are entitled to an
allocation level under the provisions of Subparts D through K of
this part.
The distinction between a wholesale purchaser-consumer and an end-user is made
on the basis of volume of product purchased. Subpart K dealing with greases
and lubricants contains the following definition at 10 CFR §211.202:
"Wholesale purchaser-consumer" means any firm that is an ultimate
consumer which, as part of its normal business practices, purchases
or obtains an allocated product from a supplier and receives delivery
of that product into storage substantially under the control of that
firm at a fixed location and purchased or obtained more than 20,000
gallons of lubricants, 10,000 pounds of greases or 55,000 gallons of
any other product subject to this subpart in any completed calendar
year subsequent to 1971.
An "end-user" is an ultimate consumer of an allocated product other than a whole-
sale purchaser-consumer (10 CFR §211.51}.
Thus, under the Mandatory Petroleum Allocation Program, wholesale purchaser-
consumers must maintain their relationship with base period lube oil suppliers
unless the consumers and the suppliers mutually agree to terminate their rela-
tionships. This requirement holds even if the wholesale purchaser-consumer is
required to procure lube oils by soliciting competitive bids. FEA Ruling
1974-19, "Competitive Bids: Supplier/Purchaser Relationships" (39 FR 22133,
June 20, 1974) provides that a wholesale purchaser-consumer must maintain his
relationship with the base period supplier even if the base period aontr-acl
has expired and a lower bid has been made by another supplier. Since it is
likely that all military bases listed in Table 1 purchased more than 20,000
gallons of lubricants in any calendar year prior to 1971, any of these facili-
ties will have to terminate its relationship with the lube oil supplier in
45
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order to participate in a closed-cycle demonstration. Although the Mandatory
Petroleum Allocation Program will expire on August 31, 1975, there are indica-
tions that Congress will vote to extend it. Should the program be allowed to
expire then the problem of maintenance of supplier-purchaser relationships will
not be a problem.
Problem 3: Establishment of Criteria for a Successful Demonstration
A field test of the use of re-refined lube oils can be evaluated in several
ways. In a qualitative sense, the test can be assumed to be successful if the
frequency of engine maintenance and the consumption of lube oils do not increase
significantly over that experienced when virgin lubricants were used. This
demonstration of "customer satisfaction" may well be the single most important
goal of the entire program.
However, the field test design described in Section 4.2 is much more quantita-
tive in nature. Critical engine parts are examined at the beginning and at
the end of the test period. A control group of vehicles, which will use a
qualified virgin lube oil, is selected in order to obtain a base line with
which test results can be compared. The test conditions (including temperature,
humidity, fuel consumption (a measure of severity of service), mileage between
oil changes and total mileage are closely monitored. The number and type of
vehicles in each group are selected according to the requirements for statisti-
cally significant results.
If such a field test is carried out, the program might not be as quantitative
as that described here. Firstly, the total cost of such a program could be
prohibitive. Secondly, it may not be possible to locate facilities which
operate sufficiently large numbers of heavy, medium, and light duty vehicles
and which are located near a reputable re-refiner. Thirdly, it may not be
possible to control the test conditions as closely as might be desirable. The
monitoring of a control group of vehicles may also be impossible if an adequate
number of vehicles and personnel are not available. Therefore, it is clear
that a compromise will have to be made between a quantitative test design and
the limitations imposed by the purpose of the experiment and the funding avail-
able.
Problem 4: Demonstrations Involving More Than One Facility
In order to provide a larger volume of waste oil and a greater number of test
vehicles it may be necessary to involve more than one facility in a single
demonstration. This would increase the number of candidate facility-re-refiner
combinations listed in Table 3. However, a decision to conduct demonstrations
of this type must be made with the understanding that the number of base
personnel involved will be greatly increased thereby increasing the likelihood
that problems in running the demonstration will arise. Additionally, each
facility would have to follow identical procedures for waste oil accumulation
and collection. If vehicle maintenance schedules were either different or out
of phase at the facilities, these schedules would have to be revised. Similar-
ly, lube oil purchase schedules might require modification. While none of
46
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these potential difficulties is insurmountable, their existence dictates that
combined demonstrations be carefully planned and closely monitored by the key
personnel involved.
Problem 5: One or More Test Vehicles Have Mechanical Breakdowns Due to
Poor Manufacture or Design. These Breakdowns Are Attributed
to the Use of Re-Refined Oil.
It is possible that the engines of one or more makes and models of vehicles
owned by a facility may be so poorly designed and/or manufactured that mechani-
cal problems will occur regardless of the quality of the lube oil used. Since
proving the cause of engine failure, especially when the vehicle is operated
under severe conditions, is likely to be a difficult task, it is essential that
the vehicles selected for the demonstration exclude any makes or models whose
service records have in the past been unsatisfactory.
Problem 6: A Facility Selected for Participation Has Already Contracted
for Waste Oil Removal.
It is possible that one or more facilities where closed-cycle demonstrations
are feasible has made a commitment to sell its waste oil to a collector or pay
to have it removed. If these arrangements have been made under contract, then
accumulation of the waste oil for use in re-refining may not be possible,
depending on the contract provisions and the term of the agreement. One possi-
ble solution to this kind of problem is to have the re-refiner purchase the
waste oil from the collector. Alternatively, the collector may agree to waive
his rights to the waste oil in return for some form of compensation. In
either case it is probable that the cost of the lube oil produced will be
higher than would be normally expected. If the solution involves the handling
of the waste oil by the collector, then an additional opportunity for feed-
stock contamination and other operational difficulties arises.
47
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5.0 References
1. Waste oil study; report to the Congress. Washington, U.S. Environmental
Protection Agency, Apr. 1974. 402 p.
2. Cukor, P., M.J. Keaton, and G. Wilcox (Teknekron, Inc., and the
Institute of Public Administration.) A technical and economic
study of waste oil recovery, pt.3. Economic, technical and
institutional barriers to waste oil recovery. Environmental
Protection Publications SW-90C.3. U.S. Environmental Protection
Agency, 1974. 143 p. (Distributed by National Technical Information
Service, Springfield, Va., as PB-237 620.)
3. Cukor, P.M., and T. Hall (Teknekron, Inc.). A technical and economic
study of waste oil recovery, pt.4. Energy consumption in waste oil
recovery. U.S. Environmental Protection Agency, 1976. (In press;
to be distributed by National Technical Information Service, Sprinafield,
Va.)
4. Oil contract bulletin; lubricating oils and insulating oil for the
armed services and other departments of the Federal government.
DSA 600-74-0100. Cameron Station, Alexandria, Va. Defense Fuel
Supply Center, 1974 170 p.
5. Esso Research and Engineering Company. Research of oily wastes.
Washington, U.S. Navy, Naval Supoly Systems Command, 1973. 7 v.
6. Defense disposal manual (restructured). Cameron Station, Alexandria
Va., Defense Supply Agency, 1974. 1 v. (various pagings).
7. These laboratories are: Southwest Research Institute, San Antonio,
Texas; Autoresearch Laboratories, Chicago, Illinois; and Automotive
Research Associates, San Antonio, Texas.
Preceding page blank
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APPENDIX A
MILITARY SPECIFICATIONS MIL-L-2104C
FOR ENGINE CRANKCASE OILS
Preceding page blank
-------
MIL-L-2HV.C
20 November 1970
SUPERSKDIM;
MIL-L-2104B
1 December 1964
MIL-L-45199B
28 June 1968
MILITARY SPECIFICATION
LUBRICATING OIL, INTERNAL COMBUSTION ENGINE, TACTICAL SERVICE
This specification is mandatory for use by all Department? ami Agencies of the
Department of Defense
1. SCOPE
1.1 Scope. This specification covers engine oils suitable for lubrication
of reciprocating intcrna] combustion engines of both spark-ignition and com-
pression-ignition typos used in tactical service (see 6.1).
1.2 C1 a s s i f ica t i on. The lubricating oils shall be of the following
viscosity grades (see 6.2):
Viscosity Grade Military Symbol
Grade 10 OE/HDO-10
Grade 30 OE/HDO-30
Grade 40 OE/HDO-40
Grade 50 OK/HDO-50
2. APPLICABLE DOCUMENTS
2.1 The following documents of the issue in effect on date of invitation
for bids or request tor proposal, form a part of the :=pi-c if ication to the
extent specified herein.
SPECIFICATIONS
MILITARY
MIL-L-21260 - Lubricating Oil, Internal Combustion flnginr:, Preservative-
and Krcak-In.
MIL-L-46152 - Lubricating. Oil, Inlevn.il Combustion Kn^im-, Aclinlni str.it i'/'
Service.
STANDARDS
FEDERAL
Preceding page blank
53
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MIL-L-2104C
Fed. Test Method Std. 791 - Luhri.cnnts, Liquid Fuels and Related
Products; Methods of Tosti.ng.
MILITARY
MIL-STD-105 - Sampling Procedures and Tables for Inspection by
Attributes.
MIL-STD-290 - Packaging, Packing and Marking of Petroleum and Related
Products.
(Copies of specifications, standards, drawings and publications required
by contractors in connection with specific procurement functions should be
obtained from the procuring activity or as directed by the contracting
officer.)
2.2 Other publications. The following documents form a part of this
specification to the extent specified herein. Unless otherwise indicated,
the issue in effect on date of invitation for bids or request for proposal
shall apply.
AMERICAN SOCIETY FOR TESTING AND MATERIALS (ASTM) TEST METHODS
D 92 Flash and Fire Points by Cleveland Open Cup
D 97 Pour Point
D 129 Sulfur in Petroleum Products by the Bomb Method
D 270 Sampling petroleum and Petroleum Products
D 287 API Gravity of Crude Petroleum and Petroleum Products (Hydrometer
Method)
D 445 Viscosity of Transparent and Opaque Liquids (Kinematic and Dynamic
Viscosities)
D 524 Ramsbottom Carbon Residue of Petroleum Products
D 808 Chlorine in New and Used Petroleum Products (Bomb Method)
D 811 Chemical Analysis for Metals in New and Used Lubricating Oils
D 874 Sulfated Ash from Lubricating Oils and Additives
D 892 Foaminp, Characteristics of Lubricating Oils
D 1091 Phosphorus in l.ubi lent i.np. Oils and Additives
D 1317 Chlorine in New and Used l.ul>rirani s (Sodium Alcoliolnte Method)
D 1552 Sulfur 'in Petroleum I'rcnlm I s (lli.r.h Tempera lure Method)
D 2270 Calculating Viscosity Index from Kinematic Viscosity
D 2602 Apparent Viscosity of Motor Oils at Low Temperature Using the
Cold Cranking Simulator
Engine Test Sequence IIB
Engine Test Sequence VC
54
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udcd
for Engine Tost Sequences IIB and VC
ASTM Special Technical Publication STP
be included in ASTM
.ft.r
MIL-L-2104C
*<
available separately, except
I— Sequence Ills is a part of
ine Test Sequence VC
(Application for conies of all ACTM «.
VC should be addressed '"
»16 Race Street,
ex"pt E"el"«
Mt"rU1'
Ar«y Research «nd
F, Aberdeen
fron, U-S
groups and using Federal agencies
ed among technical
Products Ust « the
3.1.1 The qualifying activity (scc
testing or may require only parci
the supplier states in a written
with base stocks, rofinin?
th. for.ul.ion of gra,e ^
C°nipleUe on
tCStinE °£ 8rade 4° oil
pr°duct ^ baen formulated
_
- - r,lul™ or
ate of its orivi „, . - 'c ,' 'ul.J.">d -'—Mi-; £our years
/, ° ''IU ' ' il ';lt ion |H t-lu. qual i i U-ai-.iou pi ,vI'diir^. ^'whou'
musf ho rcqu.il ifiod if Cne
a qu,-iliiicr
3-l-3 Whenever there is a
?.nt or in the additives used m the •• "
required. When proposed clnnces -irn i?mjl'ltl on« ruqu.-.l ; ticntion win
£icant2y affect pcrforr.nnc^ t^ ^Wr ^ ^ ^ *Kp*C"A tO ' l'--
waivc complete requa Hi icat ion or r.nv - ^ ''^^ |:K'>-' al u- djscn'.iin,.
in oi-der to determine tht: s^.,,,-P,^.!././^'!'rt Ojly
Reproduced from
best available copy.
55
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MIL-L-2104C
3.1. A The engine ] ubri.cn ting oil supplied under contract shall be identical,
within permissible tolerances assigned by the qualifying activity for the
properties listed in 3.4, to the product receiving qualification. The values
resulting after the application of tolerances shall not exceed the maximum nor
fall below the minimum limits specified herein (see table I and 3.3.1 through
3.3.6).
3.1.5 Pour-point depressant. No changes shall be made in either the type
or concentration of the pour-point depressant after qualification testing and
approval unless:
(a) The oil is retested for conformity to the stable pour point
requirement (sec table I).
(b) The qualifying activity (see 6.4) is informed of the proposed
change(s) and of the retesting of the stable pour point.
(c) The qualifying activity approves the proposed change(s) in writing
3.2 Materials. Tl'C engine lubricating oils shall be petroleum products,
synthetically prepared products or a combination of the two types of product
compounded wif-.h such functional additives (detergents, dispersants, oxidation
inhibitors, corrosion inhibitors, etc.) as are necessary to meet specified re-
quirements. No re-refined constituent materials shall be used.
3.3 Physical and chemical requirements. The. oils shall conform to the
respective requirements specified in table I and 3.3.1 through 3.3.6.
56
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MIL-L-2104C
Table I. Requirements
Property
Viscosity at 210°F. (99°C.),
kinematic, centi stoker.
min.
max.
Viscosity at 0°F. (-18°C.)3/,
apparent, centipoises
min.
max.
Viscosity index (min.)
Pour point, °F. (max.)
°C. (max.)
Stable pour-point, °F. (max.)!/
°C. (max.)
Flash point, °F. (min.)
°C . (min.)
Gravity, APll/
Carbon residue!/
Phosphorus 21
Chlorine I/
Sulfurl/
Sul fated residue!/
Organo-metallic components I/
Grade
10
5.7
<7.5
1200
< 2400
--
-25
-32
-25
-32
400
204
X
X
X
X
X
X
X
Grade
30
9.6
< 12.9
--
--
75
0
-18
--
--
425
218
X
X
X
X
X
X
X
Grade.
40
12.9
<16.8
--
--
80
5
-15
--
--
435
224
X
X
X
X
X
X
X
Grade
50
16.8
<22.7
--
--
85
15
- 9
--
--
450
232
X
X
X
X
X
X
X
I./ Report measured, apparent viscosity at 0°F (-18°C) in centipoises for
grade 10 oil.
27 After being cooled below its pour point, the oil shall regain its homogeneity
on standing at a temperature not more than 10° F (6° C) above the pour point..
_3/ Values shall be reported ("x" indie.tc.s report).
3.3.1 Foaming. All grades of oil shall demonstrate- the following i\vimi ny.
characteristics when they are tested in accordance with '1.6, table II.(ASTM !> W.
(a) Initial test at 75° ± 1° F (24° -'. 0.5° C) . Not more than 1'5 ml
of foam shall remain immediately following the end of the 5-mi.nutc: blowing
period. No foam shall remain at the end of the 10-minutc settling period.
(b) Intermediate test at 200° :• 1° F (93.5 • 0.5' C). Not moro lli.m
150 ml of foam shall remain immediately follo-jinj-, tho cn-.l of flu.' ""j-mi.nut.o
blowing period. No foam shall remain at th:: end of Ll.i- 1 ()->..< i nut <• SctLlJn;1
period.
57
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MIL-I.-2I04C
(c) Fin.) I tost at 75° ' T F (24" ' 0.5° C) . Not more tlum 25. ml
of foam shall remain immediately following the and oi" tho 5-r.iinute blowing
period. No foam shall remain at the end of Che 10-minutc .settling period.
3.1.? Sta]>jjij-_tv jind_ cGmpn t ihil.iiy .
3.J.2.1 Sfabili ty. The oils shall show no evidence oC separation or eolor
chniv',1-' t-.lien t:liey arc l.'.-:.tc'd in accordantc with 4.6, UibJc II (method 3470,
Fed. Tent Method Slid. tio. 791).
3.3.2.2 Coji^^J'-i !iA LUi'• TUC oils shall be compatible with oils prcvioL.f- !y
qualified uMcl'eV Nfh-i.-7i")'04, MIL-I.-'i6] 52, and MJL-T.-2] 260. The oils shall
show no evidence of :;epp ration when they are tested ag.iinnt selected refere'.vc
oils in accordance '.'ith -'t.6, rnbl.c- II (method :V.70, Fed. Test Method Si.cl.
No. 7^1).
3-3.3 Mo if; tju_" e -/• or r os 1 r n r ha rac teri. sties. The oils shall prevent or mini-
mize corrosion of ferrcH'S-rntiUal engine components in the presence of moisture
induced by ] ow-Lei,i]-/L-rat;ure operating conditions. Satisfactory performance in
this respect: shall be dcinonstrated when the oils are tested in accordance with
A.6, table II. (Cnginc Test Sequence IIB).
3.3.4 I.'.oy_-tc-niie r ;.\ t u r g d ep og^i t s . The oils shall minimize the formation of
undesirable deposits associated \n'.th intermittent, light-duty, low-temperature
of»rr!>(. s , i-.iin I ul I nv/iT.1: , valve rex ker .tnn.':, rocker arm shaft.-:, and
the- oil pump and fu^l Lnjvcl ion pump drive v.ear:.. Satisfactory perlormaiK'i.'
.-hall he den)oi\;:i;r;ited ulie.)i the oi 1 r. are tr.s! cd in acrordance with the appro-
priate methods listed in 4.6, table II (methods 340 and 341, Fed. Test Method
Std. No. 791).
3.4 Othei- reciuirci.K:ntr- nnd tolerances for cnial JLV conference testing. The
following physical and chemical properties shall be tested in accordance with
tin- appropriate methods listed in 4.6 to insure that purchased products are of
the same compositions as the respective qualification samples and to identify
the. products. No specific values or limits are assigned in qualification
testing, except as otherwise specified in table I and in 3.3.1 through 3.3.6,
53
-------
MIL-L-2]0'.»C
but; test results shall be reported for all properties listed. The qualifying
activity (sou 6.4) shall establ ish specific values and tolerances for subse-
quent quality conformanee testing for thc.su properties (sec. 6.3 and 6.4):
Viscosity
Viscosity index
Pour point
Flash point
Gravity, API
Carbon residue
Foaming
Phosphorus
Chlorine.
Sulfur
Sulfated ash
Organo-metal1ic components
4. QUALITY ASSURANCE PROVISIONS
4.1 Responsibility for inspection. Unless otherwise specified in the con-
tract or purchase order, the supplier is responsible lor the performance of
all inspection requirements as specified herein. Except as otherwise specified
in the contract or order, the supplier may use his own or any other facilities
suitable for the perfornance of the inspection requirements specified herein,
unless disapproved by the Government. The Government reserves the right to
perform any of the inspections set forth in the specification where such in-
spections are deemed necessary to assure supplies and services conform to
prescribed requirements.
4.2 Lot.
4.2.1 Bulk lot. An indefinite quantity of a homogeneous mixture of one
grade of oil offered for acceptance in n single, isolated container; or manu-
factured in a single plant run (not exceeding 24 hours), through the same
processing equipment, with no change in the ingredient materials.
4.2.2 Pa.ckar.ed I oi . An indefinite number of 5'r> ^.\llun drums or small or
unit containers of identical size and typo, offered Tor acceptance, and filled
with a homogeneous mixture of one grade of oil from a sinj'.lc, isolated con-
tainer; or filled with a homogeneous mixture of one I'.radt" of oil manufactured
in a single plant run (not exceeding I'-'i hour.1-.), through the same processing
equipment, with no change in the inuredirut: materials.
4 - 3
4.3.1 ^-JJ2rJjJJ.l_.'I C LLI ed COr:ba I I'tti'S 'I'dke 3 >llif]<'::i Sample "I lill."l (MM
taincrs fre;;i each lot in .n cm dance wilii M.I.I.-S'l'D- I O'i /a in:.;jc<( inn l.-vcl IT
acceptable quality level (AQI.) =• 2 . ^ percent di-f «•«. I. i
-------
MI1.-I .-21040
4.3.? S a Mji 1 i r.p. for L '.' * t s . Toko, samples fro'.n bulk or packaged Iocs for
in accordance with ASTM Method I) ^70.
4.4 Inspection. Perform inspection in accordance with method 9601 of
Fed. Test Method Std. No. 791.
4. A.] Jjjxau. ir'Ajr I')'1 ... _o F fill c.d c on ta j.n.ci:s . Examine simples taken in accordance
with 4.3.1 Tor compliance with M1L-STD-290 with record to fill, closure,
senlinj, leakage, p.-icka^iny, packing, and marking requirement t- . Reject any
container having o*;.-. or more defects or under the required fill. If the iv.inlier
of directive or unclerfi 1 J t-d containers exceeds the acceptance number for the
appropriate sampling plan of MIL-STD-105, reject the lot represented by the
Hni:>i>l e.
l\ . *j C I as;i_I_f h-a I. ion of tests .
(a) (Jualifii-atii'in tests.
(b) Quality conformance te^ts.
4.5.1 C^i^il i f.lc-".ti.on _:;c.sts . Qualification tests consist of to.st for all of
the vcqviiroiiiciiits spec j lied in section 3 and may be conducted in any plant or
laboratory approved by the qualifying activity (see 6.4), unless otherwise
specified in 4.6.1 through 4.6.2. Qualification tests shall be performed on
each viscosity grade except as specified in 4.5.1.1 and 4.5.1.2.
4.5.1.1 The stable pour-point test (method 203, Fed. Test Method Stcl. 791)
shall be required only on grade 10 oil.
4.5.1.2 Grade 40 oils may be qualified in accordance with 3.1.1.
4.5.2 gua 1 it_Y__cp.n_f..oj li'-'i nce_ _tG_st r •_. Tests for quality conforwancc of individual
lots shall consist of te^us for all of the requirements in section 3, except
for the following (see table II):
Stable pour point
Stability and compatibility
Ring-stickia^, wear, and accumulation of deposits
Low temperature deposits
Bearing corrosion
Moisture-coT rosion characterisitcs
4.6 Xcst_met:''Qd.'i. Perforni tests in accordance with table II and with
4.6.1 through 4.6.2 ?.s applicable.
4-6-1 St.. 'i In. 1 Lty aui-l_jccn.iijTat Lbi_J it.v . Determine the stability and conp/a tibil ity
of the oils by the procedures lor "Homogeneity" and "h'iscibiJ ity " given in
method 3470, Fed. Test Method Std. No. 791, as explained in 4.6.1.1 and 4.6.1.2.
The procedures in 4.6.J.1 and 4.6.1.2 should be performed at the sawe time. Thi.-
test shall be conducted only in a laboratory designated by the qualifying
activity (see 6.4) .
60
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MII.-1.-2104C
4.0.1.1 Stahil i t.v . Determine Clio .stability hy suhjc-c t ini; an unmixed s.'.;••.(• le
of oil to the pre.si. ribecl cycle of temperature chaus.'>-.-- ;iml ox.HiiLni.iif, the s.iiv/U-
for conformanee to the requirements of 3.3.2.1. Record the tost results on .)
copy of the "Homogeneity and Miscibility Test" form in the. column nnrked "N^i •.•.•'.'
4.6.1.2 Compatibility.. Determine the cor.ipatibi) i ty of the oil with other
oils previously qu.aTi f iocl under N7.L-L-2 lO'i, MI1--L--2! 260 and MlL-L-q61 32 , hy
subjecting separate mixtures of the o51 with selected reference oils designitod
by the qualifying activity (so.e 6.4) to the proscribed cycle of temperature
changes, then examining the mixtures for conforinniu'c to the requirements of
3.3.2.2. Record the test results on the same copy of the "IIrr.:o^>?ncity and I'.i :;-
cibility Test" form (see 4.6.1.1) in the appropriate columns marked "1-30",
"2-30", etc.
A.6.2 Stable pour point. The stable pour point tost (method 203, Fed. Test
Method Std. No. 791) shall be performed only in a laboratory designated by the
qualifying activity (see fr.4).
Table T.I. Test Methods
Test
Viscosity
Viscosity
Viscosity
Pour poin
Test Method No.
Fed. Std. 791
, kinematic
, apparent
index
t
Test M
D
D
D
D
445
2602
2270
97
ethod No.
ASTM
V
Stable pour point 203.2/
Flash point
Gravity, API
Carbon residue
Phosphorus
Chlorine
Sulfur
Sulfated residue
Organo-metallie components
Foaming
Stability and compatibility 3470ii/
Moisture-corrosion characteristics
Low temperature deposits
Bearing corrosion 3405
Ring-sticking, wear, and accumulation
of deposits:
Medium-speed, supercharged, high-sulfur
fuel 340
High-speed, supercharged 341
D 92
D 287
D 524
D 1091
D 808 or D 1317.3/
D 1552 or D 1 29ii/
D 874
D 8.11 1/
1) 892
Sequence
Sequence VC 8/
61
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MIL-L-2104C
I/ ObLain the viscosity at 0°F. (-18°C.) by D 2602 for grade 10 oil.
21 See 4.6.2.
37 D 808 is the preferred method but D 1317 may be used as an alternate.
47 D 1552 is the preferred method but D 129 may be used as an alternate.
5/ X-ray fluorescence or atomic absorption spectrochemical analysis methods
~ that have been previously approved by the qualifying activity (see 6.4) may
be used as alternates to D 811.
j>/ Homogeneity and Miscibility Test. See 4.6.1 for clarifying instructions.
27 Included in ASTM.
j}/ Not yet published by ASTM. To be included in ASTM STP 315-E, when published \
(see 2.2).
5. PREPARATION FOR DELIVERY
5.1 Packaging, packing, and marking. Unless otherwise specified in the con-
tract or purchase order (see 6.2), packaging, packing, and marking shall be in
accordance with MIL-STD-290.
6. NOTES
6.1 Intended use. The lubricating oils covered by this specification are
intended for the crankcase lubrication of reciprocating spark-ignition and
compression-ignition engines used in all types of military tactical ground
equipment and for the crankcase lubrication of high-speed, high-output,
supercharged compression-ignition engines used in all ground equipment. The
lubricants covered by this specification are intended for all conditions of
service, as defined by appropriate Lubrication Orders, when ambient temperatures
are above -20°F. (-29°C.).
6.2 Ordering data. Procurement documents should specify the following
information:
(a) Title, number, and date of this specification.
(b) Grade of oil required (see 1.2).
(c) Quantity of oil required.
(d) Type and sire oC containers required (see 5.1).
(c) Levc] of p;u !;.!(', i nj'. ,-inci luvi>l of pneki nf, required (st:o 5.1).
6. 3 O.uhc'.r rcciuirp.pn'.nls and to! cram'os lor ci u.o 1 j._t y. confor.ni.'irK;o testing. De-
finite numerical values are not specified for certain of tin- physical and
chemical properties listed in 3.4, and for which corresponding test methods are
given in section 4. Values of some properties vary from one commercial brand
of oil to another for the same grade TV.esc values are influenced by the source
of the ba*e stock, the identities and quantities of additives, etc. Definite
numerical values are not always functionally important except, for sor.ie pro-
perties, within specified maximum ancl/o*. minimum limits. It is not possible
(or necessary) to assigr restrictive values in the specification before the.
testing of qualification samples. During qualification, test values will be
determined which are characteristic of a particular product and which can serve
62
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MIL-L-2104C
thereafter to identify the product. Usinp the results of qualification testing,
the qualifying activity (see- 6.4) can set values, including permissible tolerances,
for future quality corifonnance testing.
6.4 Qu-ilI i, ficaixon. With respect to products requiring qualification, awards
will be made only for pi-odurts which are at the time set for opening of bids,
qualified for inclusion in the applicable qualified products list whether or
not such products have actually been so listed by that date. The attention of
the suppliers is called to thi.<. requiremeTiL, and manufacturers are urged to
arrange to have Lhe products that they propose to offer to the Federal Govern-
ment tested for qualification in order thnt they may be eligible to be awarded
contracts or orders for the products covered by this specification. The
activity responsible for the qualifier! products list is the. U.S. Army Aberdeen
Research and Devel oponsi'iit Center, Coating mid Chemical Laboratory, Aberdeen
Proving Ground, Maryland 21003, and information pertaining to qualification
of product:; may be obtained from tlut activity.
6.5 Certain provisions uf this specification are the subject of international
standardization agreement (NATO STAKAG 1135). When ar.iendrienc, revision or can-
cellation •_•£' this specification is proposed which would afiect or violate the
international agreement, concerned, tho preparing activity will take appropriate
reconciliation action through international standardization channels, including
departmental standardization offices, if required.
Custodians:
Army - MR
Navy - Sll
Air Force - 68
Review activities:
Army - ME, WC, AT
Navy - SA, SH, AS, YD
Air Force - 11, 63
DSA - PS
User activities:
Navy - MC
Preparing activity:
Army - MR
(Project No. 9150-0167)
U. S. GOVERNMENT PRINTING OFftCE; 1971-433-697 6503
63
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MIL-L-46152
20 November 1970
MILITARY SPECIFICATION
LUBRICATING OIL, INTERNAL COMBUSTION ENGINE,
ADMINISTRATIVE SERVICE
This specification is mandatory for use by all Departments
and Agencies of thd Department of Defense.
I. SCOPE
1.1 Scope. This specification covers engine oils suitable for lubrication
of commercial-type vehicle reciprocating internal combustion engines of both
spark-ignition.and compression-ignition types used in administrative service
(see 6.1).
1.2 Classification. The engine lubricants shall be of the following
viscosity grades (see 6.2):
Viscosity grade
Grade 10W
Grade 30
Grade 10W-30
Grade 20W-40
2. APPLICABLE DOCUMENTS
2.1 The following documents of the issue in effect on date of invitation
for bids or request for proposal, form a part of the specification to the
extent specified herein.
SPECIFICATIONS
MILITARY
MIL-L-2104 - Lubricating Oil, Internal Combustion Engine, Tactical
Service
MIL-L-21260 - Lubricating Oil, Internal Combustion Engine, Preservative
and Break-In
/ FSC 9150 /
66
-------
APPENDIX B
MILITARY SPECIFICATIONS MIL-L-46152
FOR ENGINE CRANKCASE OILS
Preceding page blank
65
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MIL-L-46152
20 November 1970
MILITARY SPECIFICATION
LUBRICATING OIL, INTERNAL COMBUSTION ENGINE,
ADMINISTRATIVE SERVICE
This specification is mandatory for use by all Departments
and Agencies of thd Department of Defense.
1. SCOPE
1.1 Scope. This specification covers engine oils suitable for lubrication
of commercial-type vehicle reciprocating internal combustion engines of both
spark-ignition.and compression-ignition types used in administrative service
(see 6.1).
1.2 Classification. The engine lubricants shall be of the following
viscosity grades (see 6.2):
Viscosity grade
Grade 10W
Grade 30
Grade 10W-30
Grade 20W-40
2. APPLICABLE DOCUMENTS
2.1 The following documents of the issue in effect on date of invitation
for bids or request for proposal, form a part of the specification to the
extent specified herein.
SPECIFICATIONS
MILITARY
MIL-L-2104 - Lubricating Oil, Internal Combustion Engine, Tactical
Service
MIL-L-21260 - Lubricating Oil, Internal Combustion Engine, Preservative
and Break-In
/ FSC 9150
66
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MIL-L-46152
STANDARDS
FEDERAL
Fed. Test Method Std. No. 791 - I.uhr i emits, Liquid Fuels and Related
Products; Methods of Testing
MILITARY
MIL-STD-105 - Sampling Procedures End Tables for Inspection by Attributes
MIL-STD-290 - Packaging, Packing and Marking of Petroleum and Related
Products
(Copies of specifications, standards, drawings and publications required
by contractors in connection with specific procurement functions should be
obtained from the procuring activity or as directed by the contracting
officer.)
2.2 Other publicati'o_n_r . The following documents form a part of this speci-
fication to the extent, specified herein. Unless otherwise indicated the issue
in effect on d/ite of invitation for bids or request for proposal shall apply:
AMERICAN SOCIETY FOR TESTING AND MATERIALS (ASTM) TEST METHODS
D 92 - Flash and Fire Points by Cleveland Open Cup
D 97 - Pour Point
D 129 - Sulfur in Petroleum Products by the Bomb Method
D 270 - Sampling Petroleum and Petroleum Products
D 287 - API Gravity of Crude Petroleum and Petroleum Products
(Hydrometer Method)
D 445 - Viscosity of Transparent, and Opaque Liquids (Kinematic and
Dynamic Viscosities)
D 524 - Ramsbottom Carbon Residue of Petroleurp Products
D 808 - Chlorine in New and Used Petroleum Products (Bomb Method)
D 811 - Chemical Analysis for Metals in New and Used Lubricating Oils
D 874 - Sulfatcd Ash from Lubricating Oils and Additives
D 892 - Foaming Characteristics of Lubri cat in;*. Oils
D 1091 - Phosphorus in Lubricating Oils and Additives
D 1317 - Chlorine in Now and Used Lubricants (Sodium Alcoholate Method)
D 155?. - Sulfur in Petroleum Products (High Temperature Method)
D 2270 - Calculating Viscosity Index from Kinematic Viscosity
D 2602 - Apparent Viscosity of Motor Oils at Low Temperature Using tho
Cold Cranking Simulator
Engine Tost Sequence IIB
Engine Test Sequence IIIC
Engine Test Sequence VC
-------
MIL-L-46152
(The ASTM test methods listed above are included in Part 17 or Part 18 of
the Annual Book of ASTM Standards and are also available separately, except
for Engine Test Sequences IIB, IIIC, and VC. Engine Test Sequence IIB is a
part of ASTM Special Technical Publication STP 315-D. Engine Test Sequences
IIIC and VC will be included in ASTM Special Technical Publication STP 315-E,
scheduled for publication after May 1971, and are currently available only as
preprints.)
(Application for copies of all ASTM test methods except Engine Test Sequences
IIIC and VC should be addressed to the American Society for Testing and Mate-
rials, 1916 Race Street, Philadelphia, Pennsylvania 19103.)
(Until publication of Special Technical Publication STP 315-E by ASTM, infor-
mation concerning Engine Test Sequences IIIC and VC may be obtained from U. S.
Army Aberdeen Research and Development Center, Coating and Chemical Laboratory,
AMXRD-CF, Aberdeen Proving Ground, Maryland 21005.)
Specifications and standards of technical societies are generally available
for reference from libraries. They are also distributed among technical groups
and using Federal agencies.
3. REQUIREMENTS
3.1 Qualification. Engine lubricating oils furnished under this specifica-
tion shall be products which are qualified for listing on the applicable quali-
fied products list at the time set for opening of bids (see 4.5.1 and 6.4).
3.1,1 Each viscosity grade of oil which satisfies all the requirements of
this specification shall be qualified for a period not to exceed four years
from the date of its original qualification. When the qualification period
has expired, each product must be requalified if the supplier wishes to main-
tain the formulation as a qualified product and be eligible to bid on prospec-
tive procurements,
3.1.2 Whenever there is a change in the base stock, in the refining treat-
ment: or in the additives used in the formulation, requalification will be
required. When proposed changes are minor and may not be expected to signifi-
cantly affect performance, the qualifying activity may, at its discretion,
waive complete requalification or may require only partial requalification in
order to determine the significance and acceptability of the proposed changes.
3.1.3 The engine lubricating oil supplied under contract shall be identical,
within permissible tolerances assigned by the qualifying activity for the prop-
erties listed in 3.4, to the product receiving qualification. The values re-
sulting after the application of tolerances shall not exceed the maximum nor
fall below the minimum limits specified herein (see table I and 3.3.1 through
3.3.7).
68
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MI1.-I.-4615Z
3.1.'* Pour-point cU-p__ror._r.;i»t : All grade oils. No changes shall be made in
cither the type or concentration of the pour-point depressant after qualifi-
cation testing and approval unless:
H. The oil is retested for conformity to the stable pour point
requirement (see table I).
b. The qualifying activity (see 6.4) is informed of the proposed
chnnge(s) end of the retesting of the stable pour point.
c. The qualifying activity approves the proposed change(s) in
writing.
3.2 Matcrials. The engine lubricating oils shall be petroleum products,
synthetically prepared products, or a combination of the two types of product
compounded with such functional additives (detergents, dispersants, oxidation
inhibitors, corrosion inhibitors, etc.) as are necessary to meet the specified
requirements. No re-refined constituent materials shall be used.
3.3 Physical and chemical requirements. The oils shall conform to the re-
spective requirements specified in table I and in 3.3.1 through 3.3.7.
69
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Table I. Requirements
MIL-L-46152
Property
Grade
10
Grade
30
Grade
10W- 30
Grade
20W-40
Viscosity at 210°F (99°C)
kinematic, ccntistokes
rain.
max.
Viscosity at 0°F (-18°C)-
apparent, ccntipoises
min.
max.
Viscosity index, min
I/
5.7
< 7.5
1200
< 2400
9.6
< 12.9
75
9.6
< 12.9
1200
<2400
12.9
< 16.8
2400
< 9600
Pour point, °F (max.)
°C (max.) 2/
Stable pour point, °F (max.) —
°C (nax.)
Flash point, °F (min.)
°C (min.)
Gravity, API i'
Carbon residue—'
Phosphorus 2.'
Chlorine!'
Sulfur!/
Sulfated residue^'
01
Organo-metJillic components—'
-25
-32
-25
-32
400
204
X
X
X
X
X
X
X
0
-18
--
--
425
218
X
X
X
X
X
X
X
-25
-32
-25
-32
400
204
X
X
X
X
X
X
X
-10
-23
-10
-23
415
213
X
X
X
X
X
X
X
—Report measured, apparent viscosity at 0°F (-18°C) in centipoises for
grades 10, 10W-30, and 20W-40 oils.
— After being cooled below its pour point, the oil shall regain its homoge-
nity on standing at a temperature not more than 10°F (6°C) above the pour
point.
^/Values shall be reported ("X" indicates report).
3.3.1 Foaming. All grades of oil shall demonstrate the following foaming
characteristics when they are tested in accordance with 4.6, table II
(ASTM D 892).
a. Initial test at 75° ± 1°F (24° ± 0.5°C). Not more than 25 ml
of foam shall remain immediately following the end of the 5-tninute blowing
period. No foam shall remain at the end of the 10-minute settling period.
b. Intermediate test at 200° + 1°F (93.5° ± 0.5°C). Not more than
150 ml of foam sliall remain immediately following the end of the 5-rainute
blowing period. No foam shall remain at the end of the 10-tninute settling
period.
70
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MIL-L-46152
c. Final test at 75' i 1°F (24° ± 0.5°C). Not more Chan 25 nl of
foam shall remain immediately following the end of the 5-tnlnute blowing
period. No foam shnll remain at the cud of Lhe 10-rr.inute settling period.
3.3.2 .Stability sr.d compat ibi) : ty .
3.3.2.1 Stabi ] ity . The oils shall show no evidence of separation or color
change when they arc tested in accordance with 4.6, table II (Method 3470 of
Fed. Test Method Std. No. 791).
3.3.2.2 Conipat. ibi ) i ty . The oils shall bo compatible with oils previously
qualified under KIL--L- 2*1~04 , KIL-L-46152 and MIL- L- 21 260. The oils shall show
no evidence of separation when they are tested against selected reference
oils in accordance with 4.6, table II (Method 3470 of Fed. Test Method Std.
No. 791).
3.3.3 Hoi sture- corrosion character i sties. The oils shall prevent or mini-
mize corrosion of ferrous-metal engine components in the presence of moisture
induced by low- temperature operating conditions. Satisfactory performance in
this respect shall be demonstrated when the oils arc tested in accordance with
4.6, table II (Engine Test Sequence IIK).
3.3.4 Low- temperature deposits. The oils shall minimize the formation of
undesirable deposits associated with intermittent, light-duty, low- temperature
operating conditions. Satisfactory performance in this respect shall be
demonstrated when the oils are tested in accordance with 4.6, table II (Engine
Test Sequence VC) .
3.3.5 Oxidation character isti cs. The oils shall resist thermal and chemi-
cal oxidation and prevent or minimize thickening and deposits associated with
high- temperature operating conditions. Satisfactory performance in this re-
spect shall be demonstrated when the oils ore tested in accordance with 4.6,
table II (Engine Test Sequence IIIC).
3.3.6 Ring- sticking, wear, and accumulation oj_<^rj-i? iJL? • The oils shall
prevent the sticking of piston rings and the; clogging of oil channels, and
shnll minimize the wear of cylinders, rings and loaded engine components r.urh
as cam shaft lobes, cam followers, valve rocker arms, rocker .irm shaft:;, .-.ml
the oil pump and fuel injection pump drive gcnrs. Satisfactory per fozmam o
shall be demonstrated when the oils are tested in accordance with 4.6, table
II (Method 346 of Fed. Test Method Std. No. 791).
3.3.7 Bearing corrosion and shear stability .
3.3.7.1 Bearing corrosion. The oils .shall bo no;r corro.s J v to .1 ) 1 oy l>o'n -
ings. Satisfactory performance in thin rcspr-rt sli.-ij 1 be demon;; t i\ii <-d wlirn
the oils are tested in accordance with 4.6, table II (Method 3405 of Fed.
Test Method Std. No. 791).
71
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MIL-L-46152
3.3.7.2 Shorn- jStnbiJJj.y. Grade 10W-30 and 20W-40 oils shall demonstrate
shear stability by remaining within the respective viscosity ranges at 210°F
(99°C), when tested in accordance with 4.6.3.
3 • ^ Other requirement s and tolerances for quality conformance testing.
The following physical nnd chemical properties shall be tested in accordance
with the appropriate methods listed in 4.6 to insure that purchased products
are of the same cotnpor.it-ions as the respective qualification samples and to
identify the products. No specific values or limits are assigned in quali-
fication testing, except as otherwise specified in table 1 and in 3.3.1
through 3.3.7, but test results shall be reported for all properties listed.
The qualifying activity (see 6.4) shall establish specific values and toler-
ances for subsequent quality conformance testing for these properties (see
6.3 and 6.4):
Viscosity
Viscosity index
Pour point
Flash point
Gravity, API
Carbon residue
Foaming
Phosphorus
Chlorine
Sulfur
Sulfated ash
Organo-tnetalli c components
4. QUALITY ASSURANCE PROVISIONS
4.1 R^spgnsijn 1ity for inspection. Unless otherwise specified in the con-
tract or purchase order, the supplier is responsible for the performance of
nil inspection requirements as specified herein. Except as otherwise speci-
fied in the contract or order, the supplier may use his own or any other
facilities suitable for the performance of the inspection requirements speci-
fied herein, unless disapproved by the Government. The Government reserves
the right to perform any of the inspections set forth in the specification
where such inspections arc deemed necessary to assure supplies and services
conform to prescribed requirements.
4.2 Lot.
4.2.1 Bulk lot. An indefinite quantity of a homogeneous mixture of one
grade of oil offered for acceptance in o single, isolated container; or manu-
factured in a single plant run (nor exceeding 24 hours), through the same
processing equipment, with no change in the ingredient materials..
72
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MIL-L-'»6152
4.2.2 Packaged lot. An indefinite number of 55 gallon drums or smaller
unit containers of identical size and type, offered for acceptance, and
filled with a homogeneous mixture of one grade of oil from a single, isolated
container; or filled with a homogeneous mixture of one grade of oil, manu-
factured in a single plant run (not exceeding 24 hours), through the same
processing equipment, with no change in the ingredient materials.
4.3 Sampling.
4.3.1 Sampling for the examination of filled containers. Take a random
sample of filled containers from each lot in accordance with MIL-STD-105,
at inspection level II and acceptable quality level (AQL) = 2.5 percent
defective.
4.3.2 Sampling for tests. Take samples from bulk or packaged lots for
tests in accordance with" ASTM Method D 270.
4.4 Inspection. Perform inspection in accordance with Method 9601 of Fed.
Test Method Std. No. 791.
4.4.1 Examination of filled containers. Examine samples taken in accord-
ance with 4.3.1 for compliance with MIL-STD-290 with regard to fill, closure,
sealing, leakage, packaging, packing, and marking requirements. Reject any
container having one or more defects or under the required fill. If the
number of defective or underfilled containers exceeds the acceptance number
for the appropriate sampling plan of MIL-STD-105, reject the lot represented
by the sample.
4.5 Classification of tests.
a. Qualification tests
b. Quality conforrnnce tests
4.5.1 Qualification tests. Qualification tests consist of tests for all
of the requirements specified in section 3 and mny In- conducted in any ploitt
or laboratory approved by the qualifying, activity (see 6.4) unions otherwise
specified in 4.6.1 through 4.6.3. Qualification tests sliull be performed on
each viscosity grade except as specified in 4.5.1.1 and 4.5.1.2.
4.5.1.1 The stable pour-point test (Method 203 of Fed. Tost Method Std.
No. 791) shall be required only on grade 10W, 10W-30 and 20W-/iO oils.
4.5.1.2 Shear stability shall be required for only grade 10W-30 and 20W-40
oils.
73
-------
MIL-L-46152
4.5.2 Quality conformnnce tests. Tests for quality conforraance of individ-
ual lots shall consist of tests for all of the requirements in section 3,
except for the following (see table II):
Stable pour point
Stability and compatibility
Ring-sticking, wear, and accumulation of deposits
Low-temperature deposits
Oxidation characteristics
Moisture-corrosion characteristics
Bearing corrosion and shear stability
4.6 Test methods. Perform tests in accordance with table II and with 4.6.1
through 4.6.3 as applicable.
4.6.1 Stability and compatibility. Determine the stability and compati-
bility of the oils by the procedures for "Homogeneity" and "Miscibility"
given in Method 3470 of Fed. Test Method Std. No. 791, as explained in
4.6.1.1 and 4.6.1.2. The procedures in 4.6.1.1 and 4.6.1.2 should be per-
formed at the same time. This test shall be conducted only in a laboratory
designated by the qualifying activity (see 6.4).
4.6.1.1 Stability. Determine the stability by subjecting an unmixed sample
of oil to the prescribed cycle of temperature changes, then examine the sample
for conformance to the requirements of 3.3.2.1. Record the test results on a
copy of the "Homogeneity and Miscibility Test" form in the column marked "None"
4.6.1.2 Compatibility. Determine the compatibility of the oil with other
oils previously qualified under MIL-L-2104, MIL-L-21260, and MIL-L-46152 by
subjecting separate mixtures of the oil with selected reference oils desig-
nated by the qualifying activity (see 6.4) to the prescribed cycle of tempera-
ture changes, then examine the mixtures for conformance to the requirements
of 3.3.2.2. Record the test results on the same copy of the "Homogeneity and
Miecibility Test" form (see 4.6.1.1) in the appropriate colums marked "1-30",
"2-30", etc.
4.6.2 Stable pour point. The stable pour-point test shall be conducted
only in a laboratory designated by the qualifying activity (see 6.4).
4.6.3 Shear stability. Determine the shear stability of grade 10W-30 and
20W-40 oils by the following method:
a. Weigh 25 grams of used oil, obtained at 10 hours of testing in
accordance with Method 3405 of Fed. Test Method Std. No. 791, into a 50-ml
three-necked round bottom flask equipped with a thermometer, gas inlet tube,
stirrer, and distillation side arm.
b. Heat the sample at 248° ± 9° F (120° ± 5°C) in a vacuum of 100 mm
of mercury with a nitrogen sparge for one hour.
74
-------
MIL--L-46152
c. Kilter the stripped sample through a 0.1 micron Seitz filter pad.
d. Dittrrainc the kinematic viscosity at 210°F (99°C) of. the filtered
sample using ASTM Method D 445 for cotiformauce to the requirements of 3.3.7.2.
Table II. Test methods
Test
Test Method No.
Fed. Std. 791
Test Method No.
ASTM
Viscosity, kinematic
Viscosity, apparent
Viscosity index
Pour point
Stable pour point
Flash point
Grjivity, API
Carbon residue
Phosphorus
Chlorine
Sulfur
Sulfated residue
Orr.ano-inctallic components
Foaming
Stability and compatibility
Moisture-corrosion characteristics
Low temperature deposits
Ox\cation characteristics
Ring-sticking, wear, and accumulation
of deposits
Bearing corrosion and shear stability
203
2/
3470-67
346
3405 *'
D 445
D 2602-'
D 2270
D 97
D 92
D 287
D 524
D 1091
3/
D 808 or D 1317 --
D 1552 or D 129 --'
D 874 ,,
D 811-
D 892
11
8/
Sequence
Sequence VC-
Sequence IIIC-
-Obtain the viscosity at 0°K (-18°C) by 1) 2602 for ei
2/oils.
4.6.2
10W-30 and 20W-40
~ D 808 is the preferred method hut D 1317 may bo usrit as an alternate.
— 'D 1552 is the preferred method but I) 1 ?l> may he used as an .';ltcrnnte.
—X-ray fluorescence or atomic absorption spcctrochcmi cnl analysis metliods that
have been previously approved by the qualifying activity (see 6.4) may bo
used as alternates to D 811.
-^Homogeneity and miscibility test (sco 4.6.1 for clarifying instructions.
^Included in ASTM STP 315-D.
-Not yet published by ASTM. To be Included in AS'JM S'i >' 31.c'-r.;i w!1Cn published
Q/(seo 2.2).
-See 4.6.3
75
-------
M1L-L-4G152
5. PREPARATION FOR DELIVERY
5.1 Packaging^ packing, and marking. Unless otherwise specified in the
contract or purchase order (see 6.2), packaging, packing, and marking shall
be in accordance with MIL-STD-290.
6. NOTES
6.1 Intended use. The lubricating oils covered by this specification are
intended for the crankcase lubrication of commercial-type vehicles used for
administrative (post, station, and camp) service typical of: (1) gasoline
engines in passenger cars and light to medium duty trucks operating under
manufacturer1 warranties; and (2) lightly supercharged diesel engines operated
in moderate duty. The lubricating oils covered by this specification are
intended for use, as defined by vehicle manufacturer, when ambient tempera-
tures are above -20°F (-29°C).
6.2 Ordering data. Procurement documents should specify the following
information:
a. Title, number, and date of this specification.
b. Grade of oil required (sec 1.2).
c. Quantity of oil required.
d. Type and size of containers required (see 5.1).
e. Level of packaging and level of packing required (see 5.1).
6.3 Other requirements and tolerances for quality conformance testing.
Definite numerical values are not specified for certain of the physical and
chemical properties listed in 3-^, and for which corresponding test methods
are given in Section b. Values of some properties vary from one commercial
brand of oil to another for the same grade. These values are influenced by
the source of the base stock, the identities and quantities of additives, etc.
Definite numerical values are not always functionally important except, for
some properties, within specified maximum and/or minimum limits. It is not
possible (or necessary) to assign restrictive values in the specification
before the testing of qualification samples. During qualification, test values
will be determined which are characteristic of a particular product and which
can serve thereafter to identify the product.' Using the results of qualifi-
cation testing, the qualifying activity (see 6.k) can set values, including
permissible tolerances, for future quality conformance testing.
76
-------
MII-U/.6152
6.*4 Qualification. Wi Ui respect to products requiring qualification,
awards will be made only for products which are at the time set for opening
of bids, qualified for inclusion in the applicable Qualified Products List
whether or not such products have actually been so listed by that date. The
attention of the suppliers is called to this requirement, and manufacturers
are urged to arrange to have the products that they propose to offer to the;
Federal Government tested for qualification in order that they may be
eligible to be awarded contracts or orders for the products covered by this
specification. The activity responsible for the Qualified Products List is
the U.S. Army Aberdeen Research and Development Center, Coating and Chemical
Laboratory, Aberdeen Proving C-iound, Maryland 21005 and information pertain-
ing to qualification of products may be obtained from that activity.
Custodi ans:
Army - MR
Navy - SH
Ai r Force - 68
Review activities:
A rmy - Ml, WC, AT
Navy - SH, SA, AS, YD, MC
Ai r Force - 11, 68
DSA - PS
User activities:
Army - MB
Navy - OS
Prepari ng acti vi ty:
Army - MR
(Project No. 9150-0316)
U. S. GOVERNMENT PRINTING OFFICC: WO .433.693/3080
77
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A TECHNICAL AND ECONOMIC STUDY
OF WASTE OIL RECOVERY
PART VI A Review of Re-refining Economics
by Peter M. Cukor
78<
-------
TABLE OF CONTENTS
1.0 Introduction and Summary 1
2.0 Trends in Lube Oil Re-refining 3
2.1 Waste Oil Collection - 3
2.2 Crankcase Oil Re-refining 5
2.2.1 Labor 5
2.2.2 Materials 7
2.2.3 Waste Disposal --- - 7
2.3 Blending and Compounding 8
2.3.1 Viscosity Improvers 8
2.3.2 Performance Package 8
2.3.3 Multi-Grade Oils — 9
2.4 Marketing 9
2.4.1 Wholesale and Retail Markets - - 9
2.4.2 Commercial/Industrial Markets 14
2.5 Price and Availability of Virgin Lube Oils 15
2.5.1 Price of Virgin Lube Oil 15
2.5.2 Future Lube Oil Supply and Demand - Impact on
the Re-refining Industry 16
2.5.3 Supply of Lubricating Base Oils 19
2.5.4 Implications for the Re-refining Industry 19
3.0 References 21
79<
i i
-------
TABLE OF TABLES
Table 1 Economic and Operating Data for 6 Re-refining Companies 4
Table 2 Blending Costs for Re-refined Oils —- - 10
Table 3 Lube Oil Supply and Demand - 17
Table 4 Projected Total Demand and Derived Supply
Necessary to Satisfy Demand 18
80<
-------
TABLE OF FIGURES
Figure 1 Refinery Gate Price for 300 Neutral Lube Oil 2
Figure 2 Summary of Re-refining Economics 6
Figure 3 Barriers to Public Acceptance of Re-refined Oil 12
Figure 4 U.S. Finished Lube Capacity 20
iv
-------
1.0 INTRODUCTION AND SUMMARY
The purpose of this report is to update previously reported economic data for
re-refining of waste crankcase oils and to provide some insight into the under-
lying causes of shifts in the profitability of recycling used lubricants.
Previous research has described the forces which led to a sharp decrease in
crankcase oil re-refining during the period 1960-1972H). During this interval,
several interrelated factors contributed to an increase in the cost of re-
refining:
0 Costs of re-refining rose as a result of higher prices for feed-
stock, chemicals, labor and maintenance.
« The availability of top quality, major brand lube oils at discount
prices resulted in a rapid increase in the number of user performed
oil changes.
• Waste oil generation rose slowly in step with lube oil demand.
• Sources of waste oil available for recycling became more dispersed,
thereby increasing collection costs.
• New performance additive formulations made crankcase oil re-refining
more costly due to the higher volumes of acid required and the lower
overall recovery of lube oil.
As has been discussed elsewhere^ ', most re-refined lube oil is sold in bulk as
non-detergent oil to independent jobbers. In view of the low quality image of
re-refined oil, the jobbers are concerned mainly with price. Cheap, low
quality virgin lubricants provide the alternative supply source for this market
and the price of these oils sets a ceiling on the price that re-refiners can
charge for their products. As shown in Figure 1, during the 1960's refinery
prices for virgin lube oils remained steady at about 22$ per gallon. Hence,
re-refiners, faced with rising production costs, were unable to increase prices
in order to preserve profitability. This cost/price squeeze was the major
reason for a two-thirds reduction both in the number of re-refiners and in
total annual production of re-refined oil which has occurred since 1960.
Since mid-1973, the re-refining industry has enjoyed a period of unprecedented
profitability. A fourfold increase in crude oil prices coupled with declining
production of virgin lube oils enabled re-refiners to raise prices sufficiently
to increase profit margins from 1<£ per gallon in July, 1973 to more than lOtf
per gallon in July, 1974. By early 1975, however, softening demand for lube
oils due to reduced economic activity resulted in a reduction of lube oil
prices from the peak of about 53<£ per gallon registered in late 1974. By
May of 1975, market prices for bulk sales of unblended re-refined oil fell to
50
-------
(13
cn
UJ
53
52
51
50
49
48
47
46
45
44
43
42
41
40
39
38
37
36
35
34
33
32
31
30
29
28
27
26
25
24
23
Figure 1
REFINERY GATE PRICE FOR 300 NEUTRAL LUBE OIL*
1960-1975
60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75
J FMAMJJASONDJ FMAMJJASON DO FMAM
YEAR
* Platts Oil Price Handbook & Oilmanac, McGraw Hill & Co.,
1960-1974; and Platts digram, January*May, 1975.
-------
2.0 TRENDS IN LUBE OIL RE-REFINING
The response of the re-refining industry to the abrupt changes in the economics
of waste oil collection, re-refining, and marketing which have occurred since
mid-1973 is discussed in this section. A previous report provides more /^\
detailed background information on these three stages of waste oil recovery^ '.
Much of the data and information presented in this report were collected
during nineteen interviews conducted with re-refiners located in or near major
metropolitan areas throughout the United States. Of these nineteen interviews,
thirteen were conducted in mid-1973 and six were conducted in late 1974. Data
collected in the second set of interviews were updated during telephone con-
versations in spring of 1975. Table 1 summarizes economic and operating data
for the six companies interviewed in fall of 1974.
2.1 Waste Oil Collection
Prior to the Arab oil embargo and the sharp rise in crude oil prices, waste oil
collectors charged about 3 cents per gallon for removal of used oil from ser-
vice stations. A re-refiner could expect to receive waste oil at a delivered
cost of about 3 to 4 cents per gallon. Many re-refiners purchased a signifi-
cant portion of their waste oil from independent collectors.
Since the embargo, increasing volumes of waste oil have been directed to the
fuel market where collectors can expect to receive as much as 15(+ per gallon
depending on the season and geographical location. A recent survey of six
re-refiners across the country revealed that the average delivered cost of
waste oil rose from 3-4 cents per gallon in mid-1973 to 12-13 cents per gallon
in early 1975. Further, waste oil availability at these prices was insuffi-
cient for plant operation at or near capacity. Re-refiners, processing crank-
case oil only, are now operating at roughly 45 percent of capacity.
In response to the shift in waste oil availability, re-refiners have adopted
two strategies. The first is to compete directly with waste oil collectors by
purchasing tank trucks and scouring the local area for used oil supplies. A
number of re-refiners have taken this approach in order to assure long term
survival. However, since independent operators can collect waste oil at a
lower cost than can re-refiners('7, a few re-refiners have purchased tank
trucks and leased them to individuals on an annual basis. In this way, a ro-
refiner can avoid the high cost of salaries and maintenance he would incur if
he operated his own trucks and still assure himself of an increased supply of
feedstock.
The second strategy adopted by re-refiners to increase their supply of feed-
stock is to put greater emphasis on closed-cycle re-refining of waste oils
provided by industrial and commercial clients. Under closed-cycle conditions,
the waste oil is never available for any end use other than re-refining.
84<
3
-------
Table 1
ECONOMIC AND OPERATING DATA FOR 6 RE-REFINING COMPANIES
FOR THE FISCAL YEAR 1973-1974
•^••••H
Company
1
2
3
4
5
6
EaaaiBa
Waste Oil Collected
and Re-refined
1000 gal/yr
Own
Sources
4,400
1,925
10,600
2,400
2.200
1,380
Purchased
from
Independent
Collectors
600
75
3,400
1,600
1,400
Delivered Cost
of Waste Oil
(Dry Basis)
12
12
12
13
13
12
t
Fraction of
Capacity Utilized
<*)
48
50
87
42
42
80
Cost of Re-refining
(including feedstock
but excluding taxes
and administrative
costs)
•t/gal of Product
29
38
35
32
32
50
Products
Sold
1000
gal/yr
3,000
1,200
10,000
2,480
2,880
960
W8B83&
Principal Markets Served
5V. Bulk sales of unblended auto lube to
jobbers at 50c/gal ;
20%: Sales of unblended auto lube in pack-
ages to distributors at 92c/gal ;
25%: Sales of blended auto lube in pack-
ages to distributors;
50%: Industrial oils sold directly to final
users.
80S: Blended auto lube oil sold in drums to
commercial accounts through distri-
butors;
20*: Blended oil sold in quart cans to
jobbers
902: Industrial and railroad oils sold
directly to final users;
10%: Sales of blended auto lube to commer-
cial fleets
502: Bulk sales of unblended auto lube to
jobbers at 10c/gal »
30%: Sales of unblended auto lube 1n cases
of quarts to jobbers at $1.04/gal;
15%: Sales of blended auto lube in drums
to jobbers at S1.30/gal
5%: Sales of unblended auto lube in drums
to jobbers at 60c/gal
15%: Bulk sales of unblended auto lube to
jobbers at 50c/gal ;
60%: Sales to wholesaler of unblended auto
lube in cases of qts. at 90c/Gol;
25%: Sales to wholesaler of blended auto
lube in cases of qts at Sl.lC/gal.
50%: Blended auto lube sold in drums to
comnercial accounts;
50%: Bulk sales of unblended auto lube to
joMiers.
HBSBaaBSE
Total
Revenues
$1000/yr
2,000
1.600
NA
4,500
2.400
500
53S8SBI
00
-cn
A
-------
Further, oils recycled under such conditions compete with high quality virgin
lubes and, therefore, command a much higher price than lube oils sold in bulk
in wholesale markets. Additionally, closed-cycle re-refining provides clients
with waste oil disposal services. In view of future regulations for solid
waste management and hazardous waste disposal, closed-cycle re-refining of
industrial oils is likely to increase significantly.
2.2 Crankcase Oil Re-Refining
Figure 2 presents a display of the important cost factors in the production of
re-refined crankcase oil. By far the most important cost component in re-
refining is the delivered cost of the waste oil feedstock. Based on interviews
with six re-refiners, the average delivered cost of feedstock was 13 cents per
gallon on a dry basis. Since bottom sediment and water (BS&W) typically amount
to 15 percent of the waste oil volume, it is essential for re-refiners to
monitor closely the quality of the waste oil they purchase. On the average,
waste crankcase oil also contains about 3 volume percent fuel. The average
yield of lube oil was reported to be about 75 percent based on dry waste oil
feed. This corresponds to a 64 percent overall yield based on waste oil as
received. The total cost of waste oil per gallon of finished product is Mi
per gallon.
Since the cost of feedstock is about 50 percent of total re-refining costs, it
is clear that the profitability of waste oil recovery is highly sensitive to
changes in the cost of waste oil. For every cent increase in the delivered
cost of waste oil, re-refining costs will rise by about 1.33 cents. An
increase in fuel oil prices can be expected to result in a parallel increase
in the cost to re-refiners of waste oil. If increases in waste oil costs are
not compensated for by increases one-third greater in prices for re-refined
products, then re-refiners will be unable to maintain recent profit margins.
2.2.1 Labor
Labor costs have risen sharply in recent years making it imperative for re-
refiners to maintain production at maximum levels in order to minimize unit
costs. For example, according to the Bureau of Labor Statistics, the annual
•average wage for refinery production workers rose more than 27 percent between
1970 and 1973. Although wages earned by workers in re-refineries are lower
than wages earned by refinery workers, continued inflation has certainly
resulted in further increases in labor costs.
Re-refiners have attempted to reduce the combined impact of wage increases and
reduced feedstock availability on profitability by diversification of their
product mix. In addition to lube oil, a number of firms now produce fuel oil
and industrial oils, frequently under closed-cycle conditions. In the case of
fuel oil, re-refiners can accept contaminated feedstocks which are not suitable
for lube oil recovery. In the case of industrial oils, closed-cycle opera-
tions effectively eliminate competition from independent collectors who sell
to fuel marketers.
86<
5
-------
Figure 2
SUMMARY OF RE-REFINING ECONOMICS*
(All Costs Expressed In Cents Per Gallon Of Oil)
COLLECTION TRANSPORT RE-REFINING BLENDING PACKAGING SALES PRICE
75% YIELD ON DRY BASIS
(8) < 5 ) ^ FEEDSTOCK (171
8 13 LABOR ( 5 )
MATERIALS ( 4 )
OVERHEAD ( 3 )
UTILITIES ( 1 )
"* DEPRECIATION I I )
LI6HT WASTE DISPOSAL (2)
LUBE „_„_ .
STOCK BASE LU8E STOCK
38 33 '' UNBLEt*
0.902 Gallons
Of BASE LUBE
" STOCK
0
DED RE-REFINED OIL
0.03 Gallons of r
VISCOSITY IMPROVER (4.2) <-».
4-
0.068 Gallons of <—
PERFORMANCE ADDITIVE
PACKAGE (21.6)
1 Gallon of BLENDED
SINGLE GRADE OIL 55.6
0.431 Gallons of 0.431 Gallons of
LIGHT LUBE BASE LUBE
" STOCK ' STOCK
' 0
0.07 Gallons of
VISCOSITY INDEX IMPROVER (9.8) L» .
•+•
0.068 Gallon* of 1—
PERFORMANCE ADDITIVE
PACKAGE (21.6)
1 Gallon Of BLENDED
MULTI-GRADE OIL 62
NUMBERS IN BRACKETS DENOTE COSTS OF EACH OPE
NUMBERS NOT IN BRACKETS DENOTE RUNNING TOTA
*AM Costs and Prices ore as of MiD 1975
A TECHNICAL AND
Principal
EPA Con
Laurence
Or. John
Resource
Office of
U.S. Envi
HH TEK
Y* vk 8ERKE
' D
RATION.
L COSTS.
^
NON - DETERGENT OIL
TO JOBBERS
IN BULK 50 **
. TO JOBBERS 70
RUMMINS ''b A
(12) \ITOCOMMERCIAL
1 ACCOUNTS 92
|
BANNING 69 RETAIL SALES 124
(36)
' 1
1
• SE GRADE SAE 30 OIL
, TO JOBBERS 107
HUMMING 67.6 A
(12) ^Nj TO COMMERCIAL
• ' ACCOUNTS 142
I
:ANNING 91.6 RETAIL SALES 169
(36) , **
1 |
SE GRADE SAE IOW -30 OIL
1 | TO JOBBERS 113
HUMMING 74 / ^
(12) \1 TO COMMERCIAL
ACCOUNTS 162
1
;ANNING ge | RETAIL SALES ITI
(36) |
ECONOMIC STUDY OF WASTE OIL RECOVERY
nvestigotor •. Dr.P.M.Cukor
racl No. 68-01-2904, Performed for:
B. McEwen, Jr. and
•1. Skinner, Deputy Director
Recovery Division
Solid Waste Monogement Programs
oilmen It) 1 Protection Agency
NEKRON, INC.
LEY, CALIFORNIA
-------
2.2.2 Materials
Increases in price for sulfuric acid and clay are important contributors to the
recent increases in re-refining costs. Current price data indicate that sul-
furic acid (H2S04), at $50 per ton, contributes about 2.7 cents to the cost of
producing a gallon of re-refined oil. Clay, at $82 per ton, contributes 1.6
cents to the cost^of producing a gallon of re-refined oil. Typical quantities
of acid (66° Baume) and clay required per gallon of finished oil are 1.06 Ibs
H2S04 and 0.4 Ibs of clay.
2.2.3 Waste Disposal
Several years ago disposal costs for acid sludge and spent clay were a very
small contribution to total re-refining costs. Together, the cost of disposal
of these materials amounted to less than one cent per gallon of finished oil.
Recently, however, increasingly stringent state regulations for solid waste
disposal and hazardous waste management have, in some instances, forced re-
refiners to abandon traditional dumping sites in favor of geologically
insulated landfills. Since such landfills are, in most cases, more distant
from the plant than formerly acceptable disposal sites, sludge transportation
costs have escalated sharply.
For example, one large re-refiner was dumping acid sludge in a sanitary land-
fill where the soil was a porous sand. Local water pollution control officials
ordered the re-refiner to locate an alternative disposal site within two weeks.
After two weeks time, the company was unable to locate a suitable site and as
a result was forced to cease operations. Another month passed before the firm
was able to locate a candidate disposal site and provide the local water pollu-
tion control office with core drillings which indicated that the site was
geologically insulated. The new landfill is eighty miles distant from the
plant.
For this company, the total cost of waste disposal is now about 3 cents per
gallon of finished oil. Formerly, the cost of acid sludge and clay disposal
amounted to less than 0.8 cents per gallon of finished oil.
The effect of solid waste disposal regulations on the cost of acid sludge dis-
posal has not been uniform throughout the country. However, re-refiners are
acutely aware of the impact of new disposal regulations on their businesses.
As an alternative to the disposal of acid sludge, a group of re-refininq
companies developed a limestone neutralization process. However, the cost, of
this alternative is estimated at between 8 and 10 cents per gallon of lube oil
produced. Further, leaching of heavy metals, especially lead, may still be a
problem for neutralized sludges. The critical choice for re-refiners forced
to seek new disposal sites involves a tradeoff between the cost of sludge
transport and disposal at distant sites which are geologically insulated and
the cost of sludge treatment and disposal at nearby less insulated landfills.
88<
-------
2.3 Blending and Compounding
2.3.1 Viscosity Improvers
Re-refined oils vary somewhat in viscosity depending on feedstock properties
and processing conditions. Generally the finished product has a viscosity of
between 55 and 58 Saybolt Universal Seconds {SUS) at 210°F. This is equivalent
to the viscosity of an SAE 20 weight oil. In order to raise the viscosity to
that of a 30 weight or 40 weight oil, a small percentage of a heavy virgin oil
or brightstock may be added. Brightstocks frequently used have viscosities of
150 and 165 SUS at 210°F. A rough rule of thumb is that the viscosity, at
210°F of a 20 weight lubricating oil, will increase by 1 SUS for every 3 per-
cent of brightstock added. Brightstocks are purchased by re-refiners from
major oil companies for about 64
-------
additive is required to produce an SE grade oil. The cost of this blending is
about 21.6<£ per gallon of product. Hence the total cost to produce an SE grade
oil from crankcase drainings is about 55.6
-------
Table 2
BLENDING COSTS FOR RE-REFINED OILS
{Single Viscosity)
Operation
Viscosity Improvement
from 55 SUS to 61 SUS at 210°F
Performance package to meet
SE specifications
Percent Additive
Blended
3.0
6.8
Cost, if/Gal
of Blended Oil
4.2
21.6
Product
Re-refined base stock
Viscosity improver
Performance package
SE grade oil
Summary
Gallons
0.902
.030
.068
1.00
Cost, if/Gal
of Blended Oil
29.8
4.2
21.6
10
-------
Since U.S. re-refiners are small businessmen who spend little or no money on
advertising, brand identification has played essentially no role in the market-
ing of re-refined oils. Since a lube oil purchaser is generally not able to
evaluate independently the quality of the lube oil he buys, he must depend on
the integrity of the manufacturing company for protection. Although use of
poor quality lubricants can lead to costly engine repair bills, the use of a
label designating an oil as suitable for a given class of service is wholly the
responsibility of the producer of that particular brand of oil. There is no
independent organization which monitors lube oil quality. Consumers do, there-
fore, place a considerable amount of trust in the quality control procedures
exercised by lube oil manufacturers.
In view of this situation, it is not difficult to understand why re-refined oil
sold in retail markets has failed to gain acceptance among quality conscious
customers and must therefore compete with low quality lubricants. Regardless
of the actual performance of re-refined products, the re-refining industry has
never enjoyed a reputation for producing high quality lube oils. Rather, this
business has a history of opportunists and men of questionable integrity whose
operations have served to discredit those re-refiners who do produce high
quality products. Partially as a result of this situation, in 1958 the Federal
Trade Commission ruled that oils sold in interstate commerce which are in whole
or part composed of previously used oils must be labelled as "manufactured from
previously used oils." Hence, regardless of the quality of re-refined lubri-
cants, the FTC ruling has cast a stigma on these oils since, to the customer,
the word "used" frequently implies a product of inferior quality. As a result,
most individuals who knowingly buy re-refined oils in retail markets are con-
cerned with obtaining the cheapest oil available. Hence high quality re-
refined oils which have been blended with additives are rarely, if ever, sold
in retail outlets because the price of such oils is too high relative to that
of the competing low quality, non-detergent virgin lubes.
These barriers to public acceptance of re-refined oils are illustrated in
Figure 3. This diagram shows how the considerations discussed above build upon
one another and reinforce the public's negative attitude towards re-refined
oil. Both the failure of the re-refining industry to regulate the quality of
its products and the Federal labelling law have served to foster a poor public
image for recycled lube oil. Thus re-refined oil has become acceptable only
to customers who are highly price conscious. High quality re-refined oils are
not price competitive with low quality, non-detergent virgin lubes and thus are
not. available in most retail markets. As a result, only low quality, non-
detergent re-refined oil is marketed. Under these conditions, public confi-
dence in the quality of recycled oils can never be increased because hujh
quality recycled oils are not readily available to the public. Further, bc-causo
of the inherent trust which a purchaser places in the manufacturer of lubf? oil,
it is unlikely that the small and relatively obscure firms that produce re-
refined oil:; could be successful in retail marketing of high quality recycled
oils in competition with equivalent lubes produced by nationally known petro-
leum companies.
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Fiqure 3
Barriers to Public Acceptance of Re-Refined Oil
FEDERAL LABELLING LAW
r>o
CO
A
LOW QUALITY OF RE-REFINED
OILS WHICH ARE AVAILABLE
TO THE PUBLIC
LACK OF CONSUMER ACCEPTANCE
OF RE-REFINED OIL
RETAIL SALES OF RE-REFINED
OIL AT LOW PRICES IN COM-
PETITION WITH LOW QUALITY
VIRGIN LUBRICANTS
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Although the re-refining industry has not earned the confidence of quality
conscious lube oil consumers, the marketing efforts of producers of virgin
lubricants have traditionally relied heavily on public confidence gained
through familiarity with established brand names and many years of acceptable
product performance. For example:
When your oar is worth caring for,
Penzoil is worth asking for; and
You can trust your oar to the man
who wears the star
are advertising slogans which typify the strategy of large oil companies
in marketing of lube oils to retail customers. Thus if those firms which now
market high quality virgin lube oils were to include top quality re-refined
oils in their product lines, it is highly probable that such oils would gain
public acceptance over a relatively short period of time. However, it is
unlikely that a producer of virgin lube oils would consider purchasing base
stocks from a re-refiner unless lower cost virgin lubes of equivalent quality
were not available elsewhere. During late 1973 and early 1974 (see Section
2.5 below) an acute shortage of virgin lube oils did develop and several major
oil companies did actively explore the possibility of supplementing lubricant
supplies by purchasing re-refined oil. Recent increases in lube oil supply
in the face of falling demand have, however, had a dampening effect on these
activities.
Since most re-refining companies sell the bulk of their production as unblended
base stock to independent jobbers, and since re-refined oil sold by jobbers com-
petes with cheap, low quality virgin lubes, the price of these relatively inexpen-
sive virgin oils acts as a ceiling for the price of most re-refined oil.
Thus those firms which sell primarily to jobbers can be vulnerable to
sharp swings in profitability depending on the product demand and the available
supply of those grades of virgin lube oil with which re-refined oils must com-
pete. During periods when lube oil demand is high relative to supply, avail-
able volumes of virgin lube oils are directed first to the high quality, high
price markets. These include retail outlets such as service stations and auto-
mobile garages, and commercial accounts such as trucking companies, taxi
fleets, etc. As a result, customers who normally pay a lower price, such as
large industries, discount stores, and other bulk consumers may find themselves
without a supplier. Further, since the higher quality oils (those blended with
specialized chemical additives) are the products whose sales yield the greatest
profits, the available volume of lower quality (unblended, non-detergent) lube
oils is sharply reduced. This low quality market, which consists principally of
non-dealership garages, independent service stations and discount stores, is the
major outlet for re-refined oils. Reduced competition from producers of virgin
lubes permits re-refiners to realize higher profit margins during such periods
of tight virgin oil supply. Conversely, as new productive capacity for virgin
lube oils comes on stream and/or demand falls, some of the available production
will be directed to the low quality market served by re-refiners. Competition
will increase resulting in lower profit margins. For example, as late as the
summer of 1973, the bulk of all sales of lube oil by re-refiners was made at a
13
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profit of only about Itf per gallon. Since then, the price of lube oil in the
same markets has risen relative to production costs so that today a profit
margin of lOtf to 15<£ per gallon on sales of unblended re-refined oil is not
uncommon. It should be clear that the existence of such attractive profit
margins will attract a portion of the future production from virgin lube oil
plants and thus reduce the profit margin available to re-refiners. In an
inflationary period, the inability to control production costs in the face of
increasing competition from suppliers of virgin lube oils could result in a
recurrence of the cost/price squeeze which forced many re-refiners out of
business in the late 1960's and early 1970's.
2.4.2 Commercial/Industrial Markets
The commercial/industrial lube oil market consists of both "on highway" and
"off highway" users. On highway users include truck, taxi, and bus fleets and
motor pools. Off highway users include railroads and farms, where engine
lubricants are required, and manufacturing and mining industries where cutting
oils, hydraulic fluids, transformer oils, grinding oils, etc., are used. In
the commercial/industrial market the emphasis is on quality and hence re-
refined lube oils must compete with high grade lubricants produced by the
major oil companies. Although profit margins are not as large as in the high
quality retail automotive market, barriers to the use of re-refined oils are
not as great. Several re-refiners have for many years been able to sell most
of their production to commercial and industrial clients. These firms are
among the most profitable in the re-refining industry.
Since mid-1973, sales of re-refined oil to commercial and industrial users
have expanded significantly. While it is not possible to specify the actual
volumes consumed nationwide, all the re-refiners interviewed for this study
emphasized the success of their marketing efforts in this sector. An acute
shortage of virgin lube oils which occurred in late 1973 and early 1974 forced
a number of industries and businesses to turn to re-refiners for lube oil
supplies. Successful use of re-refined oils by these clients has provided an
important marketing tool for re-refiners in further expanding their commercial
and industrial business. As discussed in a previous report, a re-refiner's
success in penetrating this market has been traditionally based upon long term,
close working relationships with the clients as well as a competitive lube oil
price('). From these relationships the client develops a trust in the
integrity of the re-refiner and the quality of the re-refiner's product.
During the past 18 months a shortage of virgin lube oils provided re-refiners
with an opportunity to secure many new customers over a relatively brief period
of time. However, the present oversupply of lube oils is certain to result in
a return of stiff competition for re-refiners from producers of virgin lubri-
cants (see Section 2.5.4, below).
95<
14
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2.5 Price and Availability of Virgin Lube Oils
Three major factors have affected the profitability of re-refining since mid-
1973:
• A sharp rise in the price of fuel oil
• Increases in the costs of labor, materials and chemicals
• A sharp rise in the price of virgin lube oil
The first two factors were discussed in Sections 2.1 and 2.2 above. This
section focuses on the price and availability of virgin lube oils and the
effect of these variables on the future of the re-refining industry.
2.5.1 Price of Virgin Lube Oil
As shown in Figure 1, since the fall of 1973, refinery gate prices for virgin
lube oils have more than doubled. This has permitted re-refiners to raise the
price of re-refined base stock by about the same percentage. Thus while in
1973 profit margins on bulk sales of re-refined lube oil were only a few cents
per gallon, by mid-1975 margins as large as 17^). The situation was thought to be especially criti-
cal in view of the closure of older lube oil refineries due to shortages of
special types of crude oils and the excessive cost of compliance with environ-
mental and health and safety regulations. The shortage of virgin lubricants
provided re-refiners with an important opportunity to expand sales in the high
profit commercial/industrial market. Municipalities, vehicle fleets, and
industries which traditionally obtained lube oils from major oil companies and
independent compounders were forced to seek supplies from re-refiners. Re-
refiners who have been able to provide the required products and assurance of
quality to such customers have been able to increase the profitability of
15
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their operations. For example, as late as fall of 1973, one of the re-refiners
interviewed in this study sold about 95 percent of his production as non-
detergent oil to a local jobber. As discussed above, at that time the profit-
ability of such sales was about one cent per gallon. In early 1974 the local
city government solicited bids for lube oil supply and received only one
response - the re-refiner's. After considerable discussions relating to
quality control procedures, the city accepted the re-refiner's bid. Since
obtaining the contract with the city the re-refiner has been able to make sub-
stantial progress in increasing the fraction of his production which is sold as
blended oil to quality conscious commercial and industrial customers. By early
1975 less than half of the firm's production was being sold in the bulk whole-
sale market.
2.5.2 Future Lube Oil Supply and Demand - Impact on the Re-Refining Industry
Although during the past 18 months the re-refining industry has enjoyed a
period of unprecedented profitability, it is unlikely that these profit levels
can be maintained over the longer term. By the end of 1974 decreasing demand
for lube oils coupled with additions to refining capacity resulted in large
additions to lube oil stocks. Table 3 summarizes Bureau of Mines data for
domestic lube oil production and demand for the period 1965-1974. From 1965-
1971 domestic manufacturing capacity plus imports satisfied the domestic and
export demand. Excesses or deficiencies in supply in any year were reflected
in adjustments to inventory. In 1972 and 1973 sizeable inventory reductions
were required to satisfy domestic demand. Toward the end of 1973 the belief
was widespread in the petroleum industry that there would be a severe shortage
of base lubricating oils in future years.
However, in 1974, due to reduced economic activity and curtailments 1n vehicu-
lar use, domestic demand for lube oils fell by about 4.2 percent while produc-
tion rose by 1.8 percent. Although imports were lower than in 1973 this
decrease was not sufficient to compensate for a greater decrease in lube oil
exports. As a result inventories rose by about 3.2 million barrels. Thus
while only a year ago lube oil stocks were at an all time low and lubricants
were in short supply, at present a surplus situation exists due to record
production levels and declining demand.
A recent study by Sun Oil Company provides projections of lube oil demand and
derived supply to 1985(5). These projections, shown in Table 4, indicate that
in 1975 domestic lubricant demand is expected to fall by 5 percent to 53.7
million barrels. Following a recovery in demand of 0.9 percent in 1976 and
1.3 percent in 1977, annual demand growth is expected to range between 1.2 and
2.0 percent between 1977 and 1980. Between 1980 and 1985 the minimum and
maximum annual increases should be about 1.4 and 1.9 percent.
97<
16
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Table 3
LUBE OIL SUPPLY AND DEMAND 1965-1974
(Volume in Thousands of Barrels)
Year
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974 est
Manufactured
In the U.S.
62,925
65,407
64,870
65,684
65,080
66,183
65,473
65,349
68,742
70,000
Imported
Into U.S.
29
32
40
33
163
224
10
669
2032
1800
Total
U.S.
Supply
62,954
65,439
64,910
65,717
65,243
66,407
65,483
66,018
70,774
71,800
Exported
From
U.S.
16,592
17,112
18,695
18,001
16,396
16,090
15,825
14,983
12,822
12,100
Adjustment
To
Inventory
- 758
- 622
+2092
- 751
+ 65
+ 624
+ 337
-1778
-1065
+3200
Derived
Domestic
Demand
47,120
48,949
44,123
48,467
48,782
49,693
49,321
52,813
59,037
56,500
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C6
A
Year
1973
1974
1975
1976
1977
1978 Lo
1980 Hi
1985 Lo
1985 Hi
PROJECTED TOTAL
Needed
Mfg'ed in
the U.S.
68.7
70.0
63.7
64.2
65.0
67.1
68.5
69.1
71.6
Table
4
DEMAND AND DERIVED SUPPLY NECESSARY
(Millions of
Imported
Into U.S.
2.0
1.8
2.0
2.0
1.9
1.8
1.8
1.5
1.5
Barrels)
Total
U.S.
Supply
70.7
71.8
65.7
66.2
66.9
68.9
70.3
70.6
73.1
TO SATISFY
Export
From
U.S.
12.8
12.1
12.0
12.0
12.0
12.0
12.0
10.0
10.0
DEMAND
Adj.
to
Invt.
-1.1
+3.2
0
0
0
0
0
0
0
Total
U.S.
Demand
59.0
56.5
53.7
54.2
54.9
56.9
58.3
61.6
63.1
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2.5.3 Supply of Lubricating Base Oils
As shown in Figure 4, during the period 1961-1972 lube oil manufacturing
capacity in the U.S. exhibited a strong upward growth. The 5 percent decrease
in capacity which occurred in 1973, a year in which lube oil demand rose by
nearly 12 percent, did cause concern in the petroleum industry over the possi-
bility of long term shortages of lubricants. However, the year 1973 was an
anomaly. Since then, finished lube capacity has risen by about 8.5 percent.
Using recent production data from Table 4 and production capacities from
Figure 4 it is possible to calculate the fraction of lube oil manufacturing
capacity utilized in a given year. In both 1973 and 1974 the ratio of produc-
tion to capacity was about 91 percent. If this level of production were to be
maintained throughout 1975 nearly 74.4 million barrels of lubricants would be
produced. Yet demand including net exports is forecast to be only 63.1 million
barrels. Hence an 11.3 million barrel surplus would have to be absorbed.
Although it is certain that production levels will be curtailed in order to
prevent such a large overproduction, this example does serve to illustrate the
oversupply and overcapacity situation which presently exists.
As discussed above, based on operation of 91 percent of current capacity,
domestic lube oil plants can produce 74.4 million barrels per year. According
to the forecasts in Table 4 even if production capacity were to fall to 70
million barrels, this would still be sufficient to satisfy demand through 1980
without any reduction in inventories. After 1980 the forecast indicates that
new capacity will be required.
2.5.4 Implications for the Re-Refining Industry
The supply/demand forecasts discussed above indicate that, at least over the
next five years, re-refiners will face increasing competition for lube oil
markets. The absence of competition from producers of virgin lubes which
occurred in late 1973 and early 1974 is unlikely to be repeated unless crude
oil supplies are restricted, price controls are reimposed and economic activity
accelerates rapidly. Since these events are unlikely to occur again simul-
taneously, re-refiners will find it increasingly difficult to increase their
share of the high quality commercial/industrial market. Further, increased
availability of virgin lube oils will tend to cause a weakening in prices in
all markets, especially the low quality bulk market. Future increases in
crude oil prices may not result in greater margins on sales of re-refined
products unless increases in the delivered cost of waste oil per unit of pro-
duction are. less than increases in the price of lube oil. In view of the
Government's policy to achieve energy independence, the petroleum industry
will be under considerable pressure to load increases in product prices on
industrial fuels and gasoline. Should this take place, re-refiners may be
unable to increase their prices to compensate for increases in the delivered
cost of waste oil. In the absence of restrictions on the use of waste oil as
a fuel, rising feedstock costs combined with continued inflation in the cost
j.*1. °r an? maten'als and competition from cheap virgin lubes will present a
difficult challenge to the re-refining industry
100<
19
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Figure 4
U.S. FINISHED LUBE CAPACITY
~ 230
>s
O
0
£ 220
t_
o
00
•o
c
o
210
200
Q.
O
CO*
190
I960
1965
1970
1975
20
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3.0 References
1. Cukor, P., M.J. Keaton, and G. Wilcox (Teknekron, Inc., and the
Institute of Public Administration.) A technical and economic
study of waste oil recovery, pt.3. Economic, technical and
institutional barriers to waste oil recovery. Environmental
Protection Publication SW-90ca3, U.S. Environmental Protection
Agency, 1974. 143 p. (Distributed by National Technical
Information Service, Springfield, Va., as PB-237 620.)
2. Cukor, P., M.J. Keaton, and G. Wilcox (Teknekron, Inc., and the
Institute of Public Administration). A technical and economic
study of waste oil recovery, pt.2. An investigation of
dispersed sources of used crankcase oils. Environmental
Protection Publication SVJ-90c.2. U.S. Environmental Protection
Agency, 1974. 63 p. (Distributed by National Technical
Information Service, Springfield, Va., as PB-237 619.)
3. Lube pinch looms for industrial users. Oil & Gas Journal, 71(45):45,
Nov. 5, 1973.
4. Twomey, D. W. The changing lubricants market. Presented at National
Fuels and Lubricants Meeting, Houston, Sept. 12-14, 1973. 12 p.
5. Helms, J. L. The outlook for lubricants. Presented at 73rd Annual
Meeting, National Petroleum Refiners Association, Miami, Fla.,
Mar. 31-Apr. 2, 1974. 31 p.
21
102<
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