Opportunities for recycled oil products

Last fall President Clinton signed an executive order mandating federal procurement of lubricating oil containing a minimum 25 percent refined content. The order promises to further boost the recycled motor oil industry, which is making a comeback after years of decline. In recent years improved quality controls and technological advancements (namely, vacuum distillation and hydrotreating) have advanced this industry. Rerefiners now transform used oil back into a lubricating basestock, equal in quality to virgin. An estimated 1.4 billion gallons of used oil are generated annually. Rerefining allows significant energy savings. For every gallon of used oil that is rerefined, 65 percent is converted to rerefined base oil, 15 percent is distilled to become fuels, 10 percent is used as asphalt flux, and 10 percent is water. The rerefined base oil is sold to manufacturers that compound the oil with additives and then package the product for the industrial and automotive market.