The most direct way to assess the relationship crude price has with base oils is to look at the differential between the price of crude oil and base oil (the spread).

Excluding the rapid run-up in the price of crude in 2008, the spreads averaged close to $1.20 a gallon from 2004 to 2007. Fairly consistent with that average, the spread year-to-date for 2009 is $1.18 a gallon.

But take note, the spread has been trending down since April. Since that time the average spread is $0.75 and, as of today, its $0.88 a gallon.

Assuming the price of crude oil continues its current trend up, its likely we will see the relationship crude has to base oil, and ultimately finished lubricants, make its mark in the next month, or two.

Lyden Oil Company, an Ohio-based petroleum products distributor, is celebrating its 90th Anniversary this year and is introducing a new line of API approved "green" passenger car motor oils sold under the ProGuardŽ ECO brand name.

According to Paul Lyden, Vice President of Lyden Oil Company, "ProGuardŽ ECO motor oils are made from high quality segregated used motor oil feedstocks that are re-refined in a new state-of-the-art facility in Columbus, Ohio." In addition, Lyden says, "They are blended with the most advanced additives to allow for formulations with the maximum amount of re-refined, hydrotreated Group II+ base oils." Lyden Oil Company plans to market ProGuardŽ ECO in their primary areas of distribution in Ohio, Michigan, Indiana, Pennsylvania and West Virginia, and also will license other distributors in areas outside their primary market.

Lyden says ProGuardŽ ECO motor oils are especially appealing to the environmentally conscious consumer, because conceptually the consumer can see the oil make the full circle trip from crankcase-to-crankcase. The used passenger car motor oil is re-refined through an advanced hydro-treating process and formulated into a new product instead of being burned in furnaces or disposed of through other means. "This process truly minimizes the environmental footprint of passenger car motor oil," says Lyden. And he adds, ProGuardŽ ECO motor oils are also appropriate for fleets mandated to follow Executive Order 13101, requiring the use of re-refined motor oils. Most government entities, including the United States Postal Service, are required to comply with this ruling.

In addition to the ProGuardŽ ECO , Lyden Oil is also offering a "green" line of hydraulic oils for environmentally conscious industrial customers. Lyden says, by using the same high-quality re-refined base stocks combined with a premium additive package these hydraulic oils offer improved performance beyond conventionally formulated products. These will be distributed through the same channels as the ProGuardŽ ECO motor oils.

PetroCard Systems, Inc., a leading fuels and lubrication distributor in the Pacific Northwest, announced it has brought its mobile fueling service in-house and under its own brand to have end-to-end control of the quality and reliability of service. PetroCard employees will now deliver and fuel commercial vehicles parked at depots or other lots from rigs owned and operated by PetroCard, rather than via independent contractors. The company's mobile fueling service delivers more than 125,000 gallons per month of diesel fuel to the Oregon market.

"Our customers in Oregon asked us for an integrated mobile fueling solution in addition to our cardlock services. To meet those demands we have brought all of our services in the Oregon market under the PetroCard brand," said Steve Tolton, CEO of PetroCard. "We place the highest premium on quality of service to our customers and now we have more control of that."

Following the company's recent acquisition of Estacada Oil and Northwest Petroleum, PetroCard now maintains three office locations in Oregon, which will support the new mobile fueling operations.

PetroCard currently offers fuel services via three primary methods: via mobile fueling, via "cardlocks," or unattended, self-serve fueling stations and as well as via delivery to bulk fuel tanks. PetroCard is one of the largest cardlock operators in the Pacific Northwest. In addition to its fuel services, PetroCard Systems currently sells lubricants to many different classes of trades such as retail chains, wholesale operations, automotive installers, commercial and heavy-duty fleets out of its two offices located in Arlington and Spokane, Washington and now Clackamas, Oregon. PetroCard is the largest ExxonMobil distributor in Washington State.

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