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Jobbers World News
October 13, 2009

  • YES - There is an Issue With Low Quality and/or Off-spec Lubricant in the US Market
  • A CALL TO ACTION
  • POLARIS Laboratories becomes sole source
  • More High Quality Base Oil on the Plate
  • Contact Us With Your News

  • YES - There is an Issue With Low Quality and/or Off-spec Lubricant in the US Market

    JobbersWorld conducted a survey last month (see link below) examining the perceptions of its readers with regards to the quality of lubricants in the US market. When asked, "Do you feel there is an issue with low quality and/or off spec lubricants in the market?" 85% of the 373 respondents said "yes." And the responses to this question were relatively consistent among lubricant distributors, major oil companies, independent lubricant manufacturers, and additive suppliers.

    But more than simply saying there is an issue with low quality lubricants, our readers offered up a wide range of suggestions as to what can be done to improve the quality of lubricants. The most common suggestions focused on the need for a new, independent testing organization that publishes test data on samples taken from the field.

    As expressed by a number of comments in the survey, many feel there is little hope that the API or ILMA will do much to address the issue. Although each is given credit for trying, at the end of the day, it is believed that something more needs to be done. And we plan to do just that - Read Below.


    A CALL TO ACTION

    In response to what we have been hearing over the years and the strong call to action seen in the JobbersWorld survey results, Petroleum Trends Intl., with the support of other industry stakeholders, formed the Petroleum Quality Institute of America (PQIA). The mission of PQIA is to educate and serve the consuming public by monitoring and reporting on the quality of lubricants in the marketplace. We will do so by independent testing and reporting on samples of lubricants taken from the field. The first report is expected to be completed for release to the public in December.

    PQIA will publish the test data, the specific brand names, the manufacturer's names, and commentary where appropriate. All of this information will be available to the consuming public for free on the PQIA website.

    We view this as an industry effort. As such, we ask stakeholders in the lubricants business (e.g. finished lubricant manufacturers, distributors, additive suppliers, base oil suppliers, and others) to contact us with your thoughts and support.

    Additionally, PQIA will hold an industry trade conference and show (Quality Now) in 2010. If you have a quality topic you would like to present at the conference, please contact us by email at tom_glenn@petroleumtrends.com

    Additional information on the Petroleum Quality Institute of America (PQIA) and the Quality Now conference and trade show will available in upcoming issues of JobbersWorld.


    POLARIS Laboratories becomes sole source

    Atlanta, GA - POLARIS Laboratories announced today its selection as Oldcastle Materials' sole provider of fluid analysis services. A high growth leader in the fluid analysis industry, POLARIS will now provide oil and coolant testing, analysis and data management services to more than 300 Oldcastle companies - today's leading suppliers of aggregates, asphalt, ready-mix concrete and paving services in the United States.

    Brett Minges, POLARIS Vice President of Sales, said POLARIS' ISO 17025 A2LA accreditation is evidence that the laboratory can provide the quality testing, accurate results and actionable maintenance recommendations necessary to support corporate maintenance practices and create a positive impact on the bottom line.

    "Using accurate and reliable fluid analysis data to reduce downtime, improve productivity and increase equipment reliability can affect the success of maintenance programming tremendously," Minges said. "To know that Oldcastle Materials has chosen POLARIS as its sole source for providing these services creates an exciting opportunity for both organizations to exceed the already high standards by which they operate."

    According to Ron Piccolo, Oldcastle Vice President of Strategic Sourcing, an extremely user-friendly data management solution and a virtually seamless process for transitioning historical data were also deciding factors in placing the company's fluid analysis program with POLARIS.

    "A partnership with POLARIS Laboratories creates an exceptional opportunity to easily access and manage the plethora of data that our sampling generates daily." Piccolo said. "This consolidation of information, along with consistency in testing methods and procedures provides a strong foundation for implementing well-directed maintenance and reliability best practices."


    More High Quality Base Oil on the Plate

    Bahrain's Oil & Gas Holding Company, owned by the National Oil and Gas Authority (Noga), signed a $120 million agreement with Ahli United Bank (AUB) to finance its stake in the new $430 million lubricant base oil manufacturing plant.

    The loan facility will be used to finance Nogaholdingls 27.5 per cent stake in the new plant, which will we one of the largest in the Middle East. Nogaholdingls landmark joint venture is being established in partnership with BAPCO and Neste Oil of Finland. The new plant, set up to increase revenue from the domestic oil industry, will utilize feedstock from Bapcols low sulfur diesel plant to manufacture Group III lubricant base oils. The kingdom of Bahrain will have a 55 per cent stake in the plant with Neste oil retaining a 45 per cent share.

    Dr Abdul-Hussain bin Ali Mirza, Minister of Oil and Gas Affairs, Chairman of Noga and Nogaholding said: the lube base oil project is an important project for Nogaholding and will generate substantial additional revenue for the petroleum industry in the kingdom of Bahrain. The project will benefit from the increasing demand across the world for low sulfur base oils in the production of lubricants.


    Contact Us With Your News

    JobbersWorld is all about issues impacting lubricant distributors. You are our primary audience and you are the ones we need to hear from. What's on your mind? What issues would you like to see us tackle? And what news would you like others to know about?

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    We reach out to nearly 10,000 participants in the lubricant distribution supply chain once or twice a week (depending on what's NEWS) and we tell it like it is.

    Please contact us via e-mail at tom_glenn@jobbersworld.com, or direct at 732-494-0405.

    Thank you


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