Shell advised its lubricant marketers in the US of an increase of 8% on its finished lubricant prices. This increase is effective June 28, 2010.

JobbersWorld continues to field questions from marketers about Shell's sale of flush oil (line wash) into the US market. And the questions are typically the same. The first being, "How does Shell reconcile its recent efforts (Motor Oil Matters) to promote quality lubricants in the market place while it sells flush oil to others who some believe resell this Shell product as engine oil meeting current specs?" The second question often heard is, "How can a Shell marketer compete with the low priced flush oil Shell sells into the market?"

For those that don't know, flush oil is typically defined as the material in the pipes when a blender switches a blend from one type of lubricant to another. As an example, when a blender switches from making a 10W-30 to a 5W-30, there is a certain volume of lubricant in the lines while the change is made that is a mixture of both the 5W- and 10W-30 grades. While lines are flushed, the flush oil is neither a 5W-30 nor a 10W-30. Instead, it's a mixture. But with some adjustments made by the introduction of base oils and additives, marketers say the mixture can be made to look like either a 5W-30 or 10W-30 engine oil that meets current specifications. Further they say, this material is sold for far less then on spec engine oil since it is no more than "flush oil" used to clear the lines between blends and would otherwise have little value. And from what they hear, flush oil is not a drop in the bucket. Rather, the volume Shell alone produces and moves to US market is believed to be in the area of 10 to 12 million gallons a year.

In an effort to address marketer's questions concerning this issue, JobbersWorld went right to the source. On April 6, 2010, we asked Shell a follow-up question we posed to them in 2009. That question being: "Is Shell still selling line wash to other blenders and to some of its lubricant distributors? Also, if it is sold, I would assume the line wash contains the same markers as Shell's genuine branded product. If that's the case, what do you think the likelihood is that Shell line wash could end up sold directly as Shell branded product or commingled with Shell product, thereby defeating or diluting the intent and/or effectiveness of the markers?"

To date, there has been no response from Shell specifically addressing this issue. So now, like some of Shell's marketers, JobbersWorld is now wondering "How does Shell reconcile its recent efforts (Motor Oil Matters) to promote quality lubricants in the market place while it sells flush oil to others who some believe resell this Shell product as engine oil meeting current specs?" And - How can a Shell marketer compete with the low priced flush oil Shell sells into the market?"

On May 10, Advanced Lubrication Specialties announced it will increase its prices for finished products by $0.40 a gallon. The increase is effective May 24, 2010.

So now we have price increases announced by: Warren, Smittys, Cam2, Old World, and one major - Shell

Warren Oil Company, Inc. announce the introduction of Lubriguard (TM) SKYBLUE TM DEF (Diesel Exhaust Fluid) to the market to meet the need of diesel vehicles to comply with 2010 EPA standards for diesel emissions. Other Lubriguard(TM) heavy duty products include SAE 15W-40 Diesel Engine Oil, SAE 5W-40 Synthetic Diesel Engine Oil, Synthetic Gear Oils SAE 75W-90, SAE 80W-140 & SAE 50, and Lubriguard greases, Premium Hi-Temp and Premium Hi-Temp with Moly.

According to Warren, Warren Oil Company's Lubriguard (TM) SKYBLUE (TM) DEF will meet all EPA standards and bear the important American Petroleum Institute's API symbol.

DEF is stored in a supplementary tank on the vehicle. The dosage, approximately two-percent (2%) of fuel consumption, is calculated precisely by the vehicle's electronic system and injected into the exhaust duct. DEF is a 32.5% aqueous urea solution of the highest purity. Its consistent quality is guaranteed by compliance to global quality standards DIN 70070 and ISO 22241.

Warren Oil Company is the largest independent lubricant blender in the U.S. with facilities in Benton, AL; Dunn, NC; Johnstown, PA; Marion, IL; San Antonio, TX; and West Memphis, AR. In addition to the manufacturing and marketing of the Heavy Duty line, Warren Oil Company manufactures a full line of automotive lubricants and chemicals, some of which include private brands for a number of Fortune 500 companies.

Curt Knapp is now Vice President of Oil Sales for Safety-Kleen. In this role, Curt will be responsible for all sales, marketing, customer service, technical and supply functions for Safety-Kleen's oil business.

Curt joined Safety-Kleen in December of 2008. He developed the EcoPower Eco-friendly Motor Oil program and a national distributor network that is now selling EcoPower to hundreds of fast lubes, car dealers, tire stores and garages throughout the U.S. and Canada. The EcoPower network also services large national fleets, including Ryder Trucking.

Prior to joining Safety-Kleen, Curt was Senior Vice President for The Marketing Arm, a leading marketing agency based in Dallas. Prior to that, he was Vice President Marketing for Waste Management. Curt has over 21 years of experience in the lubricants industry, including several leadership roles. He served as Vice President Sales and Marketing for Sunoco Lubricants; Chief Operating Officer for Warren Distribution and Director Marketing for Castrol North America - Automotive.

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