Synthetic blend as cheap to make as straight petroleum?!

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Synthetic blend as cheap to make as straight petroleum?!

Postby ogrady » 2005 Fri Mar 11, 11:00 pm

Yep, it's hard to believe but it's true. From the pages of the insider magazine 'Lubes n Greases' Nov /04, page 56 by Tom Glenn
I paraphrase,

Blend Strategies for GF-4

"In the workhorse PCMO (ogrady, - Passenger Car Motor Oil)grade of 10W-30, option A would likely result in 85% of the finished lubricant being a blend of group II and II+ base stocks. The balance -15%- is additives....

Alternatively, one could go with option B. If so, it's likely that 10W-30 will compromise roughly 80% Group II, 4% to 5% group III base stock, and approximately 15 to 16% additives.

So why choose one over the other?

The reason for this is that PCMO made by option A is conventional engine oil, and that made with option B is a 'synthetic blend.'

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Okay you say, Option A is conventional motor oil, Option B is synthetic blend, so what?

Here's what, the cost of the base stocks is THE SAME, (10w-30 Conventional $1.43 vs Synthetic blend $1.44 per gallon... and yet the perceived value of the 'synthetic blend' is delivering an average ADDED profit of nearly $3.10 per gallon out of your pocket.

There you have it, by adding 4 to 5% group III base stock an oil company can call their petroleum oil a 'synthetic blend' and collect , (using Lubes n Greases info) a 33% premium for their troubles.

The article goes further to compare the base stock costs for 5w-30 and 5w-20 grades, results? Within pennies,
5w-30 $1.46 for conventional, $1.51 for synthetic blend
5w-20 $1.52 for conventional, $1.58 for synthetic blend

More Lubes n Greases...

To ConocoPhillips credit they have done away with the price premium in a play for market share in their synthetic blend PCMO products... This ultimately would make conventional PCMO's irrelevant...

There you have it, buyer beware again, the term 'synthetic' in North America means a lot less than it used to, now the term 'synthetic blend' means almost nothing.
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