LUBE REPORT

Wednesday, July 14, 2004 VOLUME 4 ISSUE 28  

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Base Oil Price Report
By Tim Sullivan
 
San Joaquin Refining Co. has been forced to halt deliveries of some naphthenic base stocks during a maintenance turnaround, contrary to the refiner’s plans heading into the turnaround. The Bakersfield, Calif., company says it ran short on low-viscosity pale oils because of unscheduled downtime last month.
 
The plant, which has capacity to produce 7,500 barrels per day, shut down July 1 so employees could change out catalyst material and install a second hydrotreater. The company had told customers beforehand that it was building inventories ahead of time and did not expect the turnaround to affect deliveries.
 
Those plans were stymied, however, by a five-day shutdown in early June caused by problems with the existing hydrotreater. The company was unable to build a backlog of lighter base stocks – fractions that are hydrotreated. In fact, customers were told it was out of those products almost as soon as the shutdown began.
 
Hydrotreated stocks account for approximately 3,500 b/d of the plant’s capacity. San Joaquin said deliveries of heavier, solvent-refined cuts have not been affected.
 
Blenders that depended on San Joaquin’s heavier cuts may have ended up in an awkward predicament. The Bakersfield plant is the only remaining producer of naphthenics on the West Coast. One California blender reportedly resells naphthenics and another naphthenic refiner is said to bring product to the region by rail.
 
“Beyond that, there’s just nobody out here,” said Mike Pearce, of W.S. Dodge Oil Co., in Maywood, Calif. He said deliveries to Dodge were canceled but that the company was fortunate to have had reserve stocks on hand. “We were just lucky that we had this. I’m sure there are others who just got caught short, and they didn’t have a lot of options.”
 
The silver lining about the unscheduled shutdown in June is that San Joaquin took advantage of the downtime to get an early start on some of the planned maintenance. As a result, officials said they hope to cut short the turnaround, which was scheduled to last 20 days. Once operations resume, the second hydrotreater is expected to raise capacity to 9,300 b/d.
 
Posted prices for paraffinic base oils were unchanged this week. The price of crude oil on the New York Mercantile Exchange closed yesterday at $39.67 per barrel, up 16 cents from a week earlier.

(U.S. $ per gallon/U.S. $ per metric ton)

Group I
Viscosity
ExxonMobil*
Valero
Citgo
Sunoco
Calumet
Gulf Coast
East Coast
East Coast
Gulf Coast
Midwest
Gulf Coast
60

 

 

 

 

 

1.78/554

70
 
 
1.67/519
85
1.58/489
100
1.57/483
1.61/495
1.67/513
1.58/485
148-165
1.57/478
1.61/490
1.61/487
1.64/500
1.66/510
 
200-275
1.57/474
1.68/507
1.64/499
300-350
1.57/474
1.68/507
1.61/485
1.68/509
 
500-525
1.84/550
1.86/562
600-700
1.75/526
1.86/557
1.86/550
1.80/540
 
bright stock 150
1.83/540
1.94/572
1.94/568
1.88/556
1.94/576
1.91/565

Group II
Viscosity
Motiva
ConocoPhil
ChevTex*
Calumet

Flint Hills

Valero
Gulf Coast
Gulf Coast
West Coast
Gulf Coast

Gulf Coast

East Coast
70
1.71/535
1.77/547
 
 

1.77/548

 
75-80
 
1.73/532
 
1.77/547

1.74/534

 
100-110
1.61/500
1.68/518
1.78/552
1.69/521

1.68/519

 
145-150
1.61/497
 
 
1.74/530

 

1.74/536
200-225
 
1.74/532
1.84/563
 

1.74/532

 
305-325
1.62/493
 
 
1.65/502

 

 
600
1.76/533
1.82/552
1.94/590
1.86/558

1.81/547

 

Group II+
Viscosity
ExxonMobil*
Motiva
Gulf Coast
East Coast
Gulf Coast
110-130
1.84/575
1.95/609
1.91/598 
190
1.67/517
1.78/551
 

Group III
Viscosity
SK
ConocoPhillips
Gulf Coast
Gulf Coast
3 cSt
2.13/679
1.90/606
4 cSt
2.27/722
2.19/693
6 cSt
2.27/713
8 cSt
 
2.21/691

* ExxonMobil and ChevronTexaco prices obtained indirectly.

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Published by LNG Publishing Co., Inc.
Copyright © 2004 LNG Publishing Co., Inc. All rights reserved.
Tim Sullivan, Editor. Lube Report (ISSN 1547-3392), Lubes'n'Greases Magazine and Lubricants Industry Sourcebook are published by LNG Publishing Co., Inc., 6105-G Arlington Blvd., Falls Church, Virginia 22044 USA. Phone: (703) 536-0800. Fax: (703) 536-0803. Website: www.LNGpublishing.com. Email: info@LNGpublishing.com. For sponsor information contact Gloria Steinberg Briskin at (800) 474-8654 or (703) 536-7676 or gloria@LNGpublishing.com.
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