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أوابك العلمية لعام
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ص لبحوث العلمية الفائزة بجائزة
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عدد خا
مجلة النفط والتعاون العربي
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العدد
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أربعون
المجلد الثالث و ال
Re-refining of Used Lubricating Oil and its Economic and Environmental Implications
55
countries, the quantity of used lube oil that can be made available for re-refining may be
a limiting factor. According to OECD (2005) and Audibert (2011), the breakeven point
for a re-refinery corresponds to a minimum capacity of 60000 MTPY. CEP, a technology
licensor, claims that a minimum annual capacity of 20000 metric tons of feed is
necessary in order to generate a reasonable profit (Park, 2012). The only way for re-
refiners to guarantee a constant feedstock supply and to keep the feedstock cost
sufficient low, is to develop their own used oil collecting service. Integrating vertically
with used lube oil collectors is an option seriously envisaged. As a matter of fact, some
re-refiners are planning vertical integration through the acquisition of used oil
collection companies (Choi, 2013).
Even when the feedstock constraint is relieved, other constraints are likely to be more
binding on the economic viability of the operation which could be affected by such
parameters as the base oil selling price.
7.1.1.2
Base oil selling price
Even when the operating costs, and more specifically the feedstock cost, are under
control, other constraints such as the selling price are likely to impact the profit margin.
The selling price of the re-refined base oil is beyond control of the re-refiner as it is
linked to the selling price of the virgin base oil depending itself on the crude oil price
fluctuations. Due to low crude oil prices, the base oil market today is quite different to
that which existed in the early 2010s. The market conditions are going to be difficult
with the virgin base stocks prices facing downward pressure as a result of falling oil
prices. Major lubricant producers have announced a general decrease in lubricant prices
(Glenn, 2015). The price decrease is not going to be without impact on the price of re-
refined lube oils and subsequently on the economic viability of the re-refining
operation.