Base lubricating oils are the main component in lubricants for motor vehicles and a wide range of other applications. These base oils or ‘base stocks’ are defined by their quality and fall into either Group I, the lowest quality, Group II, a mid-range base stock, or Group III, the highest quality that can be produced from minerals. Due to the refining process, Group III base oils are also known as synthetic base oils.
Group III base stocks allow blenders to create motor oils that are specifically engineered to meet automakers’ specifications for performance and durability. Over the last decade there has been a steady increase in the adoption of synthetic-grade Group III lubricating oils given that they:
- Provide superior lubrication and fuel economy,
- Reduce engine wear and tear,
- Outperform in extreme conditions, and
- Extend oil change intervals.
As of 2022, global demand for Group III base oils was over 100,000 barrels per day, with North America contributing over 28,000 barrels per day of demand. However, only ~7,800 barrels per day are produced in North America, with the balance imported from Asia and the Middle East at a high cost. ReGen III’s Texas facility will onshore Group III production, improving domestic supply chains and providing lubricant blenders with a sustainable alternative to foreign imports.