The United States generates approximately 1.4 billion gallons of recoverable used oil every year according to America’s Choice, the website of Safety-Kleen, a major United States re-refinery. Voyager Petroleum aims to capitalize on the growing demand for generic lubricants along with a desire for so-called green products by re-refining, or recycling, motor oil and other lubricants. The company sees this process as not only cost-effective but also eco-friendly – a win-win situation for both investors and customers.
Re-refining oil uses one-third of the energy of refining crude oil. In fact, one gallon of used oil can make 2.5 quarters of re-refined oil while 42 gallons of crude oil is needed to make the same amount of virgin oil. The process of recycling lubricants itself begins with purchasing used oil from various consolidators of used petroleum such as gear oil, machine oils, and others that have never been burnt. These un-combusted, but refined oils are then sent to a processing facility in Detroit, Michigan. During the processing, all impurities and contaminants are extrapolated out of the oil, leaving it with renewable petroleum base oil. These base oils are the primary ingredient to all oil lubricants. The company then blends these base oils with various additives to create the desired end product. These end products can then be sold profitably on the open market to consumers.
The United States market for lubricants is 3 billion gallons per year. This represents billions of dollars in opportunity for recycling oil companies like Voyager Petroleum. In fact, the automotive and manufacturing lubrication markets alone are estimated to be worth some $11 billion and growing. The market itself is set to continue growing, despite a slowdown in automotive sales, as consumers continue to require oil lubricants in their cars. There are roughly 240 million vehicles registered in the United States with 110 million of those vehicles older than 1993. These used vehicles require more lubrication then their modern counterparts and represent the best candidates for used oil. Meanwhile, the biggest market for industrial lubricants is with products like rubber oils, agricultural spray oils, hydraulic oils, metalworking fluids and greases.
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