Create An Oil

[Joseph_S37]

Hello everyone

I've been thinking about this topic for a while, and interested in what BITOG has to say. Its my dream to one day produce my own engine oils, through my own company.

Anyways, I worked in a small auto repair shop a few years ago, and the bulk oil we used there was BLU SYNTHETIC. I've never heard of the company before, so I googled them. At the time, the website was still "under construction" so they had to be new. I recently decided to re-visit the site, and low and behold, a real working site!! Now they seem to have grown quite a bit from when I first discovered them a few years ago. I remember when they only had 5w30, 10w30 and 5W-20. Now they have gear oils, ATF's, all sorts of products.

Now I decided to drop them an e-mail, asking about their oils, where they get their base stocks, additives, etc. Now of course, I got no specifics, but they clearly stated they purchase both base oils and additives from various sources. Which got me thinking... This is something I want to do some day! And I don't just mean it would be cool to do, I mean I reaaaaly want this! Kicker is, this company is based out of my city too!


NOW the real question, how exactly would someone start a business like this?? I know Petro Canada, as well as Shell sell base oils, and I know of the 2 main additive companies, but what else?? Do I mix the oils and additives myself? Or is that outsourced also?? Bottling?? Estimate how much capital would be required to start a lube company.

Honestly, I know I'm not gonna get very specific answers, but anything would help! If this ever works out in the future, maybe I'll even make a BITOG oil, which will be the be all end all of oils! hahaha


But really, this is an open discussion and any insight into the industry and its workings would be very very appreciated!

Thank you all
Happy BITOG'ing

-Joseph

 

[dparm]

Lubrizol is the biggest additive producer.

Many oils, in the end, are simply a particular combination of basestocks and additives. There's only a few producers of those basestocks and additives.

 

[OVERKILL]

Exxon-Mobil could sell you the works, they are the only company AFAIK that can do start-to-finish in-house.

 

[Dakota1820]

That sounds like an awesome idea. And I'd buy it

 

[Pablo]

There are so many blenders out there and only so much "shelf space". THAT will be your largest hurdle. I mean almost every day someone mentions some local oil company that most have never heard of. In a way, that tells you it's not that difficult to come up with a product. But only after you come up with a niche, something that makes you stand out.

I don't want to oversimplify it - but it's not exactly just hucking stuff in a vat and stirring and saying "whammo".

I'm not sure about Canada, but the permits and chem regs can be a hassle. Asking here is fine, maybe best to get some real experience in the field first unless you have a lot of burn cash.

 

[Shannow]

Would need to be a big operation working on small margins.

Lubrizol have a range of additives that when applied to a basestock of certain characteristics will give an API licenced product IIRC.

There's a lot of these downunder, Gulf Western, Atlantic Oil etc...some of them are so good that if you put them in the freezer, and turn the jar upside down, they don't even come out.

 

[Joseph_S37]

I realize the shelf space thing is an issue, but the company I mentioned earlier, all their sales are bulk sales to local shops, at least for now. Give em a great price, hardly any bottling cost, tell them their supporting a local business etc.

Its a dream really... but oh does it seem promising

But thanks for the heads up about exxon doing the whole shebang. I'll have to look into that

 

[The_Jeff]

Originally Posted By: Joseph_S37

But thanks for the heads up about exxon doing the whole shebang. I'll have to look into that


Walmart walks into exxon and walks out with exxon basestock and exxon additives in a supertech bottle. Vertical integration works.

When you're additive shopping you'll probably find "ghetto bottom barely meets spec" and the same with basestock. There will be others but "ghetto bottom" will always be in stock.

What value will you add? Marketing?

I've seen bulk oil delivered in a 3000 gallon heating oil style tanker delivery truck. Do you think you'll make more money doing that than just delivering... heating oil?

 

[PandaBear]

It is easy to do, but very hard to make money on.

You will need to be BIG, by thousands of gallon per day, in order to reach the scale that is profitable and to afford the marketing cost.