oil prices related to synthetics?

Messages
22
Location
orlando, FLorida
Of course the price of crude oil effects the prices of our gas, but if synthetic oil is synthetic why does it seem that as the price of crude oil rises so does the price of synthetic oil??
 
Messages
4,478
Location
Southern California
Totally due to the fact that synthetic oils are synthesized from hydrocarbons which just happen to still be predominently pumped out of the ground. (This is true whether you're considering esters, PAOs, Group IIIs, GTLs, or POEs.) But you're not done yet because you also have to add in the extra expenses of the added infrastructure, and the time and energy-intensive multi-step synthesis processes. There's no "presto-change-o" just because a fluid is synthetically derived. [ May 27, 2006, 07:59 AM: Message edited by: Ray H ]
 
Messages
1,904
Location
Canada
quote:
Originally posted by castor: i understood MOTUL 300 v was plant derived
Perhaps. But all those plants require petrol to plant them, to control weeds, to fertilize them, to water them (with irrigation), and to harvest and process them.
 
Not all "synthetics" come from dino oil. Group IV and V synthetics do not, and are better than group III oils which are ultra refined dino oil but is allowed to use the "synthetic" description. However, IMO all synthetics are better than even the best dino oil.
 
Messages
1,357
Location
California, USA
The prices of additives have also gone way up, and if the synthetics have a "premium" ad pack, those costs are even higher to the blender. Also, PAO is often made from ethylene gas, a petroleum-based feedstock. One Group V base oil, Alylated Napthelene, starts out as crude oil.
 
Messages
1,412
Location
Falls Church VA
Cost of base stocks is up, cost of additives is up, cost of transportation is up, cost of bottles is up, cost of plant operations is up. I guess they could sell for less than it costs to make it, and make up the difference on volume!
 
Messages
1,420
Location
Balto.
quote:
Originally posted by another Todd: Not all "synthetics" come from dino oil. Group IV and V synthetics do not, and are better than group III oils which are ultra refined dino oil but is allowed to use the "synthetic" description.
What are they made from then [I dont know]
 
Messages
12,385
Location
Northern CA
quote:
Originally posted by Dick in Falls Church: Cost of base stocks is up, cost of additives is up, cost of transportation is up, cost of bottles is up, cost of plant operations is up. I guess they could sell for less than it costs to make it, and make up the difference on volume!
Or they could take advantage of the turmoil in the market and make record profits while consumers suffer. Which do you think they will do?
 
Messages
291
Location
San Diego, CA
quote:
Originally posted by XS650:
quote:
Originally posted by Dick in Falls Church: Cost of base stocks is up, cost of additives is up, cost of transportation is up, cost of bottles is up, cost of plant operations is up. I guess they could sell for less than it costs to make it, and make up the difference on volume!
Or they could take advantage of the turmoil in the market and make record profits while consumers suffer. Which do you think they will do?

they'd do as they do now: shunt off the profits to the board members and CEO
 
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