Pasted from a post I made some three years ago on viscosity index.
Tom NJ
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In a nutshell, all organic liquids will thin out when heated and thicken up when cooled, but they don't all do so at the same rate. Viscosity Index is simply a scale to compare the rate of viscosity change with temperature between different fluids. A fluid that thins more upon heating and thickens more upon cooling has a lower VI than one that thins and thickens less. Or put another way, higher VI oils change their viscosity less when the temperature changes. This can be a good property for lubricants that are used in a wide temperature range and low shear rates.
The VI scale was originally established by assigning a value of "0" (zero) to the worse known base oil at the time, and "100" to the best. The theory was that all other base oils would then fall between these end points. Apparently they didn't anticipate synthetics or hydrocracked mineral oils back then.
The VI of a base oil is dictated by its chemical structure. Linear hydrocarbons have the best VI, but they also exhibit a freeze point when cold (waxes). The next best VI comes from branched hydrocarbons and the worse comes from ring compounds, such as aromatics, naphthenics, and cyclic hydrocarbons.
Group I base oils are a mix of linear and ring shaped hydrocarbons and usually have a VI around 90-100. By hydrotreating the Group I stock (reacting with hydrogen) you break a portion of the ring compounds into branched hydrocarbons, and this raises the VI and makes a Group II oil. Severely hydrotreating (called hydrocracking) the Group II opens more rings and raises the VI further (120-125), making a Group III oil. Since the VI is very sensitive to the degree of hydrotreating/cracking, it is used as a measure in defining the Groups.
PAOs are pure branched hydrocarbons and have even higher VIs, usually 125-140. Esters are hydrocarbons that also contain oxygen atoms, and can come in different shapes and sizes, so their VIs can run from 50 to 200, but most esters used in motor oils have VIs of 130 to 150. ANs are ring compounds and have lower VIs (75-105).
Viscosity Index can be important in applications that operate in a wide temperature range where the oil is expected to flow under its own weight (low shear), but there are other and better measures of performance over temperature. In motor oils, the oil is pumped (high shear) at cold start-up and the flow properties are better defined with the Cold Crank Simulator and MRV tests. Even at the high temperature end, HTHS viscosity is a better measure because it simulates the shear rates in the bearings. Hence the VI of a motor oil is not very useful in telling you how the oil will behave at start-up or at full temperature. About all its good for is giving an indication of the amount of VI Improver in the oil, but that too is deceptive.
People tend to think that less VI Improver the better, but that depends on the type of VI Improver used. Some are much more shear stable than others, and a higher quantity of a shear stable VII may be better than a lower quantity of a non-shear stable VII. In addition to permanent viscosity loss cause by breaking (shearing) the large VII molecules, they also exhibit temporary viscosity losses under high shear, and this affects the HTHS viscosity.
If only oil chemistry followed simple rules we would all be experts, but there is a lot of chemistry going on in the engine, and trying to predict or rank motor oils by comparing basic physical properties like VI, Kinematic viscosity, pour point, and flash point is pretty much a waste of time. What matters is how well they work, and since that depends on the engine design, driver, and environment, what really matters is how well they work for YOU.