Why is HDEO so cheap?

Status
Not open for further replies.
Hi,
carrying on from Johnny's comments it should be noted that fuel supply is another and major consideration for commercial users. They typically negotiate fuel, lubricants and supply as a "package"

BP purchased Burmah (Castrol) amongst other things of course to get a top line range of HDEOs. Castrol had never been into fuel supply and consequently was disadvantaged at lubricant supply contract time. Long term users of Castrol's HDEOs such as "RX Super" would pay a premium to use it!

It should also be noted that lubricant supply to Commercial users is in 000's of litres in most cases and as fuel is "tied in" the financial arrangements are a "first line payment gaurantee" for the Oil Company concerned

As I have indicated here before I have used HD lubricants in most of my petrol engines for 50 years or more
 
In my huge farm/ranch area farmers can have up to 10 different diesel/gas machines operating, numerous tractors for different applications, combines, farm runabout trucks, personal vehicles, they use HDEO in everything on operation including passenger vehicles right out of 45 gallon drums of HDEO. Most these machines take 20 litre sump fills. They buy thier HDEOs in 45 gallon drums numberous times per year. Farmer "JOE" cannot pay $10.00 per litre/quart for a group 1V POA XD3 HDEO syn oil for example to start some of these diesels up in
-40C. This is why XD3 or DMO group IV oils sell cheap for 1/2 price of PCMOs group 1V in my area in my take on it. Volume.

About 7 years ago here in BITOG when XD3 was the rage on what a great oil at the cost it was someone here in BITOG mentioned that a premium group 1V poa syn HEDO was made by Esso Canada (MOBILE) for .50 per litre cost to Esso. Selling this oil in huge bulk sales at 5.00 per litre is good profit in my books.

Cyprs
 
Originally Posted By: dsmith41
As another poster put it, the average HDEO is much better than the average PCMO regarding add packs and base stocks.

The question is why? You are getting more quality for less money. That doesn't make sense.
And you're complaining?
 
Originally Posted By: lipadj46
Makes me happy I have a gas engine that can benefit from these oils.


What types of gas engines can benefit from HDEO's? I use Delo 400 in lawn equipment and used it in a 2.4L Cavalier when it had a nasty oil leak (broken pressure sender). I'm thinking about picking up a Ranger with a 2.3L from a friend and considering using a HDEO in it.
 
What makes an Hdeo? Ive been using it for the last 20k on my almost 200k mile land cruiser with great results from blackstone so I KNOW its good for me...but why? Im new so bear with me please.

Is it the higher TBN which battles oxidation?
 
Beside the cost of marketing/advertising campaigns, the price of a quart of "premium" oil itself is also part of the marketing for it. People equate quality with premium pricing.

In other words, they can't market it as premium and charge a low price for it...it erodes the brand in the mind of the consumer.

So yes, the price of a marketing/advertising campaign is part of why premium oils are more expensive. But this alone doesn't explain the entire cost difference.
 
The marketing costs must be the reason along with volume. You do not see a lot of HDEO oils being marketed during NASCAR races or the Super Bowl. There is one heck of a lot of competetive pricing in heavy diesel oils. In HD trucking, every 1/4 cent a mile in operating costs means a lot. I will not pay for a brand name. I can get a Grp III/II CJ-4 blend (40% Grp III) from a local supplier for $9 a gallon in a 55 drum delivered to my door for $5. Getting just as good of UOA's from it as I ever did with any other brand I tried.

The other brands run a rediculous amount of ads in trucking magazines and truck radio programming. Someone has to pay for that. The amount of ads really is mind boggling when you consider that HD truck owners are already aware of the brand names. They tend not to be swayed as much as the typical auto owner. And at 10 gallons a pop for an oil change, few will shell out a larger amount of money for the latest fad. But then there are some......
 
Originally Posted By: cool_breeze
What makes an Hdeo? Ive been using it for the last 20k on my almost 200k mile land cruiser with great results from blackstone so I KNOW its good for me...but why? Im new so bear with me please.

Is it the higher TBN which battles oxidation?


Heavy doses of antiwear additives like phosphorous and zinc, usually 50% higher than a typical car engine oil. Lots of detergents. Built to take a beating.
 
Originally Posted By: mentalbreakdown
I will second the question as to which gas engines can beneft..



It all depends on what grade the engine needs. If it can take an Xw40, then no problem- HDEOs are commonly available in 5w40 and 15w40 weights.

If it calls for a 5w30 or 5w20- no such luck, although Rotella conventional comes in 10w30 which could be used in place of a 5w30 in warmer climates.

Some engines that are technically spec'd to take an Xw30 have been shown to perform very, very well on Xw40, too- the Jeep 4.0 comes to mind.
 
Status
Not open for further replies.
Back
Top