PAOs On The Rise

The last decade of the 20^th century saw a healthy rise of synthetic base stock in lubricants and greases. One industry expert had growth of API Group IV base stock, PAOs, at 5.5% a year growth from 1994-2000. But in 1997 Castrol reformulated one of their synthetic blends with Group III base oil and kept the synthetic label. In the late 1990’s the National Advertising Division of the U.S. Council of Better Business Bureau decided it was truthful to call Group III base oils synthetic and the use of PAO’s declined. By 2012 the ratio of Group III base oil capacity versus low-viscosity PAOs increased 11-fold. Fast forward to 2015 and things are improving in the PAO industry. With tougher demands for energy savings, low-temperature fluidity and reduced volatility in the lubricant industry, PAOs are on the upswing. More efficient motors have created an increasing need for better performing lubricants that can handle the higher demands. High viscosity PAOs are also in demand, prompting ExxonMobil Chemical to open a new plant in Baytown, Texas, with 50,000 metric ton of high-vis PAO capacity. Global PAO manager at Chevron Phillips Chemical, Miles Oberton, highlighted some areas where PAOs outperform the Group III base oils, “A PAO based lubricant removes 10 to 15 percent more heat than mineral oils of the same weight, and allows equipment to operate at higher temperatures.” Currently the world has just five suppliers of low and high-vis PAOs due to technology constraints and access to feedstock. “Limited growth in feedstock has challenged growth in PAO,” Oberton continues. “But on the high-viscosity side, we expect to see 4 to 7 percent average annual growth from 2013 to 2015.” Michel Sanchez-Rivas, PAO market development manager at Ineos Oligomers advises, “PAOs decrease operating temperatures in the machines’ assemblies and components, they form less foaming tendency and give better wear control. PAOs decrease lubricant consumption and [increase] working hours on equipment. Also, they decrease global maintenance costs and give improved reliability.”

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