With more than 40 years in the refining industry - and the experience of successes and failures along the way - Ergon has learned some important lessons about ensuring security of supply. You might want to ask your supplier these questions we regularly ask of ourselves as we measure the success of our ongoing commitment to providing needed chemistry for our customers.See the Questions
Wondering about what's happening with crude during these uncertain times and what it means to you? Join Ergon's Jay Coleman, VP - Petroleum Specialties Marketing Division U.S. and Canada, as he and a panel of leaders from our Refining & Marketing sector answer questions they have been hearing from customers.
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Crude oil comes from all over the world. Each location produces a crude as unique as the variety of places it is found. Refiners, defined by their ability to identify and process specialty crudes, are equally unique. Crude expertise, coupled with an intense focus and continued investment, determines a base oil refiner’s potential to deliver your quality products.
It is our hope that sharing these questions will give you a tool to evaluate your base oil security of supply. And should you find that you are unsure about supply in the future, we would welcome an opportunity to talk with you about what makes Ergon’s security your security.
Only about 1% of the world’s crude is refined into a base oil. Naphthenics make up 5% of the world’s crudes, with 1% being wax-free naphthenics.
All crudes have a life cycle and fields are constantly in a state of decline. As crude fields age, their chemistry can also change.
Shifts in crude availability and regulations on products have led to a significant number of refinery closures globally, with more on the horizon. The mixture of refineries has changed as well, due to the fact that the sustainability of a refinery is linked to the crude story.
Historically, refiners were built to capitalize on nearby crude fields. As those fields declined, refiners have been forced to make additional investments to source crude from farther away.
It takes both understanding and action to provide security. Crude disruptions and crude changes are very capital intensive and must be planned many years in advance. When not planned properly, the result is disruptive and can result in refinery closures.