Kline predicts rosy future for U.S. used oil re-refining industry

Kline & Co. sees a rosy future for the U.S. used oil re-refining industry, according to its recently published report, “Used Oils and Re-refined Lubricants: U.S. Market Analysis and Opportunities.”
Key drivers fuelling this growth include enhanced technology and infrastructure, legislative imperatives and rising crude oil prices. The improving quality and viability of re-refined base oils coupled with increased and more consistent collection rates due to stronger regulations enforcement are helping the industry assert its largely untapped potential.
The Parsippany, N.J.-based consulting firm predicts robust growth to an estimated 1,390 kilotons (KT) by 2016, suggesting a golden decade for many in the industry. However, it cautions that this is contingent on the successful and timely ramp-up of operational facilities.
An emerging trend observed in the U.S. re-refining industry consists of an influx of foreign re-refiners who, having identified the expanding opportunities within North America, are consequently establishing plants in the country. These include leading re-refiners from Western Europe and India.
“The fact that giants of the re-refining market in Western Europe are heavily investing here concretely confirms that the U.S. market offers genuine and vast scope for growth in the re-refining space,” says Kline’s Tushar Raval.