PIPELINE FORWARD - Lube-Tech

FAST &
4
FORWARD
PIPELINE
JULY '14
ISSUE
Insights and innovations to help you accelerate performance
IN T HIS IS SUE:
IN T H E S P O T L I G H T 
Fuel Efficiency
F E AT U R E E D I T O R I A L 
Lube-Tech, Mansfield Purchase Yocum Oil
Lube-Tech Opens Shreveport Facility
TECH TRACK ER 
Special Lubricant Needs of Marine Engines
S U S TA IN A B L E S U C C E S S 
The Path of Recycled Oil
M A R K E T WAT C H 
Summer Market Stable, Quiet
S H O P TA L K 
Oil Weights for Summer Use
F E AT U R E B R A N D 
Lube-Tech Sole U.S. Distributor of Motorex Products
IN THE SPOTLIGHT
SOCIAL ACTION 
140 Golf Invitational Benefits CCRF
Fuel Efficiency
How a Century Old Technology is Driving Us Forward
In 2012 the Obama administration announced strict new fuel efficiency standards set to be implemented in 2025.
The new regulations will mandate a U.S. auto fleet average of 54.5 miles per gallon and this will come on the
heels of 2016 fleet standards that call for 34.5 miles per gallon. These regulations mean U.S. auto fleet averages
will have to jump 20 miles per gallon in 10 years, or 2 miles per gallon a year. That begs the question, how do we
get cars to travel down the road like we expect them to while using far less energy? The answer may come from
the use of clever technologies such as Toyota’s Atkinson Cycle engine.
James Atkinson invented the Atkinson Cycle in 1882 to avoid patent conflicts with the Otto Cycle 4-stroke engine. Atkinson’s engine
differed from the Otto cycle because it featured all four cycles (power, compression, intake and exhaust) on the same turn of the crank
where the Otto cycle spins the crank twice during its four cycles. However, Toyota’s Atkinson Cycle engines aren’t true Atkinson Cycle
engines; they are merely modified Otto cycle engines. They use variable valve timing to mimic the varied crankshaft throw and expansion
ratio of the Atkinson Cycle engine, leaving the intake valve open during the compression stroke which, like Atkinson’s expansion ratio,
reduces compression and minimizes fuel consumption. When the intake valve closing is delayed, part of the exhaust charge gets pushed
back into the intake manifold, increasing expansion ratio without increasing compression ratio. Or, to put it another way, intake manifold
vacuum is reduced so the engine wants to suck in less air and thus use less fuel. This also reduces pinging and Toyota increases the
throttle plate opening via the drive by wire system to control intake losses.
While Toyota was already using Atkinson Cycle engines in its Prius model, in April 2014 it introduced two new engines, a 1.0-Liter that
Toyota says will get 78MPG and a 1.3-Liter they say will get equally as impressive mileage (though no numbers were released with the
engine). While the 1.0-Liter engine is set to power Toyota’s Aygo which won’t see use in the United States, the technology is an indicator
of possible future fuel economy numbers. With Atkinson Cycle engines now powering most hybrid models in use today and everincreasing fleet fuel economy numbers it’s a sure bet we will be seeing more technologies like Toyota’s hitting our roads in the future.
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F E AT U R E E D I T O R I A L
Lube-Tech, Mansfield Purchase
Yocum Oil
Fuel Distribution Partnership Formed
hBy Eric Jackson Chief Operations Officer at Lube-Tech
This past May 5, Mansfield announced it had purchased Yocum Oil’s fuel business (to
be delivered by Lube-Tech) and Lube-Tech announced it had purchased Yocum Oil’s
lubricant, diesel exhaust fluid, and fuel testing businesses. Four days later Mansfield
and Lube-Tech came to an agreement on the sale of Lube-Tech’s fuel business to
Mansfield with Lube-Tech maintaining all of its current Regional delivery business.
Lube-Tech’s Roseville location will be the combined Mansfield and Lube-Tech
regional headquarters for fuel sales, customer service, delivery, and testing. Yocum
Oil’s lubricant business will be integrated into Lube-Tech’s St. Paul location.
Lube-Tech’s purchase of Yocum Oil makes it the largest commercial and Industrial
fuel fleet in the Region and its partnership with Mansfield allows Lube-Tech to
service its customers on a National and International scale. This fuel fleet gives LubeTech incredible flexibility and breadth when it comes to our Regional fuel business.
With 35 trucks on the road and fuel terminals in Roseville, Cannon Falls, Loretto, St.
Cloud, Alexandria and Hudson, Wisconsin, it means a Lube-Tech driver is often just
minutes away from any one of our clients at any given time. And since Mansfield
has 900 distributors and delivers fuel in every state as well as Canada, Lube-Tech
clients don’t have to source a new fuel supplier when working on a National or
International scale. This not only means better and simpler service for our customers
since they will be using one supplier and one set of invoices, it means Lube-Tech can
be more aggressive in expanding its fuel supply services. The Mansfield partnership
also means consistent fuel pricing management for Lube-Tech customers wherever
they are since they are now effectively being serviced by a single supplier.
In addition to fuel, combining Yocum Oil’s lubricants and solutions businesses with
Lube-Tech will result in an expanded product portfolio and a larger geographic
footprint for Lube-Tech. Already a distributor of Mobil, Chevron, and CAT lubricants,
Lube-Tech will continue to provide the same high-quality products and services
that Yocum Oil customers have come to expect. In addition, Lube-Tech will support
Yocum Oil customers with its broad product portfolio of custom-blended lubricants,
chemicals, and recycling and equipment services.
We are excited to add further scale to our market-leading lubricants business and
believe operating our fuel transportation assets in conjunction with Mansfield’s
national supply and marketing system will enable us to deliver increased customer
value.
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Pictured: (Back Row) Dave Hoiland, Jeff Peterson, Eric Jackson,
Tony Yocum V, Joe Campbell. (Front Row) Jon Yocum, Tony Yocum IV,
Chris Bame, John Bryd, Tim Yocum.
“
WITH 35 TRUCKS
ON THE ROAD AND
FUEL TERMINALS IN
ROSEVILLE, CANNON
FALLS, LORETTO, ST.
CLOUD, ALEXANDRIA
AND HUDSON,
WISCONSIN, IT MEANS
A LUBE-TECH DRIVER IS
OFTEN JUST MINUTES
AWAY FROM ANY ONE
OF OUR CLIENTS AT
ANY GIVEN TIME.
“
F E AT U R E E D I T O R I A L
Lube-Tech Opens Shreveport
Facility
Poised to Become Leader in Flex Packaging
Distribution
h By Pete Carlson, General Manager, Lube-Tech Custom Brands
Lube-Tech adds state of the art capabilities and future capacity
On February 10, Lube-Tech announced the acquisition and planned build-out of
a quarter-million square foot blending and distribution operation in Shreveport
Louisiana. The Shreveport facility will complement Lube-Tech’s expanding base of
facilities in the upper Midwest and provide added capabilities in precision blending,
unique flexible packaging, and high volume packaging. The facility will come online in the late summer and be fully operational by fall.
Strategic Investment to Enable Customer Growth
Lube Tech offers a unique value proposition and a tremendous commitment to the
customer which results in Lube-Tech being the primary source for our customers’
lubrication and fluid needs. We take this strategic sourcing partnership very
seriously and this investment demonstrates a commitment to stay ahead of our
partners’ requirements for technology, quality, cost, and supply. The estimated
$16M project will more than double Lube-Tech’s blending and packaging capacity
and provide added flexibility to react to upside demand, unique distribution needs,
and support our customers’ rapidly expanding global needs.
Strategic Locations to Optimize Supply Chain Requirements
The addition of southern blending and distribution operations to our northern
capabilities will enable a cost-optimized and extremely flexible supply chain across
North America. Lube-Tech will be able to optimize blend location and distribution
points to minimize lead-times and logistics costs to our customers’ manufacturing
locations, distribution centers, and dealer and distributor networks. The added
southern capabilities will also strengthen supply assurance through redundant
manufacturing and distribution locations.
Technology Investments to enable Customer differentiation
Lube-Tech is investing heavily in state of the art blending and packaging
technologies to support the rapidly growing needs for unique lubrication products.
Precision blending will be able to deliver the tightening blend specifications and
quality levels for the next generation of OEM and Industrial fluids and do this
cost effectively for both low volume and high volume demand. The addition of
unique flexible packaging capabilities will provide a more sustainable alternative to
traditional bottles and support the next generation of multi-channel products.
Lube-Tech greatly appreciates our customer partnerships and the opportunity
to support their global growth plans. Our investment in the Shreveport facility
demonstrates our commitment to ensure they will always have access to the leading
technology, most robust supply chain, and the lowest total costs.
Back to Top 
The new 226,000-square-foot
Lube-Tech facility occupies a
space once used by a supplier
to the General Motors
assembly plant that used to
operate in Shreveport.
Shreveport was founded in
1836 at the juncture of the
Red River and Texas Trail and
has been a center of trade
and transport ever since.
TECH TRACK ER
Special Lubricant Needs of
Marine Engines
Tackling Shear, Moisture and Intermittent Use
h By Todd Matvick, Technology Director at Lube-Tech
Boating can be one of the most enjoyable and memorable summer activities
anyone will experience. However, that marine engine that powers your good times
leads one of the most difficult lives of any powersport application and it needs a
specifically- formulated oil in order to keep it running as it was designed.
• Unlike most liquid-cooled engines that use an enclosed, pressurized cooling
system, most marine engines use the lake, river or sea water for cooling; this means
they run cooler. The cooler temperatures when combined with typical marine RPM
and fuel mapping schemes leads to high fuel dilution scenarios.
• Damp and/or salt water conditions are one of the most damaging environments
imaginable for an internal combustion engine.
• Intermittent use and long periods of storage can lead to internal moisture
problems.
• Since they operate partially in a liquid environment, water intrusion is always a
danger.
• High RPM and constant load put a huge strain on marine engines.
Properly formulated marine lubricants contain special ingredients to address all of
the areas mentioned above. On the other hand, your car’s operating environment
is almost a complete 180 from your boat engine. Automotive oils aren’t designed
to protect in marine engine environments so boat owners should avoid using them.
Instead, look for marine oil that has these qualities:
• Proper viscosity grade (per owner’s manual) and resistance to shear to combat fuel
dilution and high RPMs and constant loading.
• Corrosion inhibitors to help keep the engine from becoming damaged from
internal and/or external moisture
• Anti-wear additives to fight internal parts wear from moisture
and the unique vertical engine layout
• Stick with OEM engine oils and avoid using passenger car
motor oil if at all possible
Using good quality marine oil in your boat engine will help
keep it running like new and pay off with many years of fun on
the water.
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NMMA has two main
oil ratings: TC-W3 is for
2-stroke engines and is
a performance-based
certification based on
various bench tests for
rust, miscibility, fluidity
etc. and engine tests to
measure ring sticking
and carbon buildup
on engine parts.
FC-W is for 4-stroke
marine engines and
includes bench tests for
viscosity, foaming and
aearation as well as a
100-hour run test and a
rust test.
S U S TA IN A B L E S U C C E S S
The Path of Recycled Oil
Giving Used Oil a New Lease On Life
h By Rich Wertenberger, Lube-Tech Liquid Recycling Business Manager
In 1992 the EPA classified used oil as a hazardous waste and released whole set of
rules and regulations regarding its proper handling and disposal. “Recycling” used
oil generally means collecting it and re-using it or converting it for some sort of reuse. Today, a billion gallons of waste oil is collected every year and 4-Million of that
is collected by Lube-Tech. Here’s what happens to it.
CO L L E C T
A. Truck tech goes to the used oil generator and proposes a price.
If accepted, Lube-Tech gets the account and arranges pickup.
Oil is collected and one of two recycling processes begins.
PR O CE S S
A. A “light process” is where the oil is filtered of non-soluble
contaminants and de-watered in preparation for use as
burner fuel.
B. “Re-refining” turns the oil into usable engine oil, a process that
includes vacuum distillation to remove volatile contaminants
(fuel) and hydrotreatment to remove impurities
SELL
A. Burner fuel is rated at 135,000 BTU per gallon, about the same as
diesel fuel. It is sold in bulk and is used to heat aggregate to produce
asphalt. Aggregate is the asphalt cement bottoms from refining
crude and it becomes the asphalt mix for paving roadways.
B. Re-refined oil can be as good as the original oil and can be rated
as high as API Group II. Re-refining uses one-third the energy it takes
to refine a barrel of crude oil. One gallon of used oil typically results
in a half-gallon of base stock
Back to Top 
Sometimes an auto service
shop or other used oil
generator will burn oil onsite to heat their facility.
Drain oil can be burned as
heating oil as it comes out
of the vehicle but without
filtering or de-watering
the user will often run into
problems with the heating
system.
Aggregate is made using
a rotary kiln which is
basically a blast furnace.
Rotary kilns can operate at
temperatures of 2,000F or
higher.
M A R K E T WAT C H
Summer Market Stable, Quiet
Chevron’s Activity Yet To Be Felt
h By Brooke Sunde, Commodity Sourcing Manager at Lube-Tech
The market has been fairly quiet throughout
June and July. U.S. base oil demand is healthy,
with tightness on the Group I heavy grades.
While refiners are said to be catching up on
the Bright Stock backlog that has plagued the
market over the last couple of months, there is
still limited interest from refiners in the Group
I spot market for the heavy neutrals. Amid the
tight supply, Group I pricing lifted through backto-back increases in April and May and we have
seen recent TVA adjustments further increasing
pricing.
The Group II market continues to be watchful
of how Chevron’s Pascagoula plant, which is
now officially producing product, will affect
the market. Chevron will begin shipping to
customers in early August and initially will only
have light viscosity grades available, but will
begin producing heavy grades later in the year.
While the ongoing 60-day turnaround at the
Excel Paralubes refinery (Conoco/Flint Hills joint
refinery) is expected to keep Group II base oil
supply balanced through early September, the
market anticipates future downward pressure
on pricing as the Chevron capacity enters the
market and sellers jockey for position. Group
II pricing, which was relatively flat across 2013,
experienced a decrease in January and then a
minimal correction in March. Pricing is currently
slightly below January 1 pricing and seems to
be holding, even with the current turnarounds
that are keeping supply in balance and crude
pricing that has hovered around $100/bbl
since February. Both Chevron and Calumet
announced Group II increases in late May/early
June but as of mid-July the rest of the market
has not followed suit.
In other news, additive marketers implemented a 3-7-percent increase across the
board over a two-month time span from April to June. This, combined with other
fundamentals, led to a 3-5-percent finished lube increase from the Majors that
became effective during June and July.
Back to Top 
“
ADDITIVE
MARKETERS
IMPLEMENTED
A 3-7-PERCENT
INCREASE
ACROSS THE
BOARD OVER
A TWO-MONTH
TIME SPAN
FROM APRIL
TO JUNE
“
S H O P TA L K
Oil Weights for Summer Use
The Old Rules Don’t Always Apply
h By Todd Matvick, Technology Director at Lube-Tech
Summer means hot weather and if you are following your grandfather’s footsteps
you are probably reaching for heavier weight oil to protect your car, truck, ATV, UTV
or anything else requiring a four stroke lubricant. Lubricants are naturally thinner
in hotter weather, so logic would tell us heavier weight oil is needed to provide the
same engine protection you get from thinner oil in cooler weather. This logic holds
true in some cases, but not for the reasons you would think.
Since your Grandfather’s time, EPA fuel economy mandates have motivated
automobile manufacturers and oil formulary scientists to adopt lower engine oil
viscosity grades. Fuel economy is a major consideration in much of the engineering
that goes into new cars. The new engine lubricants of today are designed to
protect automobile engines over a wide temperature range, often with lower
viscosity schemes. One of the major contributors to increased fuel economy is
achieved through the lowering of viscous drag that heavier engine oils can create.
Manufacturers have learned they can gain a fuel mileage advantage with thinner oil
and protect their engines at the same time. Honda has capitalized on this by using
0W-20 oil and more recently have received API certification for its 0W-16 oil. Thinner
oils have arguably played a bigger role in reducing EPA fuel mileage numbers than
other technologies such as direct injection or CVT transmissions (comparing like
models and gross vehicle weights). Automobile manufacturers go to great lengths
to assure that the recommended lubricant is of the proper viscosity grade to
optimize both fuel economy and engine protection. There is really no need to go
outside of the recommended viscosity grade to protect your engine when it gets
hot.
Turning to heavier weight oil is still important when it comes to ATVs, UTVs and
other off-road vehicles (ORVs). One of the main reasons is fuel dilution which thins
the oil. Typical fuel dilution in passenger cars is under 1 percent. Fuel dilution in
recreational vehicles can be as high as 7 percent with 3 to 5 percent being quite
common. Using the manufacturer’s recommended lubricant assures that the engine
will be protected in the face of high fuel dilution. ORVs and many motorcycles also
run at higher RPMs (8,000 or more) and use a common sump for the engine and
transmission which can introduce the oil to a lot more heat and shear forces, all of
which require heavier weight oil to provide proper lubrication. Finally, ORVs aren’t
built for mileage, they are built for work or play and they often see intermittent use
putting even more responsibility on the oil to stand up to moisture, fuel dilution and
other contaminants.
While heat can be a real danger to internal combustion engines, modern
automobiles have been engineered to run optimally on thinner oils no matter
what the ambient temperature. Though they are designed and driven much
differently than automobiles, ORVs can typically get by on an all-season oil as well
but they are typically heavier in viscosity due to the factors listed above. Recently,
manufacturers of ATVs have put more emphasis on special lubricants designed
for extreme summer or hot weather use. If you work your ATV or other ORV hard
by using it to do such things as pull implements, race or use it in hot climates,
using these special lubricants will assure you are doing all you can to protect your
investment.
Back to Top 
Beginning in 2008, three
new fuel mileage tests were
added to the standard City/
Highway tests: High Speed,
Air Conditioning and Cold
Temperature. City and Cold
Temperature tests are both
performed starting with a
cold engine. Thinner oils
such as Honda’s 0W-16
result in better mileage
since there is less power
losses from the viscous
drag that the thicker
lubricant introduces to the
engine.
F E AT U R E B R A N D
Lube-Tech Sole
U.S. Distributor Of
Motorex
Swiss Brand Supports Racing,
Events
h By Boris Mahlich, Sales Manager at Motorex USA
Motorex produces everything from car and motorcycle
oil to fluids that are used in applications ranging from
heavy industrial machining to more precise applications
such as CNC machining of Swiss watch pieces. Based in Langenthal, Switzerland,
Motorex standards are among the highest in the world and this has resulted in the
company producing some of the best fluids and lubricants money can buy. All are
made from high-grade synthetics or mineral oils and put through rigorous quality
assurance. Here in the United States, Lube-Tech is the sole distributor of Motorex
products and, while Motorex’s U.S. product line is not as wide-ranging as its
European line, they are the exact same high-quality fluids found overseas.
Motorex is also heavily involved in racing and uses competition to help develop
and prove its fluids in order to provide a better product to the consumer. In the
United States Motorex is best known in motocross, Supercross and Superbike racing.
Motorex riders include James Stewart and Yoshimura Suzuki in motocross and
Supercross and the KTM Factory Motocross Team that includes Ryan Dungey and
Ken Roczen. The Motorex USA Race Support van can often be seen at Regional and
National events where Motorex reps support sponsored riders and talk to fans and
consumers. Here are a few of the upcoming events where the Motorex USA Race
Support van will appear:
Sept 14 Millville, MN Hare Scramble
Sept 21 Trollhaugen Hare Scramble
Oct 5 Staples, MN Hare Scramble
Oct 12 Mazeppa, MN Hare Scramble
October 15-19: AIM Expo, Orlando, Florida
View products at www.motorexusa.com.
Find a Motorex dealer at http://motorexusa.
com/dealers.
Back to Top 
Most recently Motorexsponsored riders finished
second, third and fourth in
Supercross season points.
KTM Motorex rider Ryan
Dungey was the highest
Motorex-backed points
finisher in second place.
Motorex riders won 8 of 17
Supercross races in 2014
and second place points
rider Ryan Dungey along
with teammate Ken Roczen
are favorites to win the
AMA outdoor motocross
championship this summer.
SOCIAL ACTION
Lube-Tech 140 Golf Invitational
Benefits Children’s Cancer
Research Fund
One of Twin Cities Top 25 Charity Golf Events
h
By Randy Jensen
Lube-Tech’s 11th annual 140 Invitational Golf Tournament took place this past
August 16, 2014, at Edinburgh Golf Course in Brooklyn Park, Minnesota. Ranked
in the Top 25 Charity Golf Tournaments in the Twin Cities, the 140 has raised over
$800,000 dollars over the past decade benefiting Children’s Cancer Research Fund.
This year the 140 added $190,000 to that total, the highest 140 event earnings to
date.
Attendees enjoyed a day of golf, dinner, live and silent auctions and music by the
Deuces Wild band. Dr. Logan Spector gave a featured speech on new research that
raised money for the Fund In Need portion of the event. A total of 246 people were
in attendance including golfers, guests of golfers, volunteers and paid attendees. All
proceeds went to benefit Children’s Cancer Research Fund.
At Lube-Tech, we believe in being a part of the community in which you do
business. That’s why, every year, Lube-Tech employees donate their time and money
to help various charities and organizations around the Twin Cities and around the
globe. Our company supports these efforts and countless volunteering hours by
donating over 5-percent of annual profits to both local and national charities.
Some of the charities in which Lube-Tech participates include:
Children’s Cancer Research Fund
Social Venture Partners
Little Brothers
Autism Society of Minnesota
Ducks Unlimited Greenwings
Global Action Project
Humor to Fight the Tumor
High School for Recording Arts
Homes for Wounded Warriors
Second Mile Haiti
Paul Adelman Children With Disabilities
Camp Courage and True Friends
Breakthrough Twin Cities
Bobby & Steve’s Youth Foundation
Fred H. Bame Foundation
To learn more about Lube-Tech, visit lubetech.com.