Understanding the Base Stock Market - An In-depth Look with Jack Zakarian
In this podcast episode, we hear from industry expert Jack Zakarian who spent over 37 years with Chevron. The episode covers the foundation of base stocks focusing on terms like neutral, solvent neutral, bright stock, and their correlation to API based stock groups. Jack also discusses the evolution of the base oil industry explaining the shift from group 1 towards group 2 & 3 processes, the advantages of these processes, the reasons behind the decline in group 1, as well as its impact. The future of the base stock market with implications of electric vehicles and the role of regulatory interventions is also touched upon elaborately.
00:00 Introduction and Guest Background
00:40 Understanding API Base Oil Groups
01:08 Defining Terms: Neutral, Solvent Neutral, Bright Stock
02:52 The Process of Making Brightstock
04:15 Challenges in Manufacturing Brightstock
10:07 The Shift from Group 1 to Group 2 Base Oils
17:22 Flexibility and Limitations in Plant Design
19:46 Understanding Base Oils as Commodities
21:25 Working with Different Types of Oils
21:46 The Advantages of Group 2 Oils
22:12 Differences in Group 3 Oils
23:35 The Impact of Group 1 Disappearing from the Market
24:12 The Role of Brightstock in Viscosity
27:20 The Future of the Base Stock Market
29:23 The Impact of Electric Vehicles on the Lubricant Market
31:25 The Role of Regulation in the Shift to Electric Vehicles
34:48 Closing Remarks and Future Predictions
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