Vertex Energy Used Motor Oil Recycling Industry Overview
Used Motor Oil Recycling Industry
The U.S. used motor oil recycling industry is approximately
$2.4 $2.8 billion
-
1.3 Billion Gallons of Used Oil*
Of the approximately 1.3 billion gallons of used oil generated
annually, less than 50% is re-refined while the rest is burned
or improperly disposed
100%
200
Cheap natural gas creating need for more re-refinement and
processors like Vertex
75%
Used oil collectors historically sold to local
industrial burners
550
Industrial burners are switching to cheap
50%
natural gas, and collectors without infrastructure are now
selling to re-refineries
Market price for burning linked to cheap natural gas
while price for re-refined oil is more closely linked to
higher priced diesel
25%
Re-refined
325
-
As more of the 600 million gallons of burned oil is
re-refined, the market size will increase considerably
assuming the spread between diesel and natural
gas holds
0%
225
Recycled
Improperly Disposed
* Midpoint of estimated ranges; gallons in millions
VERTEX.
ENERGY
Unrefined
Recycled Fuel
Re-refined into
Lubricating Base Oils
Re-refined into
Intermediate ProductsView entire presentation