Solomon Associates comments on decline in 2009 base oil output

Jamie Brunk, a Solomon Associates senior consultant, told Lubes’n'Greases magazine that Energy Information Agency data showing a decline in 2009 base oil output comes as no surprise.

Domestic base oil output fell 12 percent from 2008, to 55.4 million barrels. It was the first time since 1993 that base oil production did not surpass 60 million barrels, the publication reported.

Jamie, who is responsible for Solomon Associates’ Worldwide Paraffinic Lube Refinery Performance Analysis, told Lubes’n'Greases:

“That doesn’t surprise me, that operating rates were so low for the year as a whole … In 2008, when the economic crisis hit in October and November, plant operating rates went way, way down. There were lots of reports of base oil customers working off inventory instead of buying base oil, because they were waiting for prices to come back down. So refiners had to cut back some, since no one was buying.”

In his role for Solomon Associates, Jamie uses his experience in base oil and wax refining, planning and optimization, strategy development, base oil sales and acquisitions, supply and distribution, and asset sales and acquisitions to help clients improve their performance. Prior to Solomon Associates, Jamie spent more than 30 years with Pennzoil and its successor companies (Pennzoil-Quaker State and Shell) managing all aspects of the base oil business.