Is synthetic going to go up...and if it does...WHY???

[Taiser]

So I was thinking the other day, as I lamented the price of an oil change . Now that I am going to switch to synthetic at a soon to be 100 hours on my B7800, is synthetic oil going to go up with the price of regular oil? If it does, then why? Dino oil is up on the exchange because of retarded speculators, but synthetic does not use dino oil (as far as I know) in it's manufacture.

Anybody think the two will eventually be the same price or will we be gouged just because of the word "synthetic" and they will always charge more, even if dino oil appears that eventually it will cost more than synthetic to make?? Thoughts?

 

[SPYDERLK]

yes. all components have to be moved and processed in some way, using energy. cost of energy is up.
larry

 

[Skyco]

synthetic does not use dino oil (as far as I know) in it's manufacture.

Many oils sold as synthetics are not true synthetics. They are derived from petroleum.

You can thank Castrol for that little bendover.

 

[RalphVa]

Most synthetic oils are made from Poly Alpha Olefin. It's a hydrocarbon. The reason synthetics are so expensive is that PAOs are a feedstock for plastics used in automobiles (and other things). That feedstock price is driven up by the price of plastic, not the price of crude. However, it's all hydrocarbon that comes from crude; so the price of crude affects synthetics as well.

Figure out the price of gasoline by crude price divided by 42 (gallons/barrel). Then add refining, shipping, profit by people involved all along the way and taxes. You'll find there's only about 60-70 cents/gallon for all the non crude (feedstock) related stuff. There's not much profit on gasoline.

There is a fair amount of profit on lube oil. Those of us in the "specialties" business (lube oil, wax, asphalt, orchard spray oil, etc.) used to say we take 20% of the barrel (the bottom end) and make 80% of the profit. However, nowadays, those getting the crude out of the ground are making the most profit.

Ralph

 

[Skyco]

Most synthetic oils are made from Poly Alpha Olefin.

You sure about the most part? Some synthetic oils are made from PAOs but not most anymore from what I can tell. Many fine synthetic oils that used to be group 4 PAO now are group 3 dyno and use the synthetic name as a marketing thing....Rotella T Synthetic 5w-40 and Castrol come to mind.

 

[Gator6x4]

You sure about the most part? Some synthetic oils are made from PAOs but not most anymore from what I can tell. Many fine synthetic oils that used to be group 4 PAO now are group 3 dyno and use the synthetic name as a marketing thing....Rotella T Synthetic 5w-40 and Castrol come to mind.

I don't think I would want to have my name on oil labeled synthetic and have a government analysis determine it was Dino oil.

 

[Skyco]

The government analysis is meaningless since it was ruled a "synthetic" can be dino oil back in 1997! I don't agree with it but that is the way it is.

 

[DieselPower]

Yes, synthetics will and have gone up. The price of the base stock is only one small part of the price of the final finished product. The company I sell for has had some rather drastic price increases over the last couple of months. Steel barrel prices have gone up 70%, additives have gone up, production cost have gone up, transportation cost have gone up and this only a few things.

Easiest thing to remember is anytime the price of crude goes up EVERYTHING is going to go up in price. Most everything you touch, use and consume everyday is either made with oil, was powered by energy derived from oil, transported with oil powered equipment... It's the price of living in a society that is based on the black gold.

 

[Wayne County Hose]

I am sorry, but watching gasoline prices go thru the roof when I am only seeing a 10% increase in a 5 gallon pail of hyd oil over the past year + makes me laugh. Why has gas almost doubled and hyd oil gone up only 10%? Thank-you Wall street.

 

[Doc_Bob]

I am sorry, but watching gasoline prices go thru the roof when I am only seeing a 10% increase in a 5 gallon pail of hyd oil over the past year + makes me laugh. Why has gas almost doubled and hyd oil gone up only 10%? Thank-you Wall street.

Demand.