Gulf Basin Petroleum
Recycling Company
Lube Oil Recycling and Re-refining
Company Overview
•
Focus
•
•
Near-Term
Plan
•
•
•
Mgmt.
Team
•
Provide petroleum based environmental services to
Gulf Basin industries
Recover used oils and re-refine to generate valuable
base lube oil and other refined products
To develop the capability to recycle used oils having a
high level of contaminants
Construct a new, state of the art, 30 MM GPY used
oil recycling /re-re-refining plant in Bienville, MS
Utilize the rail and barge capabilities of Port Bienville
Extensive experience in used oil re-refining operations,
used oil collection, commercial, civil and industrial
construction
Exceptional track record in building and growing
business across a wide range of industries
2
Vision & Mission
Our
Vision
To become the leading used oil re-refiner in the Gulf
Basin and partner of choice to existing used oil
collectors and generators of used oils.
Our
Mission
To make a significant and lasting contribution to the
environment and to sustainable development. To aid
in the economic recovery of the Gulf Region
3
More than a billion gallons of used oil is available
for re-refining
Used Oil
Collected
(1.2 B GPY)
Asphalt,
Cement
Kilns
Rerefineries
4
Improper
Disposal (400
MM GPY)
Fuel
Blending
Used oil volume – Million Gallons/year
US market is in the early stages of development
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
1200 MM GPY
620 MM GPY
120
1.2 billion gallons collected
290 million re-refined
8 Plants operating
3 Plants announced
910
500
290
USA
USA
Europe
5
Europe
620 million gallons collected
500 million re-refined
28 Plants operating
No new plants announced
There is ample room for new re-refineries
in each regional market
6
The feedstock supplier (collector) market is
extremely fragmented


The collection market in the US is highly
fragmented and estimated to include ~400
companies nationwide providing collection &
recycling services
There is only one national company (SafetyKleen) & approximately 30 significant regional
Companies; the balance of the industry
participants are small “Mom & Pop collectors
Company
Annual
Volumes
Safety-Kleen
180 ~ 200
Primary Service
Area
National
FCC
75 ~ 80
Mid Atlantic / Gulf
Coast
United Solutions
30 ~ 40
North Central
Thermo Fluids
70 ~ 80
Intermountain
West
DeMenno /
Kerdoon
40 ~ 50
California
Universal
Lubricants
20 ~ 30
Midwest

These small companies typically sell their used
oil to Industry as an alternative to virgin fuels

Burning used lubricants is a poor use of the
material from both an environmental and
economic perspective
Inter Gulf
Corporation
25 ~ 30
Southwest
Universal
Environmental Svcs
30 ~ 35
Southeast
Used oil generators would prefer to have their
used oil recycled
Lorco Petroleum
15 ~ 25
Northeast
Aaron Oil
20 ~ 25
Gulf Coast

7
Supplying re-refineries is the best option for
collectors
• Majority of collectors are now selling into lower margin burner markets as an
alternative to virgin fuels
• Collectors are experiencing erosion of margins
– Lower cost of natural gas
– “Warm mix” asphalt reducing demand for fuel
– General economic malaise
• Due to margin squeeze, small collectors are losing market share to collectors
with re-refining capability or access to higher paying markets such as fuel
blending, exporting.
• More re-refining capacity is needed to support used oil collectors
• Most collectors desire to get into higher margin re-refining but don’t have the
resources or expertise to go it alone
– Capital cost of re-refining equipment
– Lack of technical expertise to operate a re-refinery
8
Strengths
Constructed,
commissioned &
operated a
re-refinery
•
Have the team
& execution
capabilities
to grow
•
Have significant
Business
experience over a
wide rang of
industries
Have constructed, commissioned and operated a re-refinery in
Chester, SC
Team has significant expertise in building and operating oil collection
and fuel processing facilities.
Established customers for all re-refinery products
Understand the challenges and opportunities in the business
•
•
•
We have a very strong and experienced management and operations
team to grow the business across multiple locations
Lessons learned from prior operations and commissioning experience
give us a strategic advantage for technology selection and
commissioning of plants
•
•
•
•
•
Expertise in government, military and government bid contracts
Managed and Directed operation of construction firms operating
across the globe
Managed and directed used oil collection company
Managed and directed fuel recovery company
9
The time is right to build re-refineries in the US


Increased public awareness of the harmful
effects of unregulated disposal of waste on
the environment and on the health of its
citizens
Increasing consciousness on recycling and
people’s willingness to pay the same or more
for recycled products

Increase in crude oil prices and tight supply
of virgin lube oil

Payback period for re-refining is now less
than 4 years.

Re-refined base lube sells at a discount of
around ~10% to virgin base lube

Through continuous development, the
technology has improved and is cost effective.
Several players are successfully using the
company’s planned equipment set

Used oil collection systems have improved,
partly through government initiatives
Propelling
Growth


Several national, international regulations
are in place for collection and processing of
used oil
US DOE targets by 2015, 1.0-1.2 B GPY to
be re-refined. This will require a tripling of
current capacity in the U.S. Thus, re-refining
in the US is a phenomenal growth
opportunity
10
Lubricant Market Overview
• Lubricating oils are largely (75-95%) made of
base oils, a mineral oil produced at an oil
refinery; The balance would be additives,
which are used to improve the lubricant’s
performance
• It takes approximately 2 barrels (84 gallons) of
crude oil to produce 1 gallon of virgin base oil
• The US Market represents 25% of global Lube
Oil
consumption,
which
total
global
consumption of approximately 10.3 billion per
annum
Demand, Billion
(Gallons /Year)
Per Capita Demand
(Gallons / Year)*
United States
2.5
8.4
Latin America
0.8
1.8
Europe
2.8
6.9
Middle East
0.5
3.1
Africa
0.5
0.7
APAC
3.2
09-5.3**
Total
10.3
1.7
• Annual US sales of Lubricants between 20042010 have been relatively flat at ~ 2.5 Billion
Gallons, due to the link between economic
growth – net new vehicle sales and
manufacturing equipment sales, offset by
extended intervals in oil changes.
Region
• There are vast differences in per capita
consumption – United States 8.40 Gallons; Asia
0.80 Gallons; Western Europe 3.47 gallons
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