Ken Rood Consulting

11/22/2025

The Base Oil Revolution & ILSAC GF-7
​The Lubricants Industry is undergoing its biggest technical shift in a decade. The transition from Group I to advanced Group II and III base oils is no longer optional, it's mandated by global regulatory standards like the new ILSAC GF-7.

​Here’s the essential market intelligence on the transition and what it means for sourcing and formulation:

​The Core Shift:
- Base Oil Group Dynamics
​Group I: Global capacity is shrinking and becoming less reliable. Now reserved primarily for older engine or lower-tier industrial oils.

​Group II: The modern workhorse. Stable and moderate growth, replacing Group I across mainstream applications.

​Group III (Hydrocracked): The fastest-growing segment (4.2% - 6.9% CAGR). It is the non-negotiable foundation for new synthetic PCMO (Passenger Car Motor Oil).

​The GF-7 Mandate:
Why Group III is Critical

​The introduction of ILSAC GF-7 (licensable March 2025) forces the industry toward premiumization, driven by three technical pillars: ​
1) Ultra-Low Viscosity: GF-7 targets 0W-16 and lighter oils for maximum fuel efficiency, which is impossible without the high Viscosity Index (VI) and purity of Group III base oils.
2) ​Aged Oil Durability: New tests demand oils maintain stability over longer drain intervals to combat Low-Speed Pre-Ignition (LSPI). Group III's superior oxidation stability is essential for passing these tests.
3) ​Future-Proofing: Coupled with the rising demand for e-fluids and the need for sustainable Re-refined Base Oils (RRBO) (7%+ CAGR), the capital focus is permanently shifting away from conventional feedstocks.

​The takeaway for supply chain and formulation teams: Secure diverse, high-purity Group III supply now. This segment is under global demand pressure from North America (GF-7) and Europe (Euro 7). The future of high-margin automotive lubricants depends on it.

If your a leader looking for help entering into this market amd evaluating technical information and regulatory requirements give us a call. At this point its not a matter of when this change happens, its a matter of how you want to plan for it.

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10/12/2025

What’s Really Happening in America’s Lubricants & Solvents Industry
If you work in industrial manufacturing, you probably know the U.S. lubricants and solvents market has always been “steady.” But lately, it feels like the ground is shifting beneath our feet — and not in a subtle way.
I’ve been watching the sector closely, and here’s what’s keeping manufacturers on their toes in 2025.

1. Regulations Are Everywhere
It seems like every time we turn around, there’s a new EPA limit, a new VOC restriction, or updated OSHA standard. And that’s just the federal layer — add in state rules, and it gets messy fast.
For companies making lubricants and solvents, even small changes to formulations can mean new testing, new labeling, and sometimes new equipment. That’s a lot to juggle — especially if you’re trying to stay profitable.

2. Costs Are a Roller Coaster
Raw materials are unpredictable. Base oils, additives, solvents — prices can swing dramatically with energy markets or supply disruptions.
Combine that with stiff competition and flat product pricing, and suddenly margins are under pressure. Even when volumes hold steady, keeping profitability is a daily challenge.

3. Sustainability Isn’t Optional Anymore
Clients are asking for greener, safer products — bio-based lubricants, biodegradable solvents, lower-toxicity solutions.
It’s exciting to see innovation, but let’s be honest: green formulations often cost more and can be tricky to get right. That’s why the companies that can deliver sustainable products without sacrificing performance are the ones that will stand out.

4. Technology and Market Shifts Are Real
Electric vehicles, smart manufacturing, and predictive maintenance are changing the game.
Some traditional products might see demand decline, but new opportunities are popping up — specialty greases, heat transfer fluids, high-performance synthetics. Solvent demand is shifting too, with water-based and solventless systems gaining traction.
The trick? Knowing where to invest — and where to pivot — before it’s too late.

5. What It All Means
Industrial lubricants and solvents are no longer “just chemistry.” Today, success depends on balancing regulations, costs, innovation, and sustainability — all while keeping customers happy.
It’s a lot to manage. But the companies that figure it out will define the next era of the industry.

Your turn:
If you’re in this space, what challenge keeps you up at night — regulation, cost pressure, or sustainability? I’d love to hear your perspective.

09/17/2025

🌍 The Future of Oil: Navigating an Era of Transition

Oil has powered global growth for over a century, but the future of this resource is far from certain. As the world balances energy security, climate goals, and economic realities, the trajectory of oil over the next two decades will be shaped by three key forces: demand shifts, policy frameworks, and technological disruption.

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🔑 Key Trends Shaping Oil’s Future

1. Peak Demand on the Horizon

The IEA projects that global oil demand could peak before 2030, especially as electric vehicles (EVs) scale and efficiency improves.

However, in regions with fast-growing populations and industrial expansion (Asia, Africa, Middle East), oil remains vital for transport, petrochemicals, and heavy industries.

2. Policy Pressure & Climate Goals

Over 140 countries have pledged net-zero by mid-century, which could accelerate oil’s decline.

Carbon pricing, stricter emissions regulations, and investment in renewables are reshaping the energy mix.

3. Technological Transformation

EV adoption, green hydrogen, and advanced battery storage will reduce oil’s role in transport.

Meanwhile, AI, automation, and digitalization are lowering extraction costs, helping oil companies stay competitive even in lower-price environments.

4. Geopolitical & Economic Factors

OPEC+ strategy, U.S. shale resilience, and geopolitical conflicts will continue to influence supply.

Emerging economies may create “dual-speed” energy transitions: rapid decarbonization in developed markets vs. prolonged oil dependence in developing regions.

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📉📈 Possible Futures for Oil

Fast Transition: Demand declines sharply (≈70 mb/d by 2040), driven by strong policy, rapid EV adoption, and green energy scaling.

Moderate Transition: Demand plateaus and slowly declines (≈90 mb/d by 2040), balancing new technology with continued petrochemical and transport reliance.

Slow Transition: Demand remains resilient (≈105 mb/d by 2040), especially in developing economies with slower renewable adoption.

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⚖️ What This Means for Industry & Investors

Oil Companies: Need to diversify portfolios — integrating renewables, hydrogen, and carbon capture while maintaining profitable core operations.

Investors: Face growing pressure to evaluate “transition risks” vs. “resiliency bets.”

Policy Makers: Must balance energy affordability with decarbonization goals.

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🚀 Final Thought

The future of oil isn’t a single path — it’s a spectrum of possibilities shaped by innovation, policy, and human choices. Whether oil demand peaks this decade or continues longer, one thing is clear: adaptability will define the winners in the energy transition.

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👉 What do you think — is the world ready for a rapid decline in oil, or will it remain the backbone of global energy longer than expected?

08/30/2025

Did you know that not all lubricants are the same? Valvoline full synthetic isn't the same as Mobil1. Royal Purple isn't the same as Penzoil full synthetic. But often we see purchasing managers ignoring key technical differences and just buying what the manufacturer says. We can help you optimize your lubricant program to reduce the number of oils your purchasing and overall reduce the cost of your current program. Give us a call today to schedule an appointment where we can sit down and evaluate your needs and how we can optimize performance and inventory. Because no one wants to spend more than they have to in business!

08/07/2025

After years of rising costs and tight margins, lubricant suppliers are seeing increased pressure to lower pricing to maintain customers. Since the Covid-19 pandemic lubricant blenders have been forced to focus on maintaining business rather than pursue growth. Now, with lubricant demand falling and pricing stabilizing for raw materials, they are getting pressure to lower pricing. If your a blender and are receiving this pressure give us a call. We can help you evaluate currently formulations and stock, as well as help you evaluate current suppliers to help you create a plan that works for your business.

08/04/2025

The joint venture between HD Hyundai Oilbank and Shell announced that they would be expanding their operation in South Korea to include Group III base oils. Currently the plant is at capacity producing 25,000 barrels per day of Group II base stocks. This expansion only helps to solidify Shells position as a leading high quality base oil producer.

HD Hyundai said Friday that its joint venture with Shell will enter the high-performance, high-added-value l**e base oil market, bolstering its lineup of premiu

08/03/2025

🔧 Welcome to Ken Rood Consulting 🛢️
Advancing performance in industrial lubrication & solvent solutions

Ken Rood Consulting specializes in strategic support for businesses operating in the production, distribution, and application of industrial lubricants and solvent technologies. With a foundation built on precision, industry insight, and operational excellence, we help independent manufacturers and AMSOIL dealerships deliver products that meet the demands of high-performance environments.

From brand refinement to technical alignment, our focus is on driving efficiency, compliance, and customer trust in every formulation. Whether you're looking to streamline product communication, enhance market positioning, or implement structured processes, Ken Rood Consulting offers a smart, responsive approach tailored to the industrial chemistry landscape.

🔍 Our Capabilities Include:
- Branding & marketing consultation for lubricant and solvent manufacturers
- Product messaging aligned with technical specifications
- Support for regulatory compliance and environmental communication
- Operational frameworks for small-to-mid scale producers and distributors
- Development tools for professional interviews and team building

Let’s build stronger systems, smarter messaging, and products that stand the test of performance.