Expansion Management

Chevron's New Premium Base Oil Plant Up and Running

July 24, 2014

The new plant in Mississippi will add to capacity from the company’s refinery in Richmond, Calif. and a joint venture facility in Yeosu, Korea, approximately doubling Chevron’s production capacity.

Adrienne Selko

In an effort to fulfill the company’s goal to be the “world’s largest producer of premium oil base,” Chevron Corp. (IW 500/3) announced last week that its subsidiary Chevron U.S.A. Inc. has begun commercial production of premium base oils from a newly constructed manufacturing facility at the company’s Pascagoula, Miss. refinery.

“Lubricants are a high growth business supporting economic development worldwide,” said Mike Wirth, executive vice president, Chevron Downstream & Chemicals.

Base oils produced at Pascagoula will add to capacity from the company’s refinery in Richmond, Calif. and a joint venture facility in Yeosu, Korea, approximately doubling Chevron’s production capacity and positioning it to be the world’s largest producer of premium base oil.

Base oils from the new facility will supply customers in the U.S. East, Europe and Latin America, with Richmond continuing to supply the U.S. West, and both Richmond and Yeosu supplying Asia.

The facility is designed to manufacture 25,000 barrels per day of premium base oil, helping countries around the world meet increasingly strict regulatory requirements and higher performance standards for lubricants. Premium base oil is the main ingredient in the production of top-tier motor oils that help improve fuel economy, lower tail-pipe emissions and extend the time between oil changes. Base oils are used to make lubricants and greases for machinery and equipment in the commercial and industrial sectors.

The base oil facility uses Chevron’s proprietary ISODEWAXING technology invented in 1993.. Over half of the world’s premium base oil is manufactured with this technology through licensing agreements with Chevron.

About the Author

Adrienne Selko | Senior Editor

Focus: Workforce, Talent

Follow Me on Twitter: @ASelkoIW

Bio: Adrienne Selko has written about many topics over the 17 years she has been with the publication and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is also a senior editor at Material Handling & Logistics and EHS Today.

Editorial mission statement: Manufacturing is the enviable position of creating products, processes and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I find manufacturing interesting: On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world.