Waste Oil
Waste oil (used oil) disposal is one of the largest challenges from a management point of view. The estimation is that more than 80 percent of the do-it-yourself (DIY) oil change activities result in improper disposal of used oil. One of the major factors the consumer considers when collecting and recycling his waste oil is convenience. Mechanisms used to provide the collection points for waste oil for the DIY consumer include retail gas stations, auto shops, garages, quick lube change shops, municipal recycling centers, as well as curbside pickup services.
In 1993, the recycling of used oil from DIY consumers experienced a major step forward at the time the Superfund liabilities were relaxed as outlined in CERCLA §114(e). However, it did require that collectors comply with EPA regulations regarding the handling of used oil and, in addition, to satisfy requirements of a SSD (“service station dealer” is a regulatory term and is used when referring to garages, quick lube change stores, etc.). With this relaxation, there was more incentive for a SSD to accept DIY oil considering the exposure to Superfund liabilities.
There remains a certain segment of the consuming public that is not convinced that the small amount of waste oil they dispose of is significant enough to cause serious harm to the environment, regardless of any collection services provided. Location of local collection points is a major factor in this perception.
Although there are encouraging signs of progress in the area of changing consumer recycling habits of waste oil, it will require continued effort as well as a long-term activity that require frequent reinforcement from educational and awareness programs..
When considering the sales of used oils to collectors, some of the most significant factors that affect prices include the volume of the used oil collected as well as the location. When the volume decreases and the distance from the ultimate end user increases, then the price received for the used oil decreases. Reflected in some cases, the generator has to pay the collector to recover his oil because the volumes are so small or the location so remote. Typical sales prices in urban areas are on the order of $0.20-0.30/gallon, however, with the recent increase in fuel prices, the used oil sales prices have sometimes exceeded $0.50/gallon. Municipalities are also known to resell their oils to collectors. In doing so, they also are exposed to the dangerous risks of illegally dumping hazardous waste oil into their facilities.
Contrasting the risks associated with potential contamination incidents, generators of used oil can benefit from collecting those oils that are made from synthetic lube oils. The reason being that synthetic compounds render the used oil much more valuable in comparison to conventional base oils. That being said, it appears that at present most generators and collectors are simply not equipped to recognize or reimburse generators for the higher valued synthetic used oil components.
Generators will most likely sell their used oil to the highest bidder, whether it is a collector that is reselling to a burner, or a re-refiner. Terms of sale range from term contracts all the way to spot sales depending on several factors, including the seller’s knowledge of the market. Price very much remains a function of the costs of transportation involved, the volume recovered, and the quality of the used oils.