PTQ Q2 2023 Issue

production of lubricating oils is concentrated in Group I and II oils. As aforementioned, Brazilian production is car- ried out by two refineries that apply the solvent route. A third Brazilian refinery is capable of producing naphthenic lubricating oils for specific markets as isolators for electrical equipment. Conclusion As discussed, despite the high capital investment needed for hydroprocessing units, the higher added value of Group II and III lubricants and the growing market can justify the investment when considering the trend in the reduction of global transportation fuels demand. Due to accelerated tech - nological development, especially in the automotive market, Group I lubricant oils will lose market share, compelling refin - ers to explore capital investment that aims to sustain their competitiveness in the lubricants market. Another side effect for lubricant producers using the sol - vent route is the loss of competitiveness, resulting in a need to increase lubricant imports to supply the internal market. This leads to an external dependence on critical production input as well as a negative impact on the balance of pay - ments. Another positive factor of the lubricant market is the recycling capacity of the base oils, which can help refiners reach desired circularity in the downstream sector, which helps improve sustainability in the fossil fuels sector. Bibliography ANP (Brazilian Petroleum Agency), Oil, Natural Gas and Biofuels Statis- tical Yearbook 2020 , 2020. www.gov.br/anp/pt-br/centrais-de-con -

teudo/publicacoes/anuario-estatistico/oil-natural-gas-and-biofuels- statistical-yearbook-2020 Gary, J. H., Handwerk, G. E., Petroleum Refining – Technology and Eco - nomics, 4th ed. Marcel Dekker, 2001. Markets & Markets, Lubricants Market by Base Oil (Mineral Oil, Syn - thetic Oil, Bio-based Oil), Product Type (Engine Oil, Hydraulic Fluid, Metalworking Fluid), End-Use Industry (Transportation and Industrial Lubricants), Region – Global Forecast to 2027, 2023. www.market - sandmarkets.com/Market-Reports/lubricants-market-182046896. html?gclid=CjwKCAiAioifBhAXEiwApzCztn2fzqzuCOjEucajYGlV_4z UnXO28pOiuHBTCAbjzEh9FvEcNMZhHBoCyl8QAvD_BwE McKinsey & Company, Lubes growth opportunities remain despite switch to electric vehicles, 2018. Robinson, P. R., Hsu, C. S., Handbook of Petroleum Technology , 1st ed. Springer, 2017. Silva, M. W., Crude Oil Refining – A Simplified Approach , 1st ed. CRC Press, 2022. Statista, Projected base oil demand distribution worldwide by type in 2015, 2020, and 2030, 2023. www.statista.com/statistics/547119/ projected-base-oil-demand-worldwide-distribution-by-type/ Zhu, F., Hoehn, R., Thakkar, V., Yuh, E., Hydroprocessing for Clean Ener - gy – Design, Operation, and Optimization . 1st ed. Wiley Press, 2017. Marcio Wagner da Silva is Process Engineer and Project Manager fo - cusing on the crude oil refining industry based in São José dos Campos, Brazil. He holds a Bachelor’s in chemical engineering from University of Maringa, Brazil and PhD in chemical engineering from University of Campinas, Brazil. He also earned an MBA in project management from Federal University of Rio de Janeiro and is certified in business from Getulio Vargas Foundation. Email: marciows@petrobras.com.br

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PTQ Q2 2023