Why don oil companies recycle the used oil?
Oil companies don’t always recycle oil because it wouldn’t be profitable. There is a separate industry based on recycling and making a profit from used oil–a product that competes with virgin oil.EquipmentThe equipment used for oil recycling is different than the equipment used for oil acquisition and production. For an oil company to recycle oil, it would have to invest heavily in the start up of the process and would end up creating a product that directly competes with the product it already has on the market.ConsiderationsMotor oil gets dirty, it doesn’t wear out. Companies run the used oil through a recycling processing plant to make it ready for regular use.Safety-KleenSafety-Kleen is one of the larger oil recycling companies. It operates in Texas and focuses on recycling services. It has the two largest oil re-refineries in North America and its profits are derived from recycling, not from oil production.ProfitabilityOil recycling is profitable as long as the price of crude oil
