The North America base oil market is set to progress with a CAGR of 2.10% in terms of revenue and 2.71% in terms of volume over the forecasting years of 2022 to 2030, capturing a revenue share of $7340.98 million by 2030.

The market growth of the region is fueled by the increasing demand, production, and consumption of petroleum, crude oil, and base oil as well as base oil products, the presence of prominent industry leaders, and the rise in strategic initiatives aimed at boosting base oil developments.

However, the North America base oil market may by hindered by environmental concerns, the surging costs of extracting oil sands, and high royalty as well as tax payments.

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The North America base oil market growth assessment covers the analysis of the United States and Canada. As per the United States Energy Information Administration, the United States consumed nearly 19.78 million barrels of petroleum on average per day in the year 2021, representing a total of more than 7.20 billion barrels of petroleum. Also, the country witnessed an increase in the consumption of nearly 1.6 million barrels per day, compared to the consumption recorded in 2020. While the United States manufactured 61.2 million barrels of base oils in 2021, indicating an increase of 10% from the previous year, Naphthenic base oil production rose to 9.4 million barrels. In addition, compared to 47.4 million barrels in 2020, the production of paraffinic base oil surged by 9% in 2021 to 51.8 million barrels.

On the other hand, market players across the United States are focused on undertaking a wide range of strategic initiatives aimed at bolstering the development of base oil. For example, in 2022, Safety-Kleen, a United States-based recycler of used oil, launched KLEEN+™. As a new family of base oil grades, it lowers the environmental impact of industrial as well as automotive lubricants through the reduction of carbon footprint. As a result, these factors are set to propel the base oil market growth in North America over the forecast years.

The North America base oil market is primarily segmented into group and application. The group category is further classified into group I, group III, group II, group IV, and group V. Group I base oils are characterized as base oils with lower than 90% saturates, a viscosity index ranging from 80 to 120, and more than 0.03% sulfur. Moreover, the temperature range for group I oils is between 32 to 150 degrees Fahrenheit. Since they are solvent refined, the simpler refining process results in their increased affordability.

Group II base oils have more than 90% saturates, lower than 0.03% sulfur, and a viscosity index ranging between 80 and 120. Group II base oils are manufactured by hydrocracking, a complex process compared to the one utilized for group I base oils.

Phillips 66 Company, Exxon Mobil Corporation, Chevron Corporation, etc., are the top players operating in the North America base oil market.

Exxon Mobil Corporation, headquartered in the United States, is a multinational oil and gas corporation. Its primary brands include Exxon, Mobil, Esso, and ExxonMobil Chemical, engaged in businesses such as synthetic rubber, plastic, and other chemical products.

The company’s Escaid™ base fluids perform under tough drilling conditions while meeting health, safety, as well as environmental requirements.

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