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Motor Oil...The Last 50 YearsPosted 5/16/2001By Leonard N. Manley
The Pennsylvania “oil rush” attracted several other oil companies that were soon on their way toward making names for themselves: Standard Oil in 1870, Kendall in 1882, Castrol in 1899, Shell in 1890, Texaco in 1901, Havoline in 1906, Quaker State in 1913 and Pennzoil in 1916. By the time the 1950s arrived, motor oil technology and marketing had grown more sophisticated along with the automobile. Motor oil marketers forged relationships with car dealers, such as a 50,000-mile product guarantee from Valvoline. Loan-agreements on lube equipment were also used as a means of getting into the “back-shops” of car dealers, and are in use today. From the 1950s into the '60s, auto racing played a major role in the development of new, high-performance lubricants. Pennzoil developed a racing oil for dragsters running on exotic fuels like nitro-methane. Valvoline introduced a high-performance racing oil that was sold in one-quart containers. Participation in racing by oil companies led to lubricant formulation innovation, while providing arduous, proof-of-performance field testing. The intense competition of the last 30 years of the 20th century required creative and aggressive marketing, sales promotion and advertising to establish product and brand differentiation. For example, in 1980 Valvoline used “Val” the chimpanzee in a national TV commercial to demonstrate that anyone can change motor oil. Motor oil marketers took their lead from other packaged goods marketers and offered trade and display allowances, discount couponing and rebate offers. Motor oil packaging and SAE grades also changed dramatically in the 1970s and '80s. First came the introduction of lighter-weight, 12 one-quart cases. These cases were later shrink-wrapped to provide “see-through” tops. In 1984, consumers first saw motor oil in round, plastic one-quart containers, which evolved from the fiber-bodied quart cans with metal lids. In 1978, the industry introduced a 10W-30, API SE motor oil. The mid-1980s saw American consumers with tighter schedules and more money in their wallets. The do-it-yourself motor oil market peaked and the “quick lube” emerged. Pennzoil bought Jiffy Lube; Quaker State bought Minit-Lube; and Valvoline acquired Rapid Oil Change (Valvoline Instant Oil Change), which started an era of rapidly expanding quick lube oil change centers. However, independent auto repair and oil change businesses continued to flourish as motor oil marketers offered various incentive programs to help them entice customers. The '90s saw the motor oil industry consolidate, with Pennzoil acquiring Quaker State and BP purchasing Castrol. Valvoline remained independent, but diversified by taking on Zerex antifreeze and Eagle One premium appearance products. New, innovative motor oil products also hit the market in the 1990s. Quaker State introduced a special formula for 4x4 vehicles. Valvoline introduced DuraBlend, a semisynthetic, followed by MaxLife, the industry's first motor oil for high-mileage engines. As the industry began to evolve toward higher-margin, premium products, Valvoline invested in a new $4.5 million product development lab in 1999 to formulate the sophisticated lubricants that will be required in engines of the future, such as electric hybrids. Like most other industries, motor oil has changed dramatically during the past 50 years - from the way it is packaged, to the way consumers buy it, to the way it is marketed. The next 50 years promise to be just as exciting and dynamic, with new engine technology emerging from the OEMs and consumer driving habits always changing.
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Copyright (c) 1996-2008. Automotive Service Association. All rights reserved.
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Ten years after the California Gold Rush, another kind of “rush” took place in Titusville, Pa. - the discovery of “black gold” or crude oil. Dr. John Ellis came to Pennsylvania from Michigan to see if crude oil could be used for medicinal purposes. Instead, he saw the lubricating potential of crude oil; and in 1865 he patented the continuous refining of petroleum and the steam distillation process. Ellis' company became the forerunner of Valvoline, recognized by the Brand Names Foundation in 1868 as the first engine lubricating oil.
