Working with you through a Gulf Coast supply shortage

Texas deep freeze has dramatically impacted base oil refinery output

CALGARY, Canada (Feb. 23, 2021) — Last week’s unprecedented winter storm in Texas knocked out power and water to millions of homes as Texans struggled to stay warm and fed while braving record low temperatures.

The sudden blast of winter has also hit the Gulf Coast refinery row hard, with some refineries declaring force majeure (major business interruption due to unforeseeable circumstances).

What happened in Texas?

Refineries in the Gulf Coast have backup plans, but none that could have predicted an event like this.

Base oil refineries have been dramatically impacted, with some of BOSS Lubricants’ raw material suppliers declaring force majeure. We’ve heard reports that as much as 42% of base oil production was temporarily knocked offline in the Gulf Coast, and it’s expected that the additives, petrochemical and plastics sectors will also be affected.

How does this affect BOSS?

This means a limited supply of base oil for our products. We do know that orders already placed with these refineries will ship as close as possible to the time frame promised, but truck and railcar availability are a concern in the very near future, with a scramble for product expected to ensue.

Practically speaking, BOSS Lubricants customers will be on allocation until this situation passes. We’re hopeful, as are affected refiners, that operations should return to something approximating normal by early April.

In the interim, we’re confident that with proper planning, we can work with you to get through this challenging supply event.

What can you do?

Contracts are extremely important right now, and virtually everything BOSS Lubricants purchases is under contract, so we believe we’re adequately covered. But we need you to work with us as we do our very best to service your ratable requirements.

We strongly suggest you look out at least a month in advance for your requirements, and place orders knowing they likely will not ship before the second week of March at the earliest.

BOSS Lubricant’s supply contract should cover most of the requirements that allow us to service ratable customers like you, as long as you work with us and plan as far in advance as possible.

We’ll get through this.

As Western Canada’s largest independent manufacturer, wholesaler and private labeler, BOSS Lubricants’ No. 1 priority is exceptional customer service—from the moment you call to the moment we haul.

Together, we’ll get through this. Please call us at 1-800-844-9457 with any comments or questions.