This form of recycling is the preferred option because it closes the recycling loop by reusing the oil to make the same product that it was when it started out, and therefore uses less energy and less virgin oil. This form of recycling is not as preferable as methods that reuse the material because it only enables the oil to be reused once. It takes 42 gallons of crude oil, but only one gallon of used oil, to produce 2 quarts of new, high-quality lubricating oil. The following paragraphs describe different types of businesses that handle used oil. Generators are businesses that handle used oil through commercial or industrial operations or from the maintenance of vehicles and equipment.
Generators are the largest segment of the used oil industry.
Examples of common generators are car repair shops, service stations, quick lube shops, government motor pools, grocery stores, metal working industries, and boat marinas. Farmers who produce less than an average of 25 gallons of used oil per month are excluded from generator status. Individuals who generate used oil through the maintenance of their personal vehicles and equipment are not subject to regulation under the used oil management standards. Collection centers and aggregation points are facilities that accept small amounts of used oil and store it until enough is collected to ship it elsewhere for recycling. Collection centers typically accept used oil from multiple sources that include both businesses and individuals.