Yes, used oil is very recyclable. Used oil can be re-refined or processed into fuel oil. In 2010, 120 million gallons of lubricating oil were sold in California. Approximately 20 percent or 24 million gallons, leaked out of engines or was burned. 83 million gallons of the remaining oil was recycled, preventing it from being improperly disposed of down storm drains, into lakes or streams, or thrown in the garbage.