Oil (Your hidden Asset)

by Eddie Rowland, Jimmy Pfaffenberger, and Steffen Dalsgaard Nyman

When considering an asset, or a potential capital expenditure for next year’s budget, what is
the threshold for determining whether that piece of equipment needs to be capitalized? Is it
$100,000, $50,000, perhaps even as low as $5,000? There are some painstaking processes
to take care of assets once they are in the plant, as well as justification to make sure that they
provide the necessary efficiencies required. Would it make sense to treat oil in the same
manner, as an asset?
In almost any accounting system, the dollar value of the oils that are in some manufacturing or processing plants, even in some
single reservoir, would easily reach the threshold that is required to justify a piece of new equipment. Sadly, oil (that hidden asset) is
oftentimes treated as a consumable. When it reaches a certain age, dispose of it. When it gets dirty, replace it. Every other asset
requires observation, maintenance, and evaluation. Why not this asset? It could be argued that a tag number or asset number should
be assigned to this asset, just like other equipment, to assure that it gets the proper attention it deserves. Today, many companies put
focus on improving their “Green Profile”, and here is where oil consumption can play a big role also.

Months and years of waiting and mounds of documentation and ROI calculations go into justifying that piece of equipment or process
improvement that could save the company money and uptime on equipment. Jumping through hoops to try to justify a certain dollar
amount for equipment, while never thinking twice when replacing an asset equally or more expensive in the form of an oil change.
With proper care and testing, the decision can be made to change from a time-based to a condition-based methodology for oil
changes.

An ISO VG 46 Hydraulic oil could have prices that range from about $5 per gallon up to $50 per gallon. An injection mold company
with 20 machines could easily have as much as $30,000 to $300,000 worth of oil in their machines at any given time, well within the
range of what we would consider an asset if it were the equipment. In the past, oil may have been a consumable, but today it is not
best practice to replace oil based on time, or when someone deems the oil as “spent” or “used”. A condition-based decision method
of replacement is a much better way to go. Instead of looking at history or a certain time period, why not consider what could be,
taking the proper approach to caring for that asset, from the minute that it begins its life cycle in the machine or equipment. Just how
long will the oil last and what methods could be used to determine when the oil is truly ready to be disposed of?

The mining industry can have some of the most difficult applications to deal with. Would it be conceivable that a Ball Mill Trunnion
Bearing might have a short life expectancy (2 years) when running on oil at a 24/21/15 ISO Code? Would it be believable that an end
user would have to change the oil 6 times per year, just to keep it at this level? The answer is yes to both, as this is a real-world case
study. What if that oil was treated as an asset, upgraded and properly filtered, what would be achievable? Here is the answer, an oil
constantly monitored and reaching ISO cleanliness levels of 12/12/11, oil changes now every 3 years (vs. 6 times per year), and a
bearing life that has been extended to 3 years. Those companies that start taking care of the oil as a strategy, can see reductions in
oil usage by as much as 80%. Keep in mind that lubricants at a mine site might make up 3-5% of the overall operational costs of the
plant, but those lubricants account for 100% of the leverage on production of the plant. A typical hour of down time could cost the
company around $21,000[1]. When considering oil as an asset and treating it as such, cost savings associated with equipment, oil,
disposal (or lack thereof), and downtime, directly impact the bottom line.
When making the transition from a time-based to condition-based oil changes, a
multifaceted approach to taking care of that critical asset must be considered.

A few factors that require consideration:

• Requirements for oil have gotten progressively more challenging
• Time-Based vs. Condition-Based
• What constitutes used oil?
• What are the contaminants that impact my oil?
• How much life is possible?
• Treating the entire system
• How does this asset impact other assets? Exponential return by cleaning of the
oil Figure 1. Dynamic Oil Film Thicknesses for various
components, Source: Noria Corporation

Oil Requirements
In almost every aspect of life, the equipment used in factories and work sites are exponentially more efficient that they were 50
years ago, 25 years ago, and even 5 years ago. Manufacturers have made tremendous strides to make their equipment
lighter, stronger, and faster, while becoming more and more reliable. This doesn’t just happen by teams of people in meetings
wishing it to be so. It takes innovation and increasingly tighter tolerances and smaller clearances on the equipment to reach
these levels of efficiency.

As the improvements have taken place and the efficiencies have changed, the demands have become much higher on the oil.
In many instances, there has been a reduction in the amount of oil used in a system or reservoir. This means that the oil is
used more frequently and there is less of it to act as a coolant. The tighter tolerances that the more efficient equipment brings
mean that the oil needs to be much cleaner than in the past, just to allow for those very small clearances. The chart above
(Figure 1) shows the relationship to oil film thickness in various systems. Additionally, different materials of construction can
lead to challenges in contamination of the systems. Overall, oil (and the condition of that oil) can play a much bigger part of the
success of a maintenance program and the bottom line to the company.
As the demands have gotten higher, the oils have gotten much better and more sophisticated. Consider
the oils that are used in passenger vehicles, which have gone from mineral based oils where the
recommendation to change the oil was every 3,000 miles to synthetic blends or fully synthetic oils now
where changes are recommended at 5,000 to 7,500 miles. In Europe, diesel powered cars have oil
service only every 18,000 miles. New oils like this and some of the specialty oils that are seen in the
manufacturing world can get very expensive. If end users are going to put a high-quality oil in their
machines and equipment, they should most certainly consider ways to take care of that asset and get as
much life out of it as possible.

Consider the evolution of the motors offered in the Ford

F100 and F150 series of pickups from 1960 on. In 1960, the
motor with the most horsepower that was offered was a 292
(4.8 Liter) which produced 171 HP. In 2020, the High Output
3.5L Ecoboost V6 produced 450 HP. Breaking this down in a
HP per Liter ratio, the 2020 engine produces 3.6 times the
HP than what was available 60 years ago (See Figure 2). Of
course, there have been many process improvements and
technology breakthroughs that have made this possible, but
there is no denying the huge difference in the demands of
these motors down through the years. This has also caused
oil companies to step up their game and provide much
better products than were available in the past. In 1960, the
engine oil would have been a mineral based oil and oil and
filter changes would have been very frequent. In today’s Figure 2. HP per liter for Ford F100/F150 Pickups each decade from 1960
engines, most manufacturers have switched to higher price
synthetic oils, which will give better performance and, in
most instances, a longer life.
Compare that evolution to that of industrial equipment. The products
and equipment that we touch on a day-to-day basis are much more
efficient and are seeing higher pressures and tighter tolerances. That
haul truck at a mine site looks much different than it did years ago. The
Tier 3 and Tier 4 diesel engines with high pressure common rail diesel
injection systems are producing so much more pressures than they did
years ago, often 35,000 psi today. The improvements that have been
made to this modern-day equipment come by increasingly tighter
specifications and an emphasis must be made on making sure that the
equipment is protected by the other asset, the oil (lifeblood of the
system). The oil must be cleaner, with the understanding that the clean
oil prolongs the life of the system components.
Figure 3 Piston pump broken by contaminated oil, Source: AVN
Consider the changes in the field of hydraulics down through the years. For instance, the use of gear pumps
vs. piston pumps. Many of today’s systems utilize piston pumps in their operation which can handle pressure
and flow rates anywhere from 2 – 10X the rates of the more traditional gear pumps. These piston pumps have
higher outputs which are achieved with a more efficient pump design and tighter tolerances; thus, a much
cleaner oil is needed in order to maintain the life and efficiency of the pump, with oil film tolerances smaller
than 5 micron. Also, the evolution of valves in the system have changed oil cleanliness requirements. From
directional control valves, to proportional valves, to servo valves, each change has brought about needs for
more efficient filtration and cleaner oil. Even though servo valves have been around since the 1940’s, the
greater use of these valves has really shed light on that need for clean oil (16/14/11 or lower, according to ISO
4406, equal to NAS 5).

Now that the precedence has been set that oil is an asset, what can be done to take care of that asset? In
what ways can it be evaluated and the life of that newly discovered asset, be extended? Here are some
things to consider:
Time-based vs. condition-based
So, how long will oil last in that gearbox, hydraulic system, turbine, control system, etc.? Maintenance Managers and Reliability Managers
have racked their brains for years to try to come up with the best methodology to ensure that the correct preventative maintenance is done in
order to maximize the uptime on their equipment and minimize repair costs. Is the right time in weeks, months, years? There is value in
understanding how the oil life impacts the life of the equipment for planning and budgeting purposes. Having a defined time limit on the oil life
has become a way of dealing with neglect and improper procedures, rather than keeping the oil clean. For example, letting the oil go without
filtering because the change out will take place out every 6 months. That is definitely a strategy, but not always a good one.

With a good understanding of this asset and an updated testing program, a great deal of money and downtime can be saved, not to mention
the environmental benefits of not having to dispose of the oil.

Switching mindsets and thinking about the actual iron-clad reasons that would make an oil change necessary, would allow the end user
to consider the condition of the oil, rather than the age. Would it be a surprise to know that there are injection mold machines that are
running on the same oil for 16-19 years? Why can companies do this, when others are changing the oil every 2 years? What about
gearboxes that require a $20,000 oil change, where the oil change cycle went from every two years, to now more than six years and
counting. A cost savings of over $40,000 can go straight to the bottom line or be used on additional capital projects.

With a good understanding of this asset and an updated testing program, a great deal of cost savings, cost avoidances, and
uptime on the equipment can be realized.
What Constitutes Spent oil?
Well, here is a question that will spark debates and a lot of dodging and ducking of the question. When is the oil spent and needs
replacement? I recently had a conversation with a very frustrated engineer that just basically wanted a simple pass/fail test for oil
replacement. The fact is that there are no easy tests that say emphatically, it is time to dispose of the oil. In fact, when looking at
manufacturing and recommendations in general, there always seems to be a lot of good advice, but no one ever wants to be “on
the hook” for anything definitive. There are always possibilities that will trump that definitive answer.
Reliability professionals should look to setup their own guidelines for decision making when it comes to replacing and disposing
of oil. Some areas and Tests that should be considered are:
• Viscosity – Is the oil at +/- 20% of its original value? Viscosity that is too high will create excessive friction and maybe
starvation/poor oil flow. Too low and the parts may break through the thin oil film and result in severe wear (adhesive and abrasive
wear).
• Total Acid Number – Is the TAN +1 mgKOH/g over its original value? The acid number will indicate excessive levels of oil oxidation
and can lead to corrosion within the system. A high acid number can be reduced by various methods of filtration, but a replace or
repair strategy should be considered when looking at this variable.
• Additive Depletion – At 50% of its original value (some recommend 75% in critical systems)
• Particle Count – This number would differ between applications and should meet with the equipment manufacturer’s guidelines for
the most sensitive component, e.g. a servo valve, as well as the implicated cost or penalty for poor cleanliness. This number can
be immediately impacted and improved by proper procedures and filtration methods.
• FTIR (ASTM E2412) – This test evaluates impurities in the oil and compares them with the new oil sample, by utilizing infrared
spectroscopy. By-products caused by fluid breakdown and oxidation can be measured using this test, as well as some additive
types and/or wrong oil type added by mistake
• MPC membrane test (ASTM D7843) – This is another test to look at the affects of oxidation and presence of varnish or varnish
potential within an oil, by measuring the color of the insolubles in the oil and then assigning a number value to that color. A value
over 23 ΔE should be considered abnormal. Please note that even if an oil has a value that is this high, it can be brought back
down to an acceptable level with proper treatment. Be aware that the MPC are using .45µ membranes, so high particle content
will color the membrane as well. This method is not recommended for engine oils or dirty oils.
• Water/moisture content (ASTM D6304) – limits dependent on the saturation level of the oil. This is another factor/problem that is
normally easy to resolve, with proper filtration methods and good maintenance practices. Again, an ongoing program to attack this
issue from the introduction of new oil in the system is the preferred method.
• Air Release (ASTM D3427) – Air entrained in the oil can lead to shortened oil life, additive depletion, and oxidation. This test
measures the amount of time it takes for the oil to release the entrained air. The lower the number (in minutes) the better.
• Foam Test (ASTM D892) – This test is used to measure the oil's ability to resist foaming and its ability to dispel any foam that
might be present.
• Demulsibility (ASTM D1401) – This is a test that determines the ability of the oil to shed water. It is key when looking at water removal
methods in oils with a viscosity of ISO VG 150 and lower, like turbine oils, hydraulic oils, and light gear oils. Each of these oil types
should, by nature, shed water very quickly and easily. Sometimes there are outside influences that can impact the demulsibility of the oil,
like: age, contaminants, surfactants, and mixing of oils. If the demulsibilty test is suspect or fails, there are still ways to remove water
from the oil, but it does limit your options.
• RULER Test (ASTM D6971 and ASTM D4378) – This is a test that measures the remaining useful life of a lubricant. It measures the
antioxidants remaining in the oil, compared to the level in the oil when new. An alert is generated for oils with 35% life of the primary
antioxidant and an alarm comes at 25% life of that primary antioxidant.
• RPVOT Test (ASTM D2272) – This is a test that measures the oxidation resistance of an oil. This test is normally used for large volumes
of oil and on an annual basis. Typical cautionary limits for this test is 25% of its value when the oil is new. [2]
Keep in mind that many of the variables above can be resolved with proper care and filtration/water removal, which then becomes
an issue of whether it is feasible or economically viable to do so. The two characteristics that would not be able to be influenced by
filtration would be the viscosity and the additive depletion.
Obviously, cost has to be a consideration as well. I can remember a customer years ago that had an extremely high TAN number on
some fire resistant EHC fluid. Would it have been possible to clean up that fluid and reduce the TAN back to an acceptable level?
The answer is yes, they could have done it. However, if you look at the cost and time associated with that reduction, dumping the
fluid and starting with new fluid was the right answer. Once the new fluid is added, the preventative maintenance procedures and
proper equipment can be put in place to make sure that the fluid doesn’t get back to that same level of contamination in the future.
An effective program should have some guidelines in place to help make that decision, rather than trying to explore options when a
number is already in critical condition. This way efforts can be focused on being proactive and keeping the oil’s various
characteristics in good condition throughout the life of that oil.
Another factor is frequent testing of the asset. Too many times the frequency of testing doesn’t match the goals of keeping that
asset in the proper condition. Is the testing taking place once, twice a year? Are samples collected, then sitting at a desk for 30 days
before being shipped out for analysis? What good are the samples if they are not relevant? If there is an upset condition in a system
which would have been present in the oil sample, time is of the essence. Reaction 30-45 days later only gives the situation more
time to get out of control, thus resulting in even more damage to the system. A good and frequent sampling process is needed,
where the data is used to make real changes. Remember, the oil is the lifeblood of the system and clues to equipment degradation
can be seen faster in an oil sample than would ever be seen it in a vibration analysis.
 What are the main contaminants and effects of those contaminants?
Particulate – This is the most measured contaminant in oil, and if not controlled, can contribute to some very catastrophic results. However,
particle counts should not be a primary reason for oil disposal. With a good kidney-loop–inline filter combination, this contaminant can be
reduced to a very acceptable level. With proper testing and the assurance that the oil has not lost the key characteristics needed for proper
lubrication an oil can have a very long life. When considering cleanliness in a system, it does not take much to contaminate the system and
move ISO codes from clean to lightly contaminated to very contaminated. Look at the illustration below. It takes only 1 drop of oil that is
contaminated to a 25/23/21 ISO code to change a bottle sample (80 ml) of oil that is ultra clean (10/7/3) to an ISO code of 15/13/11. That
same drop would not move the needle on the ISO code of an oil that was already dirty, in the 18/15/12 range.

Water – Water can be the most damaging

Figure 4. Results of 1 highly contaminated drop of oil in an Oil Sample. Source: Klassen
Specialty Hydraulics
contaminant in any oil system and can lead to
shortened life of a bearing or gear, washing out
additives, even to quick catastrophic failures when
there becomes a high-water content in oil. The
saturation level of each oil type, along with normal
operating conditions, should be known and
understood. This saturation level is the amount of
dissolved water that the oil will hold and is
dependent on oil temperature. Water can show up
in 3 phases in oil, Free, Emulsified, and Dissolved.
Water can be reduced and controlled with good
maintenance practices and constant offline oil
filtration. Please keep in mind that prevention is
very critical here, as it does not take much water
to contaminate your fluid and create big problems
for your system. Like the illustration above with
the particulate, it would only take 1 drop of water
to take an 80 ml sample of oil with 0 ppm water up
to 625 ppm water content.
Figures 5&6. Results of bacteria and water in an oil reservoir (left) and a diesel fuel system (right).

<-0 PPM Water

1 drop added
625 ppm water ->

Figure 7. Results of 1 drop of water in an 80 ml sample. Source: Klassen Specialty Hydraulics

Acid – High acid numbers are a result of oxidation and can lead to
corrosion within a system. These numbers can be controlled and
are not an issue for many oils. Fire resistant fluids normally hold a
higher water content and are particularly susceptible to problems
with high acid numbers. The key here is to keep the number
down, rather than trying to correct the problem when the number
gets elevated.

Oxidation – Oxidation is the breakdown of the oil due to reaction

of the oil when heat, water, wear metals, which act as catalysts
and impact the oil. This oxidation can result in sludge and varnish
and is a huge factor in reducing the life of the oil. Figure 8. Results of varnish in a reservoir
So, how much life is possible?
As stated above, there are many factors and variables that will
determine the life of this newest known asset, oil. However,
consideration of what could be and what others have done and are
able to do with effective programs should be taken. A turbine oil in a
power plant or paper mill is an oil that is normally treated as an asset
and their maintenance departments have teams of people dedicated
to taking care of that asset and can easily last up to 2 decades or
more. What about hydraulic oil on an injection mold machine that has
been in service for 11 years, 19 years? How about a heavy gear oil
that was historically changed every two years to now 7+ years
without being changed (due to effective procedures and frequent
testing)? What about companies that introduce proper oil
maintenance procedures from the onset of a new piece of equipment Figure 9. Varnish plating out on machine components
and never change that oil throughout its lifecycle?
The results below (Figure 10), show oil samples drawn from reservoirs where they have done side by side comparisons with an oil
maintenance program in place, without the program, and impact after an oil maintenance program has ceased. When looking at oil change
intervals, high dirt environment sites like mine sites or cement plants, can flip the paradigm that says an oil change has to take place every
couple of months to up to 3 years between changes. The answer is dependent on the focus on the asset and putting the programs in place
to make the process changes possible.

Treating the entire system

System owners or maintenance professionals should take a holistic
approach to oil cleanliness. It is not uncommon for there to be “let
the filter handle it” mindset, which can be too reactive, slow in
response, and very expensive way to handle the problem.

These 6 areas should be considered:

• Inline filtration
• Offline filtration
• Breathers
• Seals
• Training

Without OM With OM 3 Months without OM • Good storage procedures.

Figure 10. Oil sample results with and without oil maintenance
programs in place
Inline Pressure Filters – A good Defense
Looking through the lens of a sports analogy, to win in most any competition takes a two-tier approach. A team or an individual must have an
effective defense and a good offense to win. Without playing both sides of the ball, it is very unlikely that the team or individual will be
successful. Inline oil filtration provides a good defense for your system. These inline pressure filters are designed to be a last-chance filter and
handle most of the catastrophic problems within a system but are very limited in what they can do. They can become overwhelmed in a very
dirty environment, which could lead to bypass situations for heavy dirt load and large particle issues. Many of these type filters do not provide
any protection against water ingress and oftentimes leach the contamination that they do trap whenever there is a start or stop on the machine
(pressure shock on the filter media). A typical inline filter in an oil system ranges from 6-30 microns and can have a multitude of different Beta
values (efficiencies). This filter provides a last-chance protection against large particles that make it downstream of the pump, prior to
contacting any critical system components. The inline filter is also designed to handle the entire flow rate of the system, to assure delivery of
enough volume to the critical system components. Much like a defense, an inline filter can limit your exposure to catastrophic failures, but
alone it is simply not enough to impact the life of this important asset.

Figure 11 – cross section of an inline filter Figure 12 – Inline Filter Element and media
Offline or Kidney-Loop filters
Offline filters should be considered the offense for this program. If
the decision has been made to extend the life of your oil and the
critical machine components, a good offline or kidney-loop
system is a must. A properly installed offline/kidney-loop filtration
system is one that utilizes fine filtration to remove multiple
contaminants and continuously clean all the oil, thus keeping the
oil and reservoir clean. These systems do not rely on the
equipment to be in operation and can be run 24/7 to keep the oil Figure 13 – Illustration of an offline filter
clean and dry all the time.
Breathers Figure 14 – Offline filter system
An oil reservoir has to breath. Just like a human body, it really does matter what the system is
breathing in, doesn’t it? The breather is there to protect the oil and system from outside
contaminants, while allowing the air to flow into the system as needed. If the system is pulling in
dust, dirt, and water, those contaminants either have to be removed by some method of filtration, or
they will impact the life of the oil and system components.

Seals
A great deal of time, effort, and money, can go into adding efficient filtration on all types of equipment and systems. One thing that
has become obvious to me when I am in plants that are having a high ingress of particulate and water is that if some companies
would only take care of tightening their system down, this would go a long way in protecting this equipment and assuring the life
of the oil. It only makes sense that, if possible, it is easier to keep the contamination out, than to remove the contamination after it
is in the oil. Best oil handling practices and tight systems will ensure a better and cleaner oil system.
Training
There is a big gap in knowledge in many of our manufacturing plants when it comes to proper oil maintenance. Some companies do a very
good job of proactively training their personnel and giving them a knowledge base that goes beyond just the daily activities of checking the
oil level and tapping off a reservoir. However, there are many companies that just aren’t that familiar with proper practices, procedures, and
the resources that are available to them, which could help them put together a good set of procedures and guidelines for the plant. Many
don’t even know what an ISO code is. If a person or department doesn’t know how to measure, what to look for, and how to solve those
issues that can be solved, there is no way that a successful oil maintenance program will be possible. That oil is then reduced to a
consumable instead, rather than an asset. If a program in not already in place, it is a good idea to look to industry experts and
organizations that share knowledge when it comes to these types of programs. These organizations are very willing to share their
knowledge about issues, many of which have already been solved, so others can capitalize on that experience to help speed their own
programs along.

Proper Storage
Well, here is an easy one that can help take care of the asset. Proper storage,
labeling, and transportation can be achieved and should be a part of any oil
maintenance program. Keeping the oil as clean as possible when filling equipment is
key. Making the investment in expensive filtration equipment and testing doesn’t
really make much sense if dirt encrusted buckets or “empty” water bottles are used
as filling devices. Also, proper labeling will help prevent mixing of oils and cross
contamination of oil systems. Don’t make the mistake that one of my customers did
by putting a used drum in the new oil storage area, without labeling. The drum was
left in the yard open, and not only did it contain the contamination that was in it when Figure 15. Photo of oil drum outside in
it was pulled out of service, but also rainwater from several weeks out in the the rain, Source: Noria Corp.
elements. This one drum contaminated their entire system, which had to be drained
and refilled. Additionally, filtration of oil while in a storage area, prior to use, is a great
way to ensure good cleanliness.
Equipment ISO Code Recommendation Equipment ISO Code Recommendation
Roller Bearings 16/14/11 Diesel Fuel 18/16/13
Journal Bearings 17/15/12 Paper Machine 16/13/10
Industrial Gearbox 17/14/12 Hydraulic Systems 16/14/11
Critical Gearbox 16/14/11 Quench Oils 19/18/14

*If a current filtration system that utilizes inline filtration only does not provide the recommended
cleanliness level for the fluids above, a good combination of inline and offline/kidney loop filtration
should be considered.

Figure 16. Noria Cleanliness Chart

Figure 17: Life Extension Table

Conclusion
With increasing demand happening simultaneously as maintenance resources are decreasing, modern day equipment demands that
professionals change their mindset on maintenance procedures. No longer can companies afford to do things the way that they have
always been done. The focus must shift from looking at a calendar for making decisions, to looking at test reports and actual real
time conditions to guide decision making. Not only will that mindset extend the life of the oil, (2-4 times on average), but a new
multifaceted approach to maintaining this asset will have the added benefit of extending the life of the equipment that it is designed
to protect.
References
[1] Jim Thomas, Mining Lubrication Applications, Lubrications Engineers, Scottsdale, Arizona
[2] Michael Barrett, Karrie Williams, “Oil Analysis for Dummies”, Insight Services, Inc., Cleveland, Ohio