Denver--As the crude-oil prices ripple through the U.S. economy, many repair shop owners are seeking vendors and products that offer value to customers. Colorado Petroleum, a Denver-based lubricant manufacturer and marketer with locations in Phoenix and Tucson, recently launched Silver State synthetic motor oil, providing service outlets with a "fighting grade" synthetic not sold in parts stores.
Many motorists are unwilling to pay $8 to $10 a quart for premium motor oil, said Clark Thompson, president of Colorado Petroleum. Silver State is a "fighting grade" synthetic that is less expensive and sold exclusively through repair shops, dealer service departments and quick lubes.
Since many consumers are not aware of the benefits of synthetic motor oil, it needs to be sold by professionals, Thompson said. The synthetic is initially being sold as 5W30, with plans to introduce 10W30, 5W20, and gasoline-saving 0W20, he said.
"There's been a big increase in the synthetic business today," he said. "This is mainly driven by OEMs promoting longer drain intervals." What many motorists don't realize is that those drain intervals are conditional, he said, based on motor oil used and local driving conditions.
Colorado Petroleum's Silver State synthetic also contains a specially formulated ester, Thompson said, an ingredient found in most high-mileage motor oils. "It enables the product to adhere better as well as control seal swell." It also includes a special viscosity index improver, which is manufactured at the Tucson facility, he added.

Using service dealers to market the Silver State synthetic oil enables Colorado Petroleum to eliminate marketing costs, which drives up the cost of many competing brands, Sales Representative Tim Hourigan said. "It allows us to push the envelope and offer something that's price competitive."
Service dealers who sell synthetic deserve to make a profit, Thompson said. Colorado Petroleum offers the synthetic oil in bulk, which keeps its price down, eliminating the cost associated with quart containers, he said, adding that the company does not require minimum orders.
The research and development process on the synthetic took more than a year, Thompson said, adding that it meets International Lubricant Standardization and Approval Committee (ILSAC) standards. The company is also licensed by the American Petroleum Institute (API). Silver State synthetic is offered in conjunction with Colorado Petroleum's other brands, which include Castrol, Kendall, and Rugged.
Colorado Petroleum plans to introduce synthetic gear fluid at 75W90 and 75W140 as well as a synthetic automatic transmission fluid (ATF), Thompson added. In addition, he said the company is preparing to move its Denver facility to a larger, nearby location sometime during the first quarter of 2009.






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