Where’s the Oil?

Posted on 09/28/11 2 Comments

While some might say we’ve seen “Peak Waste Vegetable Oil”, there is still plenty of oil out there to be had.  Sure, the days are gone where individuals randomly poach a restaurant’s waste oil by offering free collection, but when folks can offer 10 cents a gallon to secure a restaurant into a contract, then it might as well be free.

I am by no means a proponent of paying for Waste Vegetable Oil, but I am saying that it’s available for the individual if you want it(and how could you not want fuel independence and your exhaust smelling like french fries).  The oil is around.  Billions of gallons a year are being dumped into containers behind restaurants every year.  The difference now is that oil is more of a commodity.  It’s fetching $2.50+ for unfiltered yellow grease.   Companies, entrepreneurs, and restaurant owners know it now has value and that has changed the game.

Are we to curdle up and wallow in hydrogenated fat about this development, casting out our fine tuned processors and modified vehicles because it actually takes creativity and effort to find oil?   Well, if you want everything in life to be simple and competition scares you, then yes, give it up.   But, if you like the idea of super-cheap fuel and running your vehicle on oil, and can handle some adversity, then step up to the challenge.

We greasers have had to adopt a different angle, or competitive advantage at securing our liquid gold.  It’s not hard to come up with solutions once we get over the fact that no one is going to hand us oil.

Here are some tips for attaining oil:

  • Market research – Find out who has the monopoly on the restaurants in the area.  Are the restaurants being paid for their oil?  Are the potential contracts legitimate or can the restaurant change services whenever they like?  Do the restaurants like their service?
  • Professionalism – Don’t show up in greasy clothes with some old buckets asking for a restaurants oil.  It would help to be in nice attire and have some printed literature to show the potential client you are seeking to establish a business relationship with.
  • Add Value – If you provide the restaurant with a value added service, it will be received better than just taking their trash/commodity and give an advantage over the big guys.  Some ways to add value to your collection service would be powerwashing the dumpster area, eating there with friends, marketing promotion(having a decal on your vehicle), oil filtration, massages for staff, and on and on and on.   You can also stress the importance of keeping resources local, using oil to fuel local vehicles instead of feeding cattle in Argentina.
So, what are your experiences, tips and successful tactics?
Also, check out our WVO Sourcing and Collecting pages for more sourcing and collecting tips, sample contracts and products.

 

-Jason Jelonek
WVO Designs

2 Comments

  1. Graydon Blair says:
    Wednesday, September 28, 2011 at 1:12am

    Here’s a website that I monitor the commodity price of waste vegetable oil at.
    http://www.ams.usda.gov/mnreports/lswagenergy.pdf

    It’s put out by the USDA every Friday.
    As of Friday, Sep. 23rd, Yellow Grease is running at $0.45/lb. There’s 7.5 lbs to a gallon, so that makes the trading commodity price of yellow grease worth right around $3.38/gallon. Yellow Grease is just another name for waste vegetable oil.

    However, while that is indeed high, I’m estimating it to go down at the beginning of 2012 on the assumption that the Biodiesel $1/gallon Tax Credit won’t get renewed. I’m also seeing RIN values dropping in the last few weeks, which should also start lowering the price commercial Biodiesel plants are willing to pay for WVO.

    This, hopefully, will lower the value of WVO on the commodity market and thereby ease the competition we’re having with commercial oil collection groups who are paying restaurants sometimes upwards of $1.00 to $1.50/gal for their grease.

    Reply

  2. Randall says:
    Thursday, November 3, 2011 at 9:42am

    I am paying 2.00 bucks a container from one place to secure the deal. I think it works out to .45 a gallon or so. I also found another deal on really clean food grade quality oil from a sausage place for 10 bucks a container but I haven’t followed up on the deal. Seems really expensive at 2.20 bucks a gallon to me but if it’s as clean as they claim could be worth the money in the long run.

    I just hate to spend the money when I can get decent WVO for free or much less. =]

    Randall – WW5RM

    Reply

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