API lowered the standards too quickly.......(IMHO)

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I think you need to read the article a little more closely. It cites the API relaxed rules as one of the reasons the predicted base oil shortage never materialized. By relaxing the standard and allowing the use of Group I, a whole other source of base oil was opened up that would have otherwise not been an option.
 
I still think that they would have been more sensible reccommending a one off "Let this oil change run to 4,000 instead of 3,000 miles".

Instant, one off drop in consumption, and no real effect on the consumer.

(Did they drop the price of the lubes with the lower grade basestocks ?)
 
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