Ecosky-3103 vs petroleum-based process oils: supply chain risk

Petroleum-based process oils such as TDAE and MES are refining products of crude oil, and crude oil supply is concentrated through a small number of maritime chokepoints, the largest being the Strait of Hormuz. Ecosky-3103, by contrast, is made from tall oil, a by-product of the paper industry, so its feedstock comes from a different industry and a different geography. A formulator who switches to Ecosky-3103 is not just choosing a lower-carbon process oil; they are also diversifying a concentration risk that priced out sharply in 2026.

What are petroleum process oils exposed to?

TDAE and MES are aromatic extracts from crude oil refining, and their supply is tied directly to the crude oil market. Per U.S. Energy Information Administration (EIA) data, before 2026 roughly one-fifth (about 20%) of world petroleum-liquids consumption, and over 20% of world LNG trade, moved through the Strait of Hormuz. EIA's quarterly figures put that flow at around 21.6 million barrels a day in the fourth quarter of 2025.

The Strait of Hormuz is the main export route for oil from Saudi Arabia, the UAE, Kuwait, Qatar, Iraq, Bahrain and Iran, and most of that oil is bound for Asian markets. The strait had been threatened many times in the past, but before 2026 it had never actually been closed to shipping in practice.

The 2026 disruption in the Strait of Hormuz

Per EIA data, crude oil and petroleum-liquids flow through the Strait of Hormuz fell from about 21.6 million barrels a day in the fourth quarter of 2025 to about 4.9 million barrels a day in the second quarter of 2026. EIA-sourced reporting describes a supply loss of about 10.1 million barrels a day in March 2026, characterised as the largest oil supply shock on record. Brent crude rose by roughly two-thirds (about 65%) in a single month in 2026, widely reported as the largest one-month percentage gain in the history of the Brent benchmark. The exact peak price varies by source, with figures reported roughly in the $118-126 a barrel range; the two-thirds one-month gain is the figure that stays consistent across sources. Over the same period, additional risk insurance premiums for tankers transiting the strait rose from roughly a tenth of a percent of a ship's hull value to several percent, a large multiple reported across trade press. During the worst of the disruption, the number of vessels carrying crude oil and LNG through the strait also fell by more than 90%, per reporting citing trade data.

Where does Ecosky-3103's feedstock actually come from?

The feedstock behind Ecosky-3103, tall oil, is a forest-derived by-product of kraft (sulphate) pulp production. Its supply tracks the output of pulp mills, concentrated mainly in Northern Europe (Sweden and Finland) and North America, not the crude oil market or Middle East shipping lanes. That is a different supply chain and geography, one that does not depend on the Strait of Hormuz.

This does not mean the supply is entirely risk-free. Tall oil derivatives still move largely by sea, like most bulk chemical feedstock, and carry their own logistics variables. Switching to Ecosky-3103 does not eliminate supply risk; it reduces the formulation's concentrated dependence on the Middle East shipping chokepoint and on crude oil price swings.

Comparing supply and price risk

The table below summarises how the two process oil families differ on supply geography, dependence on the Strait of Hormuz and price exposure. For the detailed carbon footprint figures, see the Ecosky-3103 vs TDAE comparison article.

A gradual switch: full replacement is not required

Diversifying supply risk does not require changing the whole formulation at once. Ecosky-3103 blends with TDAE, MES and naphthenic process oils in any ratio. The typical use range is 20-60 phr, and you can start at the same phr as the petroleum-based oil it replaces, then increase the ratio step by step once mix viscosity, filler dispersion and cure time are verified.

• Start by replacing part of the existing TDAE/MES dosage with Ecosky-3103, for example 20-30% of the total process oil.
• Verify mix viscosity, filler (carbon black/silica) dispersion and cure time (t90).
• If results meet target values, increase the Ecosky-3103 ratio step by step.
• Move to a full replacement if eliminating the concentration risk is the goal; keep blending if partial diversification is enough.

When to blend partially, when to switch fully?

If diversifying supply risk is the only goal, starting with a partial blend and increasing the ratio over time is the practical way to reduce exposure without disrupting existing supplier relationships. If there are additional goals too, such as a carbon footprint claim, an out-of-EUDR-scope position or bio-based content, a full replacement delivers all of these in one step.

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