This paper focuses on waste automotive and industrial oil as a prospective candidate for greater recycling and reclamation. Although lubricating oils represent only 1% of the total domestic petroleum production, conservation can result in significant gains. For example, to produce this oil from new crude reserves would take an investment of perhaps $80 million in refinery capacity and an exploration, development, and production investment exceeding $3 billion. The present primary end uses of waste oil and the techniques required to reclaim waste oil are described. The major impediments to greater waste oil usage are analyzed including the following factors: economics, technology, waste oil collection, government actions, and environment quality problems. Federal policy proposals are presented to encourage more widespread reclamation of waste oil.