Re-refiners who use waste oil as a lubricating-oil feedstock and users who burn it are competing for limited supplies. If a new and more efficient re-refining method that increases the reclaimed product from 60 to 90% gets DOE approval, the re-refiners will be able to outbid users. Tighter environmental standards for using waste oils will also favor re-refining by making burning uneconomical and unacceptable. Interviews with waste oil users indicate they plan to continue burning it as long as possible. Some collectors and reprocessors mix contaminants and hazardous industrial wastes with the oil, making the purchase of waste oil an uncertain process requiring precautions. Users disagree on the value of regulations to maintain quality. (DCK)