RECYCLE OIL. Used oil, or ‘sump oil’ as it is sometimes called, should not be thrown away. Although it gets dirty, used oil can be cleaned of contaminants so it can be recycled again and again. There are many uses for recycled used oil. Industrial burner oil, where the used oil is dewatered, filtered and demineralised for use in industrial burners; Mould oil to help release products from their moulds (e.g. pressed metal products, concrete); Hydraulic oil; Bitumen based products; An additive in manufactured products; or Re-refined base oil for use as a lubricant, hydraulic or transformer oil. Once you have taken your used oil to your local collection facility, used oil collectors take the used oil and undertake some pre-treatment and recycling of the used oil or sell it to a specialised used oil recycler.