A cutting fluid, usually an oil or emulsion of a lubricating phase (oil, graphite, and so on) in water, is traditionally used in machining operations to reduce heat generated by friction, to lubricate, and to flush away chips (residual cut metal). The costs of maintenance, record keeping, and compliance with current and proposed regulations are rapidly boosting the expense of using cutting fluids. In 1980, cutting fluids and their disposal accounted for less than 3% of the cost of most machining processes. Today, cutting fluids account for as much as 16% of the cost of a machined part because of increased costs and stringent environmental regulations. In contrast, tooling accounts for only about 4% of that same part.