It is advised to hand over the drained oil to oil recycling centre,what happens to that used oil. I have seen a few sellers selling very cheap engine oil,do they recycle it and sell it in a new container? What is the life cycle of a used oil.
Answers to this question will be specific to the locale and the their regulations or laws.
Many places that take the used oil, will sell it to organizations or individuals who use it as fuel for vehicles, burn it in furnaces for heat, or to generate electricity.
According to the American Petroleum Institute, in America;
The oil you take to a collection center to be recycled saves energy. It can be reprocessed and used in furnaces for heat or in power plants to generate electricity for homes, schools, and businesses. It can also be sent to a refinery that specializes in processing used oil and re-refined into lubricating base oils that can be used to formulate engine oils meeting API specifications.
We would have no idea what your local recycle center does with the oil.