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The newer grade oil has great longevity. The oil life indicator system takes into affect, The system itself uses an algorithm that tracks engine revolutions and temperature and predicts oil life based on these parameters and driver use. It looks at temp of oil when the engine is started, how long it runs at operating condition, etc. You will notice that in cold weather, the oil life system will turn on at an earlier mileage then during warm weather driving.
If you do a lot of short drives in the winter, it will turn on sooner. It knows that the engine oil has to be at a certain temp for a specified time period in order to burn off moisture from condensation.
Just remember, the algorithms are created on a particular grade of oil, than is specified in the owner's manual.
Failure to use this grade, or a better grade, will cause the oil life monitor to be inaccurate.