Uncertain Factors Affect
Capacity Decisions, But Can Learn From History
Capacity
Feedstock
Demand
Imports
Future Regulations
Alternative or Substitute Fuels
Competing Investment Requirements
S In looking at the need for new capacity, we
recognize that many factors influence each company’s decision.Two significant factors are future demand
and the marginal or most economic sources of supply to meet demand.
SFor today’s discussions I will focus on
–Historical demand for petroleum and what
insights history can provide on the potential for future demand changes;
–What seems to be happening to our sources of
product imports – in particular gasoline;
–What historical changes to U.S. capacity can
tell us about potential future changes.