|SIn addition to distillation capacity,
downstream unit capacity has also grown.
This graph illustrates that distillation capacity has grown to
maintain balanced refinery operations in that FCC and distillation capacity
growth are very similar.
|SCoking and hydrocracking can be changed to
accommodate different types of crude feeds and alter product mix, but may
need little associated distillation capacity growth. However, some distillation capacity
increase is fairly common in conjunction with coker projects.
|SIn recent years, refiners have been
increasing treating capacity to lower product fuel suflur and improve other
product qualities. During this time,
we have seen little change in distillation capacity.
|SWhat this tells us is that historically there
has been a much stronger link between conversion capacity growth and primary
distillation capacity growth than with increased treating capacity increases.
|SThis implies that with refiners focusing on
treating capacity right now, the United States may see little distillation
capacity increase for another year or two.