SUntil relatively recently, supply increases could come from the U.S., since we had excess refining capacity.  However demand caught up with U.S. refining capacity about the mid 1990’s.
	SSince that time we have seen increases in capacity.  In the last 10 years, capacity has increased about 1.9 MMB/D, or on average about 190 thousand barrels per day each year, which is equivalent to about one medium sized refinery each year.
	SBut that expansion has not been even.  During the last few years, capacity expansion slowed, probably due to several factors, such as:
		–Resource constraints as refiners direct both dollars and resources to the large changes that must be made to accommodate the low sulfur fuel programs; and
		–Availability of economic product imports.
	SIn addition to distillation capacity expansion, we also have seen expansion in units downstream from the distillation unit, which increases yield of light products.
	SBut has that expansion met U.S. demand growth, and will it meet demand growth in the future?