|SDemand in the U.S. has been growing, driven by
light product demand – in particular transportation demand. (Residual fuel is about 4% of finished
product demand, compared to 8% in 1990.)
|SThe expected light product demand increase
this year is close to 400 thousand barrels per day, and is expected to be
about 300 thousand barrels per day next year.
|SLooking ahead, if total petroleum demand
increases about 1.5% annually over the next 5 to 10 years, as we have
experienced historically, we will need on average about 250 thousand barrels
per day of new capacity each year in the U.S. or added volumes from imports
to meet that demand growth.
|SSo where might that supply come from?