SIn response to the market shift from gasoline to diesel fuel, European refiners have increased hydrocracking capacity to increase production of diesel compared to gasoline.  Since 1990, hydrocracking as a percent of distillation capacity has increased from 2% to almost 7%, while FCC capacity as a percent of distillation has leveled at about 16%.
	SDespite the growth in hydrodcracking capacity, the deficit in diesel production compared to demand and the excess in gasoline production has continued to grow.  This is expected to continue for some time, even with continued hydrocracking capacity growth.
	SThis implies that Western Europe may be able to provide the United States with higher imports in the near future, to some limited extent.
	SAlso, as both European and U.S. gasoline specifications become more stringent, more Eastern European refiners may have the incentive to upgrade as well.