U.S. Demand Growing for Both Gasoline and Distillate
Gasoline
Distillate
Source: EIA, Annual Energy Outlook 2005
SGasoline and distillate demand growth in the U.S. is very different compared to Europe.  Not only is gasoline demand higher than distillate (and diesel), but in the U.S. both products are growing at similar rates.
–U.S. distillate annual growth from 1995 to 2004 averaged 2.1% and gasoline demand increased annually at 1.7%.
–As a result, distillate’s share of the light product market increased slightly.

SIn spite of similar growth patterns, the increased demand for gasoline and distillate was supplied in different ways.  About half of gasoline growth in recent years has been supplied with product imports, whereas distillate growth has been met through both increased capacity and increased yields.

SNow we will  explore whether or not increased penetration of diesel-fueled light duty vehicles could face refinery production constraints for diesel fuel that might hinder such a path.