Overview
•Diesel price advantage expected to diminish – but timing/degree uncertain
•Europe is important influence on diesel prices, and provides insight into potential U.S. diesel-fueled LDV growth
•Even under high growth scenarios, LDV impacts on diesel volumes minimal over next decade
•Assuming U.S. does not move to separate quality LDV diesel fuel, growth in diesel LDV’s should not create refining constraints in near term
SI will use the remaining slides in this presentation to discuss why the diesel price advantage over gasoline may be diminishing, and why Europe will be an important market to watch in this regard.

SEurope’s experience with diesel-fueled light-duty diesel vehicles also provides some insights into the potential for growth in the U.S.

SI will then explore two high growth scenarios for diesel light duty vehicles, and illustrate that at least for the next 10 years, increased diesel volumes from this market segment should not create any refinery problems.

SAnd last, I come to the conclusion that in the short term (next 10 years), the growth in diesel-fueled light duty vehicles in the U.S. should not be the cause of any major refinery constraints.