|SEurope and the U.S. represent the major
refining centers of the Atlantic Basin.
They both run at fairly high utilization, but this is not
unusual. While both regions have increased
utilizations over the drop seen in 2002, in 2004 Europe and the U.S.
utilizations were not as high as seen in 1998.
|SWhile this graphic shows that refinery
capacity has not “maxed out” in the U.S. under normal conditions -- dealing
with unusual hurricane damage that resulted in an average loss of 12-13% of
U.S. crude input capacity for two months is a major problem!
|SStepping back from the hurricanes, we need to look at the
underlying changes taking place in the Atlantic Basin. The relationship between EU-15 oil product
demand and refining capacity has shown little change since 1998, and European
concerns about global warming have created efforts directed at demand
declines in the future. But beneath the picture of total utilization, there
are stresses in meeting the demand for a changing mix of transportation and
|SFor many years, both the U.S. and Europe have
relied on imports as well as local refinery production for supply of certain
products. Those product imports are an
increasingly important component of refined product supply for Europe and the
U.S. and will be covered in detail in this presentation.