Europe: 1995-2004 -- Summary
•Diesel demand growing and gasoline demand declining
•European refiners production mix -- too much gasoline, too little diesel
•Hydrocrackers being built to increase diesel yield, but not keeping up with demand shift
•Historically, Europe achieved balance by finding economic import sources for distillates and export destination for gasoline
•Future: Still see increasing gasoline exports for some time – but will economic distillate imports be available – especially ULSD imports? 
S This slide summarizes what we have seen in looking at the European side of the Atlantic before turning to the U.S. and the connections between these two regions.

SAs we look to the future, Europe’s challenge will  be how best to continue meeting its distillate demand growth.  Its traditional  sources of imports (Former Soviet Union and Middle East)  may be limited in their ability to increase supply, particularly now that Europe has moved to low sulfur diesel.  Europe is a major market force in the Atlantic Basin, and as its need for distillate increases, the relative price of diesel and gasoline may change, and any price pressure will be felt in the United States.