Questions
•What drove crude prices up in 2004?
•What caused the light-heavy crude price differences to change in the short run?
•What role did refinery capacity and heavy crude oil production play in 2004 light-heavy crude oil price differentials? 
•Are higher refinery margins going to continue in the future and what lies ahead for refinery capacity?
SThe remainder of this presentation will explain the increases in prices, margins and differentials by addressing four questions, beginning with what was behind the crude price increase this past year.

SThat will be followed by a discussion on the major drivers behind light-heavy crude oil price spreads in 2004.

SAs the third bullet indicates, the next section will explore the role that refinery capacity and the extra volumes of heavy crude oil may have played.   In 2004, concerns were raised that a “mismatch” between the type of crude oil available and refinery capacity to use that crude oil was having significant price implications.

SAnd finally, the presentation will explore refinery margins and what all of these findings imply for the future.