2004: A Year of Highs
•High Prices
•High Price Differentials
•High Margins
•
SThe three variables shown on this slide affect refiners’ financial performance, and thus affect investment plans.  While high crude oil prices affect feedstock costs, the high margins and light-heavy price differentials are primary incentives for adding refinery capacity.

SThe balloon helps to remind us that, while such prices and margins are currently up, the path will eventually return to earth.  But will it be after a trip round the world or simply after a two hour tour?