|SThis chart quantifies the gasoline and distillate
imbalances in Europe. Distillate
products (diesel, heating oil, and jet fuel) are imported in increasing
quantities, and excess gasoline is exported in increasing quantities, despite
recent hydrocracking investments.
|SIn 2004, the Former Soviet Union countries supplied about ¾
of Europe’s diesel and gas oil imports.
|SThe U.S. East Coast has been the principal market for
Europe’s gasoline exports, taking ¾ of Europe’s export volumes. In 2006, the elimination of MTBE from RFG
on the East Coast added a challenge for Europe’s gasoline exporters to the
U.S., which was met as the U.S. has become a critical market for European
|SLooking to the future, Europe’s distillate imports may be
more difficult to locate as European sulfur specifications are lowered for a
few years. After 2010, new refinery
projects in the Middle East and India will look to Europe as a market for
their increased diesel export capability.
But Europe may still be competing with Asia for those product barrels.