|STo meet the increase in distillate demand of 784 thousand
barrels per day between 1999 and 2006:
|–OECD European refineries shifted production to maximize distillate
production and made some investments in hydrocracking.
|–They also did not increase kerojet production to keep up with rising
demand for that product.
|–The result was an increase in distillate fuel imports of 403 thousand
barrels per day and kerojet imports of 271 thousand barrels per day, for a
total distillate and kerojet import increase of 674 thousand barrels per day.
|SAs can be seen, the increase in distillate yield was 2.8%,
while gasoline yield only declined 0.6%, indicating that the increase in
distillate yield did not come primarily from a shift from gasoline
|SFrom a review of European refinery projects in the planning
stages, most of those projects with increased distillate yield are achieving
that increase from improved conversion – reducing residual fuel oil
production and showing little change in gasoline production. Thus, the gasoline excess in Europe will
grow as gasoline demand declines.