|SStepping back, this chart shows Europe’s large share of
distillate production in its refineries, relative to gasoline. In addition it highlights the large of
amount of residual fuel being produced.
|SEurope’s refinery mix is striving to meet the high
distillate demand need, but as previously discussed, falls short, and ends up
producing larger surplus gasoline volumes than in the past.
|SIn contrast, U.S. refining output is designed for gasoline
production and very little production of residual fuel oil. The refining output is roughly proportional
to its refined product demand. However
the U.S. does import products. For
example, imports of gasoline, distillate and residual fuel oil averaged about
1.5 million barrels per day in 2005, but gasoline (including gasoline
blending components) represented over 60% of that volume.
|S U.S. gasoline demand is 48% of total product demand, and
is comparable to Europe’s 48% of distillate demand. Yet U.S. gasoline plus distillate represent
79% of total product demand, while Europe’s gasoline plus distillate only
represent a 66% share of its product demand.
Residual fuel in Europe represents 2.5 to 3 times the U.S. residual
fuel demand, but is declining.
Furthermore, bunker residual fuel demand may be significantly impacted
by possible new sulfur requirements.