|SLooking more closely at U.S. supply of gasoline, not only
did production fall with demand, so did imports. Gasoline imports declined both in 2008 and
again in 2009. The declines have been
divided relatively proportionally among the major import sources (Virgin
Islands, Canada, and Western Europe).
|SWhile the location of Canada and the Virgin Islands might
appear to provide a competitive advantage for these areas over Europe, it is
not clear that will be the case in the future. Europe has gasoline to place that is
essentially a by-product, and that gasoline will be priced to compete.
|SGasoline imports should continue to be competitive with
U.S. produced gasoline in the future.
In Europe’s situation, the volumes that compete in the U.S. will
depend on Europe’s ability to dispose of its excess gasoline in other areas
of the world.