Balancing Demand and Supply
with Trade Flows – An Option to Investment
flows are an important means of balancing product supply
with demand, and are weighed against investments to meet
economics favored Europe sending excess gasoline to U.S.
rather than investing to reduce gasoline production
U.S. suppliers used excess European supply rather than investing in more
Europe has had to seek out other markets for its growing gasoline
SChanging trade flows are an option to investment.The U.S. has seen that in our relationship
SHistorically, it has been more economic for Europe to
export gasoline to the United States than to invest in shifting yields from
gasoline to distillates.The U.S. was
a ready, relatively close market that paid enough for the gasoline to pursue
SAs Europe’s demand for gasoline declined, it needs to
export more and more product.Much of
Europe’s increased export volumes in recent years have found markets other
than in the U.S.
SStill, large investment projects are planned in Europe and
the U.S., which will be described later.