Balancing Demand and Supply with Trade Flows – An Option to Investment
•Changing trade flows are an important means of balancing product supply with demand, and are weighed against investments to meet demand
•Historically, economics favored Europe sending excess gasoline to U.S. rather than investing to reduce gasoline production
•And U.S. suppliers used excess European supply rather than investing in more gasoline production
•But Europe has had to seek out other markets for its growing gasoline exports
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SChanging trade flows are an option to investment.  The U.S. has seen that in our relationship with Europe.

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 this route.

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.