|SThis presentation will explore the changing environment for
refining investments and product trade which in one sense is simply an
option for investment.
|SThe slides will be focusing on the Atlantic Basin
market. While we frequently only show
data for and talk about the U.S., the market of relevance really is the
Atlantic Basin in particular Europe and the U.S., which function together
as will be discussed.
|SIn particular, the presentation will explore the major
drivers of investments and trade, such as
|Demand growth which drives the need for distillation
|Changing mix in products, especially increasing distillate
fuel and decreasing gasoline which encourages changes in investment in
refining units downstream of the distillation unit
|Crude oil price and the light-heavy crude oil price
difference which impact feedstock changes
|Margins or profitability Ultimately, the bottom line
determines if cash and adequate returns warrant investment or on the other
|SIve chosen to discuss these topics from a time-line
perspective, beginning with the longer term trends and outlooks seen in early
2007, then reviewing what the recent recession has done, and finally
attempting to sort out what trends remain and what trends have shifted or
seem to have experienced a kink sending it in a new direction.