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Baker & O’Brien Presents Views on Increased Refined Product Exports at Platts Conference

May 22, 2012

Refined product exports from the U.S. have increased at a 19% average annual growth rate since January 2010, led by a 49% annual growth rate in ULSD exports over the period. While ULSD exports are projected by Baker &O’Brien to grow by 20-30% annually for the next two years, gasoline exports are anticipated to slow to an annual growth rate of 5-10% as Mexican gasoline imports stabilize at current levels. Baker & O’Brien estimates that the competitive advantage for U.S. refiners in ULSD production is $1.50 to $2.00 per barrel compared to European refiners based on lower hydrogen costs as a result of lower natural gas supply costs. Europe and Latin American both remain strong growth markets for U.S ULSD exports.

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