US refiners will need to be able to export more products to offset falling domestic gasoline demand. Gasoline is two thirds of what refineries produce. The only thing that’s keeping US refineries going is exports.
Latin American refining infrastructure investments have not kept pace with those in the US, which has created opportunities to export products to Mexico in particular. Recent proposals to reform that country’s energy regime could have an impact, but its extent is far from certain, he indicated.
US policymakers will need to address problems with the federal Renewable Fuel Standard and other regulations before US refiners are able to fully realize product export opportunities. RFS’s expanded ethanol mandates under the Energy Independence and Security Act have become increasingly unworkable as US crude production has grown and gasoline demand has declined.