1. ULSD Workshop November 20-21, 2002 Houston, TX Transition to 15 ppm ULSD

2. 2 Experiences to Draw on Annual RVP change over – since 1989

3. 3 Experiences to Draw on Annual RVP change over – since 1989 Introduction of Oxygenated Gasoline – 1992

4. 4 Experiences to Draw on Annual RVP change over – since 1989 Introduction of Oxygenated Gasoline – 1992 Introduction of low sulfur diesel fuel – 1993

5. 5 Experiences to Draw on Annual RVP change over – since 1989 Introduction of Oxygenated Gasoline – 1992 Introduction of low sulfur diesel fuel – 1993 Introduction of Simple Model RFG – 1995

6. 6 Experiences to Draw on Annual RVP change over – since 1989 Introduction of Oxygenated Gasoline – 1992 Introduction of low sulfur diesel fuel – 1993 Introduction of Simple Model RFG – 1995 Introduction of Complex Model RFG – 1998

7. 7 After Further Review Annual RVP change over – since 1989 –Can produce blends below the maximum RVP to facilitate turn over

8. 8 After Further Review Annual RVP change over – since 1989 Introduction of Oxygenated Gasoline – 1992 –Plenty of room between maximum oxygen limit and minimum specification requirement

9. 9 After Further Review Annual RVP change over – since 1989 Introduction of Oxygenated Gasoline – 1992 Introduction of Simple Model RFG – 1995 –Very similar to RVP change over

10. 10 After Further Review Annual RVP change over – since 1989 Introduction of Oxygenated Gasoline – 1992 Introduction of Simple Model RFG – 1995 Introduction of Complex Model RFG – 1998 –Again, very similar to RVP change over

11. 11 After Further Review Annual RVP change over – since 1989 Introduction of Oxygenated Gasoline – 1992 Introduction of Simple Model RFG – 1995 Introduction of Complex Model RFG – 1998 Introduction of Low Sulfur Diesel Fuel – 1993 –Some things are the same –Some things are different

12. 12 After Further, Further Review Introduction of low sulfur diesel fuel in 1993 will be the closest parallel for ULSD

13. 13 Things That Are The Same Introduction of new product

14. 14 Things That Are The Same Introduction of new product Drop dead compliance date

15. 15 Things That Are The Same Introduction of new product Drop dead compliance date Immediate demand for product

16. 16 Things That Are The Same Introduction of new product Drop dead compliance date Immediate demand for product Choices to make

17. 17 Things That Are The Same Introduction of new product Drop dead compliance date Immediate demand for product Choices to make Adjustments to operations

18. 18 Things That Are The Same Introduction of new product Drop dead compliance date Immediate demand for product Choices to make Adjustments to operations Division of facilities or new construction

19. 19 Things That Are Different Competing product still being marketed

20. 20 Things That Are Different Competing product still being marketed Refinery Production is regulated 80/20, 100/0

21. 21 Things That Are Different Competing product still being marketed Refinery Production is regulated 80/20, 100/0 Initial need (verses demand) is zero, demand is…

22. 22 Things That Are Different Competing product still being marketed Refinery Production is regulated 80/20, 100/0 Initial need (verses demand) is zero, demand is… Choices are short term

23. 23 Things That Are Different Competing product still being marketed Refinery Production is regulated 80/20, 100/0 Initial need (verses demand) is zero, demand is… Choices are short term Radical changes to operations

24. 24 Things That Are Different Competing product still being marketed Refinery Production is regulated 80/20, 100/0 Initial need (verses demand) is zero, demand is… Choices are short term Radical changes to operations Sulfur Credits

25. 25 Things That Are Different Competing product still being marketed Refinery Production is regulated 80/20, 100/0 Initial need (verses demand) is zero, demand is… Choices are short term Radical changes to operations Sulfur Credits Small refinery exclusion

26. 26 Things That Are Different Competing product still being marketed Refinery Production is regulated 80/20, 100/0 Initial need (verses demand) is zero, demand is… Choices are short term Radical changes to operations Sulfur Credits Small refinery exclusion Degrees of magnitude 3000 – 500 vs 400 - 15

27. 27 Physical Transition, Initial staging June 1 – July ?

28. 28 Physical Transition, Initial staging June 1 – July ? Won’t be without problems

29. 29 Physical Transition, Initial staging June 1 – July ? Won’t be without problems We have “outs” at this point

30. 30 Physical Transition, Initial staging June 1 – July ? Won’t be without problems We have “outs” at this point –Downgrades – Little or no demand – Time

31. 31 Now Things Get Interesting July ? – August 31

32. 32 Now Things Get Interesting July ? – August 31 Pace of downstream conversions

33. 33 Now Things Get Interesting July ? – August 31 Pace of downstream conversions Who/how many will handle both products?

34. 34 Now Things Get Interesting July ? – August 31 Pace of downstream conversions Who/how many will handle both products? Price differential vs inventory

35. 35 Now Things Get Interesting July ? – August 31 Pace of downstream conversions Who/how many will handle both products? Price differential vs inventory Use of Credits?

36. 36 Now Things Get Interesting July ? – August 31 Pace of downstream conversions Who/how many will handle both products? Price differential vs inventory Use of Credits? Out of the wood work/None to be had

37. 37 September 1, 2006 A non-event

38. 38 September 1, 2006 A non-event –No overnight change

39. 39 September 1, 2006 A non-event –No overnight change –Production control, 80/20

40. 40 September 1, 2006 A non-event –No overnight change –Production control, 80/20 –No major distribution problems

41. ULSD Workshop November 20-21, 2002 Houston, TX Transition to 15 ppm ULSD