Thursday, November 5, 2015

Canadian Crude Oil Imports Without The Keystone


November 5, 2015: yesterday I posted the "original post" below Today I updated the most recent US crude oil data. Look at how much oil is being imported from Canada despite the fact that the Keystone is not built. The Keystone issue is looking more and more irrelevant.
Imports from Canada:
  • August, 2013: 95.6 million bbls
  • August, 2014: 106.4 million bbls
  • August, 2015: 121.5 million bbls 
The "complete" Keystone XL would have had a capacity of 800,000 bopd, which is about 24 million bbls per month. Note that without the Keystone, the delta between August, 2015, and August, 2013, is almost 26 million bbls / month. Interesting, huh?

The most recent data shows the delta is actually increasing: in the original post below, note that RBN Energy noted that Canada is shipping an extra 1.2 million bbls into the US every days, 45% more than the original Keystone XL capacity.

Original Post

The Keystone XL Debate Becomes Tiresome

I was going to do a series of polls on the Keystone in light of a recent post by RBN Energy, but after seeing the story in today's WSJ, it's not worth the effort.

The "Keystone" is about two political parties raking in cash on this argument. The story itself no longer has any relevance.

I was concerned a bit after RBN Energy suggested that petcoke would be in short supply if the US did not have access to heavy oil, but that's a bit of hyperbole, also.

In today's WSJ, front page of section B: Pipeline delay unlikely to hurt refiners in US. The lede:
Oil imports from Canada set a record in August, averaging 3.4 million barrels a day, according to data released Monday by the U.S. Energy Department.
In fact, the U.S. has bought 64% more Canadian crude so far this year than it did in the same stretch of 2008, the year TransCanada first asked the U.S. government for permission to build the pipeline that would run from Alberta to Texas.
That is an extra 1.2 million barrels of oil flowing into the U.S. from Canada every day, or 45% more crude than Keystone XL would have carried had it been constructed.
Unless someone knows something I don't know about the US manufacturing base bursting forth at 10% GDP next year, it sounds like the US is getting all the heavy oil it needs.

We're Not Running Out Of Oil -- IBD -- November 5, 2015

"Earth Is An Oil-Producing Machine — We're Not Running Out" -- Investor's Business Daily. 
Ever since M. King Hubbert in the 1950s convinced a lot of people with his "peak oil" theory that production would collapse and we'd eventually exhaust our crude supplies, the clock has been running. And running. And it will continue to run for some time, as technology and new discoveries show that there's still an ocean of oil under our feet.

Engineering and Technology Magazine reported this week that BP — the company that once wanted to be known as "Beyond Petroleum" rather than "British Petroleum" — is saying "the world is no longer at risk of running out of resources."

Things are so good, in fact, that Engineering and Technology says "with the use of the innovative technologies, available fossil fuel resources could increase from the current 2.9 trillion barrels of oil equivalent to 4.8 trillion by 2050, which is almost twice as much as the projected global demand."
That number could even reach 7.5 trillion barrels if technology and exploration techniques advance even faster.

Legacy Fund

Legacy Fund data here.

Legacy Fund financial statements.       

North Dakota state government site: Legacy Fund.

North Dakota budget: probably easiest to read is at Ballotpedia.

North Dakota state office of management and budget.

Legacy Fund News
Politics, June 18, 2016

    May, 2019: annual report; total assets stand at $5.4 billion. Callan Investment doesn't change investment mix. Everyone happy. 

    May, 2019: the May, 2019, deposits, up nicely from previous month.

    April, 2019: the April, 2019 deposits, down slightly from previous month. 

    March, 2019: the March, 2019, deposits recover from the February, 2019, deposits. 

    January, 2019: huge drop in deposits, as expected

    December, 2018: despite significantly lower oil prices, December deposits were greater than the previous month

    July, 2018: huge jump.

    June, 2018: nice recovery.

    May, 2018: deposits "recover." May 25, 2018: earnings top $1 billion; Callan Investment doesn't change investment mix. Everyone happy. 

    April, 2018: deposits take a surprising drop

    September 10, 2017: Legacy Fund deposits break through $4 billion (deposits only; not net assets). [Note: actually, this appears to have happened in August, 2016 -- see below.]

    November 30, 2016: total deposits (this is not the net asset value) -- $3,700,055,301 through November, 2016. A little over $3.7 billion. It looks like $59 million was deposited in October and November, averaging about $30 million/month; comparable to deposits in September, 2016. OPEC meeting today cut production; price of oil jumped from around $45 to $49.

    September, 2016, from The Dickinson Press:
    • equity (common stock): 50%
    • fixed-income assets: 35%
    • diversified real assets: 15% (real estate, 5$; infrastructure and inflation-linked securities, 10%) 
    • has generated a return of 2.8% annually since inception
    • a revised investment strategy adopted in 2013 set the long-term goat at 4.6%, but returns so far have fallen far short, just 1% for the most recent fiscal year that ended June 30
    • lawmakers cannot spend from the Legacy Fund until July 1, 2017; but then in 2017, Legacy Funds must start to be transferred to general fund
    • 2017 - 2019, biennium expectations: the Fund should generate about $120 million in earnings
    • the politicians will start to debate whether / when to start spending that money
    Through September 2016, total deposits were $3,640,877,477. Another $31.9 million was deposited in September; slightly above this year's average but below August's deposit of $35.3 million, and a far cry from record high deposit of $117 million in August, 2014 (just before the Saudi surge and Saudi's trillion-dollar mistake)

    At the of August, 2016, assets valued at $4.012 billion.

    Through July 2016, total deposits were $3,573,621,493.

    Through June, 2016, with June deposits of $28 million, total deposits will go to $3.8 billion. Schmidt said the Legacy Fund will hold $3.8 billion with the June transfer of $28.3 million.

    Through March 2016, total deposits were $3,464,584,292.

    Through February 2016, total deposits were $3,441,607,729.

    Through December 2015, total deposits were $3,371,343,566.76.

    November 5, 2015: funding the Red River Valley Water Supply Project
    September 22, 2015: $3,258,677,188.91.

    June 16, 2015: fees

    October 18, 2014: Legacy Fund ballooning

    July 17, 2014: Legacy Fund receives biggest deposit to date -- $112 million

    June 23, 2014: the cash piles up

    May 30, 2014: strategy for investing Legacy Fund deposits

    May 22, 2014: fund goes over $2 billion; now averaging $80 million / month in deposits

    February 12, 2014: North Dakota budget and fund

    August 29, 2013: update on Legacy Fund

    April 16, 2013: fund tops $1 billion

    May 2, 2011: North Dakota budget

    Reporting Friday -- November 5, 2015

    Reporting Friday
    Baytex Energy (BTE.TO), forecast a loss of 16 cents; press release;
    a slower pace of development in the Eagle Ford and suspended heavy oil drilling in Canada. We remained focused on cost reduction;
    Enerplus Corp (ERF.TO), forecast a loss of 10 cents; AP; huge miss; actually loss 32 cents/share;

    Second Biggest Story From Tuesday's Elections

    The Washington Post is reporting that the state of Virginia only had to gain one Democratic seat in the state Senate to give the Democratic governor what he needed/wanted, but he and his supporters failed to deliver:
    Gov. Terry McAuliffe on Thursday brushed off Democrats’ failure to win the state Senate, noting that the GOP-dominated House can block his agenda no matter who controls the upper chamber.

    “I wanted to win the Senate. I gave it all I have,” he said. “But at the end of the day, you know, it wasn’t going to make a difference really one way or the other. I still have only 34 Democrats in the House of Delegates.”
    The comments were McAuliffe’s first since Election Day, when Republicans held their 21-19 advantage in the Senate. Democrats could have grabbed control by flipping just one seat because Lt. Gov. Ralph Northam presides over the chamber and has the power to break most ties.
    In the 2012 presidential election, Virginia:
    • Obama:  50.8% -- 1,905,528 votes
    • Romney: 47.8% -- 1,789,618 votes
    I assume there are two demographic groups that won't be standing in line and/or voting for Hillary wo overwhelmingly would have voted for Obama.

    In 2016, Virginia is the GOP's state to lose.

    EOG 3Q15 Earnings -- November 5, 2015

    Press release here.

    Reuters: EOG Resources profit widely beats Street on cost cuts.  Excluding hedging gains and other one-time items, the company posted a profit of 2 cents per share. By that measure, analysts expected a loss of 30 cents per share, according to Thomson Reuters I/B/E/S.

    A Note To The Granddaughters

    I love how serious these Texans take their sports.

    Soccer practice was scheduled for 6:00 p.m. to 7:30 p.m. tonight, as usual. The rain was pouring down and the coach sent a message at 4:00 p.m. saying he was still waiting to hear from the city whether the soccer fields were open or closed (they close if they are swamped or flooded; by itself, rain does not stop practice).

    Meanwhile, we were listening to the tornado siren go off; the kids in after-school programs were in lock-down and in safe areas in the school while waiting out the tornado warning. The all-clear was given, only to be followed by a second siren and another warning. We were informed that the day care center where our youngest granddaughter goes every day, was also in lock-down and everybody inside.

    Meanwhile, we were still waiting to hear whether soccer practice was still on.

    My daughter texted the coach that assuming the tornado warning was only in Grapevine, and that Southlake was fine (they are next to each other), which field should we be heading for, so that we could take route that would best miss the tornado(s)? LOL. She was joking, but the coach thought she was serious.

    Moments ago, the coach e-mailed everyone that the city says the fields are closed.

    I guess that ends that.  

    Three (3) New Permits -- November 5, 2015; CLR To Report A Nice Well Friday; Active Rigs Near Record Low

    Wells coming off confidential list Friday:
    • 29841, 1,023, CLR, Maynor 3-35H, Crazy Man Creek, 30 stages, 3.5 million lbs, t5/15; cum 72K 9/15;
    • 29949, SI/NC, CLR, Hendrickson 7-36H2, Elm Tree, no production data,
    Active rigs:

    Active Rigs67190183189196

    Three (3) new permits -- in progress
    • Operators: Hess (2)
    • Fields: Robinson Lake (Mountrail),
    • Comments: one of the three new permits included this one; later it was noted that this well was transferred from Total Petroleum to Denbury Onshore (misspelled at "Onsore"):
      • 11409, conf, DNR, Cedar Hills 21-22, Cedar Hills, Bowman County, wildcat, the file report shows that is it on confidential status but prior to being placed on conf, the rile report showed that it had been drilled to the Red River formation in 1985;  
    Three (3) producing wells completed:
    28533, 757, Hess, HA-Sanford-152-96-1819H-3, Westberg, no production data,
    28535, 769, Hess, HA-Sanford-152-96-1819H-5, Westberg, no production data,
    29586, 661, Hess, EN-Kiesel-155-94-1918H-4, Manitou, no production data,
    • Statoil renewed three permits; all Knight wells in McKenzie County
    • Hess renewed a BW-Hedstrom well in McKenzie County

    29841, see above, CLR, Maynor 3-35H, Crazy Man Creek:

    DateOil RunsMCF Sold

    Okay, Okay, Okay! Stop The Presses! Whatever You Might Be Doing, Stop ... [Spoiler Alert!]

    ...look at this. The acknowledged world authority on the Beatles, Mark Lewisohn from England, is in -------------- , to read from his book Tune In. Filmed on November 2, 2015.

    And this is why I love to blog. A huge "thank you" from a reader.


    This is simply so incredible. If you are unsure why this is a big deal, check out the comments over at regarding the book; or read the review over at The [London] Guardian; or read the bio of Mark Lewisohn over at wiki.

    Weekly NG Fill Rates, Gasoline Demand -- November 5, 2015; Look At Recent US Crude Oil Imports From Brazil


    November 10, 2015: in the post below I selected a few countries to see where the US was getting its imported oil. Venezuela stands out; while imports have been decreasing overall, US imports from Venezuela have been increasing. I have talked about this before. US refiners along the Gulf Coast need heavy oil to off-set the glut of light oil. US refiners along the Gulf Coast invested $6 billion to optimize their operations for heavy oil from Canada before the Bakken shale revolution. Refiners scrambled to figure out what to do. It turns out a blend of heavy oil and light oil works (though not as good as what the refiners had expected if using only heavy oil from Canada). Now we have a Bloomberg story that says the same thing -- regular readers of the blog and RBN Energy were already well aware of this. From the Bloomberg story:
    President Barack Obama’s rejection of TransCanada Corp.’s proposed Keystone XL pipeline could give Venezuela’s ailing economy a lifeline.
    With the world’s largest oil reserves, the South American country produces heavy crude that’s similar in consistency to the one coming from Canada’s oil sands, and its economy relies largely on shipping it to the same U.S. Gulf Coast refineries that Keystone XL was meant to supply.
    “The number one beneficiary of all this will be Venezuela and other suppliers of heavy oil that ship to the Gulf Coast by tanker,” IHS Energy Inc. Vice President Jim Burkhard said by e-mail.
    Venezuela is facing an economic crisis as the price of crude, its main source of revenue, has plummeted by more than half since June last year to trade below $50 a barrel. The slump has caused a rift within the Organization of the Petroleum Exporting Countries, of which Venezuela is a member, as Saudi Arabia continues to pump crude from the ground at an unprecedented pace.
    The Canadians should be paying attention. 

    Original Post
    Natural gas fill rate (dynamic link): 52. In the East Region, stocks were 9 Bcf below the 5-year average following net injections of 32 Bcf.

    Gasoline demand (dynamic link): continues to rise though the delta between this year and last remains about the same. Four week averages:
    • week ending 10/23/15: 9.149 million bopd
    • week ending 10/30/15: 9.205 million bopd
    • one year ago 10/31/14: 8.977 million bopd
    I don't recall when I last updated crude oil import data, but at risk of repeating myself (check out the delta between Saudi imports and Venezuela imports for August, 2015):

    OPEC import data updated as of August, 2015:
    • OPEC, August, 2014: 101.5 million bbls
    • OPEC, August, 2015: 85.3 million bbls
    • Saudi imports, August, 2013: 41.3 million bbls
    • Saudi imports, August, 2014: 27.8 million bbls
    • Saudi imports, August, 2015: 31.2 million bbls
    • Venezuela imports, August, 2013: 21.0 million bbls
    • Venezuela imports, August, 2014: 26.9 million bbls
    • Venezuela imports, August, 2015: 29.0 million bbls
     Imports of crude oil into the US, all countries:
    • August, 2013: 317.6 million bbls
    • August, 2014: 288.9 million bbls
    • August, 2015: 302.8 million bbls
    Imports from Canada:
    • August, 2013: 95.6 million bbls
    • August, 2014: 106.4 million bbls
    • August, 2015: 121.5 million bbls 
    Imports from Mexico:
    • August, 2013: 28.2 million bbls
    • August, 2014: 24.7 million bbls
    • August, 2015: 22.6 million bbls
    Imports from Brazil:
    • August, 2013: 7.5 million bbls
    • August, 2014: 6.6 million bbls
    • May, 2015: 3.4 million bbls
    • June, 2015: 7.7 million bbls
    • July, 2015: 6.5 million bbls
    • August, 2015: 12.3 million bbls

    Tortoises Block Wind Towers -- November 5,2015


    Federal judge tosses out BLM's approval of Nevada's largest wind project. E&E Publishing is reporting:
    A federal judge in Nevada has thrown out the Obama administration's approval of what was projected to be the Silver State's largest wind power project, ruling that the Interior Department did not properly evaluate potential impacts to golden eagles and Mojave Desert tortoises.

    U.S. District Judge Miranda Du's seven-page order issued late Friday is a sharp rebuke of the final environmental impact statement (EIS) for the 200-megawatt Searchlight Wind Energy Project conducted by the Bureau of Land Management and a biological opinion conducted by the Fish and Wildlife Service. Former Interior Secretary Ken Salazar signed a record of decision formally approving the project in March 2013.

    Legal experts say this is the first time a court has formally ruled invalid a final EIS, biological opinion and record of decision for a renewable energy project.

    The order is based on a lawsuit filed in April 2013 in U.S. District Court for the District of Nevada in Las Vegas by two groups -- Basin and Range Watch and Friends of Searchlight Desert and Mountains -- and three residents who live near the proposed wind project against Salazar, BLM and FWS.
    Check out E&E Publishing at wiki.

    So many story lines, but perhaps the two most important story lines:
    • as the Obama administration winds down, bureaucrats and judges are less afraid of the president
    • there is internal squabbling among the various government agencies over how to protect the environment; four years ago the eagles and tortoises were losing; today they seem to be winning more than they are losing

    This Strike In Brazil Could Be A Big, Big Deal -- Look At The Numbers -- November 5, 2015


    November 7, 2015: update from Reuters/Rigzone --
    Brazil's state-run oil company Petroleo Brasileiro SA is increasing its effort to weaken the impact of a five-day strike, taking back control of at least two offshore oil units from striking workers. In the Campos Basin northeast of Rio de Janeiro, workers were fully or partially in control of 46 maritime units on Friday, down from 48 on Thursday.

    Late Thursday, Petrobras said it had reduced strike-related production cuts to 100,000 barrels a day from 273,000 on Monday.

    FUP workers began striking Sunday afternoon seeking to derail a company plan of investment cuts and assets sales that they have criticized as a plan to sell off the company to foreigners at bargain basement prices. The FUP said Petrobras is underestimating production cuts. The union has estimated that the strike is affecting 400,000 barrels of oil output a day but has declined to say which platforms or fields have suffered production cuts and by how much.
    Original Post
    The Brazilian oil strike appears to be gathering steam. Reuters/Rigzone is reporting:
    A four-day strike against Petrobras gathered steam on Wednesday, cutting crude and natural gas output from the No. 2 South American oil producer and threatening to become the most disruptive walkout at the state-run oil company in 20 years.

    Petroleo Brasileiro SA, as Petrobras is formally known, is expected to continue to report significant output cuts after new offshore units were affected by the strike, which began on Sunday. On Monday Petrobras said it had lost 273,000 barrels a day of crude output, or about 13 percent of its Brazilian output.

    It has made no formal estimate for output since then.
    The cuts have already caused the biggest strike-induced hit to Petrobras' crude output since a 32-day strike in 1995 that led to lines at gas stations and military occupation of refineries.
    The latest strike is also likely to increase pressure on a company hobbled by a vast corruption scandal and struggling under $130 billion of debt, the largest in the world oil industry. "This is serious because it is happening in the midst of Brazil's worst economic crisis in decades and in the middle of Petrobras' worst crisis ever," said Adriano Pires, head of the Brazilian Infrastructure Institute, a Rio de Janeiro Energy research company.
    Meanwhile, things aren't so rosy in Libya either. Bloomberg/Rigzone is reporting:
    Libya’s oil output dropped below 400,000 barrels a day after the divided country’s internationally recognized government in the east closed a port run by a rival administration in the west, in a push to assert control over more energy assets and exports.

    Production fell after crude exports halted at the port of Zueitina.
    Libya pumped 430,000 barrels a day in October, data compiled by Bloomberg show.

    Zueitina will be closed until further notice, and tankers seeking to load crude there must now register with a rival NOC management loyal to the internationally recognized government based in eastern Libya. Vessels registered with the NOC administration in Tripoli, seat of an Islamist-backed government, are “illegitimate” and won’t be permitted to load at Zueitina.

    Random Update Of QEP Fracking / Completions In The Grail -- November 5, 2015; One Well Produced More Than 100,000 Bbls In Less Than Five Months; Meanwhile NRG Is Calling It Quits

    In general, QEP appears to be fracking with 49 stages, 10  million lbs proppant in the Grail:
    • 29373, 2,235, QEP, P. Levang 2-14-23BH, Grail, 49 stages, 10 million lbs, t5/15; cum 97K 9/15;
    • 29374, 2,342, QEP, P. Levang 1-14-23BH, Grail, 49 stages, 10 million lbs, t5/15; cum 72K 9/15;
    • 29375, 2,298, QEP, P. Levang 14-13-23-24-LL, Grail, 48 stages, 9.9 million lbs, t5/15; cum 103K 9/15; API: 33-053-06254-00-00; 122,000 bbls of water; proppant represented almost 19% of total frack fluid; generally in the 6 - 8% range;
    • 29749, 2,159, QEP, P. Levng 1-14TH, Grail, 49 stages, 6.7 million lbs, t5/15; cum 89K 9/15; 
    NRG Splitting Off Intermittent Energy

    So, how is this switch to inermittent energy working out for the "green" utilities. Let's check in on NRG, perhaps one of the more aggressive utilities with regard to switching to intermittent energy. This is the headline and "sub-headline" at The Wall Street Journal this week: NRG Chief's green ambitions are put on back burner; money-losing investment in renewable energy didn't sit well with investors.
    Throughout its 26-year life, NRG Energy Inc. has made most of its money by running big electric plants that burn fossil fuels. But six years ago, the company’s chief executive began a billion-dollar push into clean power: rooftop solar, wind farms and electric-car charging stations.

    And David Crane, the CEO, became increasingly outspoken about the need to go green. In an essay earlier this year, Mr. Crane warned his fellow electricity executives that by failing to embrace clean energy they “are losing the hearts and minds of the future generation of Americans.”

    He still believes that, he said in an interview. But he is backing away from the renewable-energy businesses anyway—to placate investors, he said.

    In the 15 months before he decided to split off the renewable-energy businesses, the company’s shares lost about 50% of their value. The shares have dropped 25% since the new strategy was announced in mid-September.

    Current investors aren’t upset about the plan to hive off the green businesses, said Jonathan Arnold, an equities analyst for Deutsche Bank Securities in New York. “They’re just sorry it isn’t being implemented more quickly.”

    Jettisoning his green ambitions has been deflating, conceded 56-year-old Mr. Crane, who has run the Princeton, N.J., company since 2003. A Harvard-trained lawyer and former investment banker, he has become an electric-car enthusiast; he owns a Tesla Roadster, Nissan Leaf, Fisker Karma and BMW i8 sedan—electric cars.
    My electric company here in Texas, unfortunately, is NRG, and I have some of the highest electricity bills I have ever had based on usage. And every month the bill comes in an envelope festooned with little pictures of little wind towers. Drives me nuts. I pay on-line and don't need the monthly bills in the mailbox either, but that's another story.

    On a completely different note. I now know why my electric bills are so high. The CEO of NRG: A Harvard-trained lawyer and former investment banker, he has become an electric-car enthusiast; he owns a Tesla Roadster, Nissan Leaf, Fisker Karma and BMW i8 sedan—electric cars.

    Thursday, November 5, 2015

    Will the Legacy Fund and perhaps one of the largest state projects in the history of North Dakota cross paths? The Bismarck Tribune is reporting that the project to pipe water from the Missouri River in western North Dakota to eastern North Dakota is moving forward. The Red River Valley Water Supply Project is a one-billion-dollar project. The final designs could be completed by the end of 2017, with phased construction occurring from 2018 to 2024. The Legacy Fund is off-limits until 2017, at which time the state legislature can decide if / how to spend some of that money. 

    One year later: American oil patch thriving on ingenuity, Forbes
    We’re now one year into the oil bust. For a time there was hope that this downturn would be kind of like 2009, where prices fell sharply in the wake of global economic collapse, but shot back up just as quickly – leaving little collateral damage behind.
    It’s clear now that’s not going to happen. The 2009 collapse was driven by a sudden drying up of demand. This time around there’s just too much supply — especially in the United States. And it’s simply not going away. According to the Energy Information Administration, domestic crude oil output peaked in April at 9.6 million barrels per day. Since then it has slipped to about 9.2 million bpd, about where it was a year ago, when the bust began.
    Update on Colstrip coal plant in Billings, MT, Montana's largest coal plant; closure a foregone conclusion -- Montana Public Radio.


    Active rigs:

    Active Rigs69190183189196

    RBN Energy: Extreme Petrochemical Feedstock Margin Declines for Steam Crackers.
    Falling crude oil prices and other factors have crushed margins in the steam cracker/olefin unit segment of the petrochemical industry.   Margins per pound of ethylene have declined from more than 60 c/lb in October 2014 to less than 20 c/lb today (November 2015) for NGL feedstocks, including ethane.  We expect some petrochemical companies might be feeling a chill in the air.  That’s because five new Gulf Coast world scale steam crackers and a couple of smaller units are under construction or being developed to add still another 20 billion/lbs of capacity by the end of 2018.    In today’s blog, we assess NGL feedstock margin declines.
    First, a quick recap of the U.S. petrochemical industry from our March 2014 blog, “Beyond Hypothermia and Extreme Propane Price Spikes – Petrochemical Feedstock Switching 2013-14”.  In the U.S. there are currently 37 steam crackers (a.k.a, olefin units or ethylene units) owned by 15 companies which soak up the vast majority of the NGLs consumed in the petrochemical sector.  In aggregate, these units consume nearly 1.7 MMb/d of NGLs as feedstock, which is over half of all U.S. domestic NGL consumption. Most of these units are on the Gulf Coast.  Ethane holds the largest share of the feedstock market with propane, normal butane, and naphtha (natural gasoline) holding the second, third and fourth positions, respectively.  Steam crackers also use a small volume of gas oil (distillate range material) as a feedstock.