In fact, I’d like to say to our folks. We think there’s a head and refinery there in the sense of improving our operations and capturing more throughput and more opportunity in the assets that we have as opposed to going into anything inorganic. And then the second thing is — we’re focused on integrating and optimizing the assets that we have. And that’s what Steve was talking about earlier in terms of what you’re seeing in capture and what Val was talking about that’s what you’re seeing in lower OpEx. We believe that our focus right now is to focus inwardly and to try to improve those — the assets that we currently have. So we’re not really in the market looking at anything right now, Jason. It’s probably not the right time in the market time anyway with us with the market being above mid-cycle.
And that’s the suit is just fine because we have plenty of work to do organically.
Unidentified Analyst: Great. Thanks for the answers.
Operator: Our next question comes from Roger Read at Wells Fargo.
Roger Read: Thanks. Good morning.
Tim Go: Good morning, Roger?
Roger Read: Sorry, I’ve missed part of this. We get kind of a crazy morning going on here with the earnings front. But I just wanted to come back, if we could, to the lube side of the business in terms of operations, just how is that shaking out? Seasonally, third quarter is usually pretty good in this, but we’ve seen so many moves here in base oil prices and supply chain issues that have hit. So I was just curious, are we finally entering a normal period with this, or are we still in kind of a jumble period?
Matt Joyce: Raj, it’s Matt Joyce here. Thanks for the question. What we’re looking forward to is seeing a bit more of a normalized supply chain. I think we’ve as an industry, the Lubricants and Specialties business over the past couple of years, as you probably know, have faced a lot of upheaval with additives and growth and supply chains around the globe that have really impacted the business. And it’s also been the start to stop coming out of the COVID hangover. And I think right now, there’s some tepid anticipation that we’re going to see some green shoots here with regards to demand. We’re also hearing of and again, just very briefly that there are some other supply issues and reliability issues in the market when it comes to base oils.
We’re not certain that how big an impact that’s going to have on the whole of the business. But certainly, we’re in a really good position to fill that void as needed. When we look at it, it’s very evident that cracks have shrunk, and we’ve seen crews roll up some increases over the past weeks and months. And we’re looking at. And again, we’re going to be considering and anticipating boosts in both base oils and perhaps even finished products northbound in order to manage the recovery of increased costs that the business has experienced in general, though, we’re probably looking at above mid-cycle, but we’re still watching that demand picture very carefully as it’s been soft and we’ve been able to manage through that with the housekeeping we’ve been focused on over the past quarter or two.
Tim Go: Yeah. And Roger, I’ll just chime in to reinforce what Matt was saying. We’ve now demonstrated above mid-cycle performance for the last 2.5 years and that’s a tribute to the team as a tribute to all the integration and synergy work that they’ve been doing. All this time, you’ve seen the cracks starting to compress. I mean, this has been happening now for probably 3 or 4 quarters, and yet our business continues to perform. And I think that’s a sign of the structure was that Matt and his team have been working on
Roger Read: That’s definitely good to hear. And again, I apologize if this question has been asked. But on the renewable diesel operations, we’ve seen with some competitor start-ups going on a real tightening on the feedstock side. So I’m just curious, I mean definitely better results for you on a sequential basis. But as you’re looking at feedstock options here into the second half of the year. Can you kind of walk us through how the PTU is running and then your choices for feedstock as you’re kind of navigating the different costs of those.
