Christopher Parkinson: Great. Could you just give your outlook on various regional operating rates and what’s been happening across NGL and feedstocks? Could you just give us your latest update on the NGL front and what that just generally means for the progression of integrated margins throughout the year?
Peter Vanacker: Thank you, Chris. Ken, do you want to?
Kenneth Lane : Sure. Yes, I’ll take that. Listen, NGL production continues to increase. So we expect that to be a tailwind, especially for our position here in North America. The oil and gas ratio is going to be continue — or continue to be favorable for our portfolio. We don’t see that really changing. We do expect there could be some strengthening in the oil price as we go through the year just as demand potentially comes back with China reopening. So all in all, I would say that the environment today should be better than where we were in the second half of last year around feedstock synergy in our portfolio.
Peter Vanacker: And I think nat gas, I mean, to $40 back to where it was in the first half of 2021.
Operator: Our next question comes from line of John McNulty from BMO Capital Markets.
Bhavesh Lodaya: This is Bhavesh Lodaya for John. You highlighted improving operating rates in North America in the first quarter. As we think about 2023, what type of U.S. domestic demand growth do you expect? And then as we think about like a further recovery in operating rates back to like historical levels, how much of that depends on rising exports and reducing some of the logistic constraints out there?
Peter Vanacker: It’s a very broad question, of course. I mean, let me try to digest to put it in different buckets here. I mean, needless to say that when we talk about the demand for mature goods with high inflation rates, which are still high with interest rates that continue to go up with new house builds and houses being sold still being very — a very low base, yes, it’s clear that we expect that the demand for durable goods will continue to be at least for the foreseeable future depressed. What we have seen on the other hand side, as we have seen in other cycles, is that demand for nondurable goods is relatively stable, not to say, I mean, in certain areas, even strong. So that has led to the fact that we have given this guidance that we say, I mean, we are now operating in the Americas at 80% utilization.
And Ken already talked about the European utilization rates, which was at 80%. In the I&D, I mean, you know that we have a start-up of the PO/TBA sands, as we alluded to and Kim said, starting up at the end of this quarter, which will add, I mean, a bit more volumes of propylene oxide — but let’s not overreact on that either because we have, of course, our scheduled shutdowns, turnarounds that we have moved to the periods when we are starting up, I mean, the new facilities. Stock we’ll be able to grow a bit, but operating assets currently is at 80%. Also here, a tick higher than it was at the end of last year.
Operator: Our next question comes from the line of Jeff Zekauskas with JPMorgan.
