Now, when you think of it from our perspective, this is where our scale really comes into play. So, we run a 1 billion barrel of system, a 1 billion barrel system annually. So, you can pick the number. We won’t give you a number, but it’s easy math. If it’s mid-cycle plus $1, that adds $1 billion to MPC’s bottom line, a $2 incentive or enhancement over mid-cycle, $2 billion. So, that’s where our scale really comes into play. Now, we are bullish because of a lot of the reasons Mike mentioned. Global demand, we believe will hit a record consumption in ‘24. ‘23 was a record, we believe ‘24 will be a record. IEA believes ‘24 will be a record. In fact, IEA continues to revise up their demand forecast month-after-month and have done so for the last three months.
In addition, we referenced turnarounds. Globally, turnarounds are high. When you are looking at history and we are set up well here for a strong spring and summer. I hope that helps you.
Mike Hennigan: Hi Ryan, it’s Mike. Let me just add. We don’t pick a number. We do scenario planning, like Rick have gave you some examples. But – so we do scenario planning, what if it’s $2, what if it’s $4, what if it’s $6 and take a look at it from that perspective rather than trying to estimate what the number is. I am a big believer and it’s hard to call the 50-yard line, but if we get the banks of the river we get the two end zones, right. Then we will be able to run the business properly for the long-term.
Operator: And we do have time for just one more question. Our last question will come from Jason Gabelman with TD Cowen. Your line is open.
Jason Gabelman: Yes. Good morning. Thanks for squeezing me in. I wanted to ask about the West Coast project that you disclosed today and a two-part question on it. First, when you referenced the returns, how much – is there a decent chunk of that that’s related to avoided regulatory penalties that you would incur if you didn’t do the project? And then how do you get comfortable with the demand outlook on the West Coast and the potential regulations that can limit MPC’s ability to capture periods where product prices are higher?
Mike Hennigan: So, Jason, on your first part, there is nothing that you said was avoiding costs, however. So, nothing is related to that. So, it’s a – think of it as a reliability project, a modernization project, an efficiency project, a lower-cost project, and reducing greenhouse gas, which we need to do out there. There is regulations out there that are going to occur over time. We could have made the choice to wait until that regulatory requirement was there, but we saw an opportunity to enhance the facility ahead of time. And we have kind of disclosed already, we think there is greater than 20% return there. How do we get comfortable in the overall macro, there is going to be a tough environment for California, if things get more and more competitive out there.
But we think we have a very competitive asset. So, we think we are in it for the long-term. We don’t think all the facilities out there will survive the long-term, but as that volatility occurs out there, we want to have a really strong, competitive, reliable, efficient, low-cost facility.
Rick Hessling: Jason, I will just add to that. We believe our integrated system in California is a competitive advantage over the merchant refiner as well. So, when you look across our entire value chain from feedstocks and all the way through to the station level, that’s a competitive advantage over the merchant refinery when you have demand declines.
Kristina Kazarian: Alright. And with that, thank you for your interest in Marathon Petroleum Corporation. Should you have additional questions or like clarification on any of the topics discussed this morning, please reach out and a member of the Investor Relations team will be here to help you. Thank you for joining us.
Operator: That does conclude today’s conference. Thank you for participating. You may disconnect at this time.
