The caustic soda business, we saw export prices, I discussed in my early comments decline, not just from the impact of the global economy from the China taking, again, longer to restart, but also European markets stocked up significantly on caustic soda as we went into winter. That certainly has started to loosen from tight market conditions to looser market conditions and we operating costs come down dramatically in Europe as energy prices have fallen. Our guidance on the caustic side of the business, this assumes it’s going to take time for this unwinding of European inventories and a gradual opening of the Chinese economy. So — but again, I would say, as we’ve talked in the past, our chemical business is so heavy weighted in domestic construction and global GDP.
We’re going to know a lot more about the total trajectory of the year than we do and sitting here in February than we will, maybe in May or June at that time. We’ve got a couple more months to look at it. So Overall, that guidance for the year just reflects that uncertainty around both sides of the business at this point.
Operator: And our next question today comes from Doug Leggate with Bank of America.
Doug Leggate : First of all, apologies. I was a little late getting on, so I hope my questions haven’t been asked already, but a lot going on today. Vicki, I want to ask about the Gulf of Mexico trajectory and the cash operating cost. It seems to me at least that this is an area where we’ve always had a little bit of — it’s been a bit murky to understand just what the decline in the development backlog looks like from the legacy portfolio. But it seems that you are doing a lot better on the production guide and the trade-off maybe is a little bit higher OpEx. Can you give us your latest thoughts on what you see as the trajectory longer term for the Gulf?
Vicki Hollub: Our plan for the Gulf of Mexico is to continue to keep it at around the production rate that it’s at right now. It’s, as you know, a significant cash flow generator for us. So we have the inventory, and we have the plan laid out to ensure that we can — we have the development ready to to maintain the current level of production where it is. We don’t intend to significantly grow production. That could be part of the outcome of what some of the exploration and development will lead to. But it’s our intent and it will be lumpy. As we’ve said before, capital there will depend on our exploration successes, how those go and timing. But on the average, our production level should be about where it is today.
Doug Leggate : For what period?
Vicki Hollub: I would say that we just picked up some leases, as you know. We’re now doing the preliminary work on those leases. I would say that our trajectory is certainly between — somewhere between 5 and 10 years of potential inventory to maintain what we have today.
Doug Leggate : That’s helpful. My follow-up is a favorite question of to be predictable, but I want to ask about your breakeven, but new onset a little bit. Obviously, we’ve had some inflation, your breakeven capital. What you’ve recognized today? And I guess, what I’m really trying to understand is how you think about dividend capacity as part of that breakeven, let’s say, it’s $40. Has that become like a ceiling for your dividend thoughts? And I guess the clarification point, if I may, Vicki, there’s been a lot of questions today about DAC, obviously. When you think about that breakeven, are you including the capital or sustaining capital for the DAC business as well?
