Gary Simmons: Yes, this is Gary. So if you look, there’s about 250,000 barrels a day of exports in Venezuela, most of that volume is going to the Far East. But with the lifting of sanctions, it has the potential to make its way to the U.S. Gulf Coast.
Operator: The next question is coming from John Royall of JPMorgan.
John Royall: So we’ve talked about coastal light heavy dips and how they’ve tightened up pretty significantly. Can you remind us how much flexibility you have in your system to run lights versus heavies versus mediums?
Greg Bram: John, this is Greg. So we can flex quite a bit. What you’ll tend to see us do is when the medium grades look attractive, we’ll ramp that up and kind of back down to both the lights and the heavies conversely, when heavy sours get more attractive relative to the medium grades will ramp up the heavies. I don’t remember the exact percentages. We can get those to you. I think they might actually be in our — in IR deck yet. Page 30 there. But that tends to be what drives us to kind of swing between those different grades.
John Royall: Great. And then maybe you can talk about the beat and utilizations in 3Q. You didn’t call out anything in particular, but you’re above the high end and I think every region, but one. It seems like the system ran quite well. Are there any moving pieces to call out maybe maintenance getting pushed out or anything of that sort or is it just better-than-expected operations?
Lane Riggs: I would say we didn’t — the third quarter is always going to be a period where you don’t have a lot of turn on activity. I mean some of it might leak over from the second or you might start a little bit going into the fourth. But system industry-wide, we’re not unique in that sense. Most of your turnaround work is either done in the first and second or the fourth quarter. And so it should be a high utilization. And obviously, we’ve emphasized reliability got for the last, I don’t know, more than a decade, we have the programs that we have. So you would expect us when we’re not having turnarounds to have a pretty high level of utilization of our assets.
Operator: The next question is coming from Joe Laetsch of Morgan Stanley.
Joe Laetsch: So, I wanted to start on the diesel side. So you talked about gasoline cracks, but we hit so much [ph] which just remains really strong here. So I was just curious what your thoughts on the setup for diesel here into the winter. We have low inventories in both the U.S. and Europe and last year, we kind of had a similar level of tightness and were bailed out by a warmer winter. So just curious on your thoughts on the setup for diesel margins.
Gary Simmons: Yes. So diesel demand remains very strong. I guess I mentioned diesel sales in our system are up about 8% year-over-year. Our view of the broader markets is that diesel demand in the U.S. is probably down about 1% year-to-date from where it was last year, and that’s mainly due to the warmer winter we had last year. Our guys’ estimate, we lost about 125,000 barrels a day of diesel demand due to the warmer weather. So inventories remain below the 5-year average level, demand remains good. So you’re heading into winter with low inventories, and we would expect strong diesel cracks through the winter and could get very strong if we have a colder winter.
Joe Laetsch: And then shifting gears a little bit. So you’ve talked a little bit about RD margins being pressured here. So I was just hoping you could touch on some of the regional dynamics that you’re seeing and economics of selling into other states in the Coast or potentially Canada to offset in the lower LCFS prices that we’ve seen in California?
Lane Riggs: Yes, we absolutely see. California has become kind of the ore of the RD market. We see more opportunity in Oregon, Washington and Canada as kind of the growth opportunities. And so we absolutely look to maximize our product sales into those markets. California continues to talk about the obligation for 2030. They sort of pushed off a lot of their — they’re still doing a lot of their conferences and workshops on that. We still fully expect that at some point, they are going to announce the changes to be effective sometime next year, and that will increase the LCFS price in California. So — but in the meantime, we continue to look at — again, you kind of mentioned that. We still have the advantages being on the Gulf Coast.
Do you have access to all of the global feedstocks. You have access to all the global markets so it gives us a lot of capability to go to different markets. And we continue to see waste oils advantaged versus vegetable oils from a CI standpoint. So you look at that low-cost producer on the Gulf Coast, that just continues to be kind of the winning formula for being able to have flexibility to go to different markets in the RD space [ph].
Operator: The next question is coming from Neil Mehta of Goldman Sachs.
Neil Mehta: Lane, first question is for you is just — it’s been a couple of months since you stepped to the job as CEO. Just would love your perspective on early observations, recognizing the strategy has been very consistent and steady for a long time, and you’ve been a big part of it. But early observations as the new leader of the organization and key strategic priorities that we haven’t really talked about here on the call thus far.
Lane Riggs: It’s been a couple of years, Neil. I’m just — but it’s been great. You always got to remember, I was an integral part of really Joe’s team really from the beginning of his [indiscernible] you’ve mentioned, it’s been a very successful one. So are there things that I’m trying to do maybe a little bit differently, I’d say I put my thumb on the scale for issues maybe a little bit and maybe unweighted others. But largely speaking, our strategy is the same because it was successful and it’s currently successful. I don’t know that I have any real plans to deviate from that. Obviously, the world can change and we respond accordingly. But the world looks at least — this business looks a whole life like it did a year ago. So our outlook is pretty much unchanged.
Neil Mehta: Now that’s — we definitely see the consistency. The second question is — it’s a very — it’s a smaller part of your business, but it’s always — you can create volatility in earnings is ethanol. Just you’re curious on your outlook for that business and — what — how far away are we from mid-cycle as you think about it?
