Marathon Petroleum
Q1 2023 Earnings Call
May 02, 2023, 11:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Welcome to the MPC first quarter 2023 earnings call. My name is Sheila, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session.
[Operator instructions]. Please note that this conference is being recorded. I will now turn the call over to Kristina Kazarian. Kristina, you may begin.
Kristina Kazarian -- Managing Director, Investor Relations
Welcome to Marathon Petroleum Corporation's first quarter 2023 earnings conference call. The slides that accompany this call can be found on our website at marathonpetroleum.com under the Investor tab. Joining me on the call today are Mike Hennigan, CEO; Maryann Mannen, CFO; and other members of the executive team. We invite you to read the safe harbor statements on Slide 2.
We will be making forward-looking statements today. Actual results may differ. Factors that could cause actual results to differ are included there as well as in our filings with the SEC. And with that, I'll turn it over to Mike.
Mike Hennigan -- Chief Executive Officer
Thanks, Kristina. Good morning, everyone. Let me first share our view on the macro environment. In the first quarter, volatility in the global energy market remained high, driven by uncertainties around the potential for recession, the pace of China's economic recovery, and the impact of sanctions on Russian products.
At the same time, supply remains tight, supported by nearly 4 million barrels per day of global refining capacity that has come offline in the last couple of years. Global demand continues to grow as the need for affordable, reliable energy increases throughout the world. IEA is projecting 2 million barrels a day increase in 2023. Since last quarter, distillate cracks have come down, gasoline cracks have improved as expected given the onset of the summer driving season.
So overall, we believe supply constraints and growing demand will support strong refining margins throughout 2023. Cracks have decreased from 2022 levels but still above historic mid-cycle levels. In alignment with what we said last quarter, we remain bullish into the driving season, and gasoline strength is expected to improve the diesel situation, while jet demand continues to improve. As we continue through the year, much will depend on the ongoing recovery in China and the extent, if any, of recessionary impacts.