Sunoco 2012 Annual Report Download - page 23

A sustained decrease in demand for refined products in the markets served by our pipelines and terminals
could materially and adversely affect our results of operations, financial position, or cash flows.
The following are material factors that could lead to a sustained decrease in market demand for refined
products:
• a sustained recession or other adverse economic condition that results in lower purchases of refined
petroleum products;
• higher refined products prices due to an increase in the market price of crude oil, changes in economic
conditions, or other factors;
• higher fuel taxes or other governmental or regulatory actions that increase, directly or indirectly, the
cost of gasoline or other refined products;
• a shift by consumers to more fuel-efficient or alternative fuel vehicles or an increase in fuel economy,
whether as a result of technological advances by manufacturers, pending legislation proposing to
mandate higher fuel economy, or otherwise; and
• a temporary or permanent material increase in the price of refined products as compared to alternative
sources of refined products available to our customers.
A material decrease in demand or distribution of crude oil available for transport through our pipelines or
terminal facilities could materially and adversely affect our results of operations, financial position, or cash
flows.
The volume of crude oil transported through our crude oil pipelines and terminal facilities depends on the
availability of attractively priced crude oil produced or received in the areas serviced by our assets. A period of
sustained crude oil price declines could lead to a decline in drilling activity, production and import levels in these
areas. Similarly, a period of sustained increases in the price of crude oil supplied from any of these areas, as
compared to alternative sources of crude oil available to our customers, could materially reduce demand for
crude oil in these areas. In either case, the volumes of crude oil transported in our crude oil pipelines and terminal
facilities could decline, and it could likely be difficult to secure alternative sources of attractively priced crude oil
supply in a timely fashion or at all. If we are unable to replace any significant volume declines with additional
volumes from other sources, our results of operations, financial position, or cash flows could be materially and
adversely affected.
Any reduction in the capability of our shippers to utilize either our pipelines or interconnecting third-party
pipelines could cause a reduction of volumes transported in our pipelines and through our terminals.
Users of our pipelines and terminals are dependent upon our pipelines, as well as connections to third-party
pipelines, to receive and deliver crude oil and refined products. Any interruptions or reduction in the capabilities
of our pipelines or these interconnecting pipelines due to testing, line repair, reduced operating pressures, or
other causes would result in reduced volumes transported in our pipelines or through our terminals. Similarly, if
additional shippers begin transporting volume over interconnecting pipelines, the allocations to our existing
shippers on these interconnecting pipelines could be reduced, which also could reduce volumes transported in our
pipelines or through our terminals. Allocation reductions of this nature are not infrequent and are beyond our
control. Any such interruptions or allocation reductions that, individually or in the aggregate, are material or
continue for a sustained period of time could have a material adverse effect on our results of operations, financial
position, or cash flows.
If we are unable to complete capital projects at their expected costs and/or in a timely manner, or if the market
conditions assumed in our project economics deteriorate, our results of operations, financial condition, or
cash flows could be affected materially and adversely.
Delays or cost increases related to capital spending programs involving construction of new facilities (or
improvements and repairs to our existing facilities) could adversely affect our ability to achieve forecasted
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