MARATHON OIL CORPORATION Notes to Consolidated Financial Statements Revenues from external customers are attributed to geographic areas based on selling location.
No single customer accounts for more than 10 percent of annual revenues.
## Table 0 ##
(a) Management believes intersegment transactions were conducted under terms comparable to those with unrelated parties.
(b) Differences between segment totals and our totals represent amounts related to corporate administrative activities and other unallocated items and are included in “Items not allocated to segments, net of income taxes” in reconciliation below.
(c) Differences between segment totals and our totals represent amounts related to corporate administrative activities.
(d) Through April 2007, Integrated Gas segment capital expenditures include EGHoldings at 100 percent.
Effective May 1, 2007, we no longer consolidate EGHoldings and our investment in EGHoldings is accounted for under the equity method of accounting; therefore, EGHoldings’ capital expenditures subsequent to April 2007 are not included in our capital expenditures.
(e) As discussed in Note 8, the Russian businesses that were sold on June 2, 2006 have been accounted for as discontinued operations.
Segment information for all presented periods excludes the amounts for these Russian operations.
(f) As discussed in Note 6, we acquired Western in October 18, 2007.
MARATHON OIL CORPORATION Notes to Consolidated Financial Statements Stock appreciation rights – Prior to 2005, we granted SARs under the 2003 Plan.
No stock appreciation rights have been granted under the 2007 Plan.
Similar to stock options, stock appreciation rights represent the right to receive a payment equal to the excess of the fair market value of shares of common stock on the date the right is exercised over the grant price.
Under the 2003 Plan, certain SARs were granted as stock-settled SARs and others were granted in tandem with stock options.
In general, SARs granted under the 2003 Plan vest ratably over a three-year period and have a maximum term of ten years from the date they are granted.
Stock-based performance awards – Prior to 2005, we granted stock-based performance awards under the 2003 Plan.
No stock-based performance awards have been granted under the 2007 Plan.
Beginning in 2005, we discontinued granting stock-based performance awards and instead now grant cash-settled performance units to officers.
All stock-based performance awards granted under the 2003 Plan have either vested or been forfeited.
As a result, there are no outstanding stock-based performance awards.
Restricted stock – We grant restricted stock and restricted stock units under the 2007 Plan and previously granted such awards under the 2003 Plan.
In 2005, the Compensation Committee began granting time-based restricted stock to certain U. S. -based officers of Marathon and its consolidated subsidiaries as part of their annual long-term incentive package.
The restricted stock awards to officers vest three years from the date of grant, contingent on the recipient’s continued employment.
We also grant restricted stock to certain non-officer employees and restricted stock units to certain international employees (“restricted stock awards”), based on their performance within certain guidelines and for retention purposes.
The restricted stock awards to non-officers generally vest in one-third increments over a three-year period, contingent on the recipient’s continued employment, however, certain restricted stock awards granted in 2008 will vest over a four-year period, contingent on the recipient’s continued employment.
Prior to vesting, all restricted stock recipients have the right to vote such stock and receive dividends thereon.
The non-vested shares are not transferable and are held by our transfer agent.
Common stock units – We maintain an equity compensation program for our non-employee directors under the 2007 Plan and previously maintained such a program under the 2003 Plan.
All non-employee directors other than the Chairman receive annual grants of common stock units, and they are required to hold those units until they leave the Board of Directors.
When dividends are paid on Marathon common stock, directors receive dividend equivalents in the form of additional common stock units.
Total Stock-based Compensation Expense Total employee stock-based compensation expense was $43 million, $66 million and $78 million in 2008, 2007 and 2006.
The total related income tax benefits were $16 million, $24 million and $29 million.
In 2008 and 2007, cash received upon exercise of stock option awards was $9 million and $27 million.
Tax benefits realized for deductions during 2008 and 2007 that were in excess of the stock-based compensation expense recorded for options exercised and other stock-based awards vested during the period totaled $7 million and $30 million.
Cash settlements of stock option awards totaled $1 million in 2007.
There were no cash settlements in 2008.
Stock Option Awards During 2008, 2007 and 2006, we granted stock option awards to both officer and non-officer employees.
The weighted average grant date fair value of these awards was based on the following Black-Scholes assumptions:
## Table 1 ##
The following table sets forth our refined products sales by product group and our average sales price for each of the last three years.
## Table 2 ##
(a) Includes matching buy/sell volumes of 24 mbpd in 2006.
On April 1, 2006, we changed our accounting for matching buy/sell arrangements as a result of a new accounting standard.
This change resulted in lower refined products sales volumes for 2008, 2007 and the remainder of 2006 than would have been reported under our previous accounting practices.
See Note 2 to the consolidated financial statements.
Gasoline and distillates – We sell gasoline, gasoline blendstocks and No.1 and No.2 fuel oils (including kerosene, jet fuel, diesel fuel and home heating oil) to wholesale marketing customers in the Midwest, upper Great Plains, Gulf Coast and southeastern regions of the United States.
We sold 47 percent of our gasoline volumes and 88 percent of our distillates volumes on a wholesale or spot market basis in 2008.
The demand for gasoline is seasonal in many of our markets, with demand typically being at its highest levels during the summer months.
We have blended fuel ethanol into gasoline for over 15 years and began increasing our blending program in 2007, in part due to federal regulations that require us to use specified volumes of renewable fuels.
We blended 57 mbpd of ethanol into gasoline in 2008, 41 mbpd in 2007 and 35 mbpd in 2006.
The future expansion or contraction of our ethanol blending program will be driven by the economics of the ethanol supply and by government regulations.
We sell reformulated gasoline, which is also blended with ethanol, in parts of our marketing territory, including: Chicago, Illinois; Louisville, Kentucky; northern Kentucky; Milwaukee, Wisconsin and Hartford, Illinois.
We also sell biodiesel-blended diesel in Minnesota, Illinois and Kentucky.
In 2007, we acquired a 35 percent interest in an entity which owns and operates a 110-million-gallon-per-year ethanol production facility in Clymers, Indiana.
We also own a 50 percent interest in an entity which owns a 110-million-gallon-per-year ethanol production facility in Greenville, Ohio.
The Greenville plant began production in February 2008.
Both of these facilities are managed by a co-owner.
Propane – We produce propane at all seven of our refineries.
Propane is primarily used for home heating and cooking, as a feedstock within the petrochemical industry, for grain drying and as a fuel for trucks and other vehicles.
Our propane sales are typically split evenly between the home heating market and industrial consumers.
Feedstocks and special products – We are a producer and marketer of petrochemicals and specialty products.
Product availability varies by refinery and includes benzene, cumene, dilute naphthalene oil, molten maleic anhydride, molten sulfur, propylene, toluene and xylene.
We market propylene, cumene and sulfur domestically to customers in the chemical industry.
We sell maleic anhydride throughout the United States and Canada.
We also have the capacity to produce 1,400 tons per day of anode grade coke at our Robinson refinery, which is used to make carbon anodes for the aluminum smelting industry, and 2,700 tons per day of fuel grade coke at the Garyville refinery, which is used for power generation and in miscellaneous industrial applications.
In September 2008, we shut down our lubes facility in Catlettsburg, Kentucky, and sold from inventory through December 31, 2008; therefore, base oils, aromatic extracts and slack wax are no longer being produced and marketed.
In addition, we have recently discontinued production and sales of petroleum pitch and aliphatic solvents.
Heavy fuel oil – We produce and market heavy oil, also known as fuel oil, residual fuel or slurry at all seven of our refineries.
Another product of crude oil, heavy oil is primarily used in the utility and ship bunkering (fuel) industries, though there are other more specialized uses of the product.
We also sell heavy fuel oil at our terminals in Wellsville, Ohio, and Chattanooga, Tennessee.
Asphalt – We have refinery based asphalt production capacity of up to 102 mbpd.
We market asphalt through 33 owned or leased terminals throughout the Midwest and Southeast.
We have a broad customer base, including
Our refining and wholesale marketing gross margin is the difference between the prices of refined products sold and the costs of crude oil and other charge and blendstocks refined, including the costs to transport these inputs to our refineries, the costs of purchased products and manufacturing expenses, including depreciation.
The crack spread is a measure of the difference between market prices for refined products and crude oil, commonly used by the industry as an indicator of the impact of price on the refining margin.
Crack spreads can fluctuate significantly, particularly when prices of refined products do not move in the same relationship as the cost of crude oil.
As a performance benchmark and a comparison with other industry participants, we calculate Midwest (Chicago) and U. S.  Gulf Coast crack spreads that we feel most closely track our operations and slate of products.
Posted Light Louisiana Sweet (“LLS”) prices and a 6-3-2-1 ratio of products (6 barrels of crude oil producing 3 barrels of gasoline, 2 barrels of distillate and 1 barrel of residual fuel) are used for the crack spread calculation.
The following table lists calculated average crack spreads by quarter for the Midwest (Chicago) and Gulf Coast markets in 2008.
## Table 3 ##
In addition to the market changes indicated by the crack spreads, our refining and wholesale marketing gross margin is impacted by factors such as the types of crude oil and other charge and blendstocks processed, the selling prices realized for refined products, the impact of commodity derivative instruments used to mitigate price risk and the cost of purchased products for resale.
We process significant amounts of sour crude oil which can enhance our profitability compared to certain of our competitors, as sour crude oil typically can be purchased at a discount to sweet crude oil.
Finally, our refining and wholesale marketing gross margin is impacted by changes in manufacturing costs, which are primarily driven by the level of maintenance activities at the refineries and the price of purchased natural gas used for plant fuel.
Our 2008 refining and wholesale marketing gross margin was the key driver of the 43 percent decrease in RM&T segment income when compared to 2007.
Our average refining and wholesale marketing gross margin per gallon decreased 37 percent, to 11.66 cents in 2008 from 18.48 cents in 2007, primarily due to the significant and rapid increases in crude oil prices early in 2008 and lagging wholesale price realizations.
Our retail marketing gross margin for gasoline and distillates, which is the difference between the ultimate price paid by consumers and the cost of refined products, including secondary transportation and consumer excise taxes, also impacts RM&T segment profitability.
While on average demand has been increasing for several years, there are numerous factors including local competition, seasonal demand fluctuations, the available wholesale supply, the level of economic activity in our marketing areas and weather conditions that impact gasoline and distillate demand throughout the year.
In 2008, demand began to drop due to the combination of significant increases in retail petroleum prices and a broad slowdown in general activity.
The gross margin on merchandise sold at retail outlets has historically been more constant.
The profitability of our pipeline transportation operations is primarily dependent on the volumes shipped through our crude oil and refined products pipelines.
The volume of crude oil that we transport is directly affected by the supply of, and refiner demand for, crude oil in the markets served directly by our crude oil pipelines.
Key factors in this supply and demand balance are the production levels of crude oil by producers, the availability and cost of alternative modes of transportation, and refinery and transportation system maintenance levels.
The volume of refined products that we transport is directly affected by the production levels of, and user demand for, refined products in the markets served by our refined product pipelines.
In most of our markets, demand for gasoline peaks during the summer and declines during the fall and winter months, whereas distillate demand is more ratable throughout the year.
As with crude oil, other transportation alternatives and system maintenance levels influence refined product movements.
Integrated Gas Our integrated gas strategy is to link stranded natural gas resources with areas where a supply gap is emerging due to declining production and growing demand.
Our integrated gas operations include marketing and transportation of products manufactured from natural gas, such as LNG and methanol, primarily in the U. S. , Europe and West Africa.
Our most significant LNG investment is our 60 percent ownership in a production facility in Equatorial Guinea, which sells LNG under a long-term contract at prices tied to Henry Hub natural gas prices.
In 2008, its
Discontinued operations related to the exploration and production businesses which were sold in June 2006.
After-tax gains on the disposal of $8 million and $243 million were also included in discontinued operations for 2007 and 2006.
See Note 8 to the consolidated financial statements.
Segment Results: 2007 compared to 2006 As discussed in Note 8 to the consolidated financial statements, we sold our Russian oil exploration and production businesses during 2006.
The activities of these operations have been reported as discontinued operations and therefore are excluded from segment results for all periods presented.
Segment income or loss for 2007 and 2006 is summarized and reconciled to net income in the following table

<table><tr><td><i>(In millions)</i></td><td>E&P</td><td>OSM</td><td>RM&T</td><td>IG</td><td>Total</td></tr><tr><td> 2008</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Customer</td><td>$11,636</td><td>$922</td><td>$62,445</td><td>$93</td><td>$75,096</td></tr><tr><td>Intersegment<sup>(a)</sup></td><td>798</td><td>200</td><td>209</td><td>–</td><td>1,207</td></tr><tr><td>Related parties</td><td>52</td><td>–</td><td>1,827</td><td>–</td><td>1,879</td></tr><tr><td>Segment revenues</td><td>12,486</td><td>1,122</td><td>64,481</td><td>93</td><td>78,182</td></tr><tr><td>Elimination of intersegment revenues</td><td>-798</td><td>-200</td><td>-209</td><td>–</td><td>-1,207</td></tr><tr><td>Gain on U.K. natural gas contracts</td><td>218</td><td>–</td><td>–</td><td>–</td><td>218</td></tr><tr><td>Total revenues</td><td>$11,906</td><td>$922</td><td>$64,272</td><td>$93</td><td>$77,193</td></tr><tr><td>Segment income</td><td>$2,715</td><td>$258</td><td>$1,179</td><td>$302</td><td>$4,454</td></tr><tr><td>Income from equity method investments<sup>(b)</sup></td><td>225</td><td>–</td><td>178</td><td>402</td><td>805</td></tr><tr><td>Depreciation, depletion and amortization<sup>(b)</sup></td><td>1,386</td><td>143</td><td>606</td><td>3</td><td>2,138</td></tr><tr><td>Income tax provision<sup>(b)</sup></td><td>2,912</td><td>93</td><td>684</td><td>131</td><td>3,820</td></tr><tr><td>Capital expenditures<sup>(c)(d)</sup></td><td>3,113</td><td>1,038</td><td>2,954</td><td>4</td><td>7,109</td></tr><tr><td> 2007</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Customer</td><td>$8,623</td><td>$181</td><td>$54,137</td><td>$218</td><td>$63,159</td></tr><tr><td>Intersegment<sup>(a)</sup></td><td>497</td><td>40</td><td>348</td><td>–</td><td>885</td></tr><tr><td>Related parties</td><td>35</td><td>–</td><td>1,590</td><td>–</td><td>1,625</td></tr><tr><td>Segment revenues</td><td>9,155</td><td>221</td><td>56,075</td><td>218</td><td>65,669</td></tr><tr><td>Elimination of intersegment revenues</td><td>-497</td><td>-40</td><td>-348</td><td>–</td><td>-885</td></tr><tr><td>Loss on U.K. natural gas contracts</td><td>-232</td><td>–</td><td>–</td><td>–</td><td>-232</td></tr><tr><td>Total revenues</td><td>$8,426</td><td>$181</td><td>$55,727</td><td>$218</td><td>$64,552</td></tr><tr><td>Segment income (loss)</td><td>$1,729</td><td>$-63</td><td>$2,077</td><td>$132</td><td>$3,875</td></tr><tr><td>Income from equity method investments</td><td>238</td><td>–</td><td>139</td><td>168</td><td>545</td></tr><tr><td>Depreciation, depletion and amortization<sup>(b)</sup></td><td>963</td><td>22</td><td>587</td><td>6</td><td>1,578</td></tr><tr><td>Minority interest in loss of subsidiary</td><td>–</td><td>–</td><td>–</td><td>3</td><td>3</td></tr><tr><td>Income tax provision (benefit)<sup>(b)</sup></td><td>2,172</td><td>-21</td><td>1,183</td><td>24</td><td>3,358</td></tr><tr><td>Capital expenditures<sup>(c)(d)</sup></td><td>2,511</td><td>165</td><td>1,640</td><td>93</td><td>4,409</td></tr><tr><td> 2006</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Customer</td><td>$8,326</td><td>$–</td><td>$54,471</td><td>$179</td><td>$62,976</td></tr><tr><td>Intersegment<sup>(a)</sup></td><td>672</td><td>–</td><td>16</td><td>–</td><td>688</td></tr><tr><td>Related parties</td><td>12</td><td>–</td><td>1,454</td><td>–</td><td>1,466</td></tr><tr><td>Segment revenues</td><td>9,010</td><td>–</td><td>55,941</td><td>179</td><td>65,130</td></tr><tr><td>Elimination of intersegment revenues</td><td>-672</td><td>–</td><td>-16</td><td>–</td><td>-688</td></tr><tr><td>Gain on U.K. natural gas contracts</td><td>454</td><td>–</td><td>–</td><td>–</td><td>454</td></tr><tr><td>Total revenues</td><td>$8,792</td><td>$–</td><td>$55,925</td><td>$179</td><td>$64,896</td></tr><tr><td>Segment income</td><td>$2,003</td><td>$–</td><td>$2,795</td><td>$16</td><td>$4,814</td></tr><tr><td>Income from equity method investments</td><td>206</td><td>–</td><td>145</td><td>40</td><td>391</td></tr><tr><td>Depreciation, depletion and amortization<sup>(b)</sup></td><td>919</td><td>–</td><td>558</td><td>9</td><td>1,486</td></tr><tr><td>Minority interest in loss of subsidiary</td><td>–</td><td>–</td><td>–</td><td>10</td><td>10</td></tr><tr><td>Income tax provision<sup>(b)</sup></td><td>2,371</td><td>–</td><td>1,642</td><td>8</td><td>4,021</td></tr><tr><td>Capital expenditures<sup>(c)(d)</sup></td><td>2,169</td><td>–</td><td>916</td><td>307</td><td>3,392</td></tr></table>
<table><tr><td></td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td>Weighted average exercise price per share</td><td>$51.74</td><td>$60.94</td><td>$37.84</td></tr><tr><td>Expected annual dividends per share</td><td>$0.96</td><td>$0.96</td><td>$0.80</td></tr><tr><td>Expected life in years</td><td>4.8</td><td>5.0</td><td>5.1</td></tr><tr><td>Expected volatility</td><td>30%</td><td>27%</td><td>28%</td></tr><tr><td>Risk-free interest rate</td><td>3.1%</td><td>4.1%</td><td>5.0%</td></tr><tr><td>Weighted average grant date fair value of stock option awards granted</td><td>$13.03</td><td>$17.24</td><td>$10.19</td></tr></table>
<table><tr><td><i>(Thousands of barrels per day)</i></td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td>Gasoline</td><td>756</td><td>791</td><td>804</td></tr><tr><td>Distillates</td><td>375</td><td>377</td><td>375</td></tr><tr><td>Propane</td><td>22</td><td>23</td><td>23</td></tr><tr><td>Feedstocks and special products</td><td>100</td><td>103</td><td>106</td></tr><tr><td>Heavy fuel oil</td><td>23</td><td>29</td><td>26</td></tr><tr><td>Asphalt</td><td>76</td><td>87</td><td>91</td></tr><tr><td>TOTAL<sup>(a)</sup></td><td>1,352</td><td>1,410</td><td>1,425</td></tr><tr><td>Average sales price<i>(Dollars per barrel)</i></td><td>$109.49</td><td>$86.53</td><td>$77.76</td></tr></table>
<table><tr><td><i></i> Crack spreads<i></i><i>(Dollars per barrel)</i></td><td>1st Qtr</td><td>2nd Qtr</td><td>3rd Qtr</td><td>4th Qtr</td><td>2008</td></tr><tr><td>Chicago LLS 6-3-2-1</td><td>$0.07</td><td>$2.71</td><td>$7.81</td><td>$2.31</td><td>$3.27</td></tr><tr><td>US Gulf Coast LLS 6-3-2-1</td><td>$1.39</td><td>$1.99</td><td>$6.32</td><td>-$0.01</td><td>$2.45</td></tr></table>

Question: what was the increase of blended ethanol into gasoline in 2008 from 2007 , in mmboe?
Answer: 16