 | |
.JPG) Headquarters inSan Antonio, Texas | |
| Company type | Public |
|---|---|
| Industry | Oil and gas |
| Founded | January 1, 1980; 45 years ago (1980-01-01) |
| Founder | William Greehey |
| Headquarters | San Antonio, Texas ,United States |
Area served | North America |
Key people | Lane Riggs (President &CEO) |
| Products | |
| Revenue |  US$144.8 billion (2023)[1] |
| US$11.86 billion (2023)[1] | |
| US$8.835 billion (2023)[1] | |
| Total assets |  US$63.06 billion (2023)[1] |
| Total equity | US$28.52 billion (2023)[1] |
Number of employees | 9,908 (2023)[1] |
| Website | www |
Valero Energy Corporation is an American-basedfuels producer mostly involved in manufacturing and marketing transportation fuels and otherrelated products. It is headquartered inSan Antonio, Texas, United States.[2] Throughout the United States, Canada, and the United Kingdom, the company owns and operates 15refineries with a combined throughput capacity of approximately 3.2 million barrels per day, two renewable diesel plants that produce approximately 1.2 billion gallons per year, and 12 ethanol plants with a combined production capacity of 1.6 billion gallons as its subsidiaries.[3][4][5]
According to a number of estimates, Valero has become a major producer ofcorn ethanol andrenewable diesel, both low-carbon liquid transportation fuels.[6][7]
Valero was established on January 1, 1980, as a spinoff ofCoastal States Gas Corporation's Subsidiary, LoVaca Gathering Company.[8] The company took over thenatural gas operations of the LoVaca Gathering Company, later renamed the Valero Transmission Company.[6] In the 1970s, the Coastal company faced litigation due to its inability to honor contracts to supply utilities around Texas due to a natural gas shortage.[6] After six years, Coastal agreed to a $1.6 billion settlement, which included the establishment of Valero as a new company.[6]
The name Valero comes fromMission San Antonio de Valero, the original name of themission in the Alamo.[8] The company acquired Corpus Christi Marine Services Company, a small barge company inCorpus Christi, Texas, in April 1981 when it purchased a stake in Saber Energy Inc. of Houston. In May 1985, Valero Refining and Marketing Company was born from Valero's subsidiary, Saber Energy Inc.
In 1997, Valero merged its natural gas service business withPacific Gas and Electric Company and spun off its refining assets to form Valero Energy Corporation.[9] At the same time, the remaining divisions, which consisted of natural gas operations, merged with a wholly owned subsidiary of PG&E. In May of that year, Valero Energy acquired three refineries from Bassis Petroleum.[9] The following year, the company expanded its operations by purchasing thePaulsboro Refinery in New Jersey from Mobil, making it the second-largest independent refiner in the U.S.[10]
In 2000, Valero purchased theBenicia, California, refinery and interest in 350 Exxon-branded service stations in California, mainly in theSan Francisco Bay Area.[4] The company also began retailing gasoline under the Valero brand.[11] In June 2001, Valero acquired two asphalt plants on theWest Coast.
In 2001, Valero completed its acquisition of UltramarDiamond Shamrock.[4] With this acquisition, the company also received ownership of Shamrock Logistics L.P., which was renamed Valero L.P. In 2006, Valero L.P. was spun off and renamedNuStar Energy.[12] Starting in 2002, Valero has expanded its marketing to theEast Coast, specifically theNortheast and Florida, using the Valero brand.
By 2003, Valero completed its acquisition of El Paso Corp's refinery, pipeline system and terminal assets in Corpus Christi and South Texas.[13] On April 25, 2005, the company purchasedPremcor, Inc., for $8 billion.[14] In June 2005, Valero announced that it was beginning a two-year process of converting Diamond Shamrock stations to the Valero brand.[15] And in 2008, the company bought 72Albertsons gas stations.[16]
In 2009, it was reported that Valero lost an average $1 million per day since the beginning of the year.[17] In November of that year, the company was forced to lay off 500 employees, and subsequently began to permanently shut downits refinery inDelaware City, Delaware.[18]
In 2009, Valero Energy Corporation entered the ethanol market by acquiring 7 ethanol plants in March, and another 3 ethanol plants, purchased in December, all located in the Midwest of the United States.[19][20]
In 2011, Valero Energy Corporation entered into a joint venture with a subsidiary of Darling Ingredients Inc. to establish Diamond Green Diesel Holdings (DGD). This venture resulted in the construction of a renewable diesel plant adjacent to Valero's refinery in St. Charles, Louisiana.[21]
On March 11, 2011, Valero announced that it had agreed to a major European purchase fromChevron Corp., Chevron'sPembroke Refinery inWales together with marketing and logistical assets throughout the United Kingdom and Ireland, which include 4 pipelines, 11 terminals, an aviation fuel business, about 1,000 retail outlets, inventory and other items.[22]
In 2013, Valero spun off its retail operations into a new publicly traded company,CST Brands.[23] Under long-term supply agreements, Valero continues to supply fuel to more than 7,000 retail locations, many of which use brand names owned by Valero.[24] That same year, the company started renewable diesel production at the DGD joint venture plant next to Valero’s St. Charles refinery in Louisiana.[25]
In 2021, DGD began expansion of the DGD St. Charles plant in 2019 and increased its renewable diesel capacity.[26] In 2022, the second DGD plant, located next to Valero’s refinery in Port Arthur, Texas, began its operations.[27]
A change to the logo, store canopy and facade was announced in April 2018. Known as "Vanguard", with various hues of blue, white, and yellow, Valero explained that applying the new design to all its stores would take several months to complete.[28]
Valero's operations are managed through three main segments: refining, renewable diesel, and ethanol.
This segment includes the operations of Valero's 15 petroleum refineries.[3] The segment also encompasses the marketing of refined petroleum products and the logistics assets supporting these operations.
Valero operates this segment through Diamond Green Diesel (DGD), which has two plants in the Gulf Coast region of the United States. These plants have a combined annual production capacity of about 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha.[5]
Valero's ethanol segment includes 12 plants combined production capacity of around 4.1 million gallons per day or approximately 1.6 billion gallons annually.[5]
In January 2023, Valero and Darling Ingredients Inc. announced an investment decision on aSustainable Aviation Fuel (“SAF”) project at the Diamond Green Diesel Port Arthur plant.[29] Valero announced the project was completed in October, 2024, bringing online a capacity of 235 million gallons a year of sustainable jet fuel, or SAF. The fuel consists of 50% synthetic paraffinic kerosene and can be blended with 50% conventional jet fuel.[30] It is calculated to reduce greenhouse gas emissions by 74% to 84% compared to standard jet fuels.[31]
Southwest Airlines signed a two-year agreement with Valero in October 2024, to begin using the sustainable jet fuel at Chicago’sMidway International Airport in a deal noted by Illinois GovernorJB Pritzker, who enacted a SAF tax credit in 2023.[31]JetBlue also started using Valero’s SAF atJohn F Kennedy International Airport in March 2024. It was the first long-term use of sustainable jet fuel in the Northeastern US.[32]
| Company | Revenue (2021)(USD)[33] | Profit (2021)(USD) | Brands |
|---|---|---|---|
| ExxonMobil | $286 billion | $23 billion | |
| Shell plc | $273 billion | $20 billion | |
| TotalEnergies | $185 billion | $16 billion | |
| BP | $164 billion | $7.6 billion | Amoco Aral AG |
| Chevron | $163 billion | $16 billion | |
| Marathon | $141 billion | $10 billion | ARCO[34] |
| Phillips 66 | $115 billion | $1.3 billion | |
| Valero | $108 billion | $0.9 billion | — |
| Eni | $77 billion | $5.8 billion | — |
| ConocoPhillips | $48.3 billion | $8.1 billion | — |
For the fiscal year 2017, Valero Energy reported earnings of US$4.065 billion, with an annual revenue of US$93.980 billion, an increase of 24.2% over the previous fiscal cycle. Valero Energy's shares traded at over $67 per share, and its market capitalization was valued at over US$39.2 billion in November 2018.[35] Valero is ranked No. 31 on theFortune 500 rankings of the largest United States corporations by total revenue as of 2018.[36]
For 2023, the company reported earnings of US$9.149 billion, with an annual revenue of US$144.766 billion. Valero Energy's shares traded at $130 per share, and its market capitalization was valued at over US$44 billion.[37] Valero is ranked No. 40 on the Fortune 500 rankings of United States corporations by total revenue as of 2022.[38]
| Year | Revenue in mil. USD$ | Net income in mil. USD$ | Total Assets in mil. USD$ | Price per Share in USD$[39] | Employees |
|---|---|---|---|---|---|
| 2005[40] | 80,616 | 3,577 | 32,798 | 47.17 | 22,068 |
| 2006[41] | 87,640 | 5,461 | 37,753 | 46.76 | 21,836 |
| 2007[42] | 89,987 | 5,234 | 42,722 | 64.01 | 21,651 |
| 2008[43] | 106,676 | −1,131 | 34,417 | 19.78 | 21,765 |
| 2009[44] | 64,599 | −1,982 | 35,572 | 15.31 | 20,920 |
| 2010[45] | 82,233 | 324 | 37,621 | 21.13 | 20,313 |
| 2011[46] | 125,987 | 2,090 | 42,783 | 19.24 | 21,942 |
| 2012[47] | 138,393 | 2,083 | 44,477 | 31.19 | 21,671 |
| 2013[48] | 138,074 | 2,720 | 47,260 | 50.40 | 10,007 |
| 2014[49] | 130,844 | 3,630 | 45,550 | 49.50 | 10,065 |
| 2015[50] | 87,804 | 3,990 | 44,227 | 70.71 | 10,103 |
| 2016[51] | 75,659 | 2,289 | 46,173 | 68.32 | 9,996 |
| 2017[52] | 93,980 | 4,065 | 50,158 | 91.91 | 10,015 |
| 2018[53] | 117,033 | 3,122 | 50,135 | 74.97 | 10,261 |
| 2019[54] | 108,324 | 2,422 | 53,864 | 93.65 | 10,222 |
| 2020[55] | 64,912 | -1,421 | 51,774 | 56.57 | 9,964 |
| 2021[56] | 113,977 | 930 | 57,888 | 75.11 | 9,813 |
| 2022[57] | 176,383 | 11,528 | 60,982 | 126.86 | 9,743 |
| 2023[37] | 144,766 | 8,835 | 63,056 | 130.00 | 9,908 |
ThePolitical Economy Research Institute ranks Valero 28th among U.S. corporations based on their airborne pollutant emissions. This ranking considers both the quantity (3.4 million pounds in 2005) and the toxicity of the emissions.[58]
In 2010, Valero was reportedly the largest financial supporter ofCalifornia Proposition 23, contributing over $4 million by August of that year.[59][60] Proposition 23 aimed to delay the implementation of California'sGlobal Warming Solutions Act of 2006 until the state achieved an unemployment rate of 5.5% or lower for a full year.[60][61] Critics argued that because that had happened only three times over the last 40 years, the proposition would have had the practical effect of repealing the law.[62][63]
Valero owns two oil refineries in California. TheBenicia Refinery is located on theCarquinez Strait, a tributary of theSan Francisco Bay and the Wilmington Refinery, located 23 miles (37 km) south from downtown Los Angeles.[64][65][66] The company's refineries in Wilmington (CA), Benicia (CA), and Port Arthur (TX) were noted for processing crude oil from the Amazon region of South America, raising environmental concerns regarding the protection of the Amazon rainforest. In 2015, the Wilmington and Benicia refineries processed approximately 13,000 and 7,200 barrels of Amazonian crude oil per day, respectively.[67]
In 2022, non-profit environmental groupSan Francisco Baykeeper sued Valero and Amports, a shipping operator, alleging that the companies had been dumpingpetroleum coke (or "petcoke") from Valero's Benicia Refinery into the San Francisco Bay. The lawsuit was settled in October 2024 for $2.38 million, with the companies also agreeing to site cleanup and investment in equipment to reduce spills and dust.[68][69]
In 2024, theBay Area Air Quality Management District andCalifornia Air Resources Board fined Valero $82 million over air pollution violations following a 2019 inspection at Valero's Benicia Refinery, with the fine being the largest in the District's history.[70]
In April 2025, Valero announced it would shut down the Benicia refinery, after recording $1.1 billion in "impairment" costs related to its California operations as the state made efforts to move away from fossil fuels.[71][72]
In 2020, theUnited States Environmental Protection Agency (EPA) announced a settlement with Valero and its subsidiaries regarding alleged Clean Air Act violations related to fuel quality standards and compliance requirements at the company's refineries and an import facilities. The related consent decree requires Valero to implement a company-wide Fuels Management System to help ensure its production complies with regulations.[73] In 2023, an audit byMontrose Environmental concluded that Valero has taken substantial actions to address environmental and health concerns in underserved communities, aligning with the U.S. EPA's principles of environmental justice.[74]
Valero Energy reported TotalCO2e emissions (Direct + Indirect) for the twelve months ending 31 December 2020 at 27,500 Kt (-2,000 /-6.8% y-o-y).[75]
| Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 |
|---|---|---|---|
| 30,400 | 30,400 | 29,500 | 27,500 |
In the past years, Valero Energy Corp. has secured contracts worth several hundred millions of dollars from the United States Defense Logistics Agency Energy (DLA Energy) through the U.S. Defense Energy Support Center (DESC) to provide fuel for various defense needs.[76][77][78][79]
During 2010, Valero sold its operations on the United States Atlantic coast.
In November 2009, Valero Energy closed its operations at Delaware City.[17] Later, Valero Energy reached an agreement to sell the assets of its Delaware City Refining and Delaware Pipeline to aPetroplus Holdings subsidiary,PBF Energy Partners LP, for approximately $220 million in September 2010.[80]
Shortly after the divestiture ofDelaware City, the company sold its refinery at thePort of Paulsboro to PBF Holdings, a wholly owned subsidiary of PBF Energy, as well. The sale concluded Valero's refinery ownership on the East Coast.[80][81][82]
Through acquisitions in 2011, Valero entered the European market while strengthening its position in the United States, by reducing costs in supplying the Atlantic coast.
On August 1, 2011, Valero acquired the Pembroke Refinery from Chevron, as well as the marketing and logistics assets, for $730 million, excluding working capital, which was valued at approximately $1 billion.[82] The Pembroke plant is one of the largest and most complex refineries inWestern Europe with a total throughput capacity of 270,000 barrels (43,000 m3) per day and aNelson complexity index rating of 11.8.[83]
Valero also purchased ownership interest in four major pipelines and eleven fuel terminals, a 14,000-barrel (2,200 m3)-per-day aviation fuel business, and a network of more than 1,000 Texaco-branded wholesale sites. Valero has continued with the Texaco brand in these markets.[82]
Valero retailsgasoline branded as Valero, Shamrock, Diamond Shamrock,[85] Beacon, and Total, the last under license fromTotalEnergies. While this arm of the company was the most visible to the public, it was, according to CEO Bill Greehey, "a very small part of [Valero's] operations".[86]
Valero attempted to shift its focus from being adiscount gasoline brand to becoming a premium brand. As part of the shift, Valero began torebrand its Ultramar, Beacon, Total, and Diamond Shamrock stations to the Valero brand. The Beacon and Shamrock brands are used by retailers as a low-cost alternative to the premium Valero brand. The Shamrock brand is based on the formerShamrock Oil and Gas Company, which merged withDiamond Alkali in 1967 to form Diamond Shamrock, thus declaring the trademark from official abandonment. The name Ultramar, while being eliminated in the United States, continued as Valero's brand name in Canada. Valero introduced its updated "Corner Store" retail concept on December 28, 2007, opening the company's first 5,500-square-foot (510 m2) prototype in western San Antonio. The Corner Store retail division, originally part of Diamond Shamrock, was absorbed into Valero's business portfolio in 2001. Not all Valero gas stations included a Corner Store - one Valero gas station in Euless, Texas east of Fort Worth was co-branded with a7-Eleven convenience store.
On July 31, 2012, during the 2nd Quarter Earnings Conference Call, Valero announced intentions to separate the retail business from the remainder of the company. CFO Mike Ciskowski stated "We believe the separation of our retail business by way of a tax-efficient distribution to our shareholders will create operational flexibility within the business and unlock value for our shareholders."[87] In 2013, Valero completed the spinoff of the retail operations asCST Brands.[23] Valero no longer owns retail operations using the Diamond Shamrock, Shamrock, Beacon, Ultramar, or Total names, but Valero continues to supply fuel.[24]Valero also supplies fuel in the United Kingdom and Ireland under the Texaco and Valero brand,[88] and in October 2023 started test marketing of the Valero brand at 3 service stations close to its refinery in Wales, United Kingdom.[89] In 2020, the Valero brand was introduced in Mexico and as of 2024 is the branded fuel supplier for 260 gas stations across the country.[90][91]
Valero issues its own private labelcredit cards for its stations through its credit card-only subsidiary, DSRM National Bank. The initials stand for "Diamond Shamrock Refining & Marketing", the unit of Diamond Shamrock which created it before being purchased by Valero.[92] The credit card operations are based inAmarillo, Texas, a city where Diamond Shamrock was once previously based.
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