Valero's refineries have the capability to process cheap, heavy crude oil. The firm will continue to exploit the discount to light crude and deliver competitive margins.
Pipeline projects under construction will provide additional heavy crude oil and domestic light crude supply to refiners on the Gulf Coast, like Valero.
We expect an oversupply of light crude to develop in the Gulf Coast, which should result in sustainable, long-term light discount feedstock for Valero's refineries. Read more
Refiners may not be able to export as much refined product as necessary to balance the U.S. market, as a result, domestic product margins could weaken and offset the benefit of crude differentials.
Record-high gasoline prices generated political support for alternative fuels and transportation solutions that may make them economically viable, accelerating the decline in gasoline demand.
Valero is expected to benefit from light crude differentials on the Gulf Coast, if those differentials do not materialize, margins would likely be narrower than expected. Read more
William Klesse has been CEO since the end of 2005 and added the role of chairman in January 2007. He previously served as COO and executive vice president of refining and commercial operations. We appreciate Klesse's participation and commentary on Read more
Valero Energy is the largest independent refiner in the United States. It operates 14 refineries with a total throughput capacity of 2.8 million barrels a day in the U.S. Read more