Valero Energy Corporation is an American-based downstream petroleum company mostly involved in manufacturing and marketing transportation fuels, other petrochemical products, and power. It is headquartered in San Antonio, Texas, United States.[2] Throughout the United States and Canada, the company owns and operates 15 refineries, and one in Wales, with a combined throughput capacity of approximately 3 million barrels (480,000m3) per day, 11 ethanol plants with a combined production capacity of 1.2billion US gallons (4,500,000m3) per year, and a 50-megawatt wind farm. A Fortune 500 company, before the 2013 spinoff of CST Brands, Valero was one of the United States' largest retail operators with approximately 6,800 retail and branded wholesale outlets in the United States, Canada, United Kingdom, Mexico and Peru under the Valero, Diamond Shamrock, Shamrock, Beacon, and Texaco brands.[3] It is largest independent petroleum refiner and marketer in North America.[4]
Previous logos used by Valero. Top: original company logo from 1980. Below: Logo used until 2018.
Valero was created on January 1, 1980, as the successor of Coastal States Gas Corporation's Subsidiary, LoVaca Gathering Company.[5] Valero took over the natural gas operations of the LoVaca Gathering Company, later renamed the Valero Transmission Company.[4] In the 1970s, the company faced litigation due to its inability to honor LoVaca and Coastal's contracts to supply utilities around Texas due to a natural gas shortage.[4] After six years, the company agreed to a $1.6 billion settlement, which included the establishment of Valero as a new company.[4]
The name Valero comes from Mission San Antonio de Valero, the original name of the Alamo.[5] Valero acquired Corpus Christi Marine Services Company ("CCMS"), a small barge company in Corpus 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 Energy Company spun off its subsidiary, Valero, to its stockholders.[6] At the same time, the remaining divisions, which consisted of natural gas operations, merged with a wholly owned subsidiary of Pacific Gas and Electric Company.[7] In May of that year, the firm acquired Basis Petroleum, which left it with four refineries in Texas and Louisiana.[8] In 1998, it then acquired a Paulsboro, New Jersey, refinery, the company's first outside of the Gulf Coast area.[9]
On December 31, 2001, Valero completed its acquisition of Ultramar Diamond Shamrock. The merger left Valero with over 4,700 Ultramar, Diamond Shamrock, and Beacon retail sites in the United States, Canada, and the Caribbean. With this acquisition, Valero also received ownership of Shamrock Logistics L.P., which was renamed Valero L.P. In 2006, the division was spun off as NuStar Energy. Starting in 2002, Valero has expanded its marketing to the East Coast, specifically the Northeast and Florida, using the Valero brand. The acquisition also includes all past Diamond Shamrock assets, including the former Sigmor Petroleum assets founded by Thomas E. Turner, founder of TETCO Inc. (the Sigmor brand name was the initials of Sigfried Moore, Turner's former employer) which merged with Shamrock Oil and Gas in 1960 forming Sigmor Shamrock - which was merged into Diamond Shamrock in 1982. Turner later repurchased Mission Petroleum Carriers when it was acquired by Diamond Shamrock which was the foundation of TETCO,[10] and the business portfolio of the former National Convenience Stores, which was acquired by Diamond Shamrock in November 1995.[11]
By 2003, Valero completed its acquisition of El Paso Corp's refineries, pipeline system and terminal assets in Corpus christi and South Texas.[12] On April 25, 2005, Valero agreed to buy Premcor, Inc., for $8 billion in cash and stock to become the largest U.S. refiner, as record prices for gasoline and other fuel boosted profits. On June 30, 2005, Valero announced that it was beginning a two-year process of converting Diamond Shamrock stations to the Valero brand. In the next year, on May 5, 2008, Valero agreed to buy 72 Albertsons gas stations.
Valero laid off 500 employees at its refinery in Delaware City, Delaware on November 20, 2009, due to profitability concerns.[13] The company permanently shut down its refinery in the city, the largest of such facility to close in the U.S. in 2009.[13] It was reported the refinery had lost $1 million per day since the beginning of the year.[14]
On March 11, 2011, Valero announced that it had agreed to a major European purchase from Chevron Corp. for $730 million in cash, not including working capital that will be determined at closing. Estimates on the value of the working capital would place the total price at $1.73 billion. The acquisition included Chevron's Pembroke Refinery in Wales — one of Europe's largest and most complex — 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.[15][16][17]
In 2013, Valero spun off its retail operations into a new publicly traded company, CST Brands.[18] Under long-term supply agreements, Valero continues to supply fuel to more than 7,400 retail locations, many of which use brand names formerly owned by Valero.[19]
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.[20]
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$39.2 billion in November 2018.[23] Valero is ranked No. 31 on the Fortune 500 rankings of the largest United States corporations by total revenue as of 2018.[24]
Year
Revenue in mil. USD$
Net income in mil. USD$
Total Assets in mil. USD$
Price per Share in USD$
Employees
2005
80,616
3,577
32,798
28.57
2006
87,640
5,461
37,753
40.26
2007
89,987
5,234
42,722
46.62
2008
106,676
−1,131
34,417
27.65
2009
64,599
−1,982
35,572
13.90
2010
82,233
324
37,621
13.79
2011
125,987
2,090
42,783
18.34
2012
138,393
2,083
44,477
20.50
2013
138,074
2,720
47,260
32.86
10,007
2014
130,844
3,630
45,550
44.48
10,065
2015
87,804
3,990
44,227
54.89
10,103
2016
75,659
2,289
46,173
54.02
9,996
2017
93,980
4,065
50,158
67.99
10,015
Environmental record
The Political Economy Research Institute ranks Valero 28th among corporations that emit airborne pollutants in the United States. The ranking is based on both the quantity (3.4 million pounds in 2005) and the toxicity of the emissions.[25]
Valero was the biggest[26] financial backer of the failed 2010 California Proposition 23 and contributed more than $4 million by August 2010.[27] Had it passed, Proposition 23 would have delayed action on greenhouse-gas emissions in the state of California by delaying current implementation of the California's Global Warming Solutions Act of 2006 until the state attained an unemployment rate of 5.5% or less for one full year.[28][29] 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.[30][31]
Valero's Wilmington (CA), Benicia (CA), and Port Arthur (TX) refineries are known to carry and process crude oil from the Amazon region of South America, a large concern for environmentalists trying to protect the Amazon rainforest. In 2015, Wilmington and Benicia processed about 13,000 and 7,200 barrels of Amazonian crude oil per day, respectively.[35][36]
Carbon footprint
Valero Energy reported Total CO2e emissions (Direct + Indirect) for the twelve months ending 31 December 2020 at 27,500 Kt (-2,000 /-6.8% y-o-y).[37]
Valero Energy's annual Total CO2e emissions (Direct + Indirect) (in kilotonnes)[37]
Dec 2017
Dec 2018
Dec 2019
Dec 2020
30,400
30,400
29,500
27,500
Defense contracts
For many years, Valero Energy Corp. has been awarded contracts worth several hundred millions of dollars by the United States Defense Logistics Agency Energy (DLA Energy) through the U.S. Defense Energy Support Center (DESC) to provide fuel, often JP-8, to Israel.[38][39][40][41]
Divestitures
During 2010, Valero sold its operations on the United States Atlantic coast.
In November 2009, Valero Energy closed its operations at Delaware City.[14] Later, Valero Energy reached an agreement to sell the assets of its Delaware City Refining and Delaware Pipeline to a Petroplus Holdings subsidiary, PBF Energy Partners LP, for approximately $220 million in September 2010.[42]
Shortly after the divestiture of Delaware City, the company sold its refinery at the Port 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.[42][43][44]
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.[44] The Pembroke plant is one of the largest and most complex refineries in Western Europe with a total throughput capacity of 270,000 barrels (43,000m3) per day and a Nelson complexity index rating of 11.8.[45] This puts Valero at a total of 15 refineries and 2.9 million barrels (460,000m3) per day of throughput capacity overall, solidifying the company’s standing as the world’s largest independent refinery.[45]
Valero also purchased ownership interest in four major pipelines and eleven fuel terminals, a 14,000-barrel (2,200m3)-per-day aviation fuel business, and a network of more than 1,000 Texaco-branded wholesale sites, which is the largest branded dealer network in the United Kingdom and the second-largest in Ireland. Valero has continued with the Texaco brand in these markets.[44]
Retail
Map of gas stations branded with brands of Valero (including "Valero", "Shamrock", "Diamond Shamrock" & "Beacon") as of December 2020 The flagship Valero fueling station located at UTSA Blvd. and I-10 West in San Antonio, TX, prior to its 2018 re-branding to Circle K. It is currently operated by Alimentation Couche-Tard, which owns the Circle K brand.
Valero retails gasoline branded as Valero, Shamrock, Diamond Shamrock,[47] Beacon, and Total, the last under license from TotalEnergies. 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".[48]
Valero attempted to shift its focus from being a discount gasoline brand to becoming a premium brand. As part of the shift, Valero began to rebrand 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 former Shamrock Oil and Gas Company, which merged with Diamond 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 (510m2) 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 is co-branded with a 7-Eleven convenience store.
Creation of CST Brands
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."[49] In 2013, Valero completed the spinoff of the retail operations as CST Brands.[18] Valero no longer owns retail operations using the Diamond Shamrock, Shamrock, Beacon, Ultramar, or Total names, but Valero continues to supply fuel.[19] Valero also continues to supply fuel in the United Kingdom and Ireland under the Texaco brand,[50] and in October 2023 started test marketing of the Valero brand at 3 service stations close to its refinery in Wales, United Kingdom.[51]
Credit cards
Valero issues its own private label credit 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.[52] The credit card operations are based in Amarillo, Texas, a city where Diamond Shamrock was once previously based.
Texaco, Inc. is an American oil brand owned and operated by Chevron Corporation. Its flagship product is its fuel "Texaco with Techron". It also owned the Havoline motor oil brand. Texaco was an independent company until its refining operations merged into Chevron, at which time most of its station franchises were divested to Shell plc through its American division.
Sunoco LP is an American master limited partnership organized under Delaware state laws and headquartered in Dallas, Texas. Dating back to 1886, the company has transitioned from a vertically integrated energy company to a distributor of fuels. It was previously engaged in oil, natural gas exploration and production, refining, chemical manufacturing, and retail fuel sales, but divested these businesses. Sunoco is the largest independent distributor of fuels in the United States.
Chevron Corporation is an American multinational energy corporation predominantly specializing in oil and gas. The second-largest direct descendant of Standard Oil, and originally known as the Standard Oil Company of California, it is headquartered in San Ramon, California, and active in more than 180 countries. Within oil and gas, Chevron is vertically integrated and is involved in hydrocarbon exploration, production, refining, marketing and transport, chemicals manufacturing and sales, and power generation.
Tesoro Corporation, known briefly as Andeavor, was a Fortune 100 and a Fortune Global 500 company headquartered in San Antonio, Texas, with 2017 annual revenues of $35 billion, and over 14,000 employees worldwide. Based on 2017 revenue, the company ranked No. 90 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.
Shell USA, Inc. is the United States-based wholly owned subsidiary of Shell plc, a UK-based transnational corporation "oil major" which is amongst the largest oil companies in the world. Approximately 18,000 Shell employees are based in the U.S. Its U.S. headquarters are in Houston, Texas. Shell USA, including its consolidated companies and its share in equity companies, is one of America's largest oil and natural gas producers, natural gas marketers, fuel marketers and petrochemical manufacturers.
Hess Corporation is an American global independent energy company involved in the exploration and production of crude oil and natural gas. It was formed by the merger of Hess Oil and Chemical and Amerada Petroleum in 1968. Leon Hess served as CEO from the early 1960s through 1995, after which his son John B Hess succeeded him as chairman and CEO. The company has agreed to be acquired by rival oil company Chevron.
Diamond Shamrock Corp. or Diamond Shamrock Refining and Marketing was an oil refinery and gas station company in the United States, headquartered in San Antonio, Texas.
Caltex is a petroleum brand name of Chevron Corporation used in the Asia-Pacific region, the Middle East, and Southern Africa. Headquartered in Singapore, it is also the brand name of non-Chevron petroleum companies in some countries under a trademark licensing agreement with Chevron.
Ultramar is an Eastern Canadian gas and home fuel retailer, with its head office located in Montreal, Quebec. Ultramar operates gas stations and home fuel delivery in Ontario, Quebec, and Atlantic Canada.
The Delaware City Refinery, currently owned by Delaware City Refining Corporation, a subsidiary of PBF Energy, is an oil refinery in Delaware City, Delaware. When operational it has a total throughput capacity of 210,000 barrels per day (33,000 m3/d), and employs around 570 individuals.
Rhoscrowther was a village, ecclesiastical parish and civil parish in Pembrokeshire, Wales on the south shore of the Milford Haven Waterway. The placename is Welsh and perhaps means "crwth-player's moor". It is part of the community of Angle.
The Pembroke Refinery is an oil refinery situated on the Pembrokeshire coast in Wales at Rhoscrowther in the community of Angle. It first came on stream in 1964 and was Regent/Texaco's only British refinery. The refinery occupies a prominent position on the south bank of the Milford Haven Waterway and can be seen for many miles. Around a quarter of the site is within the Pembrokeshire Coast National Park which was created in 1952.
The Gulf Refinery at Milford Haven was an oil refinery situated on the Pembrokeshire coast in Wales. The refinery, originally owned and operated by Gulf Oil, was opened in August 1968 by Queen Elizabeth II. The plant, constructed at a cost of approximately £35 million, produced a range of petroleum products and occupied an area of 300 acres. It was initially designed to process 60,000 barrels of crude oil per day. The capacity was increased to 119,000 barrels (18,900 m3) a day of oil.
The Bahrain Petroleum Company (BAPCO) is an integrated petroleum company that is the national oil company of Bahrain.
The Port of Paulsboro is located on the Delaware River and Mantua Creek in and around Paulsboro, in Gloucester County, New Jersey, approximately 78 miles (126 km) from the Atlantic Ocean. Traditionally one of the nation's busiest for marine transfer operations, notably for crude oil and petroleum products, such as jet fuel and asphalt, it is a port of entry with several facilities within a foreign trade zone.
PBF Energy Inc. is a petroleum refining and logistics company that produces and sells transportation fuels, heating oils, lubricants, petrochemical feedstocks, and other petroleum products. The company owns and operated 6 refineries throughout the United States, located in Chalmette, Louisiana; Toledo, Ohio; Paulsboro, New Jersey; the Delaware City Refinery in Delaware City; Torrance, California; Martinez, California. PBF produces a range of products including gasoline, ultra-low-sulfur diesel (ULSD), heating oil, jet fuel, lubricants, petrochemicals and asphalt.
Parkland Corporation is a Calgary, Alberta-based energy and retail company. Parkland operates gas stations under the Pioneer, Columbia Fuels, Ultramar, Chevron, and Fas Gas Plus brands, as well as franchised Esso locations. The company holds the rights to the convenience store brand On the Run in Canada and most of the United States, and franchises White Spot's fast food restaurant chain Triple O's in Alberta, British Columbia, and Ontario. Parkland also operates commercial oil and gas businesses under the Bluewave Energy, Sparlings, and Ultramar brands.
1 2 3 4 Lee, William B. (2012). Creating Entrepreneurial Supply Chains: A Guide for Innovation and Growth. Fort Lauderdale, FL: J. Ross Publishing. p.28. ISBN978-1-60427-062-4.
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US$176.383 billion(2022) [1] 
