Valero Energy

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Valero Energy Corporation
Company typePublic
S&P 500 component
IndustryOil and gas
FoundedJanuary 1, 1980; 44 years ago (1980-01-01)
FounderWilliam Greehey
Area served
North America
Key people
Lane Riggs
(President & CEO)
RevenueIncrease US$176.383 billion (2022)[1]
Increase US$16.796 billion (2022)[1]
Increase US$11.528 billion (2022)[1]
Total assetsIncrease US$60.982 billion (2022)[1]
Total equityIncrease US$25.468 billion (2022)[1]
Number of employees
10,015 (January 2018)[1]

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 (480,000 m3) per day, 11 ethanol plants with a combined production capacity of 1.2 billion US gallons (4,500,000 m3) 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]

In 2000, Valero purchased ExxonMobil's Benicia, California, refinery and interest in 350 Exxon-branded service stations in California, mainly in the San Francisco Bay Area. The company also began retailing gasoline under the Valero brand. In June 2001, Valero acquired the Huntway Refining Company, along with two asphalt plants on the West Coast.

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]


Big Oil companies[a]
Company Revenue (USD)[21] Profit (USD) Brands
ExxonMobil $286 billion $23 billion Mobil
Imperial Oil
Shell plc $273 billion $20 billion Jiffy Lube
TotalEnergies $185 billion $16 billion Elf Aquitaine
BP $164 billion $7.6 billion Amoco
Aral AG
Chevron $163 billion $16 billion Texaco
Marathon $141 billion $10 billion ARCO[22]
Phillips 66 $115 billion $1.3 billion 76
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.[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$
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[edit]

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 owns two oil refineries in California. The Benicia Refinery is located on the Carquinez Strait, a tributary of the San Francisco Bay.[32] The Wilmington Refinery[33] is located 23 miles (37 km) south from downtown Los Angeles.[34]

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[edit]

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[edit]

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]


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]


Pembroke Refinery, Wales

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 (43,000 m3) 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 (460,000 m3) 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 (2,200 m3)-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]


Map of gas stations branded with brands of Valero (including "Valero", "Shamrock", "Diamond Shamrock" & "Beacon") as of December 2020 [46]
This is the flagship Valero fueling station located in San Antonio, Texas.
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 (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 is co-branded with a 7-Eleven convenience store.

Creation of CST Brands[edit]

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[edit]

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.

See also[edit]


  1. ^ Data is based on the 2022 Fortune 500.


  1. ^ a b c d e f "Valero Energy Reports 2018 Fourth Quarter and Full Year Results" (PDF). Valero Energy. January 2019.
  2. ^ "Valero". Archived from the original on March 8, 2012. Retrieved March 18, 2011.
  3. ^ "Valero Press Release". Valero. Archived from the original on March 8, 2012. Retrieved June 5, 2012.
  4. ^ a b c d Lee, William B. (2012). Creating Entrepreneurial Supply Chains: A Guide for Innovation and Growth. Fort Lauderdale, FL: J. Ross Publishing. p. 28. ISBN 978-1-60427-062-4.
  5. ^ a b "Company history".
  6. ^ "Valero Annual Report for 1997".
  7. ^ "Valero Annual Report for 1997".
  8. ^ "Valero Annual Report for 1997".
  9. ^ "Valero Annual Report for 1998".
  10. ^ "URGENT: 7-Eleven Buying TETCO Retail, Wholesale Operations". WOAI LOCAL NEWS. August 14, 2012.
  11. ^ "Diamond Shamrock buys Stop N Go chain". Houston Chronicle. November 9, 1995. Archived from the original on April 13, 2013.
  12. ^ "Valero Energy Corp". March 9, 2003. Retrieved February 21, 2024.
  13. ^ a b Times, Daily (November 20, 2009). "Valero closing Delaware refinery; 550 jobs lost". Delco Times. Retrieved February 20, 2024.
  14. ^ a b OGJ editors (November 20, 2009). "Valero to close Delaware City refinery". Houston: Oil and Gas Journal. Retrieved April 9, 2018. {{cite news}}: |last= has generic name (help)
  15. ^ Polson, Jim (March 11, 2011). "Valero to Buy Chevron's Pembroke Refinery for $1.73 Billion". Bloomberg.
  16. ^ "Valero confirms purchase of Chevron's Pembroke refinery and other assets". Hydrocarbon Processing. March 11, 2011.
  17. ^ "Valero pays $1.73B for Chevron's Pembroke refinery". Associated Press. March 11, 2011. Archived from the original on June 29, 2011. Retrieved January 17, 2017.
  18. ^ a b "Investor Place". May 21, 2013. Retrieved September 23, 2015.
  19. ^ a b "Company History". Archived from the original on September 25, 2015. Retrieved September 23, 2015.
  20. ^ Sergio Chapa, "Valero changing its look at the gas pump", San Antonio Business Journal, April 19, 2018. Retrieved 2019-03-11.
  21. ^ "Fortune 500". Fortune. Retrieved November 17, 2022.
  22. ^ "Marathon Petroleum". Marathon Petroleum Corporation . Retrieved October 26, 2023.
  23. ^ "Valero Energy Revenue 2006-2018 | VLO". Retrieved November 5, 2018.
  24. ^ "Fortune 500 Companies 2018: Who Made the List". Fortune. Retrieved November 9, 2018.
  25. ^ "(PERI) THE TOXIC 100: Top Corporate Air Polluters in the United States". Archived from the original on October 1, 2011.
  26. ^ "California Proposition 23, the Suspension of AB 32 (2010)". Ballotpedia.
  27. ^ Hiltzik, Michael (August 13, 2010). "Proposition 23 - Trying to shed light on a shadowy figure in Proposition 23 battle - Los Angeles Times". Los Angeles Times.
  28. ^ Hiltzik, Michael (July 27, 2010). "Proposition 23 - Oil industry is driving force behind Proposition 23's attack on California's new greenhouse gas regulation - Los Angeles Times". Los Angeles Times.
  29. ^ Roosevelt, Margot (September 10, 2010). "Global Warming - Fight over bid to suspend California's global warming law gets ugly - Los Angeles Times". Los Angeles Times.
  30. ^ Galpern, Dan (July 28, 2010). "Vote NO on Proposition 23: The proposition on the November ballot would essentially repeal California's landmark climate-protection law". New Times. Retrieved September 17, 2010.
  31. ^ Teresa Alvardo; Shellye Archambeau (September 9, 2010). "Prop 23 is Bad for Business". Fox and Hounds. Retrieved September 17, 2010.
  32. ^ "Benicia". Archived from the original on June 24, 2011.
  33. ^ "Negligence Petroleum storage tank exploded" (PDF). July 2000.
  34. ^ "Wilmington". Archived from the original on October 4, 2010. Retrieved October 12, 2010.
  35. ^ Zuckerman, Adam; Koenig, Kevin (September 2016). From Well to Wheel: The Social, Environmental, and Climate Costs of Amazon Crude (PDF). Amazon Watch. p. 7. Retrieved April 9, 2018.
  36. ^ "From Well to Wheel: The Social, Environmental, and Climate Costs of Amazon Crude". Amazon Watch website. September 28, 2016. Retrieved March 27, 2017.
  37. ^ a b "Valero Energy's Sustainability Report for 2020Q4" (PDF). Archived from the original (PDF) on October 27, 2021. Alt URL
  38. ^ Bryce, Robert (January 16, 2009). "Gaza invasion: Powered by the U.S."
  39. ^ "Stop US shipment of fuel to Israel's armed forces as evidence of Gaza war crimes mounts". Amnesty International. August 4, 2014. Retrieved April 9, 2018.
  40. ^ "Parent Vendor: Valero Energy Corporation in San Antonio, TX". Retrieved April 9, 2018.
  41. ^ LaPorts, James (October 16, 2017). "Valero awarded $157M fuel contract for Israel". UPI. Retrieved April 9, 2018.
  42. ^ a b "Valero to Sell Paulsboro Oil Refinery to PBF Energy". Bloomberg.
  43. ^ OGJ editors (September 27, 2010). "Valero announces sale of Paulsboro, NJ, refinery". Houston: Oil and Gas Journal. Retrieved April 9, 2018. {{cite news}}: |last= has generic name (help)
  44. ^ a b c OGJ editors (March 11, 2011). "Valero to buy Chevron's Pembroke refinery". Houston: Oil and Gas Journal. Retrieved April 9, 2018. {{cite news}}: |last= has generic name (help)
  45. ^ a b "Valero: Pembroke". Valero. Retrieved April 9, 2018.
  46. ^ "Find a Gas Station Near You | Valero". Retrieved December 25, 2020.
  47. ^ "Diamond Shamrock". The Handbook of Texas Online. Texas State Historical Association (TSHA).
  48. ^ Sanders, Lisa. "Valero CEO to Wall St.: You're wrong". MarketWatch.
  49. ^ Q2 2012 Valero Energy Corp. Earnings Conference Call Transcript of Speaker Notes
  50. ^ "Valero Marketing Texaco in the UK". Retrieved October 27, 2023.
  51. ^ "Official launch date announced for Valero as a fuel brand in UK". Retrieved October 27, 2023.
  52. ^ "DSRM National Bank CRA Performance Evaluation" (PDF). Office of the Comptroller of the Currency. January 12, 2009.

External links[edit]