Valero industry overview
Continuing Recovery in the Early s Valero's recovery from the severe difficulties it had experienced in the mids continued as the company moved into the s. He told the San Antonio Express-News in July"I think at least for the next four or five years, the refining business is going to be absolutely the best business to be in.
Purchased from the financially troubled Orion Refining Corporation for 20 percent of its replacement cost, this refinery, located adjacent to the Mississippi River, was again a perfect fit for Valero in that it could process cheaper heavy, sour crude oil while meeting environmental regulations. The operation began as nothing more than a vacuum unit and crude unit on a humble plot of land near the Corpus Christi Ship Channel. We Love It," Forbes, June 21, , pp. Two more refinery acquisitions followed in the wake of the UDS deal. Already in late , the company announced plans to increase capacity at all three Basis facilities. Through the years, the company has amassed a family of employees from virtually every corner of the energy business. Its number of gas processing plants had grown to Valero envisioned the gasoline retailing business providing it with a buffer against the more volatile refining sector. From there, the Valero of the early 21st century was largely engineered through acquisitions. It markets its refined products through wholesale rack and bulk markets; and through approximately 7, outlets under the Valero, Beacon, Diamond Shamrock, Shamrock, Ultramar, and Texaco brand names. Valero also continued to upgrade its oil-refining facilities. Unable to use coal as a fuel, British industry turned to resid instead, driving the demand and the cost of Valero's feedstock to unexpected heights, which at times exceeded the cost of straight crude oil. He planned to make Valero a "fully integrated energy company," as he told a Fortune correspondent in January The deal also marked Valero's entry into the retailing market as it included about gasoline stations, mainly in northern California.
Valero spun off Valero L. As a result of refinery upgrades and the strengthened market, Valero was able to restore its dividend payment in a sign of fiscal health in the second quarter of that year.
But in the years that followed, Valero assembled its "Refinery of the Future," and through its subsidiaries added more refineries starting in , with 15 plants today. The company also produces and sells ethanol, distiller grains, and corn oil primarily to refiners and gasoline blenders, as well as to animal feed customers. The deal also marked Valero's entry into the retailing market as it included about gasoline stations, mainly in northern California. In the community, Valero is proud of its legacy of support and positive outreach through an international network of Volunteer Councils. By early Valero was also suffering from a glut in its original field, natural gas. The three refineries had a combined capacity of , barrels per day, more than doubling Valero's existing output from its original refinery. The company subsequently sold off its natural gas properties to a limited partnership to retain financial stability and concentrate on its refining activities. About 1, of the retail sites are company-operated outlets combining a fuel station with a convenience store. The company's name was taken from the Mission of San Antonio de Valero, the original name of the Alamo.
The first acquisition of this buying binge also occurred in In doing so, Valero added Saber's substantial debts to its own large tally of borrowed funds, doubling its overall level of long-term indebtedness. Valero has continued with the Texaco brand in these markets.
Valero acquired Orion Refining Corp. Valero's stock was slated to be listed on the New York Stock Exchange shortly after its formal inaugural.
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