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The story behind Valero is one unequaled in corporate America. Named for the mission San Antonio de Valero – the original name of the Alamo – Valero Energy Corporation was created on January 1, 1980, as the corporate successor to LoVaca Gathering Company, a subsidiary of the Coastal States Gas Corporation. Valero is the direct result of a $1.6 billion settlement approved unanimously in 1978 by the Texas Railroad Commission, the state’s natural gas regulatory agency, which ended more than six years of litigation brought against Coastal by its municipal gas customers who claimed they had been overcharged for natural gas.
Valero’s journey as a natural gas transportation company evolved in the mid-1980s when the company purchased a 50 percent interest in a Corpus Christi, Texas, refinery owned by Saber Energy. 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. But in the years to follow, Valero amassed its “Refinery of the Future” and added 16 more refineries to the fold starting in 1997. Through these acquisitions, the company also branched into retail and wholesale markets and continues to operate under the Valero, Diamond Shamrock, Shamrock, Ultramar and Beacon brands.
Today, Valero proudly has a work force of 21,000 employees and maintains a refining throughput capacity of 2.8 million barrels per day. The company is a Fortune 500 company, still based in its hometown of San Antonio, Texas, and is one of North America’s largest independent refiners. Valero is also a leading ethanol producer with nine ethanol plants in the Midwest with a combined capacity of 1 billion gallons per year. Valero also operates a 33-turbine wind farm near its refinery in Sunray, Texas.
Valero maintains a strong commitment to safety and stands as one of the most recognized refiners within the federal OSHA Voluntary Protection Program (VPP). The company demonstrates its commitment to excellence in occupational safety and process safety through an intensive, detailed Commitment to Excellence Management System. And it continues to be recognized among the world’s top refining and marketing companies, and among the nation’s best employers.
In the community, Valero is proud of its legacy of change and positive outreach through an international network of Volunteer Councils. Valero Volunteers proudly dedicated nearly 150,000 volunteer hours to community outreach in 2008. Special missions on behalf of the United Way, the National Multiple Sclerosis Society, the Children’s Miracle Network, Muscular Dystrophy Association, Wounded Warriors and countless children’s charities are a source of pride and motivation for every Valero employee. And the Valero Energy Foundation – the philanthropic arm of Valero Energy Corporation – annually contributes $15 million to $20 million to improve the lives of those living in communities near a Valero operation.
Valero proudly carries its legacy of strength and stability throughout the refining industry and into each community touched by its operations. Through the years, the company has amassed a family of employees from virtually every corner of the energy business. Their expertise and dedication continues to make Valero a competitive partner in the energy industry.
Scroll below for a look at Valero through the years …
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On Jan. 1, 1980, Valero was born as the corporate successor of LoVaca Gathering Co., a natural-gas gathering subsidiary of the Coastal States Gas Corp. The company’s formation was far from a smooth one. LoVaca and Coastal had contracts to supply natural gas to utilities around Texas. Due to the natural-gas shortage in the 1970s, LoVaca was unable to honor its contracts. After more than six years of litigation, a $1.6 billion settlement was reached, which included the formation of Valero as a new company separate from Coastal. At the time, it was the largest corporate spinoff in U.S. history. |
The original Saber refinery near the site of Valero’s flagship refinery complex in Corpus Christi started as nothing more than a vacuum and crude unit on a humble plot of land. Today, the sprawling Bill Greehey West and East refineries in Corpus Christi are among the most complex, technologically advanced refineries in the world.
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Throughout the late 1980s and early 1990s, Valero continued to grow as a diversified energy company, operating in refining and marketing and natural-gas-related services.
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Valero acquired Basis Petroleum Inc. in 1997, making it the largest independent refining and marketing company on the Gulf Coast.
Valero at that point had four refineries in Texas and Louisiana and a 530,000 BPD total throughput capacity.
Earlier that year, Valero announced that it would merge its natural-gas-related services with PG&E Corp., as well as spin off its refining and marketing operations as a new company retaining the Valero name. |
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Valero acquired Mobil’s Paulsboro refinery, making Valero the nation’s second-largest independent refining company with a total throughput capacity of approximately 735,000 BPD. The acquisition also provided the company with geographic diversity and access to Northeastern markets. |
In 2000, Valero entered the West Coast market when it acquired the Benicia refinery, which is considered one of the most complex refineries in the nation. With the acquisition of the former ExxonMobil Corp.’s refinery, located near
San Francisco, Valero also acquired its 270-store retail distribution chain and 80 company-operated sites. This marked the company’s entry into the retail business when it debuted the Valero retail brand. |
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Valero executed lease agreements with purchase options for a 115,000 BPD refinery in Corpus Christi and refined-product pipelines and terminals in Texas, which were owned and operated by subsidiaries of El Paso Corp. Also that year, Valero acquired Huntway Refining Co., which had two asphalt refineries on the West Coast -- one in Benicia, Calif., and one in Wilmington, Calif. -- near the company’s fuel refineries.
Valero completed its largest transaction when the company acquired Ultramar Diamond Shamrock in 2001. With this acquisition -- which was completed in seven months -- Valero became one of the nation's top three refining and marketing companies.
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Valero acquired Orion Refining Corp.'s St. Charles, La., refinery in July 2003. This was a key addition to Valero's refining network because the facility is another of the nation's most-complex refineries, yet still has tremendous upgrade potential. That means Valero can significantly enhance the plant’s profitability and performance with minimal capital investment.
The purchase also proved the company’s ability to turn a low-performing refinery into a profitable, community-focused plant. Under Valero’s ownership, the refinery produced a record-breaking United Way campaign, donating monies and volunteering time to charities in the community.
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Valero's international reach expanded in 2004 with the purchase of El Paso Corp.'s 315,000 BPD refinery on the Caribbean Island of Aruba. The refinery has excellent logistics, processes a heavy sour crude oil and strengthens Valero's geographic and feedstock diversity. The $465 million deal included other assets, such as a marina. |
A milestone year of growth, 2005 marked Valero's rise to become the largest independent North American refiner with the aquisition of Premcor Inc. Valero now has 15 refineries and a total throughput capacity of approximately 2.8 million barrels per day. This $8 billion transaction was one of the largest and most strategic acquisitions in the company's history.
Photo caption: To keep its competitive advantage over other refiners, Valero has acquired facilities and upgraded them. For example, the Port Arthur refinery -- part of the Premcor acquisition in 2005 -- became Valero's most profitable plant in 2006, and with expansions has allowed the processing of an additional 325,000 barrels per day of medium and heavy sour crude. |
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On Jan. 1, 2006, Bill Klesse was named the Chief Executive Officer of Valero Energy Corporation.
In August, Valero became the No. 1 rack fuel marketer in Texas with a total of 1,900 branded wholesale and company-owned locations and significant unbranded sales volumes around the state.
This growth accurred when Valero signed an 11-year agreement with Susser Petroleum -- the largest single branded wholesale deal in Valero history in terms of both fuel volumes and number of sites -- to supply fuel and brand programs to more than 300 of Susser's network of 324 retail stores in Texas and Oklahoma. Valero also began branding selected sites from Susser's network of 352 wholesale dealers.
Valero was also named 2006 Convenience Store Chain of the Year by Convenience Store Decisions magazine, a widely read retail industry trade publication.
In December, Valero completed sale of its ownership interest in Valero GP Holdings, LLC, successfully spinning off Valero L.P. and its general partner, Valero GP Holdings. By making the companies independent, both Valero Energy and Valero L.P. were in a good position to continue growing. |
For the ninth year, Valero is ranked as one of Fortune magazine's 100 Best Companies to Work For. The company also earned accolades as one of the nation's Best Big Companies to Work For. |
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Valero enters the ethanol business with the purchase of nine ethanol plants and one site under development from VeraSun Energy Corp. With this purchase, a new subsidiary is formed. These ethanol plants are in Linden, Ind; Albert City, Charles City, Fort Dodge and Hartley, Iowa; Welcome, Minn.; Bloomingburg, Ohio; Aurora, S.D.; and Albion, Neb. The site in Reynolds, Ind., is under development.
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