Valero Energy

Valero Energy Corporation is a San Antonio-based American energy company whose principal business is converting crude oil and other feedstocks into transportation fuels and marketing those products in North America and selected European markets. Its main activities are organized around petroleum refining, renewable diesel and ethanol. The company also participates in sustainable aviation fuel, renewable naphtha, logistics and branded fuel marketing. Valero began on January 1, 1980, as a spinoff of the LoVaca Gathering Company, a subsidiary of Coastal States Gas Corporation. The new company initially inherited natural-gas operations associated with the settlement of Coastal States’ long-running contractual dispute with Texas utilities. Its name was derived from Mission San Antonio de Valero, the historic name of the mission associated with the Alamo. During the 1980s and 1990s, Valero moved progressively away from being primarily a natural-gas business and toward refining and fuel marketing. The 1997 restructuring separated the refining assets into Valero Energy Corporation while the remaining gas operations were combined with a Pacific Gas and Electric subsidiary. A series of acquisitions transformed Valero into one of the largest independent refiners in the United States. The company bought refineries from Basis Petroleum in 1997, Mobil’s Paulsboro refinery in 1998, the Benicia refinery and California retail interests in 2000, and the Ultramar Diamond Shamrock business in 2001. It subsequently acquired El Paso refinery, pipeline and terminal assets in South Texas, purchased Premcor in 2005, and expanded its ethanol portfolio in 2009. In 2011, Valero bought Chevron’s Pembroke refinery in Wales and associated United Kingdom and Ireland logistics, aviation-fuel and wholesale marketing assets, giving it a substantial European presence. Valero’s refining network has included facilities on the U.S. Gulf Coast, the West Coast, the Midwest and in the United Kingdom. The company processes a broad range of crude oils and produces gasoline, diesel, jet fuel, asphalt, petrochemical feedstocks and other products. Its retail presence has operated under several brands, including Valero, Diamond Shamrock, Shamrock, Beacon, Ultramar and licensed Total-branded sites. In 2013, Valero separated its company-operated retail business into CST Brands, while retaining extensive wholesale supply relationships with branded and independent outlets. The company has also become a major producer of lower-carbon fuels. In 2011, it formed Diamond Green Diesel with Darling Ingredients. The joint venture developed renewable-diesel facilities at Valero refinery sites, first at St. Charles, Louisiana, and later at Port Arthur, Texas. Valero also owns or operates ethanol plants in the U.S. Midwest. In 2024, its Port Arthur renewable-fuels complex brought sustainable aviation fuel production online, creating a route into an emerging aviation-decarbonization market. Valero remains exposed to the economics and regulation of petroleum refining. Margins, crude-oil differentials, maintenance outages, fuel standards, carbon policy and regional demand all affect its results. The company has faced environmental litigation, regulatory enforcement and criticism over air emissions, petroleum-coke handling, crude sourcing and political activity. It has also closed or sold assets when market conditions were unfavorable, including its Delaware City and Paulsboro operations. In 2025, Valero announced plans to shut the Benicia refinery after recording impairment charges related to its California operations; reference material states that the facility was to be idled while Northern California would continue to receive fuel through imports and existing inventories. Valero’s present identity therefore combines a large conventional refining platform with growing renewable-fuels operations, rather than representing a transition away from hydrocarbons altogether.

Valero Energy was created in 1980 from the LoVaca Gathering Company, a Coastal States Gas subsidiary. Its formation followed a major settlement arising from Coastal States’ inability to fulfill natural-gas supply contracts during a period of shortage in Texas. The new company was named for Mission San Antonio de Valero and initially operated in natural gas transmission. During the 1980s, Valero developed refining and marine-service capabilities. In 1985, its refining and marketing activity was formalized through Valero Refining and Marketing Company. The decisive corporate change came in 1997, when Valero’s natural-gas service business was combined with a Pacific Gas and Electric subsidiary and the refining assets were organized as Valero Energy Corporation. The same period brought refinery acquisitions from Basis Petroleum and Mobil, including Paulsboro in New Jersey, establishing Valero as a leading independent U.S. refiner. Valero expanded westward in 2000 by acquiring the Benicia refinery and interests in Exxon-branded California service stations. It also began selling gasoline under the Valero name. In 2001, the acquisition of Ultramar Diamond Shamrock added refineries, fuel brands and logistics assets. The logistics partnership later became Valero L.P. and was spun off in 2006 as NuStar Energy. Valero continued building its branded marketing presence in the Northeast and Florida and gradually converted several acquired station networks to Valero branding. The company’s 2003 acquisition of El Paso assets strengthened its Corpus Christi and South Texas refining, pipeline and terminal system. Its 2005 purchase of Premcor for approximately $8 billion was another major expansion, adding refineries with varied crude-processing and product capabilities. Valero also bought asphalt facilities and a number of retail sites, but its retail business remained smaller than its industrial refining operation. In 2009, amid weak refining economics, the company closed Delaware City and reduced its workforce. That year it entered ethanol by acquiring a group of Midwestern plants. Valero’s international scale increased in 2011 through the purchase of Chevron’s Pembroke refinery in Wales and related United Kingdom and Ireland infrastructure, including pipelines, terminals, aviation-fuel operations and a large wholesale site network. The company later divested its East Coast refining assets, including Delaware City and Paulsboro, concentrating its conventional refining footprint in other regions. In 2013, it spun off its retail operations into CST Brands but retained supply agreements and ownership of several fuel trademarks. Renewable fuels became a second strategic pillar. Valero and Darling Ingredients created Diamond Green Diesel in 2011, and the joint venture began renewable-diesel production next to Valero’s St. Charles refinery in Louisiana. Expansion increased the site’s output, while a second facility at Port Arthur began operating in 2022. Valero also operates a sizable ethanol network, making it one of the larger U.S. producers of corn ethanol. The Port Arthur site later added sustainable aviation fuel capability, completed in 2024, with the product designed for blending with conventional jet fuel. Valero’s history has also been shaped by environmental and political controversy. Its facilities have been cited in assessments of industrial air emissions, and its California operations have drawn criticism over crude sourcing, petroleum-coke handling and air quality. In 2010, the company was reported as a leading financial supporter of California Proposition 23, which sought to delay implementation of the state’s climate law. In 2020, an EPA settlement addressed alleged Clean Air Act fuel-quality and compliance violations. Separately, a 2024 settlement resolved a lawsuit over alleged petcoke releases at Benicia, and California regulators imposed an $82 million air-pollution penalty. Valero subsequently announced the planned closure or idling of Benicia amid impairment charges and California’s changing fuel-policy environment. The company continues to operate as a major conventional refiner while increasing its renewable-diesel, ethanol and sustainable-aviation-fuel capacity.

• 2024

  Port Arthur sustainable aviation fuel production completed

  [1]Valero Energyen.wikipedia.org

  The renewable-fuels complex brought approximately 235 million gallons per year of sustainable aviation fuel capacity online.

• 2022

  Diamond Green Diesel Port Arthur begins operations

  [1]Valero Energyen.wikipedia.org

  The second Diamond Green Diesel plant began renewable-diesel production beside Valero’s Port Arthur refinery.

• 2013

  Retail business spun off

  [1]Valero Energyen.wikipedia.org

  Valero separated its retail operations into CST Brands while retaining wholesale fuel-supply relationships.

• 2011

  Pembroke refinery acquired

  [1]Valero Energyen.wikipedia.org

  Valero acquired Chevron’s Pembroke refinery and related European logistics and marketing assets.

• 2009

  Valero enters ethanol

  [1]Valero Energyen.wikipedia.org

  Valero acquired several Midwestern ethanol plants and began building a substantial renewable-fuels business.

• 2005

  Premcor acquired

  [1]Valero Energyen.wikipedia.org

  The approximately $8 billion transaction significantly enlarged Valero’s U.S. refining platform.

• 2001

  Ultramar Diamond Shamrock acquired

  [1]Valero Energyen.wikipedia.org

  The acquisition expanded Valero’s refining, logistics, retail and fuel-brand portfolio.

• 1997

  Refining assets reorganized into Valero Energy Corporation

  [1]Valero Energyen.wikipedia.org

  Valero separated its refining assets from the natural-gas business during a restructuring involving Pacific Gas and Electric.

• 1985

  Refining and marketing subsidiary created

  [1]Valero Energyen.wikipedia.org

  Valero Refining and Marketing Company was established through the company’s Saber Energy interests.

• 1980

  Valero is established

  [1]Valero Energyen.wikipedia.org

  Valero was formed as a spinoff of Coastal States Gas Corporation’s LoVaca Gathering Company and initially inherited natural-gas operations.

A large independent refiner and fuels producer with an integrated renewable-fuels platform and branded wholesale marketing network.

• Refining · 1980

  Refined petroleum fuels

  Valero’s core output includes gasoline, diesel, jet fuel and other transportation fuels manufactured across its refinery system. The refining segment also includes supporting pipelines, terminals, marketing operations and production of asphalt and petrochemical-related products. Feedstocks, regional demand and fuel specifications vary by facility.

• Renewable fuels · 2013

  Renewable diesel

  Produced through the Diamond Green Diesel joint venture with Darling Ingredients, Valero’s renewable diesel is made from renewable feedstocks and is chemically distinct from conventional biodiesel. Facilities at St. Charles, Louisiana, and Port Arthur, Texas, give the company a large Gulf Coast renewable-diesel platform, alongside renewable naphtha production.

• Renewable fuels · 2009

  Ethanol

  Valero operates a network of Midwestern ethanol plants producing fuel ethanol from corn. Ethanol is sold into gasoline blending markets and represents one of the company’s largest renewable-fuels businesses. The segment’s economics are affected by corn and natural-gas costs, fuel demand, blending policy and renewable-fuel regulation.

• Aviation fuel · 2024

  Sustainable aviation fuel

  Valero’s Port Arthur renewable-fuels complex produces sustainable aviation fuel through its Diamond Green Diesel partnership. The fuel is designed to be blended with conventional jet fuel and has been supplied for airline use, including arrangements involving JetBlue and Southwest Airlines. It extends Valero’s renewable-products portfolio into commercial aviation.

• Fuel marketing · 2000

  Valero branded fuels

  The Valero brand is used across a network of branded retail and wholesale fuel locations. Valero has also operated or licensed related brands including Shamrock, Diamond Shamrock, Beacon, Ultramar and Total-branded sites. Its retail identity has been periodically refreshed, including the Vanguard design introduced in 2018.

• 2026

  Port Arthur refinery explosion and fire

  Reference material reports an explosion and fire at Valero’s Port Arthur refinery on March 23, 2026. Details concerning injuries, emissions, damage, cause and regulatory response are not established in the supplied material.

  Source

• 2024

  Benicia air-pollution enforcement

  California air-quality agencies fined Valero $82 million over air-pollution violations following a 2019 inspection at the Benicia refinery. The penalty was described in the reference material as the largest in the Bay Area Air Quality Management District’s history.

  Source

• 2022

  Benicia petroleum-coke lawsuit

  San Francisco Baykeeper sued Valero and shipping operator Amports, alleging that petroleum coke associated with Valero’s Benicia refinery was released into San Francisco Bay. The matter was settled in 2024 with monetary payment, cleanup obligations and measures intended to reduce dust and spills.

  Source

Read more

• 2018Vanguard retail rebrand

  United States

  Valero introduced a redesigned logo, station canopy and storefront system using blue, white and yellow. The rollout was intended to modernize the public-facing network and support a more premium brand presentation.

  Outcome. The new identity was scheduled for phased deployment across Valero-branded locations.

  Source
• 2010Support for California Proposition 23

  United States · California

  Valero was reported as one of the largest financial supporters of Proposition 23, an initiative that would have delayed implementation of California’s greenhouse-gas law until specified unemployment conditions were met. The company’s participation made it a prominent target of environmental and climate-policy criticism.

  Outcome. The proposition was rejected by California voters.

  Source

• 2025

  Plan Benicia refinery shutdownStrategy

  Background

  Valero cited California operating conditions and recorded impairment costs associated with its California operations as the state pursued policies aimed at reducing fossil-fuel dependence.

  Action taken

  Valero announced that it would shut or idle the Benicia refinery while continuing to supply Northern California through imports and existing inventories.

  Aftermath

  The decision reduced Valero’s California refining footprint; the long-term regional supply and employment effects require continued reporting.

  California operations impairment costs. Approximately US$1.1 billion (2025 announcement)

  Source

• 2023

  Approve sustainable aviation fuel projectProduct launch

  Background

  Valero and Darling Ingredients identified sustainable aviation fuel as an opportunity to extend their renewable-fuels platform into a difficult-to-decarbonize transport sector.

  Action taken

  The partners approved investment in a sustainable aviation fuel project at Diamond Green Diesel’s Port Arthur site.

  Aftermath

  Production was completed in 2024, and airline supply arrangements followed.

  Source

• 2013

  Spin off retail operationsStrategy

  Background

  Valero’s industrial refining and wholesale activities were strategically more important than its directly operated retail stores.

  Action taken

  The company spun off its retail operations into CST Brands while maintaining long-term fuel-supply relationships.

  Aftermath

  Valero continued supporting thousands of branded retail locations without retaining the same directly operated retail structure.

  Source

• 2011

  Acquire Pembroke refinery and European assetsM&A

  Background

  Valero wanted a European refining and marketing platform and a way to improve supply economics for Atlantic markets.

  Action taken

  Valero acquired Chevron’s Pembroke refinery and associated United Kingdom and Ireland pipelines, terminals, aviation-fuel operations and wholesale sites.

  Aftermath

  The acquisition established Valero as a significant refiner and fuel marketer in the United Kingdom and Ireland.

  Purchase price excluding working capital. Approximately US$730 million (2011)

  Source

• 2011

  Create Diamond Green DieselStrategy

  Background

  Valero sought exposure to renewable fuels while using its refining infrastructure and Darling Ingredients’ feedstock expertise.

  Action taken

  Valero and Darling Ingredients formed Diamond Green Diesel and developed a renewable-diesel plant at St. Charles, Louisiana.

  Aftermath

  The partnership expanded into a second Gulf Coast plant and became a central part of Valero’s renewable-fuels strategy.

  Source

• 2005

  Acquire PremcorM&A

  Background

  Valero sought to enlarge its independent refining base and add facilities with complementary crude-processing and product capabilities.

  Action taken

  Valero purchased Premcor for approximately $8 billion.

  Aftermath

  The transaction materially increased Valero’s U.S. refining scale.

  Acquisition price. Approximately US$8 billion (2005)

  Source

1. 1Valero Energyen.wikipedia.org
2. 2Valero Energy Corporation Clean Air Act Settlementepa.gov