Category Archives: Valero Energy Corporation

VALLEJO TIMES-HERALD LETTER: Valero is NOT good neighbor!

Repost from the Vallejo Times-Herald

Valero is NOT a good neighbor!

By Rebekah Ramos, September 25, 2015

Valero’s self-proclaimed “Good Neighbor” status is laughable when you begin to peel back the onion and remove the layers of misinformation (or missing information) and reveal the same flavor of corporate propaganda and fearmongering that is used to hold small communities hostage.

There are hidden costs to having Valero as a neighbor that you may not be aware of.

Valero says the City of Benicia is losing more than $360K per year in revenue because of delays in approving their crude by rail project, which could get us 4 new police officers.

Valero DOESN’T say…

    • CEQA (California Environmental Quality Act) is a law that requires due diligence to properly evaluate environmental impacts and most importantly, inform the public of those impacts. City staff initially attempted to push this project through, under the radar, and without LITTLE public notification – skirting the law. Had it not been for a group of alert citizens bringing this to the public’s attention Valero would have gotten away with implementing a project that would have enormous ramifications to our health, safety, and economic viability, not only in our community, but every community along the rails.
    • Our personal safety is NOT at risk because we are short on police officers, it’s at risk because transporting highly volatile crude oil by rail is extremely risky business. More than 17 major oil train accidents have occurred in the last 24 months resulting in explosions, spills, and derailments.

Valero says they contribute 25% to Benicia’s general fund.

Valero DOESN’T say…

  • That number is actually 20% AND it doesn’t reflect the millions that Valero has taken away from the city’s coffers in recent years.
  • The City of Benicia was forced to pay Valero $2.3 million because Valero filed an appeal for a reduction in its property value from $1.02 billion to $230 million and $964 million to $100 million in 2012 and 2013 respectively despite climbing profits and gas prices since 2010. Benicia loses $2.3 million AND any on-going revenue generated from Valero’s property taxes. How many police officers do you think $2.3 million get us?

Valero says the crude by rail project will reduce air emissions and decrease greenhouse gases. In addition, they say they are entitled to $57million in emission reduction credits because of improvements made to the refinery.

Valero DOESN’T say…

  • The recirculated EIR for their crude by rail project specifically states that there will be significant increases in air emissions and greenhouse gases.
  • Valero has received dozens of notices of emissions violations nearly every single month of 2014 and 2015 including a violation for Benzene.
  • Valero has failed to install any publically accessible emissions monitoring equipment despite their pledge to do so since 2008.
  • Emission reduction credits would allow Valero to increase their emissions for new projects, sell or trade their credits to other polluters. Because of Cap and Trade legislation, big polluters in our own backyards get to pollute even more.
  • According to the EPA, Valero is the biggest polluter in Solano County, contributing 82% of all toxic releases in 2013. Data for 2014 and 15 is not available.

Valero is desperate to turn a profit and will use whatever means is necessary – squeeze money from the city coffers, pollute our environment, and put our lives at risk – to satisfy the short-term interests of their shareholders. They even threaten to lay people off or sell the refinery if the city doesn’t comply.

We can’t let one business keep our community in such an economically vulnerable situation. The City of Benicia has adopted a Climate Action Plan, but can’t seem to address THE REAL CLIMATE ELEPHANT IN THE ROOM, which is Valero. It’s time that serious action be taken to seek out and invite other, more sustainable industries to our city because Valero is NOT a Good Neighbor!

Valero will soon have fifth refinery processing 100 percent North American crude

Repost from the San Antonio Business Journal
[Editor: Note brief reference to Valero’s Benicia Refinery at end of this article.   – RS]

Valero will soon have fifth refinery processing 100 percent North American crude

By Sergio Chapa, Sep 11, 2015, 6:44pm CDT
File photo Valero Energy Corporation's Jean Gaulin Refinery in Quebec City
File photo – Valero Energy Corporation’s Jean Gaulin Refinery in Quebec City

San Antonio-based Valero Energy Corp. is expected to have its fifth refinery capable of processing nothing but North American crude by the end of the year.

Valero (NYSE: VLO) revealed in an investors’ presentation released earlier this week that its Jean Gaulin Refinery in Quebec will be processing 100 percent North American crude oil by the end of the year.

Company figures show that the refinery was 100 percent dependent on foreign crude oil in first quarter 2013, but production from the tar sands region of Canada and the shale plays of the United States has dramatically changed the situation.

The Jean Gaulin Refinery is processing about 80 percent North American-sourced crude oil but will be at 100 percent once a project to modify the Enbridge Line 9B Pipeline is completed in the fourth quarter. The project will reverse the flow of the pipeline to enable oil from the tar sands region of Alberta to flow east to Valero’s refinery in Quebec.

Most refineries were built decades ago and were configured to process to Middle Eastern oil, but Valero spokesman Bill Day told the San Antonio Business Journal that the Jean Gaulin Refinery is lined up to be the fifth of the company’s refinery capable of processing 100 percent North American crude oil.

Day said Valero’s Ardmore, McKee, Memphis and Three Rivers refineries can already process 100 percent North American crude oil, while other plants are processing an increasing amount of North American crude.

The investors presentation shows that Valero is expanding its capacity to process a total of 185,000 barrels per day of light sweet crude from the Eagle Ford and other shale plays at the company’s McKee, Houston and Corpus Christi refineries in Texas.

Day said that the addition of the Keystone XL Pipeline would enable Valero to replace foreign heavy crude with heavy crude from Canada. He also noted that a proposed rail terminal at the company’s Benicia refinery in California, would enable Valero to offset foreign crude brought in by ship with North American crude brought in by rail.

Valero logs record high net income in first quarter 2015

Repost from MySA, San Antonio, TX

Valero logs record high first quarter

By Vicki Vaughan : April 28, 2015

Valero Energy Corp. on Tuesday reported a record high first quarter based on strong performance from its refining segment.

Valero’s net income from continuing operations rose 16 percent, to $964 million, or $1.87 a share, compared to $829 million, or $1.54 a share, for the same period a year ago.

The results handily beat analysts’ estimates that the San Antonio-based refiner would earn $1.72 a share.

“Our team’s solid performance and favorable margins helped us deliver impressive results during a heavy planned-maintenance period in the first quarter,” CEO Joe Gorder said in a statement.

Valero’s refineries processed more crude oil in the quarter, handling 2.7 million barrels a day, an increase of 9,000 barrels a day in the first quarter of 2014.

Trains in Canada derailments carried synthetic crude for Valero

Repost from Reuters

Trains in Canada derailments carried synthetic crude for Valero

TORONTO, Mar 10, 2015 12:56pm EDT

(Reuters) – The two oil trains that derailed and burst into flames in recent weeks in northern Ontario were both carrying synthetic crude to Valero Energy Corp’s refinery near Quebec City, the U.S.-based company said on Tuesday.

Saturday’s CN Rail derailment came less than a month after another CN train carrying oil went off the tracks and ignited in northern Ontario. The railway had said both were carrying crude from Alberta, but declined to give their exact destination.

“We take safety very seriously, so we’re concerned anytime there’s an incident,” said Valero spokesman Bill Day. “Despite the number of rail incidents recently, it is very rare for cargo not to be delivered to its destination safely.”

Day said all of the rail companies Valero works with, including CN Rail, have good safety records.

Synthetic crude is produced from Alberta’s oil sands in upgrader plants, and usually commands a premium to conventional crudes because it is lighter and easier to refine into valuable byproducts such as gasoline.

Valero’s Jean Gaulin refinery is in Levis, across the St. Lawrence River from Quebec City.

In May 2013, the company said it would build a rail off-loading facility at the Jean Gaulin refinery so it could start using Western Canadian crude rather than relying on pricier imports. The company told Reuters it would take light, sweet Western Canadian crude rather than heavier oil sands crude.

Shipments of North American crude to the refinery ramped up early last year. On a July earnings call, the company said North American grades made up 83 percent of the refinery’s feedstock in the second quarter of 2014, up from 45 percent in the first quarter and 8 percent higher than a year earlier.

Separately on Tuesday, CN spokesman Jim Feeny said the train that derailed in February had been carrying petroleum distillates in addition to synthetic crude.

“The contents of the tank cars are a subject of interest and the TSB will be testing the contents to determine what they were,” said John Cottreau, spokesman for Canada’s Transportation Safety Board, which is investigating the incidents.

In a note to shippers on Tuesday, CN said a temporary bypass track would likely be completed by late afternoon, reopening its main line in northern Ontario.

(Reporting by Allison Martell in Toronto, and Scott Haggett and Nia Williams in Calgary; Editing by Alan Crosby)