ESG Report - Report - Page 8
Valero’s Strategy
Global energy supply must increase to meet the
demand created by a growing world population that
desires access to a higher standard of living. Liquid
transportation fuels are reliable, affordable and scalable,
and we believe they will continue to be essential
products well into the future.
Our strategic actions have enabled us to be a low-cost,
efficient and reliable supplier of liquid transportation
fuels to the world. Many of our refineries are located
in regions with advantaged operating expenses, raw
material costs and access to skilled labor. Throughout
Valero’s history, we have proactively managed our
business portfolio through acquisitions and divestitures
and have made selective investments to build a portfolio
of assets that we expect to thrive under most reasonable
energy demand forecasts, and we intend to continue to
optimize as conditions warrant.
Operational improvements have led to peer-leading performance in
refinery efficiency and margin capture
Our commitment to operational excellence and
investments in reliability have driven our refining
portfolio performance in mechanical availability
and cost efficiency, as benchmarked by Solomon. In
addition to minimizing environmental impacts and
enhancing process and personnel safety performance,
improvements in mechanical availability have enabled
greater margin capture, lower cash operating expenses
and peer-leading average free cash flow generation
since 2012.
Industry Benchmarking2
2008
2018
1st Quartile
2nd Quartile
3rd Quartile
4th Quartile
Mechanical
Availability
Personnel
Index
Maintenance
Index
Refining Cash Operating Expenses
Per Barrel of Throughput3
Non-Energy
Cash Opex
Long-Term, Sustainable
Competitive Advantage4
(excludes turnaround and D&A expenses)
$2,972
Free Cash
Flow
Peer Range
$8.50
Peer
Range
Average
2012 - 2022
$2.50
8
2012
2014
2016
2018
See page 79 for non-GAAP disclosures.
2020
2022
$0
($ in millions)
