Valero 2007 Annual Report Download - page 14
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FOCUSONTHEFUTURE
Includes disposition of Lima refinery in 2007. Assumes exclusion of
Aruba, Memphis, Krotz Springs and Ardmore refineries at end of 2008.
company continues to capitalize on a great margin environment
for diesel, which it expects to continue.
In addition to these strategic projects, Valero invested more
than $1 billion in 2007 for initiatives focused primarily on improving
the reliability, safety and operational integrity of its reneries.
Valero will continue with these investments as our commitment to
reliability initiatives remains at the forefront in 2008.
Focusing on the future, Valero recently announced the two
– a $1.4 billion
gas oil hydrocracker at its St. Charles renery and a $2.4 billion
hydrocracker/coker at Port Arthur. These major investments
are expected to boost these reneries’ production of ULSD by
49,000 barrels per day and 54,000 barrels per day, respectively.
The completed projects will position these reneries among
the leaders in the U.S. rening industry, adding more capacity to
produce ULSD and process heavy, sour feedstocks that trade at
discounts to light sweet crude oil. The projects are expected to be
complete by 2011.
Valero’s 2007 projects, together with its planned future
investments, are examples of the company’s strategy to convert
low-cost feedstocks into premium, cleaner-burning fuels,
particularly ULSD. Sour crude and residual fuel oils, which cost
less than light sweet crude oil, make up more than 60 percent
of Valero’s raw materials input, which provides signicant cost
advantages. With a focus on investments that enhance Valero’s
conversion capacity at its core reneries, and a goal of operational
excellence, the company believes that its vision to become a
world-class competitor, generating industry-leading returns on
investments, is in clear sight.