Valero 2010 Annual Report Download - page 14

12 COSTSAVINGS INITIATIVES
Cost-saving was a critical part of Valero’s
improvement in 2010. In fact, the company achieved
pre-tax cost savings of nearly a quarter of a billion
dollars, or $225 million – more than double our
initial goal of $100 million in savings.
Since the beginning of 2007, various cost-savings
initiatives have resulted in $620 million in
pre-tax savings. We believe that cost-savings and
optimization of assets are critical to positioning the
company with more earnings power for the future,
and reaching the ultimate objective of becoming
a world-class competitor in the global energy
business.
Valero employees are engaged in a coordinated
eort to help the company reduce costs through
targeted programs, from eective energy
stewardship to more strategic procurement of
renery equipment and focused retail initiatives.
Through the fourth quarter of 2010, Valero’s rening
cash operating expenses per barrel from continuing
operations was reduced to $3.64 per barrel from
$4.41 per barrel in 2008. Industry benchmarking
surveys showed that Valero continued to improve its
competitive, low-cost operations. 2010 was Valero’s
best companywide performance in this area in ve
years, and the Bill Greehey Renery complex in
Corpus Christi, Texas, ranked as one of the lowest-
cost operating facilities on the Gulf Coast.
Meanwhile, Valero renery energy eciency
continued to improve, with a goal of achieving
rst-quartile status. Valero reneries have realized
substantial annualized energy savings under an
Energy Stewardship Program which has focused
on improvements in operations, such as distillation
SINCE 2007, OUR DEDICATED EMPLOYEES HAVE SAVED THE COMPANY $620 MILLION
_
$225 MILLION IN 2010 ALONE.
PATH TO
EXCELLENCE
Cost-Savings Initiatives