Valero 2011 Annual Report Download - page 9

9 | VALERO ENERGY CORPORATION
U.S. and Western Europe markets,
supplying growing international
economies with refined products,
and successfully dealing with
the lack of government support,
numerous regulations and the impact
of high prices on consumers.
U.S. federal policies are not
supportive of investment
or job creation. ere is a
crude oil and natural gas
exploration and development
boom going on in the
United States, but it gets
little if any federal support.
In Texas, where Valero has significant
operations, federal regulators have
taken over carbon dioxide permitting
and invalidated long-standing state
permit programs, hurting investment.
A massive, time-consuming effort
is required to prepare and obtain
permits for projects that could add
jobs and boost local economies.
We feel strongly that we need a public
policy and regulatory environment
that supports growth, energy
efficiency and competitiveness. We are
part of a viable manufacturing business
that offers excellent employment,
pays taxes and supports communities.
is is why we support public policy
that creates jobs, lowers costs to
consumers, reduces reliance on
overseas oil, and decreases political
risks abroad. e Keystone XL pipeline
from Canada to the Gulf Coast would
do all of those things, but the U.S.
administration in early 2012 denied
TransCanada Corp’s application
to move forward. We were deeply
disappointed and believe the decision
to be misguided, as it reflected a small,
but vocal, political group. Ultimately,
we expect this project to be approved.
A number of factors bode well for
Valero’s competitiveness. e closures
of uncompetitive refineries in the
Atlantic Basin are reducing excess
capacity and increasing demand
for products from our Gulf Coast
refineries. We are exporting into
growing markets, such as Latin
America and Mexico, from our large,
competitive Gulf Coast refineries.
e export markets are paying a
higher price than the domestic
U.S. market. Without these export
markets, more refineries would close.
As a U.S. manufacturer of refined
products and petrochemicals, we are
benefiting from access to relatively
inexpensive domestic natural gas.
Valero is an independent refiner, not
an oil producer, so crude oil prices are
a concern. We buy crude oil and other
feedstocks daily in order to supply
fuels and petrochemical feedstocks
to our customers every day. We make
products that improve people’s lives,
and every day we are focused on doing
that in a safe, environmentally sensitive
and competitive way. Our facilities
and our people are among the best
in the industry – in safety, regulatory
compliance, reliability and profitability.
In closing, I want to thank our
employees for their commitment
to excellence, our customers for
their business, and our suppliers and
contractors who make tremendous
efforts toward our goal of safe,
reliable and constantly improving
operations. Finally, thank you for
your investment in our company and
your confidence in us. We are looking
forward to making our operations
even better and strengthening our
position as a world-class competitor.
Bill Klesse
Chairman of the Board, Chief Executive
Officer and President
We are looking forward to
making our operations even better
and strengthening our position
as a world-class competitor.
A LETTER TO OUR
STOCKHOLDERS
2011 SUMMARY ANNUAL REPORT | 9