Valero Energy operates a network of 15 refineries with a combined throughput capacity of 3.1 million barrels per day. By leveraging coking and hydrocracking units, the company shifted yield toward diesel—its highest‐margin product—in the third quarter, boosting downstream gross refining margin by 12% year-over-year to $18.20 per barrel. At its St. Charles refinery, Valero processed a record 315,000 barrels per day of heavy Canadian crude in December, capturing a $4.50‐per‐barrel differential advantage compared with lighter sweet grades. This operational agility has enabled Valero to outperform the industry average refining margin of $15.75 per barrel during periods of elevated feedstock volatility.

Following a policy shift by the U.S. administration to lift sanctions on Venezuelan crude, Valero began receiving initial shipments of 30 million to 50 million barrels of Maya and Merey grades in Q4. These heavy crudes typically trade at a $15 to $18 per barrel discount to Brent, allowing Valero’s Gulf Coast refineries to capture incremental margin uplifts of $5 to $7 per barrel after processing costs. Subsequent easing of export restrictions has extended the flow indefinitely, contributing to a 3.4% rise in Valero’s West Coast crack spread relative to other U.S. refiners over the past month.

Governor Gavin Newsom confirmed that, despite the planned April shutdown of Valero’s 155,000-barrel-per-day Benicia refinery, the company assured California regulators it will maintain product imports through its San Francisco Bay terminal. Valero has contracted 1.2 million barrels of gasoline and diesel from international suppliers for delivery between May and August to offset the closure. This arrangement is designed to minimize Northern California price spikes, with Valero estimating regional gasoline availability at 85 days of supply versus the five-year seasonal average of 90 days.