Valero Energy Now in Position to Become the Largest Independent Petroleum Refiner in the US

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According to Industrial Information Resources Incorporated (IIR) over the past four-years, Valero Energy Corporation (San Antonio, Texas) has aggressively pursued the refining market by growing from a single refinery operation in Corpus Christi, Texas to owning eight refineries across the U.S. Most recently, Valero has entered into a lease-purchase option with El Paso Energy for their ninth refinery, which will be the company's second refinery in the Corpus Christi area.

Valero is also considering a merger with another Texas based oil company, Ultramar Diamond Shamrock Corporation. `If Valero's most recent merger plans with Ultramar Diamond Shamrock are approved, this will make them the largest independent refiner in the nation and the second largest refiner amongst all oil companies in the U.S.,` quotes Chris Paschall, IIR's Synfuels and Petroleum Refining Group Manager.

With growth in mind, Valero is laying out an aggressive capital spending program over the next three years to increase crude oil processing and gasoline production capacities, while addressing federal environmental mandates at several refineries. Research done by Industrialinfo.com has identified over $900 million in project spending either in development or under construction and scheduled for completion between February 2002 and January 2007. To meet the increased demand for electricity, Valero is also considering expansion of their industrial energy production as part of this capital spending program.

Established in 1980, Valero Energy Corporation processes over 1.1 million barrels per day of crude oil nationwide. Valero is part of the Forbes Fortune 100 companies and had gross revenues exceeding $14 billion in year 2000.