To reiterate, the three main segments of Valero’s business are refinery, ethanol, and retail. The refining segment takes part in refining, marketing, supply and distribution, and transportation logistics. The refined products that it produces are gasoline, jet fuel, petrochemicals, distillates, asphalt, and lubricants. The ethanol segment produces ethanol and distillers grains, and finally the retail segment sells everyday gasoline at gas stations.
Valero markets its refined products through a network of approximately 1,880 company-owned and leased retail sites. The recognizable names that this all takes place under include Valero, Diamond Shamrock, Ultramar, Beacon, and Texaco. Going back to the some of the statistics from the introduction, Valero’s 16 refineries produce about 3 million barrels of oil per day. This is in conjunction with the 10 ethanol plants that produce around 1.1 billion gallons per year. These are impressive indicators of success that all stem from the founding of Valero in 1955 in San Antonio, Texas, where headquarters are still held today.
The oil and gas industry has three main parts: upstream, midstream, and downstream. The downstream, what Valero participates in, covers the refining of crude oil, the processing and purifying of natural gas, and the marketing and logistics decisions behind getting these products to customers. Through products including, but not limited to, everyday vehicle gasoline, kerosene, diesel, jet fuel, lubricants, asphalt, natural gas, and liquefied petroleum gas, the downstream sector of oil and gas touches almost every person’s life on the planet. The midstream sector, which is composed mainly of the transportation of crude oil to the refineries, is often grouped in within downstream terminology. When asked if the oil and gas industry is composed of unusual products, the best answer to respond with is “to some extent.” On one hand, consumers would say that they are extremely...
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