Valero was created on January 1, 1980, as a spinoff from the Coastal States Gas Corporation. At the time, it was the largest corporate spin off in U.S. history. Valero took over the natural gas operations of the LoVaca Gathering Company, a defunct subsidiary of Coastal States Gas. The name Valero comes from Misión San Antonio de Valero, better known worldwide as The Alamo.
The company acquired a small oil refinery in Corpus Christi, Texas, in 1981, and began refining operations in 1984.
In 1997, Valero spun off its refining and retail divisions into a separate company, which kept the Valero name. At the same time, the remaining divisions, which consisted primarily of natural gas operations, were acquired by the Pacific Gas and Electric Company. Later that year, Valero acquired Basis Petroleum, which left it with four refineries in Texas and Louisiana. They then acquired a Paulsboro, New Jersey, refinery in 1998, the company’s first refinery outside of the Gulf Coast area.
In 2000, Valero purchased ExxonMobil’s Benicia, California, refinery and interests in 350 Exxon-branded service stations in California, mainly in the San Francisco Bay area. The company also began retailing gasoline under the Valero brand. In June 2001, the company acquired the Huntway Refining Company, along with two asphalt plants on the west coast.
On December 31, 2001, Valero completed its acquisition of Ultramar Diamond Shamrock. This merger left Valero with over 4,700 retail sites in the U.S., Canada, and the Caribbean. With this acquisition, Valero also received ownership of Shamrock Logistics L.P., which was renamed Valero L.P. In 2006, this division was spun off as NuStar Energy. Starting in 2002, Valero has been expanding its marketing to the East Coast, specifically the Northeast and Florida, using the Valero brand.
On April 25, 2005, Valero agreed to buy Premcor, Inc., for 8 billion in cash and stock to become the largest U.S. refiner, as record prices for gasoline and other fuels boost profits, and on June 30 announced it was beginning a two-year process of converting Diamond Shamrock stations to the Valero brand. The next year, on May 5, 2008, the company agreed to buy 72 Albertson’s gas stations.
Valero laid off 500 employees at its Delaware City, Delaware refinery on November 20, 2009, due to profitability concerns. It is reported that the refinery had lost $1,000,000 per day since the beginning of the year.
“U.S. State Department spokesman Mark Toner said he hopes Helmerich & Payne is compensated and suggested the takeover and other recent nationalizations are scaring off private investment in Venezuela.
“We would just call on them, if they did make such a move, to compensate the owners of those wells,” Toner said. “This is the latest in such an instance where international investors, their investments are being nationalized by the government of Venezuela. It doesn’t speak or bode well for the investment climate there.”
OHHHH...THE IRONY! Obama runs around nationalizing banks,student loans,car manufacturers and soon the US oil companies and nary a word.Yet these US government takeovers of private property have the same effect on investment and economic growth as what Chavez is doing to his country. (eye roll)