Jason Daniel Gabelman's questions to VALERO ENERGY CORP/TX (VLO) leadership • Q3 2025
Question
Jason Daniel Gabelman asked about the impact of Russian refining disruptions, particularly from Ukraine drone strikes, on product exports and how much of the current product strength is due to actual disruptions versus geopolitical risk premium. He also inquired about Valero's plans to resupply the market after the Benicia shutdown, specifically if imports from Asia would be necessary to meet contractual obligations.
Answer
Gary Simmons, Executive Vice President and COO, indicated that drone strikes have been effective, targeting higher complexity Russian refining capacity, leading to a ramp-up of lower complexity capacity. He clarified that the current market spike is more due to future geopolitical risk premium than immediate disruptions, though Russian product exports are falling. Lane Riggs, Chairman, CEO and President, stated that Valero intends to continue supplying its wholesale business contractual obligations after the Benicia shutdown, leveraging waterborne optionality to source products from anywhere in the world.